ANALYSIS OF THE IMPACT OF FOREIGN INVESTORS ON ISTANBUL STOCK EXCHANGE WITH MAKI STRUCTURAL BREAK COINTEGRATION TEST
Abstract
Foreign investments are of great importance for developing countries with high funding needs. Developing countries' macroeconomic elements are crucially affected by foreign portfolios, which are viewed as a capital flow opportunity for developing countries. One of the macroeconomic factors that foreign portfolio investments affect is capital markets. In the study, it has been examined whether foreign portfolio investments made in Turkey have an effect on the Istanbul Stock Exchange. In this regard, the original model generated using the BIST100 index, the foreign investor volume, and foreign portfolio value monthly data for the 2010–2022 period was analyzed with the cointegration test devised by Maki (2012) that allows up to five breaks. According to the Maki cointegration test, it was found that there is a cointegration relationship between the variables. According to the findings obtained from the FMOLS long-term coefficient estimator, it is observed that the increase in the share of foreign investors in the total investors has a negative effect on the BIST100 index, while the increase in the share of the value of foreign portfolios in the total value has a positive effect on the BIST100 index
Keywords
Stock Exchange, Maki Structural Break Test, foreing investment
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