Abstract:

In this study, the relationship between the production industry capacity use rate in Turkey and the Stock Exchange Istanbul-100 index was studied using monthly data for the periods 2007:6-2019:13 with the Johansen matching integration test with the Granger causality test. When the capacity use rate is an increase, it means that the increase in production and growth in the economy is happening. Borsa Istanbul 100 Index Companies are the main major companies in the Turkish economy, and the performance of these companies reflects the production and economy. According to the results of the analysis, a long-term relationship between the variables has been found and the error correction model has been found to work in a long-term. Finally, the direction of the relationship between the series was determined by the Granger causality test. As a result of empirical findings, there was a double causal relationship between the production industry capacity use rate and the Borsa Istanbul-100 index.