Causal relations among stock prices and macroeconomic variables in the small, open economy of Jordan

الملخص EN

The purpose of this study is to investigate the long run relationship between the Jordanian stock prices and selected macroeconomic variables by using Johansen’s methodology in cointegration analysis and monthly time series data over for the period from January 1987 to December 2000.

This study finds that macroeconomic variables-that is, exports, foreign reserves, interest rates, inflation, and industrial production are reflected in stock prices in the Jordanian capital market.