The impact of stock market development and accountability on economic growth in the Gulf Cooperation Council countries

Abstract

The objective of this study is to examine the impact of stock market development and accountability on the economic growth of the Gulf Cooperation Council (GCC) countries from 1993 to 2019. The data of this study was collected from the World Bank’s outlook and analysed using the ordinary least square (OLS) model, which is a type of linear regression. The findings of this study are beneficial for potential investors, either local or foreign, to make decisions related to investing in this region. It also indicates to foreign investors that investing in this region can be financially beneficial for them in terms of earning profit, which will also indirectly impact the economy in a positive way. The results of high stock market development variables are crucial to promoting economic growth, and therefore, strategic efforts should be aimed at reducing transaction costs to stimulate trading activities. Policymakers in GCC countries should focus on strengthening stock markets by improving regulation, ensuring transparency, and enhancing investor protection.

Keywords: Stock Market, Economic Development, Growth

Authors’ individual contribution: Conceptualization — H.E.; Methodology — H.E. and L.E.; Formal Analysis — H.E. and L.E.; Investigation — H.E. and L.E.; Resources — H.E.; Writing — Original Draft — H.E. and L.E.; Writing — Review & Editing — H.E.; Supervision — H.E.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G2, E02, F3

Received: 01.12.2024
Revised: 30.01.2025; 04.03.2025; 07.04.2025
Accepted: 16.04.2025
Published online: 18.04.2025

How to cite this paper: Elfeituri, H., & ElGehani, L. (2025). The impact of stock market development and accountability on economic growth in the Gulf Cooperation Council countries. Reporting and Accountability Review, 2(1), 8–14. https://doi.org/10.22495/rarv2i1p1