TÜRKIYE'S FINANCIAL INTEGRATION AND EXPORT RELATIONSHIPWITH OECD COUNTRIES

Abstract

Financial integration of countries is constantly increasing with their mutual trade. In other words, rising of partnership on international market ensure higher financial integration over time. Increasing of financial integration among countries also will be reason of raising the similarity and bilateral agreements of these countries. This paper shows that what countries have tendency to act together in terms of financial integration with Türkiye in the designated period. For this purpose, the stock market indexes of Belgium, France, Germany, Israel, Italy, Spain, Switzerland, and the United Kingdom those are top trading partner of Türkiye and members of the Organization for Economic Co-operation and Development (OECD) selected for this research. Gregory - Hansen (1996) cointegration test used to find the financial integration between the stock market indices of selected countries and Türkiye. The result of test method shows that the highest correlation is with Germany after Israel, and the second line is for the United Kingdom. According to result of the cointegration test, although Türkiye acts together with all selected countries, Germany stand on different point. This could explain with Germany is the major partner of Türkiye in terms of mutual trade.