Browsing by Subject "Economic stabilization--Turkey."
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Item Open Access Financial liberalization and the real economy: the Turkish experience(Bilkent University, 1996) Yülek, Murat AliIn this dissertation, the effects o f financial liberalization in Turkey are investigated on three aspects. Firstly, the effects o f liberalization on the macroeconomic variables o f aggregate saving, investment, growth, bank deposits, bank credits and securities issues and portfolios are discussed. It was found that after the liberalization the difference between private saving and investment increased. On the other hand the same difference for the public sector became highly negative. In other words the public sector increasingly resorted to the private sector to cover its deficit. The share o f non-service sector investments (manufacturing, agriculture and mining) in total private investments decreased considerably after liberalization. The growth performance o f the economy after liberalization compares negatively with that before the liberalization. Financial deepening increased after liberalization. Bank deposits increased rapidly but the increase in credits were limited. The main reason was a rapid increase in bank and non-bank holdings o f government securities. We focus next on the probable efficiency effects o f liberalization. Employing a fixedeffect model we compared the efficiency o f manufacturing firms in eight industries before and after the liberalization. We use these findings to see whether efficiency became a more important factor in the access to bank credit after the liberalization. The results indicate that there has been an increase in the mean efficiency and the importance o f efficiency as a determinant o f access to bank credit after liberalization. However, factors like size and location continued to play a major role in access to bank credit well after the liberalization. Finally, we present evidence through a second fixed effect model and a sample selection model that after the liberalization efficiency led to increased access to bank credit but the opposite link was much less strong. Finally, we investigate the financial behavior o f manufacturing firms quoted at the Istanbul Stock Exchange during “normal” times and during crisis. We present evidence that firms are financially constrained. Using interactive variables in ordinary least square estimations we argue that financial constraints on firms that are informationally closer to banks are less stringent. On the other hand, we found that during 1994 financial crisis the constraints became more stringent. However, again, this phenomenon was not homogenous across different firm categories. Finally, the findings point out to a substantial restructuring during the crisis. The terms o f restructuring varied across firm categories. We present evidence that firms with closer informational ties to banks had better conditions o f restructuring.Item Open Access Financial liberalization, foreign equity investment and volatility in emerging stock exchanges(Bilkent University, 2008) Umutlu, MehmetIn this thesis, the effects of financial liberalization and foreign equity investment on the return volatility of stocks in emerging stock exchanges are investigated. At the aggregate level analyses, it is shown that the degree of financial liberalization has an increasing impact on the aggregated total volatility of stocks. The analysis of the components of the aggregated total volatility indicates that that the degree of financial liberalization impacts the aggregated total volatility through aggregated idiosyncratic and local volatility. In the second part of the aggregate level analyses, the effect of foreign equity investment on the return volatility of stocks is investigated by using foreign equity flow data which is available for İstanbul Stock Exchange. It is found that foreign equity inflow and outflow have asymmetric effects on average stock-return volatility. While an inflow has a decreasing impact on aggregated stock return volatility, an outflow has an increasing impact. At the firm level analysis, the time-series variation in return volatility of stocks that are crosslisted on US exchanges is examined. Unlike previous studies in cross-listing literature, return volatility is analyzed using conditional heteroscedasticity models. It’s found that firms’ exposure to risks such as local and global market betas remain unchanged after cross-listing. Moreover, no change in the dynamics of the volatility of cross-listed stocks is detected. Furthermore, it’s shown that the mean level of conditional variance is not affected by the decision to cross-list. Thus, it is concluded that share holders of cross-listed stocks are not subject to adverse volatility effects.