nep-ara New Economics Papers
on Arab World
Issue of 2011‒02‒05
six papers chosen by
Quentin Wodon
World Bank

  1. The Interaction between Monetary and Fiscal Policies in Turkey: An Estimated New Keynesian DSGE Model By Cem Cebi
  2. Aracı Kurumların Risk Haritası (Risk Maps of Securities Firms) By Coskun, Yener
  3. Money creation and control from Islamic perspective By Hasan, Zubair
  4. An Analysis of the Strenghts and Weaknesses of the Turkish Real Estate Market By Coskun, Yener
  5. The Effects of Convergence in Governance on Capital Accumulation in the Black Sea Economic Cooperation Countries By Marie-Ange Veganzones; Ahmet Faruk Aysan; Omer Faruk Baykal
  6. تحليل التغييرات : في توجهات السياسات الاقتصادية في العراق By Alrubaie, falah.K.Ali

  1. By: Cem Cebi
    Date: 2011
  2. By: Coskun, Yener
    Abstract: The idea of development of capital markets and hence securities firms had resurfaced after 1980’s in Turkey, the latest and probably the final liberal period of Turkish economy. First regulations on securities firm business appaeard after Banking Crisis of 1982 (or Banker Crisis). The number of securities firms were dramatically increased in Turkey during the first half of the 1990’s. But it has observed that the number has gradually decreased after this periodic movement. This tendency is still going on in the securities firm business (Coşkun, 2009a: 2). In this process, some argue that risk management problems were relatively less important in the failed securities firms. But, because of the problems of data availability and lack of proper reporting, it would be too optimistic to assume that all securities firm failures in the above period were related to market conditions. In this context, it is important to define specific risks of securities firms. To define sector specific risks is also important to develop ideal risk management framework for securities firms. Therefore, in this article, the author analyses the features of the securities firm business, typical balance sheet and industry specific risks.
    Keywords: securities firms; risk; capital markets; Turkey
    JEL: D53 G32 G24
    Date: 2010–07
  3. By: Hasan, Zubair
    Abstract: This paper deals with familiar facts in monetary economics from an unfamiliar angle. It argues that it is not factual to regard the legal tender money and bank credit as of different genus: they work in tandem to the same ends in an economy, conventional or Islamic. Also, it does not matter what serves as money – solid gold or flimsy paper – for keeping its value stable; only the blind would argue that staff is indispensable for walking. Money is just an instrument: it was never nor can ever be classified into Islamic and non-Islamic. What it does – good or bad – depends on how we use it. Money does not generate crises; its mismanagement does. It follows that the refuge the world is searching today from recurring financial crises does not lie in money substance: history testifies that national economies could not remain turmoil-free during the centuries of the yellow metal sway over the monetary scene. The paper concludes that it is the human factor that has been the source of good or evil for mankind including money matters. And the quality of human factor true religion can alone improve: morality without faith is rudderless.
    Keywords: Key words: Monetary policies; Gold standard; managed currency; Islamic banking; Central banks
    JEL: E62 E42 E58 B50 B25
    Date: 2011–01–23
  4. By: Coskun, Yener
    Abstract: Real estate is one of the foremost and traditional investments for Turkish household. In addition to this traditional demand, it has also observed that Turkish real estate market becomes one of the popular investment destination for foreign investors. 2003-2007 period would be accepted as the boom period for Turkish economy in general and real estate sector in specific. Although there are considerable opportunities in the market, both Turkish economy and real estate sector suffer important structural problems. Hence, the objective assesment for the Turkish real estate market requires a costbenefit analysis. In this paper, the author is attempting to reach an objective approach presenting both strong and also weak sides of market. The critical point is current deficiencies of the market may result negative impacts on further development. As a solution, we suggest that Real Estate Regulation and Supervision Agency should be established as a new government agency. To our view, primary expectation of this agency is to issue regulations/standards for real estate brokerage/ marketing/appraisal,and also housing finance to enhance consumer protection, public interest and market efficiency.
    Keywords: Turkish real estate market; consumer protection in real estate; real estate appraisal; Real Estate Regulation and Supervision Agency
    JEL: O18 R14 G21
    Date: 2010–06–26
  5. By: Marie-Ange Veganzones (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Ahmet Faruk Aysan (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I); Omer Faruk Baykal (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I)
    Abstract: This paper aims to ascertain the effects of convergence in governance on investment decisions among a sample of 43 developing countries, using dynamic system GMM estimations. In an increasingly interdependent economic world, regions with good governance are considered to be areas of higher investment, as a result of further integration and collaborative action among member states. Since its foundation, in 1992, Black Sea Economic Cooperation (BSEC) countries have gone through a transition process and, to a large extent, this is about institutional transformation. Good governance institutions are an assurance to guarantee property rights and minimize transaction costs, thus creating an environment conducive to investment and growth. In this paper, we investigate the impact of BSEC on its member countries regarding convergence of governance institutions. We show that convergence has occurred within the region with respect to bureaucratic quality, control over corruption, law and order, internal conflict, ethnic tensions, but not to government stability and democratic accountability. The paper also calculates how much capital accumulation the region would gain by reaching the average institutional standards of the EU-12. This study is the first attempt in the BSEC region to investigate the link between regionalization and institutional convergence, at the same time as to quantify its economic impact through investment.
    Keywords: System GMM;governance;investment;institutions;Convergence;Black Sea Economic Cooperation.
    Date: 2011–01–26
  6. By: Alrubaie, falah.K.Ali
    Abstract: Economic policy, especially fiscal policy are Gaining exceptional importance, in the Iraqi economy in the current circumstances , where are the Revenues of oil center of gravity in the movements of each of the budget, internal and external, and leave it from the shocks of external display negative or positive. After that increased government intervention in economic activity, and increased monetary effects of fiscal policy, which is reflected in particular on the general level of prices and money supply and credit volume and interest rates. Reveal Reviewed scrutinizing economic policy in Iraq for the critical role of fiscal policies as a result of the misuse of oil revenues, and the consequent prevalence of the manifestations of backwardness, declining standards of production and productivity in various economic activities, and the accompanying dominance of the oil sector on the major contributors to the GDP, and falling the role of the commodity sectors, particularly the industrial sector, agriculture and the growing sectors, parasitic, and deepen the manifestations of the imbalances and distortions in the economic structure as well as distortions in the exchange rate of the dinar, and distortions in the tax system, distortion in prices, and distortions in the distribution of income and wealth that resulted from poor coordination between monetary policies and Finance
    Keywords: السياسة الاقتصادية ، النفط ، الاقتصاد العراقي ،التنمية
    JEL: E60
    Date: 2010–03–15

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