Browsing by Subject "Profit."
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Item Open Access Capital's response to globalization : "a comparative analysis of the adjustment patterns of mark-ups in post-liberalization developing countries"(2004) Buturak, GökhanIn this thesis, I investigate the capital’s response to the new world economic order termed as “globalization”. It is asserted in many theoretical and popular writings that increased pressures of global competition would squeeze the profit margins and reduce capital returns. I discuss this proposition theoretically and then test for it using manufacturing data for a selected group of developing countries under post-liberalization. I utilize time series and panel data econometrics to study the behavior of markups (gross profit margins) against wage costs, trade openness, and investment share in the GDP as a proxy for capacity utilization. Contrary to expectations, I find no significant conclusive evidence on the sign of “openness” on profit margins in many countries of my sample. My results also reveal that though mark-ups are negatively related with real wage costs in most of the Latin American countries in my sample, they have a positive and statistically significant relation to real wage costs in Turkish manufacturing. Finally, investment shares and mark-ups reveal a negative relationship for Argentina and Turkey and a positive one for Colombia.Item Open Access Real money balances in production function: a translog profit function approach(1998) İlerisoy, MahmutThis thesis examines the role of real money balances in production function as a factor. A transcendental logarithmic (translog) profit function is estimated with share equations for disaggregated 2 digit Canadian manufacturing industries which are clothing, food, furniture, and wood industries using Zellner’s seemingly unrelated algorithm in the TSP computer programme. Both long-run and short-run profit maximizing elasticities are computed. Based upon the results of price elasticities, we have evidence for a significant role o f real money balances in production function as a factor both in long-run and short-run. Another interesting result that emerges from our study is the significance of the potential supply side effects of changes in the interest rate on both labor demand and supply o f output.