International Congress on Eurasian Economies
26-28 June 2024 – Bishkek, KYRGYZSTAN
Paper properties
Paper ID : 2947
Status : Paper accepted
Language : Turkish
Topic : Finance and Financial Crises
Presenter: Ph.D. candidate Ferhat Kaya
Session : 7B Kalkınma
The Effect of Financial Development and Financial Globalization on Financial Returns: The Example of Türkiye
Finansal Gelişme ve Finansal Küreselleşmenin Finansal Getiriye Etkisi: Türkiye Örneği
- Ph.D. candidate Ferhat Kaya (Istanbul Beykent University, Türkiye)
Abstract
Many factors affect financial returns. In this global world where capital movements have no borders, development and globalization constitute the basic elements affecting financial returns. Within the framework of the decisions taken in 1980 in Türkiye, import substitution policies were abandoned, and liberalization and globalization efforts a priority. In this respect, examining the returns of capital markets in Türkiye in the context of development and globalization becomes important. In this study, BIST 100 Index annual average daily returns, Financial Development Index, and Financial Globalization Index were subjected to econometric analysis between 1993 and 2021. ARDL Bound Test Approach developed by Peseran et. al. (2001) was applied in the econometric analysis. ARDL Bound Test Approach allows variables to be stationary at level and first difference. In this study where the hypothesis that "financial returns in Türkiye are affected by globalization and development" was investigated. In this context, a cointegration relationship was found between the dependent variable, BIST 100 Index annual average daily returns, and the independent variables, Financial Globalization and Financial Development Indices.
JEL codes: F36, E44, F65
