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Journals / Maliye ve Finans Yazıları / 2019 / Sayı: 111

Analysis of the Relationship between Economic Freedom Index and Stock Market Indices; Evidence from Turkey

Ekonomik Özgürlük Endeksi ve Hisse Senedi Piyasası Endeksi Arasındaki İlişkinin Analizi; Türkiye Örneği

Esra N. Kılcı
Pages
117–134
Publication Date
2019-04-30
DOI
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AI Summary & Key Takeaways

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

According to the Heritage Foundation Economic Freedom Index, Turkey, with a overall score of 65.4, seems below the regional average.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:According to the Heritage Foundation Economic Freedom Index, Turkey, with a overall score of 65.4, seems below the regional average.
📊
Key Findings & Data:On the other hand, BIST 100 has a good performance with a nearly %20 rise from 2016 to 2017 except the last nine-month period performance.
💡
Conclusion & Impact:The results supported no causality relationship between economic freedom index and stock market indices in Turkey in the period of 1995-2018.
🔬Design:Research Article
📍Scope:2016 Verileri
⚙️Variables:Economic Freedom Index · Stock Market

Abstract

According to the Heritage Foundation Economic Freedom Index, Turkey, with a overall score of 65.4, seems below the regional average. On the other hand, BIST 100 has a good performance with a nearly %20 rise from 2016 to 2017 except the last nine-month period performance. The objective of this study is to analyze the causality relationship between Economic Freedom Index and BIST 100 in the period of 1995-2018 by employing Fourier KPSS Test and Fourier Granger Causality Test. The results supported no causality relationship between economic freedom index and stock market indices in Turkey in the period of 1995-2018.

Özet

Heritage Ekonomik Özgürlük Endeksi’ne göre, Türkiye, 65,4 seviyesindeki puanıyla, bölgesel ortalamanın altında seyretmektedir. Diğer yandan, Türkiye hisse senedi piyasası (BIST100) endeks değeri, son dokuz aylık performansı hariç tutulduğunda, 2016-2017 döneminde kaydettiği %20’lik artışla olumlu bir performansa sahiptir. Bu çalışmanın amacı, 1995-2018 döneminde, sözkonusu değişkenlere ait yıllık verileri kullanarak, Ekonomik Özgürlük Endeksi ile BIST100 arasındaki nedensellik ilişkisini, Fourier KPSS Testi ve Fourier Granger Nedensellik Testi’ni kullanarak analiz etmektir. Analiz sonuçları, sözkonusu dönemde, Türkiye’de, Ekonomik Özgürlük Endeksi ile BIST100 arasında bir nedensellik ilişkisini desteklememektedir.

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Cite This Article

Kılcı, E. N. (2019). Analysis of the Relationship between Economic Freedom Index and Stock Market Indices; Evidence from Turkey. Maliye ve Finans Yazıları, Sayı: 111, 117–134. https://ajindex.com/articles/228826

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