Abstract:
A large number of studies on the relationship between financial indicators and
macroeconomic variables such as economic growth and energy as a result of the increase in the energy
prices and their volatility in recent years have emerged. The aim of this study, apart from the other
studies in the area, is to investigate the interaction between energy consumption and stock exchange
index in Turkey. Ceteris paribus, economic growth with the increase of energy consumption, the
growth of the economy impact will also affect the stock exchange which is accepted as the barometer
of the economy (vice versa). The interaction between the BIST National 100 index, BIST National
Industrial Index and energy consumption is investigated by Johansen Cointegration Test, Granger
Causality Test tests based on VAR for the period of 1995-2011. Unidirectional causality relationship
is detected from BIST 100 Index and BIST Industrial Index towards energy consumption.
