In this study, the relationships between the IMF Financial Development Index for Türkiye and BIST 100 index prices, gross domestic product (GDP), and stock market trading volume for the period 1988–2022 are empirically analyzed. The fact that the IMF-developed financial development index examines financial markets and financial institutions in terms of depth, accessibility, and efficiency makes this study a significant contribution to the literature. Furthermore, the inclusion of trading volume, a critical indicator for capital markets, in the analysis is among the elements that make the study unique.
The study examines the long-term relationships between the variables using the ARDL bounds test approach. According to the analysis results, GDP and trading volume have a positive and statistically significant effect on the financial development index, while a negative but statistically insignificant relationship was found between the BIST 100 opening prices and the financial development index.
This study presents important findings regarding the development of Turkish capital markets and the financial deepening process, and serves as a guide for policymakers and market actors.
We congratulate our esteemed professor and wish him continued success in his academic work.
