Impact of manufacturing PMI on stock market index: A study on Turkey

Ramazan Yanik, Asfia Binte Osman and Ozcan Ozturk
Additional contact information
Ramazan Yanik: Faculty of Economics and Administrative Sciences, Ataturk University, Erzurum, Turkey
Asfia Binte Osman: Faculty of Economics and Administrative Sciences, Ataturk University, Erzurum, Turkey

Journal of Administrative and Business Studies, 2020, vol. 6, issue 3, 104-108

Abstract: Purchasing Managers' Index (PMI) is an indicator to measure the health of an economy. PMI is considered by policymakers and related bodies as it is an influential indicator for gauging the general tendency of the economy, especially GDP growth and Industrial Added Value. This study examines whether the manufacturing PMI has any influence on the stock market of Turkey or vice versa. We use the secondary sources of information collected from the official website of BIST, Turkey for Stock Index data and "investing.com" for Manufacturing PMI data. The study covers monthly data ranging from April 2015 to February 2019. We test the causality between Manufacturing PMI and BIST index through employing the Granger Causality Test. Our analysis reveals that manufacturing PMI does not granger cause the Turkish Stock Index but the Turkish Stock index or the stock market does granger cause manufacturing PMI.

Keywords: PMI; Granger causality test; Turkey (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://tafpublications.com/platform/Articles/full-jabs6.3.4.php (application/pdf)
https://tafpublications.com/gip_content/paper/Jabs-6.3.4.pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:apb:jabsss:2020:p:104-108

DOI: 10.20474/jabs-6.3.4

Access Statistics for this article

Journal of Administrative and Business Studies is currently edited by Professor Dr. Usman Raja

More articles in Journal of Administrative and Business Studies from Professor Dr. Usman Raja Calle Alarcon 66, Sant Adrian De Besos 08930, Barcelona Spain.
Bibliographic data for series maintained by Professor Dr. Usman Raja ().