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It is known that the searches for alternative barometer is becoming more widespread for investors to make investment decisions due to the inadequacies of information flow to the credit rating agencies or the negative reflections caused by the issuance of long-term ratings in the world economy. In this context, the use of Credit Default Risks or CDS premiums in short terms as an alternative to credit ratings has become increasingly common. In this study, the relationship between CDS scores and stock market indices, which are the most important reflection of capital mobility, has been studied for the period 2007: M12-2018: M04. As a result of this study, it has been determined that there are long-term relationships between the CDS premiums and the stock market index values in the countries other than USA and UK. On the other hand, it has been determined that the existence of mutual causality relations between CDS premiums and stock market index. It can be argued that companies should avoid negative financial behavior that may raise risk premiums and they will not be able to meet the financial needs of both themselves and the country's economy. [ABSTRACT FROM AUTHOR]

In this study, countries were analyzed between 1990 and 2011 in order to determine whether a causal relationship exists among current account deficit, GDP, foreign direct investment, and total credits of G7. Analysis took into account the cross-sectional dependence and was applied to test the causality among the variables form the panel. Firstly, panel unit root tests were used for determining stationary of variables. As a result of the panel unit root tests, it was found that GDP and foreign direct investment have a stationary structure and that total credits and current account deficit contain unit root. In order to see whether there is a long-term relationship among the variables or not, the panel co-integration test was used. As a result of the test, it was concluded that there is a co-integration relationship among the series. The possibility of a causal relationship was analyzed among the variables using the causality test developed by Elena Ivona Dumitrescu and Christophe Hurlin (2012). Results of the analysis showed a unidirectional causal relationship from current account deficit and foreign direct investment to GDP. Bidirectional causality was found between current account deficit and total credits. Finally, a unidirectional relationship was found from foreign direct investment to current account deficit and total credits.

In this study, countries were analyzed between 1990 and 2011 in order to determine whether a causal relationship exists among current account deficit, GDP, foreign direct investment, and total credits of G7. Analysis took into account the cross-sectional dependence and was applied to test the causality among the variables form the panel. Firstly, panel unit root tests were used for determining stationary of variables. As a result of the panel unit root tests, it was found that GDP and foreign direct investment have a stationary structure and that total credits and current account deficit contain unit root. In order to see whether there is a long-term relationship among the variables or not, the panel co-integration test was used. As a result of the test, it was concluded that there is a co-integration relationship among the series. The possibility of a causal relationship was analyzed among the variables using the causality test developed by Elena Ivona Dumitrescu and Christophe Hurlin (2012). Results of the analysis showed a unidirectional causal relationship from current account deficit and foreign direct investment to GDP. Bidirectional causality was found between current account deficit and total credits. Finally, a unidirectional relationship was found from foreign direct investment to current account deficit and total credits. [ABSTRACT FROM AUTHOR]