The Impact of COVID-19 on the Saudi Stock Market across Different Sectors (TADAWUL)  (An Empirical Study Using the NARDL Model)

Authors

  • Nouf S. Alnafisah Lecturer, Princess Nourah bint Abdulrahman University, - PHD Student, Economics Departmt at King Saud University, Saudi Arabia. Author

DOI:

https://doi.org/10.33948/ESJ-KSU-15-2-4

Keywords:

impact, covid-19, TASI, travel restrictions, NARDL

Abstract

This study scrutinizes the asymmetric impact of COVID-19 on the Saudi stock market and various sectors, specifically focusing on the TASI (Tadawul All Share Index) and their response to policies restricting international mobility. The analysis employs the NARDL (Non-Autoregressive Distributed Lag) model, covering the period from March 5, 2020, to August 26, 2020. The findings suggest that the TASI index, including the media and food sectors, does not demonstrate a significant long-term response to confirmed COVID-19 infections. Conversely, the health, energy, and insurance sectors exhibit asymmetric and significant relationship with the health crisis. Additionally, the study reveals a significant and positive effect of international travel restrictions on the insurance, banking, and telecommunication sectors.

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Published

2023-12-01

Issue

Volume 15, No. 2 (December, 2023)

Section

Articles

License

Saudi Economic Association – King Saud University.

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