Document Type

Dissertation

Disciplines

5.2 ECONOMICS AND BUSINESS

Publication Details

Thesis Submitted for the degree of Doctor of Philosophy.

Technological University of Dublin March 2024.

Abstract

The emergence of the COVID-19 pandemic has caused financial markets to suffer historic losses during the first quarter of 2020 at unseen levels since the crisis of the futures markets in 1987. In January 2020, the World Health Organisation officially declared the pandemic, bringing with it significant uncertainty levels to the global economy. The COVID-19 pandemic affected global markets parallel to a simultaneous shock from the Saudi Arabian and Russian oil price wars. As the worldwide health crisis escalated, governments worldwide were forced to take measures that led to economic lockdowns, leading to significant disruption of global supply chains and reduced aggregated demand aggravated during the year 2020. These circumstances have fueled oil market volatility over 2020 with lasting effects as the global economy now faced a period of high inflationary pressures derived from heightened energy costs. Oil exporting economies were significantly affected as the economic system entered a period of hibernation forced by health measure restrictions, focused on social distancing and limiting human interactions. Among these exporting economies is Kuwait, which registered a significant drop in its stock market. Undoubtedly, oil plays a critical role in Kuwait's economy as the country has a significant time-varying financial dependency on fossil fuels. Oil and natural gas account for nearly 60% of GDP and 92% of export revenues. Within the outlined context, the purpose of this thesis is to analyse the impact of COVID-19 and the oil shock on the Kuwait stock exchange along with six major markets indices of the top G7 (the world most developed economies), E7 (Emerging Economies) and the GCC countries. Moreover, the research thesis investigates Kuwait's stock market sectors' response to the dual shock. Hence, existing research studies have not integrated the world's major stock markets to frame the performance of the Kuwait stock exchange (Boursa) at the market level and the sectoral level amidst a dual market shock named the global health crisis and the oil price war that took place in 2020.

DOI

https://doi.org/10.21427/ytn7-xa03

Creative Commons License

Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License
This work is licensed under a Creative Commons Attribution-NonCommercial-Share Alike 4.0 International License.

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