Contents of the volume

2019, Volume 72 - Issue 2

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 02 May 2019

THE FELDSTEIN-HORIOKA PUZZLE AND THE GLOBAL FINANCIAL CRISIS: EVIDENCE FROM SOUTH AFRICA USING ASYMMETRIC COINTEGRATION ANALYSIS

Andrew Phiri

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THE CAUSAL IMPACT OF STOCK MARKET DEVELOPMENT ON ECONOMIC DEVELOPMENT IN THE UAE: AN ASYMMETRIC APPROACH

Abdulnasser Hatemi-J

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THE IMPACT OF THE DIVIDEND TAX IN SOUTH AFRICA: A DYNAMIC CGE MODEL APPROACH

Lumengo Bonga-Bonga, Jean Luc Erero

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MODELING THE VOLATILITY OF EXCHANGE RATE CURRENCY USING GARCH MODEL

Chaido Dritsaki

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AN EMPIRICAL ANALYSIS FOR THE US OF THE EFFECTS OF GOVERNMENT BUDGET DEFICITS ON THE EX ANTE REAL INTEREST RATE YIELDS ON THIRTY-YEAR AND TWENTY-YEAR TREASURY BONDS

Richard J. Cebula, Maggie Foley

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ACKNOWLEDGEMENT TO REFEREES

Amedeo Amato

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Abdulnasser HATEMI-J, Department of Economics and Finance, College of Business and Economics, United Arab Emirates University

The Causal Impact of Stock Market Development on Economic Development in the UAE: An Asymmetric Approach

Pages

171-184

Abstract

This paper investigates the causal impact of the financial sector on the real or economic sector of the UAE. The underlying data is transformed into partial cumulative sums for positive and negative changes in order to conduct asymmetric causality tests. Allowing for asymmetry is consistent with reality since individuals in financial markets have the tendency to respond more powerfully to a negative news than to a positive one. We also capture the propagation mechanism of a shock in each variable by estimating the generalized impulse response functions, which are not sensitive to the way the variables are ordered in the model. The results reveal that the financial sector has indeed a causal impact on the real sector of the economy. However, the reverse causal impact is not found. These underlying causality results are also confirmed by the generalized impulse response functions.

JEL classification

C32, E44, G19

Keywords

Stock Market, Economic Development, Asymmetry, the UAE, Causality

Index

  1. Introduction
  2. Brief literature review
  3. Methodology and analysis
  4. Data description and empirical findings
  5. Conclusions

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