Macroeconomic factors affecting the rate of foreign investors in Borsa İstanbul

Foreign investors have great importance in country economies. Especially in developing countries, sufficient savings cannot be achieved due to reasons such as insufficient capital and low incomes. As a result, it becomes difficult to make investments that will contribute to the country's economy, and financial markets are not strong enough. In such cases, foreign investors come into play. Thanks to foreign investors, capital flows to the countries will be ensured and at the same time, a type of foreign exchange source will be created, thus significant movements will occur in the markets in the countries. However, some macroeconomic indicators in the country's economy significantly affect foreign investors' ability to invest in the country. The aim of this study is to examine the effects of macroeconomic factors such as dollar exchange rate, GDP, CDS premium and weighted average interest rates applied to deposits opened by banks, which are macroeconomic factors that have a significant impact on foreign investors in Borsa Istanbul when making investment decisions. In the study, quarterly data for the period between 2008 and 2021 was used, using the ARDL bounds test approach. The findings obtained as a result of the analysis confirm that there is a strong cointegration relationship between the variables. On the other hand, while inflation, CDS premium and the weighted average interest rate applied to deposits opened by banks have a positive impact on the rate of foreign investors in Borsa Istanbul, Dollar and GDP variables have a negative impact on the rate of foreign investors in Borsa Istanbul.