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Turkey's Improving Integration with the Global Capital Market: Impacts on Risk Premia and Capital Costs


  • Rauf Gönenç


  • Saygin Sahinöz

    (Central Bank of the Republic of Turkey)

  • Ozge Tuncel

    (Central Bank of the Republic of Turkey)


Turkey has considerably improved its terms of access to the global capital market. Progress in macroeconomic fundamentals has enhanced credibility and reduced risk premia and capital costs. This has had broad effects on capital supply conditions in the entire economy. Real interest rates have declined, and funds of lengthened maturity are becoming available for a broader range of borrowers and fund users, offering a basis for broader–based long–term growth. Estimations in the paper suggest that reinforcing fiscal institutions, price stability, governance quality, political stability and trade and growth performance would help Turkey to continue to improve its integration with the international capital market and reduce durably its capital costs. This paper relates to the 2010 OECD Economic Review of Turkey ( L'Intégration croissante de la Turquie avec le marché global des capitaux : Effets sur les primes de risque et coût du capital La Turquie a considérablement amélioré ses conditions d'accès au marché global des capitaux. Des progrès dans les fondamentaux macroéconomiques ont renforcé la crédibilité et réduit les primes de risque et le coût du capital. Cela a eu des conséquences considérables sur les conditions de financement de l'économie tout entière. Les taux d'intérêt réels ont diminué, et des fonds à plus longue maturité deviennent disponibles pour un plus large éventail d'utilisateurs de fonds, offrant une base plus large pour la croissance à long terme. Les estimations dans le document suggèrent que le renforcement des institutions budgétaires, de la stabilité des prix, de la qualité de la gouvernance, de la stabilité politique et de la performance du commerce extérieur et de la croissance aiderait la Turquie à continuer à améliorer son intégration avec le marché global des capitaux et à réduire durablement ses coûts en capital. Ce document se rapporte à l’Étude économique de Turquie de l’OCDE, 2010, (

Suggested Citation

  • Rauf Gönenç & Saygin Sahinöz & Ozge Tuncel, 2010. "Turkey's Improving Integration with the Global Capital Market: Impacts on Risk Premia and Capital Costs," OECD Economics Department Working Papers 812, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:812-en

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    More about this item


    capital costs; capital markets; coût du capital; credit rating; croissance économique; economic growth; fiscal institution; institution budgétaire; interest rate; marchés de capitaux; notation de crédit; open economy; prime de risque; risk premia; taux d'intérêt; économie ouverte;

    JEL classification:

    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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