Is democracy costly? The effect of political turmoil on Kuwait’s stock market

IF 6.3 2区经济学 Q1 BUSINESS, FINANCE

Borsa Istanbul Review Pub Date : 2024-09-01 DOI:10.1016/j.bir.2024.05.009

引用次数: 0

Abstract

This study is the first to analyze the impact of domestic political unrest on Kuwait’s stock market. Our data indicates a daily market decline of 0.16 percent during periods when the parliament is suspended. This translates to a 7.1 percent loss in the value of the Kuwait Stock Exchange for each period of suspension. Our findings suggest that Kuwait, despite having a more democratic political system, experiences greater economic instability than Saudi Arabia. This research highlights the nuanced relationship between the political structure and economic performance, particularly in emerging markets, challenging the notion that more democracy invariably leads to better economic outcomes.

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民主代价高昂吗？政治动荡对科威特股市的影响

本研究首次分析了国内政治动荡对科威特股市的影响。我们的数据显示，在议会停摆期间，市场日跌幅为 0.16%。这意味着科威特证券交易所的价值在每次停市期间损失 7.1%。我们的研究结果表明，尽管科威特拥有更加民主的政治制度，但其经济不稳定性却高于沙特阿拉伯。这项研究凸显了政治结构与经济表现之间的微妙关系，尤其是在新兴市场，从而对 "更多民主必然带来更好的经济结果 "这一观点提出了质疑。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Borsa Istanbul Review Multiple-

CiteScore

7.60

自引率

3.80%

发文量

130

审稿时长

26 days

期刊介绍： Peer Review under the responsibility of Borsa İstanbul Anonim Sirketi. Borsa İstanbul Review provides a scholarly platform for empirical financial studies including but not limited to financial markets and institutions, financial economics, investor behavior, financial centers and market structures, corporate finance, recent economic and financial trends. Micro and macro data applications and comparative studies are welcome. Country coverage includes advanced, emerging and developing economies. In particular, we would like to publish empirical papers with significant policy implications and encourage submissions in the following areas: Research Topics: • Investments and Portfolio Management • Behavioral Finance • Financial Markets and Institutions • Market Microstructure • Islamic Finance • Financial Risk Management • Valuation • Capital Markets Governance • Financial Regulations