Foreign Capital Inflows and Stock Market Development in Turkey

BAYAR Y.

17th Annual Conference on Finance and Accounting, ACFA 2016, Prague, Czech Republic, 27 May 2016, pp.71-81, (Full Text) identifier

  • Publication Type: Conference Paper / Full Text
  • Doi Number: 10.1007/978-3-319-49559-0_7
  • City: Prague
  • Country: Czech Republic
  • Page Numbers: pp.71-81
  • Keywords: Causality analysis, Foreign direct investment inflows, Foreign portfolio investments, Remittances, stock market development
  • Uşak University Affiliated: Yes

Abstract

Cross-country capital flows have increased substantially due to accelerating globalization as of 1990s, and these increases have important economic implications for all the countries. This study investigates the causal relationship among foreign capital inflows including foreign direct investment, foreign portfolio flows, remittances, and stock market development in Turkey during the period January 1992–December 2015 using Hacker and Hatemi-J (Appl Econ 38(13):1489–1500, 2006) bootstrap causality test. We found that there was unidirectional causality from foreign direct investment inflows to stock market development and unidirectional causality from stock market development to foreign portfolio investments.