TüRK？YE’DE B？REYSEL EMEKL？L？K S？STEM？N？N SERMAYE P？YASASININ GEL？？？M？ üZER？NDEK？ ETK？S？

The aim of this paper is to investigate the effects of individual penison funds on capital market development in Turkey. This causal associaton is examined using Toda-Yamamoto (1995) approach with monthly data for the time period 2006-2017. Empirical findings show that individual pension funds support stock market development in the long run. However, this causal association is not valid in the short run. Accordingly, individual pension funds support stock market development only in the long run. In addition, it is also found that debt market affect individual pension funds in the long run. Finally, it is also found that individiual pension funds give positive response to the change in stock market in Turkey in the short run