Relationship between Political and Financial Risks in Turkey: Evidence from Fourier Cointegration Analysis Regarding Institutional Structures

Year 2021, Volume: 29 Issue: 48, 127 - 143, 28.04.2021

Yıldırım Beyazıt Çiçen

https://doi.org/10.17233/sosyoekonomi.2021.02.07

Cited By: 1

Abstract

Institutional structure and quality of management are the main elements that form the political risks. Political threats are directly linked to the institutional structure and the institutional design. Political risks increase if the government mechanisms fail. Increasing institutional quality reduces the political risks and positively impacts the financial risks. Monthly data from different indices are used to analyse the relationship between Turkey's political risks and financial risks between 2002 and 2015. According to the Fourier analysis of cointegration, there is a long-term relationship between the political and financial risks. Besides, as per the Fully Modified Ordinary Least Squares (FMOLS) findings and the Dynamic Ordinary Least Squares (DOLS) models, an increase in the political risk increases the financial risk.

Keywords

Fourier Stationarity, Fourier Cointegration, Turkey, Institutional Structure, Political Risk, Financial Risk

Türkiye’de Politik ve Finansal Riskler Arasındaki İlişki: Kurumsal Yapılara Dair Fourier Eşbütünleşme Analizinden Kanıt

Abstract

Kurumsal yapı ve yönetim kalitesi politik riskleri oluşturan ana unsurlardır. Politik riskler doğrudan kurumsal yapı ve kurumsal tasarıma bağlıdır. Hükümet mekanizmaları başarısız olduğu takdirde siyasi riskler artmaktadır. Kurumsal kalitenin arttırılması politik riskleri azaltır ve ayrıca finansal riskler üzerinde olumlu bir etkisi bulunmaktadır. Bu analizde Türkiye’de politik riskler ile finansal riskler arasındaki ilişki 2002-2015 yılları dönemine ait aylık veriler kullanılarak analiz edilmiştir. Fourier’in eşbütünleşme analizine bulgularına göre, politik ve finansal riskler arasında uzun dönemli bir ilişki bulunmaktadır. Ayrıca FMOLS ve DOLS modellerinden elde edilen bulguya göre politik riskteki artış finansal riskleri artırmaktadır.

Keywords

Fourier Durağanlık, Fourier Eşbütünleşme, Türkiye, Kurumsal Yapı, Politik Risk, Finansal Risk

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