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Macroeconomic Determinants of Stock Market Fluctuations: The Case of BIST-100

Department of Economics, Manisa Celal Bayar University, Salihli-Manisa 43500, Turkey
Economies 2019, 7(1), 8; https://doi.org/10.3390/economies7010008
Received: 3 December 2018 / Revised: 25 January 2019 / Accepted: 28 January 2019 / Published: 1 February 2019
(This article belongs to the Special Issue Impact of Macroeconomic Indicators on Stock Market)
The purpose of this study is to analyze the impacts of some prominent macroeconomic factors on the Turkish Stock Market index, BIST-100 (Borsa Istanbul-100). For centuries, and mostly since the 20th century, stock markets are at the heart of economies. In our era, the largest economic crises arise from the stock market instabilities and thus, the stock markets are the focus of interest of the economy. Economists, investors, and policymakers try to predict the tendency of share prices, which substantially depend on foreign and domestic macroeconomic factors. Within this purpose, this study tries to investigate the impact of some selected macroeconomic factors on BIST-100 index over the 2003Q1–2017Q4 period. The findings obtained from the quarterly data via the ARDL Bounds Test suggest that economic growth, the relative value of the domestic currency, portfolio investments and foreign direct investments raise the stock market index while interest rate and crude oil prices negatively affect it. The results briefly reveal that the Istanbul Stock Exchange Market needs stronger domestic currency, higher international capital inflows, and lower energy and investment costs. View Full-Text
Keywords: stock market; macroeconomic indicators; borsa istanbul; autoregressive distributed lag (ARDL) bounds test stock market; macroeconomic indicators; borsa istanbul; autoregressive distributed lag (ARDL) bounds test
MDPI and ACS Style

Demir, C. Macroeconomic Determinants of Stock Market Fluctuations: The Case of BIST-100. Economies 2019, 7, 8.

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