The Impact of Macroeconomic Factors on the Performance of General Stock Index In Jordan
- Details
- Category: Department of Business Administration and marketing
- Published: Tuesday, 24 April 2012 03:00
- Written by Manal Mohammad Al-Ateeq
- Hits: 2769
Abstract
The Impact of Macroeconomic Factors on the Performance of General Stock Index In Jordan
During the Period (1994 – 2009)
Mutah University 2010
The study aimed to examine the impact of some Macroeconomic Factors on the performance of Amman Stock Exchange. And explore the relationship between each of them.
To accomplish the above objectives this study employed quantitative approach represented by the econometric analysis (Time Series Analysis) of monthly data during the period (1994 - 2009).
The researcher applied Augmented Dickey-fuller test to trace the stationarity and Granger Causality test to find the relationship between the variables after that the Impulse Response Function has been applied to determine the response for the effects between variables.
The results shows that all the variables Stationary with 1st difference.
Money Supply, Inflation and Consumer Price Index Granger Cause the General Stoke Index. Where as Industrial Production, Exchange rate and Interest rate doesn’t Granger Cause the General Index.
For the Impulse Response Function General Stock Index respond to Money Supply, Industrial Production, Inflation and Consumer Price Index, while there was no respond to Exchange Rate and Interest Rate.