This paper examines financial spillovers between the four largest equity markets (by market capitalization) in the GCC … in the volatility, from the largest market of Saudi Arabia to Qatar and the two markets in the UAE, which confirms that …

frictions for business cycle volatility. In our empirical analysis, we demonstrate that stylised facts suggest that countries … with more developed financial systems have lower business cycle volatility. Financial openness has no strong impact on … business cycle volatility, in contrast. In our theoretical analysis, we use a dynamic general equilibrium model to study the …