Browsing by Subject "Developing economies"

Now showing 1 - 3 of 3

Open Access
The effect of world income on the economic performance of African countries
(International Economic Society, 2007) Berument, Hakan; Ceylan, N. B.; Vural, B.
This paper examines how the output growths of 37 African countries’ are affected by the output growth of the world. The connection between the world output growth and that of each African country is represented by a block recursive VAR model allowing that world output growth affects each African countries’ output but not vice versa. The response of each African country’s output growth is analyzed when one standard deviation shock is given to the world’s output growth. Our results indicate that in 6 of the 37 countries, there exists a statistically significant and permanent effect for four periods (years), and the effect is positive for 5 of them. The statistically significant effect of the shock is observed starting from the first period for 16 countries, of which the effect is positive in 13. The initial (contemporaneous) effect of the shock can be observed in the output growths of 13 African countries of which the effect is positive in 9. For the output growths of 9 countries, a statistically significant effect could not be observed.
Open Access
The policy challenge with floating exchange rates: Turkey's recent experience
(Springer New York LLC, 2005) Selçuk, F.
This paper evaluates the developments in the Turkish economy in light of the Central Bank of Turkey's (CBT) policies during a recent period of floating exchange rate system (March 2001-July 2003). It is found that the CBT was effective in containing volatility and reducing the average inflation rate while there was a strong recovery of output. However, there are accumulated risks in the economy. Particularly, the extreme appreciation of the Turkish lira during this period and the record level of real interest rates give the impression that the current state of the economy is fragile. Unless the government accelerates the structural reform process and pursues sound fiscal policies to reduce the public sector borrowing requirement and the debt ratio, an adverse shock to the system may trigger a reversal of fortune. © 2005 Springer Science + Business Media, Inc.
Open Access
Transformational leadership and organizational innovation: the roles of internal and external support for innovation
(Wiley-Blackwell Publishing, 2009) Gumusluğlu, L.; Ilsev, A.
Leadership has been suggested to be an important factor affecting innovation. A number of studies have shown that transformational leadership positively influences organizational innovation. However, there is a lack of studies examining the contextual conditions under which this effect occurs or is augmented. Therefore, this study aimed to investigate the impact of transformational leadership on organizational innovation and to determine whether internal and external support for innovation as contextual conditions influence this effect. Organizational innovation was conceptualized as the tendency of the organization to develop new or improved products or services and its success in bringing those products or services to the market. Transformational leadership was hypothesized to have a positive influence on organizational innovation. Furthermore, this effect was proposed to be moderated by internal support for innovation, which refers to an innovation supporting climate and adequate resources allocated to innovation. Support received from external organizations for the purposes of knowledge and resource acquisition was also proposed to moderate the relationship between transformational leadership and organizational innovation. To test these hypotheses, data were collected from 163 research and development (R&D) employees and managers of 43 micro- and small-sized Turkish entrepreneurial software development companies. Two separate questionnaires were used to collect the data. Employees' questionnaires included measures of transformational leadership and internal support for innovation, whereas managers' questionnaires included questions about product innovations of their companies and the degree of support they received from external institutions. Organizational innovation was measured with a market-oriented criterion developed specifically for developing countries and newly developing industries. Hierarchical regression analysis was used to test the hypothesized effects. The results of the analysis provided support for the positive influence of transformational leadership on organizational innovation. This finding is significant because this positive effect was identified in micro- and small-sized companies, whereas previous research focused mainly on large companies. In addition, external support for innovation was found to significantly moderate this effect. Specifically, the relationship between transformational leadership and organizational innovation was stronger when external support was at high levels than when there was no external support. This study is the first to investigate and empirically show the importance of this contextual condition for organizational innovation. The moderating effect of internal support for innovation, however, was not significant. This study shows that transformational leadership is an important determinant of organizational innovation and encourages managers to engage in transformational leadership behaviors to promote organizational innovation. In line with this, transformational leadership, which is heavily suggested to be a subject of management training and development in developed countries, should also be incorporated into such programs in developing countries. Moreover, this study highlights the importance of external support in the organizational innovation process. The results suggest that technical and financial support received from outside the organization can be a more important contextual influence in boosting up innovation than an innovation-supporting internal climate. Therefore, managers, particularly of micro- and small-sized companies, should play external roles such as boundary spanning and should build relationships with external institutions that provide technical and financial support. The findings of this study are especially important for managers of companies that plan to or currently operate in countries with developing economies.