Business Freedom and Market Efficiency: Evidence from GCC Stock Markets

بوجمالة انيسة; عيسى نجاة

Article Details

Business Freedom and Market Efficiency: Evidence from GCC Stock Markets

Authors:

بوجمالة انيسة | عيسى نجاة

Publisher:

Université de Khemis Miliana

Journal:

مجلة الإقتصاد الجديد Vol.17 Issue 1, pp.27-40

Document Type:

Article

Publication Date:

1/2026

Document Language:

English

Document ID (Org No.):

2001481204

pISSN:

2600-6979

Keywords:

Abstract:

 This study examines the effects of Business Freedom (BF) on financial market liquidity in six GCC countries, using market capitalization turnover as a proxy for liquidity. 
Employing panel ARDL (PMG) on data covering the period 2000-2024 for 6 GCC countries, the results reveal that business freedom has a positive and highly significant long-run impact on liquidity, confirming that improvements in regulatory and business environments enhance market efficiency. Short-run effects are heterogeneous across countries, with Bahrain responding immediately to business freedom reforms and Saudi Arabia with delay, while others exhibit insignificant effects. Interestingly, the interaction between business freedom and Internet penetration is negative in most countries, suggesting that while digital infrastructure facilitates information flow, it may initially moderate the short-run effect of regulatory improvements due to volatility or cautious investor behavior. 
These findings highlight the critical role of regulatory reforms and digital connectivity in promoting efficient and liquid financial markets. The study provides actionable policy implications, emphasizing the need for coordinated efforts to improve business freedom and digital infrastructure to maximize both short- and long-term market performance.

Article Details

Business Freedom and Market Efficiency: Evidence from GCC Stock Markets

Authors:

بوجمالة انيسة | عيسى نجاة

Publisher:

Université de Khemis Miliana

Journal:

مجلة الإقتصاد الجديد Vol.17 Issue 1, pp.27-40

Document Type:

Article

Publication Date:

1/2026

Document Language:

English

Document ID (Org No.):

2001481204

pISSN:

2600-6979

Business Freedom

Market Effeciency

Liquidity

GCC

Issues

Article Details

Business Freedom and Market Efficiency: Evidence from GCC Stock Markets

Authors: بوجمالة انيسة | عيسى نجاة

Publisher: Université de Khemis Miliana

Journal: مجلة الإقتصاد الجديد Vol.17 Issue 1, pp.27-40

Document Type: Article

Publication Date: 1/2026

Document Language: English

Document ID (Org No.): 2001481204

pISSN: 2600-6979

Business Freedom

Market Effeciency

Liquidity

GCC

Issues

Authors:

بوجمالة انيسة | عيسى نجاة

Publisher:

Université de Khemis Miliana

Journal:

مجلة الإقتصاد الجديد Vol.17 Issue 1, pp.27-40

Document Type:

Article

Publication Date:

1/2026

Document Language:

English

Document ID (Org No.):

2001481204

pISSN:

2600-6979