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Journals / Anadolu Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi / 2025 / Volume: 26 Issue: 4

THE ASYMMETRIC RELATIONSHIP BETWEEN ALTERNATIVE FINANCIAL INSTRUMENTS: EVIDENCE FROM TÜRKİYE

Mehmet Dinç(AĞRI İBRAHİM ÇEÇEN ÜNİVERSİTESİ)0000-0002-9864-8117
Yusuf Demir(SİVAS CUMHURİYET ÜNİVERSİTESİ)0000-0001-5677-8709
Pages
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Publication Date
2025-12-29
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

The empirical findings reveal three main results.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:This study examines the asymmetric dynamic relationships between gold prices, Borsa Istanbul (BIST) index, US dollar (USD), Euro (EUR) and deposit interest rates in Turkey between January 2002 and February 2023.
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Key Findings & Data:First, with an average monthly return of 2.18%, gold outperformed equities (BIST: 1.94%), exchange rates (EUR: 1.33%; USD: 1.27%) and interest-bearing deposits (0.23%).
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Conclusion & Impact:The empirical findings reveal three main results.
🔬Design:Research Article
📍Scope:2002 Verileri
⚙️Variables:Financial Investment Instruments · Return · Asymmetric Causality Test

Abstract

This study examines the asymmetric dynamic relationships between gold prices, Borsa Istanbul (BIST) index, US dollar (USD), Euro (EUR) and deposit interest rates in Turkey between January 2002 and February 2023. The asymmetric causality approach is used to analyze the substitution-complementarity relationships between these assets. The empirical findings reveal three main results. First, with an average monthly return of 2.18%, gold outperformed equities (BIST: 1.94%), exchange rates (EUR: 1.33%; USD: 1.27%) and interest-bearing deposits (0.23%). Second, the highest single-month increase (78.55%) and decrease (25.47%) in deposit interest rates, which is indicative of the macroeconomic instability and volatility of the interest rate market in Turkey. Third, asymmetric causality tests show that positive shocks to gold returns generate significant spillover effects to the BIST index, exchange rates (USD/EUR) and interest rates. This result suggests that gold plays a role not only as a hedging instrument but also as a speculative investment asset. The findings have important policy and portfolio management implications for the dynamic relationship between gold and financial markets in emerging economies with high exchange rate volatility and inflationary pressures.

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Cite This Article

Dinç, M., Demir, Y. (2025). THE ASYMMETRIC RELATIONSHIP BETWEEN ALTERNATIVE FINANCIAL INSTRUMENTS: EVIDENCE FROM TÜRKİYE. Anadolu Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, Volume: 26 Issue: 4. https://doi.org/10.53443/anadoluibfd.1706451

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