RELATIONSHIP ANALYSIS BETWEEN PARTICIPATION 30 INDEX AND GOVERNMENT RESTRICTION POLICIES IN THE COVID-19 PANDEMIC

Abstract

Coronavirus, which has caused an epidemic worldwide, was first detected in 2019 in China. In our country, it was detected for the first time on March 11, 2020. After that, restriction decisions started to be taken in our country for the first time. However, pandemic and preventive measures have affected financial markets all over the world. The study aims to examine the relationship between social distancing and travel restriction measures (like curfew, school closures, and national lockdown), and Covid 19 data with the Participation-30 index. It is thought that the interest and foreign exchange fluctuations during the pandemic are quite effective in this process. Because of assumptions that participation finance industry (non-interest-based) is less affected these fluctuations interaction between the pandemic and the participation 30 index has been examined with empirical analysis. The data set in the study consists of daily data between 27.03.2020-22.04.2021, Toda-Yamamoto causality analysis has been used. A total of 21 variables have been used, with the participation 30 index being the dependent variable. In the results of the analysis, it has been determined that General Events Cancellation at 5% significance level and Income Support at 10% significance level, affect the Participation 30 Index. There is no causal relationship between Covid-19 data, Number of Positive Cases, the Number of Tests, the Number of Patients, the Number of Deaths, with the Participation-30 index.