Analysis of the effects of the global financial crisis on the Turkish economy, using hierarchical methods

Kantar E., KESKİN M., Deviren B.

PHYSICA A-STATISTICAL MECHANICS AND ITS APPLICATIONS, vol.391, no.7, pp.2342-2352, 2012 (SCI-Expanded) identifier identifier


We have analyzed the topology of 50 important Turkish companies for the period 2006-2010 using the concept of hierarchical methods (the minimal spanning tree (MST) and hierarchical tree (HT)). We investigated the statistical reliability of links between companies in the MST by using the bootstrap technique. We also used the average linkage cluster analysis (ALCA) technique to observe the cluster structures much better. The MST and HT are known as useful tools to perceive and detect global structure, taxonomy, and hierarchy in financial data. We obtained four clusters of companies according to their proximity. We also observed that the Banks and Holdings cluster always forms in the centre of the MSTs for the periods 2006-2007,2008, and 2009-2010. The clusters match nicely with their common production activities or their strong interrelationship. The effects of the Automobile sector increased after the global financial crisis due to the temporary incentives provided by the Turkish government. We find that Turkish companies were not very affected by the global financial crisis. (C) 2011 Elsevier B.V. All rights reserved.