Browsing by Subject "Finance--Turkey."

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Open Access
An analysis of foreign investment in Turkey
(1993) Dilek, Ali Nihat
This study attempts to clarify two important subjects on foreign capital in Turkey. First one is a comparison of the performance of firms with foreign capital and firms with domestic capital. And second one is trend and distribution of foreign capital entry. Four different point of view are considered, namely historical development of foreign capital in Turkey, distribution of foreign capital between sectors and countries, comparison of performance of foreign and domestic owned firms, finally determination of labor productivity differences between foreign and Turkish owned firms. An increasing trend in the annual entries of foreign capital is reported in this study. Moreover it is found out that tourism, basic chemicals, petroleum, rubber, iron and steel, mining and metal goods are highly preferred sectors. In addition, it is seen that foreign owned firms have higher performance than their domestic rivals. Six economic parameters namely labor productivity, capital-labor ratio, wage level, wage share of value added, profitability and value added-capital ratio are used in this comparison. Most of the selected samples are indicating a higher performance by the foreign owned firms than their domestic rivals.
Open Access
Finance growth nexus following the 2001 crisis in Turkey
(2012) Songül, Hüseyin
Diverse economic growth rates of countries have engaged the attention of economists. Recently, researchers have studied the role of financial development to explain the cross-country differences in growth. In particular, the direction of causality between financial sector development and economic growth has been analyzed in the context of two conflicting hypotheses. According to supply-leading hypothesis financial development leads to economic growth, however demandfollowing hypothesis claims that the direction of the relationship runs from economic growth to financial development. Beside these two competing hypotheses, bi-causality between economic growth and financial development has been argued in the literature as well. This paper examines the causal relationship between financial development and economic growth in Turkey for the period 2002:1-2011:2, using the technique of Granger causality. Our model reveals that there is a bidirectional long run relationship between the economic growth and banking sector development. On the other hand, the long run causality between the stock market development and economic growth is from stock market development to economic growth.
Open Access
Financial liberalization and the real economy: the Turkish experience
(1996) Yülek, Murat Ali
In 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.
Open Access
Financial liberalization, foreign equity investment and volatility in emerging stock exchanges
(2008) Umutlu, Mehmet
In 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.
Open Access
The relationship between market determined risk measures and financial variables
(1990) Uysal, Erkan