Examining Integration Between Dubai and Kuwait Stock Markets

Abstract

The objective of this study is to examine the GCC stock markets integration mainly through its stock markets concentrating on specific markets namely, Dubai and Kuwait.  There are several methods have been used to examine the existence of integration. However, the Johansen approach to integration is considered a more reliable method than other conventional integration approaches, Johansen approach is more robust and performs well for large sample size, the results show that the null hypothesis of no integration cannot be accepted. This suggests the existence of a long-run relationship between Dubai and Kuwait.stock markets.

Keywords: stock markets integration, Johansen cointegration , Granger causality