Title: The impact of the Dubai International Airport's activity volume on the Emirati stock market

Authors: Juan M. Dempere; Kennedy Prince Modugu

Addresses: Business Division, HCT, P.O. Box 4792, RAK, UAE ' Business Division, HCT, P.O. Box 4792, RAK, UAE

Abstract: The goal of this research work is to determine the predictive power of the activity volume at the Dubai International Airport (DXB) over the Emirati stock market by applying the GARCH, EGARCH, TGARCH, and PGARCH models. Our results provide evidence that the DXB's passenger traffic has explanatory power over the Emirati stock market. Specifically, we find that the logarithmic monthly change of the DXB's passenger traffic has a positive and significant relationship with the ADX stock market index's monthly log-returns. We also find that two analysed Emirati stock markets indexes have positive and significant relationships with both the crude oil price and the log-returns of a world stock market index.

Keywords: DXB; GARCH; EGARCH; TGARCH; PGARCH; passenger traffic; Dubai; airport; ADX; DFM; stock market; UAE; volatility.

DOI: 10.1504/IJBPM.2022.119570

International Journal of Business Performance Management, 2022 Vol.23 No.1/2, pp.118 - 134

Received: 29 May 2020
Accepted: 16 Nov 2020

Published online: 09 Dec 2021 *

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