Stock markets and economic growth in oil exporting countries: evidence from Kuwait.

Bentour, El Mostafa (2014): Stock markets and economic growth in oil exporting countries: evidence from Kuwait. Forthcoming in:

Abstract

This paper empirically investigates the role played by the Kuwait stock market on the real sector. It uses useful steps and techniques to set up a regression based on the Mankiw-Romer-Weil model to answer whether there is an eventually positive effect of the stock market developments on the real economy. The results show a positive impact of the market capitalisation on the Gross Domestic Product. The elasticity of the market capitalization to GDP is around 0.17. This impact is also confirmed by an autoregressive vector model via estimation and impulse response functions on both total and non oil GDP.

• Item Type: MPRA Paper
• Language: English
• Keywords: Non oil GDP, Market Capitalization, Cobb-Douglas, Human Capital.
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence

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