IDEAS home Printed from https://ideas.repec.org/a/voj/journl/v65y2018i4p427-440id497.html
   My bibliography  Save this article

Economic Risk Linkages Between Israel and Middle East Countries

Author

Listed:
  • Dervis Kirikkaleli
  • Vedat Yorucu

Abstract

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 Walt 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. Key wods: Israel, Middle East, Economic Risk, Block Exogeneity-Wald Test, Generalized Impulse Response Function. JEL: C32, F32. Povezivanje ekonomskih rizika između Izraela i zemalja Bliskog istoka U radu se analizira odnos ekonomskog rizika između sedam vodećih ekonomija na Bliskom Istoku i Izraelu. Naši nalazi su od velikog interesa i verovatno će započeti novu debatu na području Bliskog Istoka. Rezultati egzogenog Block Wald testa pokazuju da ekonomska stabilnost u Izraelu uzrokuje u Granger-ovom smislu ekonomsku stabilnost u Libanu, Omanu, Qataru i UAE. Povratna uzročnost je validirana samo za Libanon i Bahrein. Takođe smo zaključili da postoji pozitivan uticaj ekonomske stabilnosti Izraela na stabilnost Bahreina, Kuwaita i UAE sa različitim sezonskim obrascima. U suprotnom smeru, kao odgovor na šok na ekonomsku stabilnost Izraela, stabilnost UAE, Saudijske Arabije, Omana i Kuwaita takođe se smatra pozitivnim i značajnim sa različitim sezonskim frekvencijama. Ključne reči: Izrael, Bliski Istok, ekonomski rizik, egzogeni Block Wald test, generalizovana funkcija impulsnog odziva.

Suggested Citation

  • Dervis Kirikkaleli & Vedat Yorucu, 2018. "Economic Risk Linkages Between Israel and Middle East Countries," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 65(4), pages 427-440.
    • Handle: RePEc:voj:journl:v:65:y:2018:i:4:p:427-440:id:497
    as

    Download full text from publisher

    File URL: https://panoeconomicus.org/index.php/jorunal/article/view/497/487
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Israel; Middle East; Economic Risk; Block Exogeneity-Wald Test; Generalized Impulse Response Function;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:voj:journl:v:65:y:2018:i:4:p:427-440:id:497. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivana Horvat (email available below). General contact details of provider: https://panoeconomicus.org/index.php/jorunal/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.