THE RELATIONSHIP BETWEEN SYNDICATION LOANS, FOREIGN TRADE AND EQUITY MARKET IN TuRKİYE

Aydın Gurbuz, Meltem Kılıç and Nur Esra Bekereci
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Aydın Gurbuz: Kahramanmaras Sutcu Imam University
Meltem Kılıç: KAHRAMANMARAS SUTCU IMAM UNIVERSITY
Nur Esra Bekereci: KAHRAMANMARAS SUTCU IMAM UNIVERSITY

Ekonomi Maliye Isletme Dergisi, 2023, vol. 6, issue 1, 35-47

Abstract: Syndicated loans, which are used as debt instruments, are a special type of loan agreement in which many banks from different countries can participate. These loans are used by investors and other economic units to meet their fund demands and are seen as a resource obtained from international markets. The loans taken from international markets have started to gain importance in the Turkish banking system since 2004. In this study, it is aimed to determine the relationship between syndication loans used in Turkiye and foreign trade volume, Exchange rate and national BIST100 index between January 2013 and November 2022. In addition, in the study, a dummy variable was added to the post-March 2020 periods when the cases emerged in order to take into account the effect of the Covid19 outbreak in Turkiye. In order to determine the relationship between the variables, the Johansen cointegration test and the Granger causality test based on the error correction model (VECM) were applied. In the empirical findings, as a result of the Johansen cointegration approach, the existence of a long-term relationship between the variables has been reached. According to the Granger causality test results, it was found that there is a bidirectional causality relationship between syndicated loans, foreign trade volume and real exchange rate. It has been observed that there is a one-way causality relationship from BIST100 index to syndicated loan.

Keywords: Syndicated Credit; Foreign trade; BIST100 Johansen Cointegration Test; VECM Granger Causality (search for similar items in EconPapers)
JEL-codes: C22 F13 G12 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:gnx:emid43:2023-6-1-1267662

DOI: 10.46737/emid.1267662

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