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Comparative Analysis for the Relationship between Stock Performance and Macroeconomic Indicators: The Case of Turkey

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  • Tolga Aydin
  • Hakan Oner

Abstract

The aim of the study is to examine the effects of macroeconomic indicators on BIST 100 index the most significant indicator of the Turkish stock markets. For this purpose, the relationship between BIST 100 index and nominal us dollar exchange rate, consumer price index, industrial production index and weighted average interest rates applied to banks' loans, which are among the selected macroeconomic indicators, are analyzed using Granger causality analysis. According to the results of the study which used 108 monthly data between 2010: 01-2018: 12 periods; Although, the nominal dollar rate, consumer price index and industrial production index is the granger cause of the BIST 100 index, causal relationship from the interest rate to the BIST 100 index could not be determined.

Suggested Citation

  • Tolga Aydin & Hakan Oner, 2020. "Comparative Analysis for the Relationship between Stock Performance and Macroeconomic Indicators: The Case of Turkey," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(3), pages 146-154, September.
    • Handle: RePEc:khe:scajes:v:6:y:2020:i:3:p:146-154
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    References listed on IDEAS

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    More about this item

    Keywords

    Macroeconomic Indicators; BIST 100 Index; Granger Causality Test;
    All these keywords.

    JEL classification:

    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G1 - Financial Economics - - General Financial Markets

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