Dergiler / Central Bank Review / 2017 / Cilt: 17 - Sayı: 1

Capital market and economic growth nexus: Evidence from Turkey

Yener Cos¸kuna,, Ünal Sevenb, H. Murat Ertu grulc, Talat Ulussevera

Yener COŞKUN,Ünal SEVEN,H. Murat ERTUĞRUL,Talat ULUSSEVER

Sayfa
19–29
DOI
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Abstract

This study explores the relations between the development level of capital market sub-components,involving mutual/pension funds, corporate bond, stock and government bond markets, and economicgrowth over the period of 2006:M1 and 2016:M6 in Turkey. WeŞnd that there is a long-run cointegrating relationship between capital market development and economic growth and also a unidirectional causality running from capital market development to economic growth. Using ARDL, MarkovSwitching Regression and Kalman Filter models, we alsoŞnd that capital market development hasasymmetric effects on economic growth where government bond market development is negatively butthe aggregated index of other sub-components is positively associated with economic growth.© 2017 Central Bank of The Republic of Turkey. Production and hosting by Elsevier B.V. This is an openaccess article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).