مجلة البشائر الاقتصادية
Volume 11, Numéro 1, Pages 626-641
2025-04-27

The Impact Of Internet Penetration On Trading Activity In Gulf Cooperation Council Countries: 2000-2024

Authors : Hammad Othman . Aissa Nadjet .

Abstract

This study investigates the relationship between internet penetration and trading activity in the financial markets of the Gulf Cooperation Council (GCC) countries from 2000 to 2024. Using a panel vector autoregressive (PVAR) model, the analysis examines the dynamic interdependencies between internet usage, trading volume, economic growth, and inflation. The findings reveal a significant positive relationship between internet penetration and trading activity, with internet shocks causing initial declines in trading volume, followed by a rebound in subsequent periods. To address the negative impact observed at the beginning of the internet penetration period, it is recommended that policymakers focus on improving digital literacy, enhancing internet infrastructure, and providing support to market participants during the transition. These measures can help mitigate the initial shocks and foster a more stable and sustainable growth in trading activities over time.

Keywords

Internet Penetration ; ICT ; Financial Markets ; Gulf Cooperation Council (GCC) ; Panel Vector Autoregressive (PVAR)