THE IMPACT OF FINANCIAL DEVELOPMENT INDEX ON ECONOMIC GROWTH, STOCK MARKET PRICES AND TRADING VOLUME: TÜRKİYE EXAMPLE

Authors : Burcu Savaş Çelik

Pages : 68-83

Doi:10.58884/akademik-hassasiyetler.1639616

View : 163 | Download : 242

Publication Date : 2025-12-31

Article Type : Research Paper

Abstract :The study aims to analyze the relationship between Türkiye\\\'s financial development index and BIST 100 prices, gross domestic product, and trading volume from 1988 to 2022. The financial development index by the IMF considers the financial markets and institutions of countries in terms of efficiency, depth and accessibility. Many studies investigate the relationship between financial development, economic growth, and the stock market. However, when the literature is examined, it is found that the financial development index prepared by the IMF is not used intensively, and the stock market trading volume variable is discussed in limited studies. For this reason, in this study, the effect of the financial development index reported by the IMF on other variables and the effect of transaction volume, which is considered a very important variable in the capital market, on financial development were tested. The study used the ARDL bounds test approach to investigate cointegration between variables. According to the results of the analysis, gross domestic product and trading volume have a positive and statistically significant effect on the financial development index. A negative but statistically insignificant relationship was found between the BIST 100 opening price and the financial development index. Within the scope of the results obtained, necessary measures and precautions should be taken in the capital market.
Keywords : Finansal gelişmişlik indeksi, ekonomik büyüme, BIST 100 fiyat, İşlem hacmi, ARDL testi

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