IDEAS home Printed from https://ideas.repec.org/a/lif/jrgelg/v5y2016p25-35.html
   My bibliography  Save this article

Analyzing the Synchronization between the Financial and Business Cycles in Turkey

Author

Listed:
  • Cüneyt Akar

    (Department of Business Administration, Bandirma Onyedi Eylul University, FEAS, Bandirma-10230, Balikesir, Turkey)

Abstract

The primary purpose of this study was to investigate the relationships between the financial and business cycles in Turkey. A quarterly dataset was used for the analysis that covers the period from 1998Q1 to 2014Q4. The cycles were obtained with a Hodrick-Prescott (HP) filter design. The concordance index values, cross-correlation values and Dynamic Conditional Correlation (DCC) model were used to identify the characteristics of the relationships between the financial and business cycles. The empirical results revealed that the financial and business cycles are highly synchronized in Turkey. The results also indicate that while the credit volume cycle is the leading factor of the GDP cycle, the GDP cycle leads from the BIST 100 cycle in Turkey. The last significant conclusion is that the positive and high dynamic conditional correlations between the financial and business cycles experienced a break during the 2008 global crisis.

Suggested Citation

  • Cüneyt Akar, 2016. "Analyzing the Synchronization between the Financial and Business Cycles in Turkey," Journal of Reviews on Global Economics, Lifescience Global, vol. 5, pages 25-35.
    • Handle: RePEc:lif:jrgelg:v:5:y:2016:p:25-35
    as

    Download full text from publisher

    File URL: http://www.lifescienceglobal.com/independent-journals/journal-of-reviews-on-global-economics/volume-5/85-abstract/jrge/2235-abstract-analyzing-the-synchronization-between-the-financial-and-business-cycles-in-turkey
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oguzhan Cepni & Yavuz Selim Hacihasanoglu & Muhammed Hasan Yilmaz, 2020. "Credit decomposition and economic activity in Turkey: A wavelet-based approach," Central Bank Review, Research and Monetary Policy Department, Central Bank of the Republic of Turkey, vol. 20(3), pages 109-131.
    2. Łukasz Kurowski, 2021. "Financial cycle − A critical analysis of the methodology for its identification," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 10(3), pages 99-116.
    3. Veysel KARAGOL & Burhan DOÄžAN, 2021. "Interaction between business and financial cycles: evidence from Turkey," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 12, pages 123-150, December.
    4. Kovačić, Zlatko & Vilotić, Miloš, 2017. "Assessing European business cycles synchronization," MPRA Paper 79990, University Library of Munich, Germany.

    More about this item

    Keywords

    Business cycle; financial cycle; concordance index; DCC; Turkish economy;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lif:jrgelg:v:5:y:2016:p:25-35. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Faisal Ameer Khan (email available below). General contact details of provider: http://www.lifescienceglobal.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.