Abstract:

In this study, one of the two important elements of globalization, the Borsa Istanbul (BIST) 100 Index and another important element, the relations between exports and imports representing the foreign trade of Turkey have been studied. In this study, the long-term relations between the series were analyzed by the DOLS method and the interest rate increases reduced the BIST100 index, the export increases increased the BIST100 index, and the import increases impacted the BIST100 index. Short-term analyses were also carried out using the DOLS method and the interest rates were not clear in the short term, exports increased the BIST100 in the short term, and imports increased the BIST100 in the short term. The causal relationships between the series were studied with the Granger (1969) test and a one-way and very strong causal relationship from interest to stock exchange was detected, while no causal relationship from external trade to stock exchange was detected.