Browsing by Subject "Financial Liberalization"

Now showing 1 - 3 of 3

Open Access
A comparative study of Chinese and Turkish economic reform policies in the age of globalization
(2006) Lee, Sun A.
Though with different strategies and responses, yet all continue to share the same difficult task of development in this given conditions of globalizing world. My thesis compares and contrasts the reform history of China and Turkey under the overarching system of globalization as an attempt to find out better ways to achieve development. Although their socio-economic and political systems differ, China and Turkey have entered the world of globalization by launching the reform policies almost at the same time period and both faced the same elements of risks and opportunities generated by this system. My thesis utilizes the methodology of compare and contrast to examine China’s dualistic strategy of state regulation within an open economy and Turkey’s primary economic strategies based on the private enterprises to deduce that too much liberalization, especially in the field of financial market, could cause a slow-down to, if not harm, the economy. The thesis concludes with the speculation on how such success of Chinese economy could come to a halt if further liberalization especially in the form of capital account liberalization continues in the future.
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 in Turkey and the evolution of ownership structures
(2023-08) Mıhcı, Atamert
This thesis describes how ownership structures of Turkish listed companies changed from 1986 to 2020. The financial liberalization program, implemented in the 1980s, aimed to increase financial literacy and expand the investor base. The opening of the stock exchange, Istanbul Stock Exchange, (ISE) in 1986 was a part of the financial liberalization program. The opening of a modern stock market aimed to widen the investor base and spread firm control across society. I examine the 40 companies first listed on Istanbul Stock Exchange in 1986. One company is dropped from the sample due to missing data for 1986. Six of the remaining 39 companies had ceased operations by 2020. Thirty-three companies are still in operation in 2020 with 6 of them going private in the interim. Two of the six private companies did not have publicly available ownership data. The largest shareholder, on average, controlled 34 percent, the three largest shareholders 61 percent, and the five largest controlled 65 percent of shares in 1986 in the 31 sample companies. The largest shareholder controlled 59 percent, the three largest shareholders 74 percent, and the five largest controlled 76 percent of shares in 2020. I found that ownership concentration, the measure of how control is concentrated across the largest shareholders, increased in Turkish firms from their first listing in 1986 to 2020. Contrary to the aims of the financial liberalization program, the results suggest, ownership became more concentrated in the hands of the largest shareholders.