Voluntary Private Pension Funds and Capital Market Development in Turkey

Posted: 5 Feb 2020

See all articles by Asli Togan Egrican

Asli Togan Egrican

Kadir Has Universitesi - Faculty of Management

Fatih Kayhan

Kırklareli University

Date Written: January 13, 2020


We look at voluntary private pension funds and its relationship to capital market development in Turkey. First, we describe the voluntary pension fund market development in Turkey since 2003, and then analyze certain indicators of capital markets once the voluntary private pension funds are introduced. Overall, our findings indicate that the introduction of voluntary private pension plans are positively associated with indicators of capital market development such as market capitalization, market depth and liquidity in Turkey in both debt and equity markets. We also observe that in addition to debt and equity markets, other more recently established markets’ development indicators are positively associated with the introduction of voluntary pension plans. The results analyzing the introduction of state contributions in 2013 are not robust to alternative specifications even though they show a positive association with certain indicators.

Keywords: Pension Funds, Retirement, Capital Market Development, Developing Countries, Turkey

JEL Classification: G15, G23, H55, J32, O16

Suggested Citation

Togan Egrican, Asli and Kayhan, Fatih, Voluntary Private Pension Funds and Capital Market Development in Turkey (January 13, 2020). Available at SSRN: https://ssrn.com/abstract=3518442

Asli Togan Egrican (Contact Author)

Kadir Has Universitesi - Faculty of Management ( email )

Faculty of Management
5347312433 (Phone)

HOME PAGE: http://sites.google.com/view/aslitoganegrican/

Fatih Kayhan

Kırklareli University ( email )

Lüleburgaz MYO
Kepirtepe L

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