ISSN 2394-5125
 

Research Article 


Corruption and the Performance of Amman Stock Exchange

Yarob Al-Shraideh, Prof. Ahmad Ibrahim Malawi.

Abstract
This study aims to investigate the short and long run impacts of corruption on the performance of the ASE for the period (1998-2017).Both Autoregressive Distributed Lag (ARDL) bounds testing approach of co-integration and Nonlinear Autoregressive Distributed Lag (NARDL) are employed to examine the linear and nonlinear relationships between corruption and the performance of ASE.
The empirical results for the ARDL and NARDL models have revealed the existence of a long-run relationship between corruption and the volume of trade in ASE as a proxy of the performance of ASE. The long-run parameters of the models came in line with economic theory, which implies that the corruption negatively affects the volume of trade. For the ARDL a 1% increase in corruption level leads to a 2.64% decrease in the volume of trade. The speed of adjustment after a shock to restore equilibrium in the dynamic model is found to be (-88%) a year and is highly significant (1% level). And for the NARDL model, the asymmetric effect of corruption reveals that a positive change in corruption effects negatively on the volume of trade, where an increase in corruption by 1% leads to a decrease by 4.33% in the volume of trade, and the negative change of corruption effects positively on the volume of trade, where a decrease in corruption by 1% leads to an increase by 6.12% in the volume of trade. The speed of adjustment in the dynamic model is found to be (-70%) and it is highly significant (1% level).

Key words: The empirical results for the ARDL and NARDL models have revealed the existence of a long-run relationship between corruption and the volume of trade in ASE as a proxy of the performance of ASE.


 
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Pubmed Style

Yarob Al-Shraideh, Prof. Ahmad Ibrahim Malawi. Corruption and the Performance of Amman Stock Exchange. JCR. 2021; 8(2): 1017-1027. doi:10.31838/jcr.08.02.105


Web Style

Yarob Al-Shraideh, Prof. Ahmad Ibrahim Malawi. Corruption and the Performance of Amman Stock Exchange. http://www.jcreview.com/?mno=79604 [Access: May 08, 2021]. doi:10.31838/jcr.08.02.105


AMA (American Medical Association) Style

Yarob Al-Shraideh, Prof. Ahmad Ibrahim Malawi. Corruption and the Performance of Amman Stock Exchange. JCR. 2021; 8(2): 1017-1027. doi:10.31838/jcr.08.02.105



Vancouver/ICMJE Style

Yarob Al-Shraideh, Prof. Ahmad Ibrahim Malawi. Corruption and the Performance of Amman Stock Exchange. JCR. (2021), [cited May 08, 2021]; 8(2): 1017-1027. doi:10.31838/jcr.08.02.105



Harvard Style

Yarob Al-Shraideh, Prof. Ahmad Ibrahim Malawi (2021) Corruption and the Performance of Amman Stock Exchange. JCR, 8 (2), 1017-1027. doi:10.31838/jcr.08.02.105



Turabian Style

Yarob Al-Shraideh, Prof. Ahmad Ibrahim Malawi. 2021. Corruption and the Performance of Amman Stock Exchange. Journal of Critical Reviews, 8 (2), 1017-1027. doi:10.31838/jcr.08.02.105



Chicago Style

Yarob Al-Shraideh, Prof. Ahmad Ibrahim Malawi. "Corruption and the Performance of Amman Stock Exchange." Journal of Critical Reviews 8 (2021), 1017-1027. doi:10.31838/jcr.08.02.105



MLA (The Modern Language Association) Style

Yarob Al-Shraideh, Prof. Ahmad Ibrahim Malawi. "Corruption and the Performance of Amman Stock Exchange." Journal of Critical Reviews 8.2 (2021), 1017-1027. Print. doi:10.31838/jcr.08.02.105



APA (American Psychological Association) Style

Yarob Al-Shraideh, Prof. Ahmad Ibrahim Malawi (2021) Corruption and the Performance of Amman Stock Exchange. Journal of Critical Reviews, 8 (2), 1017-1027. doi:10.31838/jcr.08.02.105