Testing the relationship between EURIBOR and share prices in emerging stock markets Econometric study during the period 1999-2010
Abstract
This study aims to highlight the impact of policy lending by international banks in Europe on equity prices in emerging stock markets (Argentina, Mexico, Tel Aviv, Malaysia, Hong Kong) during the period 1999-2010, using linear regression models and the concept of Granger causality tests in 1988, the study concluded and there is a significant inverse relationship between the rate of lending between international banks in Europe (EURIBOR) and Equity prices in emerging stock markets, as there is a causal relationship with the importance in both directions between them, which calls for policymakers in developing countries, taking into account the policy of lending by international banks in Europe when formulating monetary policy, economic, and strategic objectives.
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