Oil Sector Spillover Effects to the Kuwait Stock Market under Uncertainty

  • Yousef M. Abdulrazaq Assistant Professor of Finance, Department of Economics and Finance, Gulf University for Science and Technology, Kuwait https://orcid.org/0000-0002-4541-849X
  • Shekar Shetty Associate Professor of Finance, Department of Economics and Finance, Gulf University for Science and Technology, Kuwait https://orcid.org/0000-0002-6427-2035
Keywords: Kuwait, Stock Market, Oil Prices, Market Uncertainty, Causality, Volatility.

Abstract

The purpose of this paper is to identify the connection between oil prices and the performance of oil and gas, industry and services sectors. The paper is supported by the granger causality and Engle and Granger cointegration tests. The research findings do not support a long-run association between Brent oil prices excluding the case of the Oil and Gas sector index; however, short-run dynamics were recognized. There is no unidirectional causality found in any case. The outcomes of the GARCH model show stable results for all three sectors.

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Published
2020-02-28
How to Cite
Abdulrazaq, Y. M., & Shetty, S. (2020). Oil Sector Spillover Effects to the Kuwait Stock Market under Uncertainty. International Journal of Accounting & Finance Review, 5(1), 32-41. https://doi.org/10.46281/ijafr.v5i1.490