Abstract

This paper attempts to study the effects of bilateral investment treaties between countries on their stock market correlation. The study focuses on Africa and Middle East countries and how their bilateral investment treaties with other countries affect the stock market correlation of their indices. Some previous studies have ignored the effects of bilateral investment treaties on stock market correlation. Therefore, it is important to fill in this gap. The data examined are indices for Africa and Middle East countries who are involved in bilateral investment treaties with other countries to examine the effects of these bilateral investment treaties on the stock market correlation. Other macro economic variables are also examined to study their effects on stock market correlation. A fixed effect model is used to test 192 groups of African and Middle East countries with other countries having BIT and no BIT with them. The study shows that BIT has a positive effect on stock market correlation. While, it shows that openness to trade and membership of WTO have a negative impact on stock market correlation.

Department

Management Department

Degree Name

MS in Finance

Graduation Date

Fall 9-13-2020

Submission Date

September 2020

First Advisor

Abdallah, Wael

Second Advisor

NA

Third Advisor

NA

Committee Member 1

El Khouly, Sayed

Committee Member 2

Fouad, Jasmin

Committee Member 3

Ayad, Mina

Extent

38 p.

Document Type

Master's Thesis

Library of Congress Subject Heading 1

Finance

Rights

The author retains all rights with regard to copyright. The author certifies that written permission from the owner(s) of third-party copyrighted matter included in the thesis, dissertation, paper, or record of study has been obtained. The author further certifies that IRB approval has been obtained for this thesis, or that IRB approval is not necessary for this thesis. Insofar as this thesis, dissertation, paper, or record of study is an educational record as defined in the Family Educational Rights and Privacy Act (FERPA) (20 USC 1232g), the author has granted consent to disclosure of it to anyone who requests a copy. The author has granted the American University in Cairo or its agents a non-exclusive license to archive this thesis, dissertation, paper, or record of study, and to make it accessible, in whole or in part, in all forms of media, now or hereafter known.

Institutional Review Board (IRB) Approval

Not necessary for this item

Streaming Media

Comments

NA

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