Abstract
The study aims to determine the asymmetric relationships between Borsa Istanbul sector index volatilities and economic policy uncertainties of different regions and countries. For this purpose, the relationships between the European Region, Germany, France, England, Italy and Global Economic Policy Uncertainty Indices and Borsa Istanbul 30, Services, Financial, Industrial and Technology sector indices volatilities were analyzed using the Hatemi-J Asymmetric Causality Test. The most important finding obtained from the study is that there is a causal relationship between the increases experienced in all economic policy uncertainty indices and the increases experienced in sector index volatilities. However, no causal relationship was determined between the decreases experienced in economic policy uncertainty indices and the decreases experienced in sector index volatilities. Another finding from the study is that there are asymmetric relationships between all economic policy uncertainty indices and sector index volatilities, while the industrial sector index volatility has an asymmetric relationship with all economic policy uncertainty indices.
Published Version
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