Measuring Economic Sentiment : The Case of Turkey

This paper builds an economic sentiment index for Türkiye namely the "Turkish Economic Sentiment Index (TESI)", using an extensive set of textual data about the Turkish economy from 2004-2022. The analysis indicate that the TESI can capture many different international and domestic sentiment shocks and has a statistically significant causal relationship with the economic growth and stock market. Therefore, it could be an important alternative to survey-based indicators for researchers who are investigating the behavioral aspects of the Turkish economy and financial markets