The Causal Relationship between Stock Market Unemployment in Turkey

Yıl 2020, Cilt: 2 Sayı: 1, 327 - 330, 19.01.2020

Mercan Hatipoğlu

Öz

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.

Anahtar Kelimeler

BIST100 index, unemployment, Granger causality test

The Causal Relationship between Stock Market Unemployment in Turkey

Öz

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.

Anahtar Kelimeler

unemployment, Granger causality test, BIST100 index

Kaynakça

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