Browsing by Subject "Economic growth"

Now showing 1 - 20 of 23

Open Access
Advertising agency scene in Saudi Arabia
(1998) Erdem, Orham; Tuncalp, Seçil
Looks at advertising agencies in Saudi Arabia and describes their strengths and the facilities they can offer. Focuses on five major advertising agencies – Tihama for Advertising, Public Relations and Marketing; United Outdoor Advertising Company Ltd.; Raed Marketing and Advertising; Narwah Public Relations, Advertising and Marketing; and Transworld Publicity Limited – and mentions five others. Explores the history of advertising in Saudi Arabia; it's a relatively new industry built on the crude oil boom of 1973, when the Saudis embarked on an intensive economic development programme. © 1998, MCB UP Limited
Open Access
Capital maintenance as a key development tool
(Wiley-Blackwell Publishing Ltd., 2010) Boucekkine, R.; Martinez, B.; Saglam, C.
We construct optimal growth models where labor resources can be allocated either to production, technology adoption or capital maintenance. We first characterize the balanced growth paths of a benchmark model without maintenance. Then we introduce maintenance activity via the depreciation rate of capital. We characterize the optimal allocation of labor across the three activities. Although maintenance deepens the technological gap by diverting labor resources from adoption, we show that it generally increases the long run output level. Moreover, we find that equilibrium maintenance and adoption efforts respond in opposite directions to policy or technology shocks. Finally, we find that the long-term output response to policy shocks is slightly higher in the presence of maintenance. © 2010 The Authors. Scottish Journal of Political Economy © 2010 Scottish Economic Society.
Open Access
Development and quality of life in Turkey: how globalization, religion, and economic growth influence individual well-being
(SAGE Publications Inc., 2016) Sandıkcı, Ö.; Peterson M.; Ekici, A.; Simkins, T.
Recently, scholars have been calling attention to the macro-social and institutional structures shaping development and welfare. In this study we offer a socio-temporally situated understanding of quality of life (QOL) in a developing country setting and investigate the effects of macro structures on consumer well-being. Specifically, we focus on neoliberal development (led by the business sector, rather than led or directed by the government) and examine how a neoliberal transformation of the marketplace affects consumers’ QOL perceptions. The context of our research is Turkey, a developing country that has been an avid follower of neoliberal policies since the 1990s. We focus on three key macro-social developments that have been shaping Turkish society in the past decades – globalization, religion, and economic growth – and seek to understand how these forces influence consumers’ satisfaction with life. Our study contributes to the literature on development and QOL by first, showing the moderating effect of income, and second, introducing faith and global brands as important variables in conceptualizing QOL.
Open Access
Do stock index futures affect economic growth? Evidence from 32 countries
(Routledge, 2017-12-29) Yüncü, İ. Ş; Akdeniz, Levent; Aydoğan, Kürşat
This article investigates the relationship between stock index futures markets development and economic growth using time-series methods for 32 developed and developing countries. Evidence of cointegration between stock index futures and real economy in 29 countries suggests the presence of co-movements among the variables, indicating long-run stationarity in those countries. Our findings show that there is Granger-causality from stock index futures markets development to economic growth for middle-income countries with relatively low real per capita GDP, and Granger-causality in the reverse direction for the countries with high real per capita GDP. Variance decomposition and impulse-response function (IRF) analyses results support the existence of a relationship between stock index futures and real economy. Copyright
Open Access
Does foreign direct investment promote growth? Exploring the role of financial markets on linkages
(Elsevier BV, 2010) Alfaro, L.; Chanda, A.; Ozcan, S. K.; Sayek, S.
Do multinational companies generate positive externalities for the host country? The evidence so far is mixed varying from beneficial to detrimental effects of foreign direct investment (FDI) on growth, with many studies that find no effect. In order to provide an explanation for this empirical ambiguity, we formalize a mechanism that emphasizes the role of local financial markets in enabling FDI to promote growth through backward linkages. Using realistic parameter values, we quantify the response of growth to FDI and show that an increase in the share of FDI leads to higher additional growth in financially developed economies relative to financially under-developed ones. © 2009 Elsevier B.V. All rights reserved.
Open Access
The "Dominos" that need to fall into place for a reunification of Korea: making sense of a United Korea
(Routledge, 2013) Harvey, M.; Kiessling, T.; Moeller, M.
With the death of North Korea leader Kim Jong-il, the level of uncertainty will dramatically escalate in an already highly uncertain market. The question becomes, is there a market opportunity for Western organizations, and when should Western organizations attempt to enter North Korea? In addition, there is a large question looming over the potential changes in the country, that being, if and when reunification with South Korea will occur. This article examines the potential of a unified market on the Korean peninsula.
Open Access
Economic growth, trade and environmental quality in a two-region world economy
(Wiley-Blackwell Publishing Ltd., 2006) Sirakaya, S.; Turnovsky, S.; Alemdar, N. M.
This paper examines the linkages between international trade, environmental degradation, and economic growth, in a dynamic North-South trade game. The North produces manufactured goods by employing capital, labor, and a natural resource that it imports from the South, using a neoclassical production function subject to an endogenously improving technology. The South extracts the resource using raw labor, in the process generating local pollution. Genetic algorithms (GA) are used to search for optimal policies in the presence of local pollution and technology spillovers from North to South. In the GA search for optimal regional policies, both noncooperative and cooperative modes of trade are considered. Noncooperative trade results in inefficiencies stemming from externalities. Though cooperative trade policies are efficient, they lack credibility. A joint maximization of the global welfare shows that transfer of technology is a viable route to improve world welfare.
Open Access
The effect of property rights on the relationship between economic growth and pollution for transition economies
(2007) Solakoglu, E.G.
The paper measures changes in environmental quality in transition countries from 1987 to 2000 because of economic growth and environmental reforms. Indication of property rights may accelerate the growth process, as well as the composition effect on the environment. Thus, we compare transition countries that are not yet members of the European Union offering poorly defined property rights with EU-member transition countries offering better-defined property rights. We find that although EU-member transition countries exhibit an inverted U-shaped relationship between pollution intensity and economic growth, with a turning point at $5,710, non EU-member transition countries do not support such a relation. © 2007 M.E. Sharpe, Inc. All rights reserved.
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 effects of Japanese economic performance on Indonesia
(Routledge, 2006) Berument, Hakan; Ceylan, N. B.; Vural, B.
This paper assesses how Japanese economic performance affects the Indonesian economy for the 1988 to 2004 period. The empirical evidence provided here suggests that Japanese growth appreciates the local currency in real terms, decreases the inflation and increases growth. As a side issue, we also documented that real exchange rate depreciation accelerates inflation and decreases growth in Indonesia. © 2006 Taylor & Francis.
Open Access
Environment Kuznets curve for CO2 emissions: a cointegration analysis for China
(Elsevier Ltd, 2009) Jalil, A.; Mahmud, S. F.
This study examines the long-run relationship between carbon emissions and energy consumption, income and foreign trade in the case of China by employing time series data of 1975-2005. In particular the study aims at testing whether environmental Kuznets curve (EKC) relationship between CO2 emissions and per capita real GDP holds in the long run or not. Auto regressive distributed lag (ARDL) methodology is employed for empirical analysis. A quadratic relationship between income and CO2 emission has been found for the sample period, supporting EKC relationship. The results of Granger causality tests indicate one way causality runs through economic growth to CO2 emissions. The results of this study also indicate that the carbon emissions are mainly determined by income and energy consumption in the long run. Trade has a positive but statistically insignificant impact on CO2 emissions. © 2009 Elsevier Ltd. All rights reserved.
Open Access
Foreign banks, financial crises and macroeconomic fluctuations
(Blackwell Publishing Ltd, 2016) Önder, Z.; Özyıldırım, S.
Understanding the implications of increased foreign bank presence is especially compelling in periods of financial crisis. In this paper, we explore this issue by examining the relationship between the involvement of foreign banks in the banking systems and the volatility of key macroeconomic variables in normal and crisis periods. Using a sample of 20 Emerging European countries from 1998 to 2013, we find that an increase in the assets of foreign banks in the banking system reduces output and consumption growth volatility in general but does not significantly affect the volatility of investments. However, these banks were found to play a significant role in increasing output, consumption and investment volatility in 2009. Our findings suggest that foreign banks’ harmful impact during the global crisis was only temporary and that they seem to help Emerging European countries stabilize macroeconomic volatility in normal times and after the global crisis.
Open Access
Investigation on sources of growth for Turkey
(Routledge, 2006) Bayraktar, B.
This paper evaluates the correlations between growth and selected macroeconomic indicators in, Turkey under the dynamic macroeconomic adjustments as a globalizing developing economy during 1968-1998. In this context, a sensitivity analysis for basic growth variables, including fiscal, trade, and monetary indicators, is carried out by using a variant of the extreme bounds analysis (EBA). By controlling the various fiscal, trade, and monetary variables, I reveal that, with the exception of human capital, none of the variables, which are always included in the growth regressions, are robust. Thus, the paper confirms the crucial role of human capital in the growth literature.
Open Access
The major determinants of high growth rates in East Asian economies
(1996) Çetin, Bülent
The Major Determinants of High Growth Rates in east Asian Economies Bülent Çetin MA. in Economics Supervisor: Asst. Prof. İzak Atiyas 72 Pages July, 1996 This Thesis investigates major reasons behind the superior growth rates of East Asian Economies after the 1960s. Cross Country evidence supports the following investment led hypothesis : Korea, Taiwan, Malaysia, Thailand, Japan, Singapore, Hong Kong, and Indonesia experienced high economic growth rates mainly because of their good investment performance. In the early 1960s these eight economies shared a set of good initial conditions. All these economies had a well educated labor force with respect to their income levels. Moreover, the degree of equality in income and land distribution was high around 1960. The skilled labor force increased productivity of investment. The equal income and land distribution contributed to the creation of political stability. In turn, political stability and macroeconomic stability positively affected their investment performance.
Open Access
Market cycles, power politics and the latest North – South energy trade conflict
(Routledge, 2007) Williams, P. A.
Energy trade periodically aligns Northern importing - consuming countries against predominantly Southern producing - exporting countries. Conflict appears to follow a cyclical pattern, whereby Northern firms invest in developing Third World hydrocarbon resources to meet consumer demand until market conditions enable unilateral efforts by host sovereigns to augment fiscal take and ownership share and to impose output restrictions, thereby elevating prices and revenues. Although markets eventually correct themselves, major consuming-country governments, to the extent that seller's markets attributable to exporter actions harm short-term consumer welfare and alternative options for restoring buyer's markets are lacking, have varying incentives to support military intervention. Shifting market conditions and power balances suggest six ideal-typical energy trade conflict strategies. Finally, to the extent that exporting states succeed in converting higher hydrocarbon revenues into energy-intensive economic growth, co-operative phases within this conflict pattern could yield to increasingly zero-sum inter-consumer rivalry.
Open Access
Military spending multiplier of Turkey : an empirical analysis for Turkey
(2006) Kasalak, Serhat
This study estimates the military spending multiplier of Turkey over the period of 1980- 2004 by employing a four-equation econometric model. The different views that appear in the literature on the relationship between defense spending and economic growth are identified and it is concluded that there is no agreement as to the exact nature of the relationship between defense spending and growth. The study also deals with the current trends in Turkish economy, analyzes government spending and military spending of Turkey. The results of this study indicate that defense expenditures have no significant direct or indirect effect on economic growth. On the other hand, there is an insignificant positive military spending multiplier of 0.04. In other words, 1 percent increase in military expenditures results in a 0.04 percent (not statistically significant) increase in GNP.
Open Access
Modified GDP through health cost analysis of air pollution: the case of Turkey
(1999) Zaim, K. K.
Economic growth and performance is monitored through the gross domestic product (GDP) of a nation. It has long been recognized that the traditionally computed GDP does not account for gains and losses observed due to the consumption of natural resources and environmental services. Hence, the objective of this study is to modify the Turkish GDP by taking social cost associated with air pollution into consideration. To this end health benefits and economic costs of air-quality improvement are estimated. The computations are based on the dose-response coefficients reported in several studies. The results indicate that a decrease in PM10 and SO2 levels to the WHO guideline would have resulted in a total of 48.309 x 1010 and 153.38 x 1010 Turkish lira savings in 1990 and 1993, respectively. These correspond to 0.12% and 0.08% of 1990 and 1993 GDPs, respectively.
Open Access
Patterns of growth in dual economies: challenges of development in the 21st century
(Academic Press, 2018) Acar, S.; Voyvoda, E.; Yeldan, Alp Erinç
This chapter attempts to examine patterns of growth in dual economies within the context of challenges of development for the 21st century. To this end, we first study the broad contours of growth and adjustments in the global economy, before, during, and after the 2008–09 global crisis. Here four general patterns emerge, namely, stagnation of wage incomes; declining investment effort; consequent decline in the rates of growth of productivity; and a compensatory rise in corporate and household indebtedness. The chapter continues with a deeper investigation of the structural sources of deindustrialization and widening duality in both labor markets and technological diffusion. Finally, we link all these ideas with the macroeconomics of global climate change and implications on the feedback effects of the economy-resource use-environmental degradation nexus.
Open Access
Political connection, bank credits and growth: evidence from Turkey
(Wiley-Blackwell Publishing, 2011) Onder, Z.; Ozyildirim, S.
The pervasive existence of government-owned banks in emerging economies is often justified by their provision of access to credit in remote and underdeveloped regions that are ignored by private banks. This paper analyses whether credits provided by government-owned and private banks have a significant role in regional growth and whether this role changes in politically connected areas in Turkey. Our findings imply that private banks significantly improve the economic well-being in all Turkish provinces regardless of their development level or their political connection with the ruling party. However, credits by government-owned banks are found to be positively related to the per capita growth rate only in the less developed provinces that are advocates of the ruling political party and also developed but not politically connected provinces. These results suggest that government-owned bank credits, as implied by the political view, are used for funding politically desirable projects or politically connected borrowers.
Open Access
Productivity and growth in an unstable emerging market economy: the case of Turkey, 1960-2004
(Routledge, 2009) Ismihan, M.; Ozcan, K. M.
This paper explores sources of growth in the Turkish economy by performing growth accounting exercises over the 1960-2004 period and relevant subperiods. It also analyzes the role of a number of important policy-related factors, such as infrastructure investment, macroeconomic instability, and imports, on total factor productivity (TFP) by performing cointegration and impulse response analyses. The results suggest that both TFP and capital accumulation were crucial sources of growth during the sample period. Nevertheless, TFP growth displayed enormous variation from 1960 to 2004. The descriptive and empirical evidence suggests that TFP is positively affected by imports and public infrastructure investment and negatively affected by macroeconomic instability. Copyright © 2009 M.E. Sharpe, Inc. All rights reserved.