Abstract:

Turkey is a foreign-dependent country in terms of fossil fuels in terms of industrial use. The prices of fossil resources are likely to have serious impacts especially on the economy and financial markets. In this context, the study of the factors that may affect the financial markets, the establishment of the relationship between them, is of importance for investors and policy makers. The aim of the study is to examine the impact of international fossil fuel prices on the stock exchange index. The study covered the period from 1986 to 2019 used annual data. As a dependent variable, the BIST100 index, the international crude oil, natural gas and coal prices have been analyzed as independent variables. Analysis conducted in the framework of the ARDL Border Test found that there was a parallel integrated relationship between the variables. It has also been determined that in the long term there is a positive and meaningful relationship between the stock exchange index and oil prices, negative and meaningless, negative and meaningless, coal and natural gas. According to the error correction rate, the imbalances that occur in a short period of time can be removed in a long period of time.