bilturk BİLTÜRK Journal of Economics and Related Studies 2667-5927 Fatih DEYNELİ Business Administration İşletme The Causal Relationship between Stock Market Unemployment in Turkey The Causal Relationship between Stock Market Unemployment in Turkey Hatipoğlu Mercan CANKIRI KARATEKIN UNIVERSITY 01 19 2020 2 1 327 330 12 05 2019 01 11 2020 Copyright © 2019, BİLTÜRK Journal of Economics and Related Studies 2019 BİLTÜRK Journal of Economics and Related Studies

Equity markets provide opportunities investors to invest in firms, while enabling long-term projects to be financed, promoting savings and investments. Public offerings and venture capital models encourage companies to make new investments and expand their business. The purpose of this article is to examine the relationship between the stock market and unemployment by using monthly data in the context of Turkey.The data of the study covers the period between July 2007 and September 2018. The method of research is based on Granger causality test. The empirical results reveal that there are not any significant causality relations between the Borsa Istanbul and unemployment rate.According to results, BIST-100 index could not be successful in predicting future unemployment rates. On the other hand, developments in the stock market should not be trusted to reduce unemployment rates.

Equitymarkets provide opportunities investors to invest in firms, while enablinglong-term projects to be financed, promoting savings and investments. Publicofferings and venture capital models encourage companies to make newinvestments and expand their business. The purpose of this article is toexamine the relationship between the stock market and unemployment by usingmonthly data in the context of Turkey. Thedata of the study covers the period between July 2007 and September 2018. Themethod of research is based on Granger causality test. The empirical resultsreveal that there are not any significant causality relations between the BorsaIstanbul and unemployment rate. Accordingto results, BIST-100 index could not be successful in predicting futureunemployment rates. On the other hand, developments in the stock market shouldnot be trusted to reduce unemployment rates.

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