The Relationship Between Oil Prices and Financial Market Prices: in Some Arab Countries Experimentals Evidences to Test The Hypothesis of an Asymmetric Relationship


The paper aimed to test the asymmetric relationship using NARDL methodology for the relationship between oil price and stock prices in Egypt, Saudi Arabia, Jordan and Kuwait. Monthly data were used from 1998 to 2017. The study found that there is an insufficient evidence of a relationship between oil prices and stock prices. These markets, except the Cairo Stock Exchange, show that positive changes in the price of oil lead to positive changes in market prices and vice versa.