Abstract:

In this study, the relationship between the stock exchange index and the industrial production index was studied using the Panel Fisher causality test developed by Emirmahmutoğlu and Köse (2011) on the BRICS-T countries (Brazil, Russia, India, China, South Africa and Turkey). According to the findings obtained, Panel Fisher’s causality test statistics from the industrial production index to the stock exchange index (29.139) were significant at a level of 5%, while the statistics of the causality test from the stock exchange index to the industrial production index (10.56) were not significant. Therefore, only an unilateral causal relationship has been identified from the industrial production index to the stock exchange index. The results of the analysis showed that there was a positive relationship between the industrial production index and the stock exchange index. From the country’s point of view, while in India and Turkey there is a cause from the industrial production index to the stock exchange index, only in Russia there is a cause from the stock exchange index to the industrial production index.

Keywords: