Effects of short-term capital movements on selected macro economic indicator in Turkey's economy (2010-2022)

International capital movements play very decisive roles over the basic macro economic variables of the developing countries in which investment is being invested. It affects both financial and technological resources in order to ensure continuity in developing countries' economies. The purpose of the thesis study is to examine the impact of effective exchange rate, inflation and industrial production in Turkey on short-term capital movements. To determine the relationship between these changes, the model was created using monthly data from the period 2010-2022. The most common stationary tests used in the time series to identify the relationship between variables are studied with Augmented Dickey fuller and Philips Peron tests for stagnation. The Toda-Yamamoto Causality Test is used based on two tests used to produce statistical inference. The relationship between short-term capital movements and effective exchange rate is a mutual relationship between variables, according to empirical results. It affects each other in both variables. But there is no direct relationship between short-term capital movements and inflation. A very poor relationship has been established between industrial production and short-term capital movements. As a result of the results obtained, the exchange rate should be used as a policy variable for developing countries such as Turkey.