Kaplan M.2019-08-012019-08-0120081812-5654https://dx.doi.org/10.3923/jas.2008.374.378https://hdl.handle.net/11480/1159This study has focused on the relationship between stock market performance and real economic activity. Recently, it was argued that the traditional links between stock market and real activity broke down since the early 1980s implying that movements of stock prices are independent from subsequent changes in real activity. This study contributes to the literature on the relationship between stock market and real economic activity using quarterly data from an emerging stock market of Turkey. In contrast to the studies carried out for developed countries, the results of this study indicate that there is a close connection between stock market prices and real economic activity and the stock market causes real economic activity. © 2008 Asian Network for Scientific Information.eninfo:eu-repo/semantics/openAccessCointegrationGranger-causalityImpulse responseReal activityStock marketArticle8237437810.3923/jas.2008.374.3782-s2.0-41949136558N/A