Faycal Chiad, Hamoudi Hadj Sahraoui, Mohamed Guerrache



What Drives Stock Market Development in Arab Countries?

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Arab stock exchanges have witnessed tremendous growth in recent decades, and the number of listed companies and the size of stock market capitalization have increased. In the light of this remarkable growth, this study aims to find out what are the most important determinants and economic factors affecting this development during the period 2006– 2017. By employing panel data models, we find that trade openness; market liquidity, money supply and economic growth have positive impacts on stock market development, whereas the global financial crisis has negative impact. Based on these results, measures should be taken to improve market liquidity, control of money supply, and maintain a balanced economic growth rate to promote the development of Arab stock exchanges. Policy recommendations are provided based on these findings.


Macroeconomic variables, Stock markets development, Arab Countries, Panel data analysis.


Cite this paper

Faycal Chiad, Hamoudi Hadj Sahraoui, Mohamed Guerrache. (2021) What Drives Stock Market Development in Arab Countries?. International Journal of Economics and Management Systems, 6, 156-166


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