The relation between business confidence ındex and financial Investment Instruments: An ınvestigation on BRICS and MIST countries

Abstract

The relationships between the business confidence index and financial investment instruments were scrutinized for BRICS and MIST countries via panel data analyses in this study. January 2010-May 2021 period data of BRICS and MIST countries were utilized within the scope of the study. The long-term cointegration relationships between business confidence index and financial investment instruments were analysed by Westerlund (2007) Panel ECM and Westerlund and Edgerton (2007) Panel LM tests, while Hatemi (2011) asymmetric causality test analysed the causality relationships. According to the panel data analysis results, the effects of investor confidence and expectations on financial investment instruments vary by country.