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on Arab World |
| By: | Gursoy, Guner |
| Abstract: | This paper examines major business environmental changes influencing a strategic shift of automobile manufacturing firms in Turkey. Within a conceptual model consisting of environmental forces, strategic shift, and mediating variables, including firm size, ownership pattern, and market entry mode, it empirically investigates how such market changes influenced the business strategies of automotive firms in Turkey. The findings indicate that the multinational automotive firms in Turkey have shifted their strategic focus from relying solely on the domestic market to balancing domestic and export markets because of environmental forces. The paper concludes with discussions and suggestions for further research on the subject. |
| Keywords: | market environment; strategic shift; FDI; foreign direct investment; export performance; multinational corporations. |
| JEL: | G32 G3 |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:20233&r=ara |
| By: | Dani Rodrik (Harvard University) |
| Abstract: | The recent crisis has demonstrated that a financially open economy has many sources of vulnerability. Even when a country does its homework, it remains at the mercy of developments in external financial markets. So, one lesson is that policy needs to guard not just against domestic shocks, but also shocks that emanate from financial instability elsewhere. Complete financial openness is not the best policy. A second lesson is that Turkey’s prevailing growth strategy does not generate enough growth and employment. Therefore it would be a mistake for the country to return to the status quo ante and resuscitate a model that fails to make adequate use of domestic resources. Most importantly, Turkey has to learn to live with reduced reliance on external borrowing. The paper discusses the needed realignments in fiscal and exchange-rate policies. |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:tek:wpaper:2009/9&r=ara |
| By: | Aysu Insel (Marmara University); Nedim Sualp (Marmara University) |
| Abstract: | This paper examines the roles and interrelationships among the main macroeconomic variables, namely the exchange rate, inflation rate, interest rate and real GDP in Turkey. It provides a descriptive data analysis in order to understand the behaviour of each variable and to explain the relationship between them. The data analysis has been performed considering the original and the decomposed variables over the five periods: 1987:01-2007:12; 1987:01-1994:03; 1994:04-2001:01; 2001:02-2007:12; and 2002:10-2007:12. Different lengths of the sample periods are selected for each variable covering the economic crises and different policy applications in order to compare the reasons and the consequences of different economic policy applications on these variables. It is concluded that the distribution of economic series is changing from one period to another. The contribution of this paper is to develop a base for econometric model construction for the Turkish economy all the way through their contemporaneous and causal relationship for different sub-sample periods. |
| Keywords: | Inflation rate, Exchange rate, Interest rate, Real GDP, Descriptive data analysis, Turkey |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:tek:wpaper:2009/6&r=ara |
| By: | Alsayyed, Nidal |
| Abstract: | Some exciting Economical developments have taken place in the area of Islamic finance during the preceding two years. There has been a fast expansion in its market share, diversification of products picked up pace and the rapid globalization of the services ensures their future expansion. Commodity murabahah is one of the most commonly used financing contracts in Islamic banking. But of no less consequence may prove, the lurch one finds commodity murabahah in at the close of 2008 (Hasan 2009) . Commodity Murabaha is clearly the Islamic treasurer’s funding product of choice, as it is flexible enough to facilitate many structures for financing, hedging, and currency exchanging. It is time to apply the shari'ah objective of “sa’dd-aldharai” that closes the potential avenues for outwitting the shari’ah objectives and spirit . |
| Keywords: | Islamic Economics; commodity murabahah; Time share in price; Shari’ah objectives; Bai al Inah; Commodity Murabahah House (Suq Al-Sila); Commodity Murabahah Program (CMP) ; deferred contracts; GCC; IIMM ; Islamic Banking Scheme (IBS ); “sa’dd-aldharai” |
| JEL: | D23 Z10 A12 D42 |
| Date: | 2010–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:20262&r=ara |
| By: | Alsayyed, Nidal |
| Abstract: | The rulings of Mua‟malat in today‟s Islamic Economics, and Finance can be adapted through the process of Ijtihad. While the basic principles or doctrines of the Mua‟malat are given in Shari‟ah, the interpretation of these principles to suit circumstances in different times and places constitutes the Fiqh Mua‟malat. New rulings can be reached by understanding the effective cause (Illah) and rationale (hikmah) of the original ruling and the importance of Maslaha (benefit) under the changed circumstances (Usul Fiqh); which is normally evaluated by the Shari‟ah Board members of the concerned entity. Fatwa issuing via Ijtihad is used to derive laws from the basic principles of Shari‟ah to address the needs of people in different places and times. The important aspect of these new rules is that they may at times change depending on the context of application. Islamic Finance contemporary practices of Ijtihad through various bodies like Islamic Fiqh Academy, have resolved the practice of taqlid (limitation). The doctrine of maqasid al-Shari‟ah establishes Maslahah as an essential element of the ends of law, so that it becomes an important goal in framing new rules (Shari‟ah parameters and guidelines) through Ijtihad. Thus, both the principles set by Shari‟ah and use of Ijtihad to frame new rules has Maslahah or benefit of people as the underlying basis and goal. On the other hand; the standardization of Shari‟ah may become against the fundamental premise of Ijtihad which has existed for centuries and especially in today‟s finance. If rules become standards, and imposed by legal authorities, then Ijtihad cannot be applied towards a critical and dynamic industry like Islamic Finance today. This will eventually damage the very reason that we are able to apply Shari‟ah in all times and places, that is, Ijtihad is the main reason why Shari‟ah is dynamic and is able to be applied in different circumstances. In addition; to standardize Shari‟ah rulings may mean the precedence of one Islamic school of thought over the other, which cannot be universally acceptable. There is no doubt that the synchronization of these two views has to be done through mutual understanding and collaboration between Shari‟ah scholars and various Shari‟ah key board members, market leaders, and regulators. To be very clear and accurate, the question of whether Shari‟ah standards can be harmonized is a matter to be dealt with by Shari‟ah scholars and not market professionals or regulators. The simple reason for this is because Shari‟ah scholars are specialized in their field and whether a Fatwa can be standardized or not is a matter of religious reasoning and should be taken from Shari‟ah own instructions and judgments. |
| Keywords: | Fatwa ; fatawa ; Ijtihad ; Shari’ah Board; Islamic Economics Jurisprudence ; GCC ; Ijma; |
| JEL: | Z12 A23 Z00 F02 |
| Date: | 2009–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:20204&r=ara |
| By: | Aysu Ýnsel (Marmara University); Mehmet Mahmut Tekçe (Marmara University) |
| Abstract: | This study analyzes the trade flows of the Gulf Cooperation Council (GCC) both among its member countries and with the rest of the world by employing a panel data gravity model in the context of the single country approach in order to capture the impacts of observable and unobservable variables on the bilateral trade flows for the 1997-2002 and 2003-2007 periods. In this paper, the research question is whether the trade flows of each GCC countries with its partners have sustained and/or they have developed new relations over time, mainly after 2003 custom union agreement of the GCC. For this purpose, fixed effects models have been estimated in order to obtain individual country effects variable. Then, trade model- as a function of distance and income variables- with the country effects model- as a function of the time invariant control variables- have been estimated simultaneously within the panel data analysis using the Least Squares and Generalised Method of Moments under the assumption of the presence of cross section heteroskedasticity and the robust standard errors. There are three contributions of this paper: (1) Examination of bilateral trade flows for each GCC country over the two different sample periods. (2) Country ranking for each GCC country over the two different sample periods. (3) Simultaneous gravity model specification for each GCC country over the two different sample periods. |
| Keywords: | Gulf Cooperation Council Countries, Trade Flows, Gravity model, Panel Analysis, System Estimation |
| Date: | 2009 |
| URL: | http://d.repec.org/n?u=RePEc:tek:wpaper:2010/2&r=ara |