THE RELATIONSHIP BETWEEN COMMODITY PRICES AND STOCKPRICES:EVIDENCE FROM TURKEY

Many studies have found strong relationship between stock market and economicgrowth. Because of this strong relationship, we need to examine many factors thathave impact on the stock market more closely. Despite the high importance ofcommodity prices, only few studies have emphasizedthe impact on stock prices.For this reason, in this study, by using time-series analysis, the relationshipbetween and the impact of commodity prices on stock market will be examined.The long-run relationship and causality will examined with an econometricmodel. The results obtained from the examination of relationship betweencommodity prices and stock market would provide to discussions about drivers ofstock prices. Due to importance of such impact, findings obtained from the case ofTurkey will be interpreted. These findings will help in the decision makingprocess of the investors. In addition, the findings of this study are important forpolicy-makers to strengthen the stock markets to promote economic growth