Turkish Economic Review
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Fiscal Policy and Economic Growth, Empirical Evidence in European Union
No full textAbstract. The role of Fiscal policy in the long run growth process has been crucial in macroeconomics since the appearance of endogenous growth models. Additionally, a significant debate among economists involves whether several types of spending or taxation enhance economic growth. The main objective of this paper is to highlight the relationship between fiscal policy and economic growth in the EU-15, and make an attempt to determine which of the fiscal policy instruments enhance economic growth.We deployed panel data techniques and included both sides of budget, spending and taxation, in our regressions and used the most recent dataset data for fiscal variables from Eurostat. We made a new classification of public expenditures into homogeneous groups in order to reduce the explanatory variables and increase the efficiency of our model and results since we have data for only 14 years. In our empirical analysis we included OLS, fixed effects models, random effects models and GMM estimators, the Arellano and Bond (1991) and the Arellano and Bover (1995) - Blundell and Bond (1998) estimators.On the first round of our regressions we find a negative impact of spending on human capital accumulation on economic growth. Our empirical results also indicate that an increase on government spending on infrastructure has a significant positive impact on the economy growth of a country. Additionally, in our regressions the variable government spending on property rights protections include spending on defence and spending on public order safety. Our empirical results from the first round of regressions imply a strongly negative relationship between these two variables. However, on the second round of our regressions we aggregate defence spending from spending on property right protection and we did not find any relationship between economic growth and defence spending. Moreover, we found a non-significant relationship between government spending on social protection and economic growth. On the second round of regressions, when we allow for non-linear growth effects we find a positive relationship with deficits and economic growth, which is in contrast with Ricardian Equivalence. We also included the employment growth and business investment in our model because labour and capital are very important factors of production in growth models. In our empirical results we do not find a significant impact of employment on economic growth, but when we allow for non-linear growth effects we find a strongly positive impact. However, we found that gross fixed capital formation of the private sector as a percentage of GDP in both rounds of our regressions, has no significant impact on economic growth. Finally,our empirical results do not support any evidence of relationship between openness and economic growth.Keywords. Panel Data. Fiscal Policy. Taxation. Government Expenditures.JEL. C23, C33, E62, H2, H5
Raoul Beunen, Kristof Van Assche, & Martijn Duineveld, Evolutionary Governance Theory: Theory and Applications
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Severity and Controllability of Service Failures as Perceived by Passengers in Airline Industry
No full textAbstract. Service delivery is inherently failure prone. Providing “zero defects” services should be the desired objective of all service providers, but problems are unavoidable in the service industry mainly due to the unique characteristics of services (Parasuraman et al., 1985).The characteristics and the typology of the complaints have been studied in fragmented manner (McCollough, 2009). Hence, this research has the following objectives: To find the severity and controllability of the complaint situations as perceived by airline passengers. To classify the complaint situations based on severity and controllability. To find the association between the typology of complaints, namely, process related and outcome related to the characteristics of severity and controllability. In the first stage, the research methodology wasin-depth exploratory interviews with officials of eight airlines. Situations of common complaints were collected and integrated with those in the literature to develop inventory of complaints. An instrument was developed to classify the complaint situation based on perceived severity and controllability. The findings have managerial implications of guiding the officials in assessment of the severity and controllability of the process and outcome related situations.Keywords. Complaints in airlines, Controllability of complaints, Outcome related complaints.Jel. C12,C83, C93, M31
Determinants of Bank Profitability in Turkey: An Empirical Analysis on Types of Banking from 2002 to 2012
No full textIn this study, we investigate the determinants of banking profitability related to their financial statements. One of the major aim of financial systems is to make stability over the financial companies. Well known financial companies are Banks. If Banks make more profitable works, it can provide better effect to sector as an efficiency. The profitability of banks are more important for financial systems. Because of a lot of factors may affect to the banks as a widely way. Some researchers may emphasize banks earnings how it can improve which internal and external forces. Main studies are focused on banks financial statements. Therefore it is important how can we analyse their financial statements for evaluating profitability. With this current emphasis on financial statements are very important to both managing future and making new decision to guide. In Turkey, during from 2002 to 2012 period, bank’s profitability approaches has been changed to new phenomenon. Because of regulative decisions and competitive market has to change profitability of banking sectors. Therefore banking sector profitability are substantial for Turkey which to understand the determinants of all types of banks. On the other hand, financial atmosphere give priority to above changes for evaluating their performances. Therefore many studies were analysed profitability with various methods like ratio analyses, predicting regression model, simulation methods and etc. Some learning from expert’s experiences are rely on use of panel comparison with others about same historical infrastructure. In this study we examines types of banks as follows: 3 banks in state-owned banks, 12 banks in Private banks, 6 banks in foreign banks which has a branches in Turkey. In total 21 banks and 3 types analyses with cross-sectional panel data method during the from 2002 to 2012 period. In this study, we obtained data from Income Statements and Balance Sheets. As a result of panel data regression are statistically significant which Interest Income / Total Income and Consumer Loan/Total Loan are highly important to estimate ROE than estimating ROA
The Contradictions of Free Market System and The Impacts of FDI and Foreign Trade on Economy
No full textThis paper examines the effects of the FDI and foreign trade (Exports and Imports) as well as their importance in international economic activities. A central subject the study is to examine the impact of FDI and foreign trade on the growth and prosperity status of countries. Whereby the paper examines the role of international business on the developing progress of countries. The economic growth of a country depends on the quantity and productivity of the economic factors. For that reason FDI and Import-Export are most significant economic activities, which have substantial effects on the quantity as well as quality of economic factors in any country. On the other side, customs union, quotas and regional trade pacts deactivate partly or in some cases even completely the projected effects of Smith’s absolute and Ricardo’s comparative advantages theories in the international production cooperation. The study examines this situation from a modern economic point of view
Alptekin Güney, New Working Paradigms and Attitudes [Yeni çalışma Paradigması ve Tutum]
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Export Price Stability and Compatibility of Euro under the Export- Biased Productivity Growth in Turkey: A Criticism against the Maastricht Inflation Criterion
No full textIn this work, we analyzed the export- biased productivity, wage growth and the ULCP in Turkey. Then, by using input- output methods , we could show that Turkey has an economy which is able to be a part of the Euro system and Euro is compatible under the export- biased productivity growth in Turkey though its relatively high inflation. That means Maastricht inflation criterion should be revised in terms of countries’ economic performance