Economic risk linkages between Israel and middle east countries

Panoeconomicus

Yorucu Vedat¹  Kirikkaleli Dervis² 

[1] Eastern Mediterranean University, Department of Economics, Famagusta, T.R.N.C., Mersin, Turkey;European University of Lefke, Faculty of Economic and Administrative Science, Department of Banking and Finance Lefke, Northern Cyprus, Mersin, Turkey;

关键词: Israel;    Middle East;    Economic Risk;    Block Exogeneity-Wald Test;    Generalized Impulse Response Function;   

DOI  :  10.2298/PAN150227009K

来源: DOAJ

【 摘 要 】

This study analyses the economic risk relationship between seven of the top economies in the Middle East and Israel. Our findings are of great interest and likely to begin a new debate in the Middle East region. The results of a block exogeneity Wald test reveal that economic stability in Israel does Granger-cause economic stability in Lebanon, Oman, Qatar and the UAE. Reverse causality has been validated for Lebanon and Bahrain only. We also find that there is a positive impact on Israel’s economic stability over the stability of Bahrain, Kuwait and the UAE with different seasonal patterns. In the reverse direction, in response to a shock to Israel’s economic stability, the stability of the UAE, Saudi Arabia, Oman, and Kuwait are also found to be positive and significant with different seasonal frequencies.

【 授权许可】

Unknown