Business and Economics Research Journal

1-14

Authors: David L. Ortmeyer, Michael A. Quinn

Poverty and instability continue to plague many developing countries. Previous research has modelled economic growth and political instability simultaneously accounting for exogenous factors such as ethnic fractionalization. This study builds on that literature by using a three equation system which deals with the endogeneity of fractionalization. Another contribution is the incorporation of migration into the model. Results from a cross-country, panel data set over the years 1996-2014 find that linguistic fractionalization and migration work to lower growth indirectly via increased political instability. Endogeneity is found to be important as religious fractionalization becomes insignificant after accounting for its endogeneity. Results vary by region, with the impact of fractionalization and instability being most important in Sub-Saharan Africa. These results suggest that linguistic and religious diversity are not having the same effects on stability and growth across countries. While some policy makers in the West have expressed concern about migration and fractionalization, they do not seem related to either long-run political stability or economic growth in their countries. Migration and ethnic fractionalization should be a larger concern to policy makers in countries with weak institutions and records of political instability. International organizations and donors need to increase support to developing countries which have received large inflows of migrants and refugees, with this aid being directed towards bolstering the quality of institutions.

33-50

Authors: Alper Yilmaz

The aim of this paper is to investigate exports and economic growth causality in Turkish economies. In this sense, we employed seasonally adjusted quarterly data of economic growth (real GDP) rate and exports that cover 1987Q1-2018Q4 periods. We analyze the relationship between variables by taking into account standard bootstrap Granger non-causality test and fixed-size rolling-window estimation approach. Standard Granger causality test indicates one direction causality that running from exports to real GDP. But according to test of parameters constancy, conducted VAR model points to parameters instability both in the short and long-run periods. Parameters constancy test indicate that empirical results are not uniform for different sample periods and vary due to structural changes. Consideringly, under parameters inconstancy, results of rolling window estimation method indicate that there is positive two way Granger causality (predictive power) between variables from the early 1990s to end of 2018 periods.

63-76

Authors: Ezgi Demiral, Abreg S. Celem

Article Information Journal: Business and Economics Research Journal Title of Article: Dynamic Analysis of Jobless Growth in Turkey Author(s): Ezgi Demiral, Abreg S. Celem Volume: 11 Number: 1 Year: 2020 Page: 63-76 ISSN: 2619-9491 DOI Number: 10.20409/berj.2020.235 Abstract The indicators of Turkey’s economy show that the long-term growth seems not to have provided the desired reduction in the unemployment rate. This indicates that economic growth cannot create sufficient growth in employment, that is known as the jobless growth phenomenon in economics literature. In this study, we examine the dynamic effects of the national income on the unemployment rates in Turkey for the 2005-2015 period. For this purpose, primarily, Perron unit root test was applied to examine the structural breaks in the variables caused by the global crisis in 2008. Subsequently, impulse-response analysis and variance decomposition analysis based on VAR model were applied. As a result of the empirical analysis, it was concluded that the unemployment reduction effect of the growth in national income was only valid in the short term in Turkey.

95-106

Authors: Z. Bilgen Susanli

The term skill shortage refers to a situation in which the demand for skilled labor exceeds the supply of it in the labor market. By drawing on firm level data from Enterprise Surveys conducted by the World Bank, this study explores the incidence and likelihood of skill shortages in Turkey in 2008 and 2013. The responses given by the firms as to whether an inadequately educated workforce is an obstacle to their operations serves as an indication of skill shortages. Probit model estimations indicate that there is a positive and statistically significant association between firm size and the likelihood of skill shortages. The activities of informal competitors are also found to increase skill shortages. The determinants of skill shortages vary across 2008 and 2013.

131-146

Authors: Neilan Soylu

Nowadays, due to economic fluctuations, increasing competition and technological development companies need to continuously and rapidly adapt to changing business environment. Furthermore, internal conditions like financial distress or strategy changing make the restructuring inevitable for companies. Within this frame, tangible assets sales might have an effect on firm value both by generating a source of financing and allowing companies to optimize their asset structure. In this study, the impact of tangible assets sales on stock returns of manufacturing companies listed on Borsa Istanbul was examined for the period of January, 2016-December, 2017 using event study method. The empirical results show significant positive average abnormal returns associated with the asset sales on announcement day.