Cuadernos de Economía

ISSN : 0210-0266
Untitled-43

Effect of Oil Prices, Inflate Rate, Energy Consumption, Gross Domestic Product on Stock Market Performance of Iraq Stock Exchange

  • Adil Majeed Idan , Scientific Research Supervision and Scientific Evaluation Apparatus / Ministry of Higher Education and scientific research/ Bagdad Iraq

Keywords:

Inflation Rate, Gross Domestic Product, Oil Prices, energy consumption, Stock market performance, Iraq. ,

Abstract

Oil prices (OP), inflation rate (INF), energy consumption (EC), and gross domestic product (GDP) have had a substantial impact on the performance of the stock market (SMP). Therefore, the primary purpose of this study is to investigate the effects of various macroeconomic factors on the SMP in Iraq. The all-share price index (ASPI) is a proxy for the stock market's performance. In contrast, GDP, INF, EC, and OP are macroeconomic indicators. All companies traded on the Iraq Stock Exchange comprised the population for examination in this study. The information was acquired from secondary sources, and annual time series data for 2000 through 2021 were utilized. Correlation and multiple regressions were employed as statistical methods to analyze the data and test the hypotheses' validity. In addition, the Augmented Dicky–Fuller (ADF) test, the Breusch-Pagan-Godfrey test, and the Variance inflation factor (VIF) were used to determine multicollinearity. According to the research, GDP and OP have a beneficial effect on SMP. Both INF and EC are detrimental to the SMP. The findings of this study will aid investors and scholars in the fields of economics and finance in their quest for a deeper knowledge of how macroeconomic variables affect the stock market's performance. Incorporating numerous macroeconomic variables and their link with the stock market also provides scholars and the general public with insightful information.