KUWAIT STOCK MARKET DEVELOPMENT AND ECONOMIC GROWTH

Abstract

This study investigated the relationship between stock market development and economic growth in Kuwait. The methodology used included the ordinary least square of multiple regression analysis (OLS) and Pairwise Granger Causality Test. The data covered the period from 2001Q1 to 2019Q4. The results from OLS show a significant positive relationship between the stock market and economic development. In contrast, the findings of this study revealed a one-way causation from market capitalization to economic growth and from the Kuwait stock market index to economic growth.