International Journal of Social Science & Economic Research
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Title:
IMPACT OF GDP, FOREIGN DIRECT INVESTMENT, INFLATION RATE, AND INTERST RATE ON STOCK MARKET VALUES IN SAUDI ARABIA

Authors:
Abdullah Algarini

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Abdullah Algarini
Collage of Economics and Administrative Sciences, Al Imam Mohammad Ibn Saud Islamic University, PO box 395306, Riyadh 11375, Saudi Arabia

MLA 8
Algarini, Abdullah. "IMPACT OF GDP, FOREIGN DIRECT INVESTMENT, INFLATION RATE, AND INTERST RATE ON STOCK MARKET VALUES IN SAUDI ARABIA." Int. j. of Social Science and Economic Research, vol. 5, no. 7, July 2020, pp. 1667-1678, ijsser.org/more2020.php?id=117. Accessed July 2020.
APA 6
Algarini, A. (2020, July). IMPACT OF GDP, FOREIGN DIRECT INVESTMENT, INFLATION RATE, AND INTERST RATE ON STOCK MARKET VALUES IN SAUDI ARABIA. Int. j. of Social Science and Economic Research, 5(7), 1667-1678. Retrieved from ijsser.org/more2020.php?id=117
Chicago
Algarini, Abdullah. "IMPACT OF GDP, FOREIGN DIRECT INVESTMENT, INFLATION RATE, AND INTERST RATE ON STOCK MARKET VALUES IN SAUDI ARABIA." Int. j. of Social Science and Economic Research 5, no. 7 (July 2020), 1667-1678. Accessed July, 2020. ijsser.org/more2020.php?id=117.

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Abstract:
This study aims to find the long run and short run equilibrium relationships between stock market values (MV) and macroeconomic variables (GDP, foreign direct investment (FDI), inflation rate (INF), and interest rate (IR)) using annual time series data for the 1993-2018 period. The results indicate that all macroeconomic variables are stationary in the first difference and co-integrated with MV. The results also indicate that there is a long run relationship between MV and all macroeconomic variables and between GDP and all other variables. But there is one short run relationship between stock market values and all variables in lagged. The results of this study suggest that Saudi Arabian policy makers should pay attention to the effects of monetary policies and economic activity measurement on the stock market index.

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