Browsing by Subject "economic growth"

Now showing 1 - 4 of 4

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
Is Materialism All That Bad? Effects on Satisfaction with Material Life, Life Satisfaction, and Economic Motivation
(2013) Joseph Sirgy, M.; Gurel-Atay, E.; Webb, D.; Cicic, M.; Husic-Mehmedovic, M.; Ekici, A.; Herrmann, A.; Hegazy I.; Lee, D.-J.; Johar J.S.
The literature in economic psychology and quality-of-life studies alludes to a negative relationship between materialism and life satisfaction. In contrast, the macroeconomic literature implies a positive relationship between material consumption and economic growth. That is, materialism may be both good and bad. We develop a model that reconciles these two contrasting viewpoints by asserting that materialism may lead to life dissatisfaction when materialistic people evaluate their standard of living using fantasy-based expectations (e. g., ideal expectations), which increases the likelihood that they would evaluate their standard of living negatively. In turn, dissatisfaction with standard of living increases the likelihood that they would evaluate their life negatively. However, materialistic people who evaluate their standard of living using reality-based expectations (e. g., ability expectations) are likely to feel more economically motivated than their non-materialistic counterparts, and this economic motivation is likely to contribute significantly and positively to life satisfaction. Survey data were collected from seven major cities each in a different country (Australia, Bosnia/Herzegovina, Germany, Egypt, Korea, Turkey, and the USA) using a probability sample (cluster sampling method involving income stratification). The results provide support for the model. The economic public policy implications concerning how people evaluate their standard of living using ability-based expectations are discussed in the context of the ideals of meritocracy. © 2011 Springer Science+Business Media B.V.
Open Access
Military expenditures and economic growth in Turkey
(2003) Candar, Ömür
This study estimates the impact of military expenditures on economic growth in Turkey over the period of 1950-2001 by employing a cointegration analysis developed by Engle and Granger (1987). The model integrates some of the commonly used variables in defence economics models into a simple growth specification and allows the influences of the defence spending on economic growth to be revealed empirically. The results indicate that military expenditures have a positive effect on economic growth both in the long and in the short run.
Open Access
Trade, growth, and environmental quality
(2009) Sirakaya, S.; Turnovsky, S.J.; Alemdar, N.M.
This paper examines linkages between international trade, environmental degradation, and economic growth in a dynamic North-South trade game. Using a neoclassical production function subject to an endogenously improving technology, North produces manufactured goods by employing labor, capital, and a natural resource that it imports from South. South extracts the resource using raw labor, in the process generating local pollution. We study optimal regional policies in the presence of local pollution and technology spillovers from North to South under both non-cooperative and cooperative modes of trade. Non-cooperative trade is inefficient due to stock externalities. Cooperative trade policies are efficient and yet do not benefit North. Both regions gain from improved productivity in North and faster knowledge diffusion to South regardless of the trading regime. © 2009 The Authors. Journal compilation © 2009 Blackwell Publishing Ltd.