Browsing by Author "Ozdurak, C."

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Beyond the Silicon Valley of the East: Exploring Portfolio Diversification with India and Mint Economies
(Multidisciplinary Digital Publishing Institute (MDPI), 2024) Ozdurak, C.; Hekim, D.
In the past few decades, India’s tech industry has boomed, making it a leader in the digital world. Today, India has many big tech companies, well-trained software developers, and cutting-edge technology like AI and cloud computing. This success shows India’s innovative spirit and makes the country a good example for other developing nations. However, global portfolio managers often overlook potential diversification opportunities beyond India’s dynamic stock market. This study investigates the viability of MINT (Mexico, Indonesia, Nigeria, and Turkey) as diversification targets, specifically analyzing spillover effects and volatility dynamics between their stock markets and that of India. Leveraging vector autoregressions (VARs) and dynamic conditional correlation (DCC)–GARCH models, we uncover intricate relationships. Further, DCC–GARCH analysis reveals varying degrees of volatility spillover, offering valuable insights for risk management. Our findings suggest that MINT economies, particularly Mexico and Turkey, hold promise for Indian portfolio diversification. By strategically incorporating these markets, investors can potentially mitigate India-specific risks and enhance portfolio returns. We urge global portfolio managers to consider Turkey as a viable diversification avenue, acknowledging the nuanced market growth dynamics highlighted in this study. © 2024 by the authors.
Borsa Istanbul as an Inflation Hedge: A Post-COVID Perspective
(Econjournals, 2025) Ozdurak, C.; Çipe, B.; Ertem, G.Y.; Bolgün, K.E.
This study delves into the intricate relationship between inflation and stock prices on Borsa Istanbul, with a particular focus on the turbulent post-COVID-19 era. While traditional assets like real estate have historically served as reliable inflation hedges, the emergence of Borsa Istanbul as a potential alternative warrants investigation, especially during the period 2019-2023. To assess the effectiveness of the Turkish stock market as an inflation hedge, we employ a rigorous econometric framework that extends beyond broad market indices to examine sector-specific responses. By adopting a Vector Autoregression (VAR) model, we capture the dynamic interplay between inflation and stock returns. Our analysis incorporates a comprehensive set of macroeconomic control variables spanning the period 2006Q1-2023Q4 and utilizes robust estimation techniques to account for potential structural breaks induced by the COVID-19 pandemic and unconventional economic policies. The primary objective of this study is to determine whether Borsa Istanbul stocks constitute an effective inflation hedge. In essence, our results suggest that the Turkish equity market has served as a safe haven for investors during inflationary periods. A deeper understanding of the relationship between inflation and equity markets is crucial for investors, policymakers, and financial market participants seeking to comprehend and manage inflation risks in emerging economies. In this context the study contributes to the existing literature by providing empirical evidence on the inflation hedging capabilities of Borsa Istanbul stocks, particularly in the context of recent economic and geopolitical upheavals. © 2025, Econjournals. All rights reserved.