nep-ara New Economics Papers
on MENA - Middle East and North Africa
Issue of 2016‒04‒16
thirteen papers chosen by
Paul Makdissi
Université d’Ottawa

  1. How Do Exchange Rate Movements Affect Stock Prices? The Case of Turkey By Fela Özbey; Erhan Ä°ÅŸcan; Mehmet Fatih TraÅŸ
  2. Institutions, Foreign Direct Investment, and Economic Growth in North African countries By zouheir abida
  3. Institutions, Foreign Direct Investment, and Economic Growth in North African Countries By Mhamed ali Khemakhem; zouheir abida
  5. Web-Based Education Practices in Education of Nursing Students: Turkey Profile By MenekÅŸe Aker; Selma Ä°nfal; Esra Uslu
  6. Implications of Telenursing Practices on Nursing Care: Turkey Profile By Esra USLU; Menekşe Nazlı AKER; Selma İNFAL
  7. The Ultimate Enemy for Turkey: PKK By OZHAN HANCILAR
  8. Coalition governments and their structures in Turkey By Özlem Becerik YoldaÅŸ; Yunus YoldaÅŸ
  9. Developing a strategic leadership style in the United Arab Emirates By Hanan AlMazrouei
  10. Turkey priorities report 2014 By OECD
  11. Fertility Transition in Turkey Who Is Most at Risk of Deciding against Child Arrival? By Angela Greulich; Aurélien Dasre; Ceren Inan
  12. 51/49 rule and joint ventures governance in Algeria By GUIRA Amor
  13. Which Does Drive Switching Costs in Retail Banking Industry; Openness to Experience or Services Quality? By Mohammad A Al-hawari

  1. By: Fela Özbey (Çukurova University, FEAS); Erhan Ä°ÅŸcan (Çukurova University); Mehmet Fatih TraÅŸ (Çukurova University)
    Abstract: One particular area in financial economics that has received a great deal of attention is the link between exchange rate and the stock prices. The interaction between exchange rate and stock prices has been of special interest because they are regarded among the leading economic variables. The effect of exchange rate on the stock market can work in two avenues. Many studies have documented that changes in the exchange rate have the capacity to increase the volatility of the stock prices, while some other researchers indicated the effect of exchange rate on average returns. In this study, we investigate both of these issues for the case of Istanbul Stock Exchange, using monthly US Dollar-Turkish Lira (USD-TRY) exchange rate and the Istanbul Stock Exchange (BIST) 100 indicex for the period 2009M01-2015M11, employing GARCH approach. Our main findings show that an increase in exchange rate decreases expected returns and increases the riskiness of BIST 100 in Turkey.
    Keywords: Exchange Rate, Stock Prices, Turkish Stock Market, Volatility.
    JEL: C22 C58 E44
  2. By: zouheir abida (university of sfax)
    Abstract: This paper examines the relationship between foreign direct investment (FDI), economic freedom and economic growth in a panel of 4 countries of North Africa (Tunisia, Morocco, Algeria and Egypt), and 5-year periods from 1980 to 2013. Our empirical results, based on the generalized method of moment (GMM) system estimator, reveal that FDI have a significant positive impact on output growth. Instead, the effect of FDI is contingent on the level of economic freedom in the host countries. This means the countries exhibit greater degrees of economic freedom gain significantly from the presence of multinational corporations (MNCs). Countries should implement policies and procedures that guarantee transparency enough for potential investors before using other measures for attracting higher levels of FDI. However, the building of more effective institutions will be a long and arduous process. In some countries, it may be politically difficult for the government to make a range of reforms in the short run but in the long-run they can lead to tremendous economic benefits
    Keywords: Foreign direct investment, Economic freedom, Economic growth
    JEL: F20 M21 O43
  3. By: Mhamed ali Khemakhem (Faculty of Economics and Management of Sfax); zouheir abida (Faculty of Economics and Management of Sfax)
    Abstract: This contribution investigates the causal interactions between foreign direct investment (FDI), economic freedom and economic growth in a panel of 4 countries of North Africa (Tunisia, Morocco, Algeria and Egypt), and 5-year periods from 1980 to 2013. Using System Generalized Method of Moment (GMM) panel data analysis, we find strong evidence of a positive link between FDI and economic growth. We also find evidence that economic freedom appear to be working as a complement to FDI and, moreover, that the effect of FDI is more pronounced in the presence of the economic freedom variable. This means the countries promote greater freedom of economic activities gain significantly from the presence of multinational corporations (MNCs).
    Keywords: Foreign direct investment, Economic freedom, Economic growth
    JEL: F21 O43 C23
  4. By: AYDIN AYDIN (Suleyman Demirel University)
    Abstract: The transformation and power struggle in the Middle East after the Arab Spring and actual withdrawal of the USA in December 2011 from Iraq and therefore from the Middle East caused serious changes in the dynamics and balances of the region. The aim of this paper is to investigate evolving foreign policy strategies, activities of both regional and global actors on Middle East from the perspective of Turkey. The changes in the Middle East policy of Turkey after such changes and the effects of regional and systemic actors on such changes were studied comparatively with the foreign policies of Iran and Saudi Arabia. The national powers of Iran, Turkey and Saudi Arabia, the effective power centers in the region, were measured and compared to each other. Within this context, it was attempted to reveal the roles that these countries assumed in the changes in the region based on their powers from the perspective of Turkey. Furthermore, the critiques of relations of Turkey with the region countries and the foreign policy approaches it abortively produced against the regional changes were assessed within the new atmosphere developing in the Middle East.
    Keywords: Middle East, Power Struggle, Turkish Foreign Policy, Regional Power
    JEL: R59 F50 R58
  5. By: MenekÅŸe Aker (Ankara University Health Science Faculty, Midwifery Department); Selma Ä°nfal (Selcuk University Aksehir College of Health); Esra Uslu (Selcuk University Aksehir College of Health)
    Abstract: This systematic review assesses Web Based Education (WBE) applications that will be used in the education of the nursing students in Turkey, and the effects of these applications on nursing education. This study was conducted using scientific search engines such as Ulakbim Medical Data Base, Turkish Medline Data Base, National Thesis Center, Turkish Citation Index, Turkish Psychiatry Index, Academic Index. As determined, keywords were searched in several combinations. A total of two theses that met the inclusion criteria were involved in the evaluation. This systematic review shows that the studies on this issue are very limited in terms of quantitative perspective but the results are positive. In this context, it is suggested that similar studies, in which WBE is planned in a way that it improves different knowledge and skills in nursing education, are conducted.
    Keywords: Web based education, nursing, undergraduate education, Turkey
    JEL: I00
  6. By: Esra USLU (Selcuk Universty); Menekşe Nazlı AKER (Selcuk Universty); Selma İNFAL (Selcuk Universty)
    Abstract: This systematic review evaluates the telenursing interventions and their efficiency in patient care. This study was conducted using scientific search engines such as Ulakbim Medical Data Base, Turkish Medline Data Base, National Thesis Center, Turkish Citation Index, Academic Index. As determined, keywords were searched in several combinations. A total of five articles that met the inclusion criteria were involved in the evaluation. This systematic review shows that the studies on this issue are very limited in terms of quantitative perspective but the results are positive. In this context, it is suggested that the number of randomized controlled studies which are evaluating the effectiveness of the care with tele nursing practices are increased and similar studies are planned with various patient groups.
    Keywords: Telenursing, care, nursing, Turkey
    JEL: I10
    Abstract: This paper will take a brief look at an illegal armed group in Turkey, the PKK (Kurdistan Workers’ Party), which is classified as a terrorist organization by Turkey, the U.S. and the European Union. In addition to academic works, the paper will be based on sources from the media. The group has been waging a violent separatist campaign against Turkey since 1984. The PKK suffered a severe setback when its leader, Abdullah Ocalan, was captured by Turkey in 1999. The organization gave up its demands for independence, demanding instead more autonomy and rights for the Kurds in Turkey. A two-year-long ceasefire between Turkey and the PKK collapsed in July 2015. Violence has returned to the Eastern Turkey as the fragile peace process fails.
    Keywords: PKK, Turkey, Kurds, Conflict
    JEL: D74 F51 H56
  8. By: Özlem Becerik YoldaÅŸ (Çanakkale Onsekiz Mart University); Yunus YoldaÅŸ (Çanakkale Onsekiz Mart University)
    Abstract: A coalition refers to an alliance of two or more political parties to form a government and to perceive common interests for a continuance of a parliamentary term. In general, if no political party achieved an absolute majority of mandates in general elections, a coalition government will be formed. In West European parliamentary systems, coalitions are unavoidable. With a view to political systems in Europe, coalition cabinets are common, such as in Germany, Italy, Austria, Belgium and the Netherlands. Since its foundation in 1923, Turkey is also characterized by coalition governments which were unstable and negative assessed by the media and public at large. In particular, at times of political unrest and economic crises including the military coup in 1960,1970 and 1980, fifteen coalition governments in the Turkish parliamentary system.have been formed. Against this background, the main focus of the paper will be on the lifespan and stability of coalition governments in Turkey. The paper then investigates the main reasons for the resolution of coalition governments and their impacts on political culture in Turkey.
    Keywords: Turkey, coalition governments, polititcal culture
  9. By: Hanan AlMazrouei (United Arab Emirates University)
    Abstract: Purpose – Expatriate leaders on overseas assignment often attempt to transfer their home organization culture to their new location. The subsequent cultural clash can have a destructive impact on both the leader and the organization. We explore the impact of organizational culture, adaptation, political environment, and leadership for expatriate managers working in the United Arab Emirates (UAE).Design/methodology/approach –Expatriate leaders’ experiences in the UAE were collected through interviews, with a specific focus on cultural adaptation and most effective leadership styles for implementing strategic organizational change.Findings – Our research revealed that a consultative style was found to be most effective by expatriate leaders in the UAE. Communication with local staff, team building, motivating staff, and involving staff in decision-making were highly effective approaches in assisting expatriate leaders to succeed within their organizational cultures. Several strategies have been identified based on the experiences of the expatriate leaders interviewed in our study.Practical implications – The findings offer practical advice for organizational leaders anticipating an assignment in the UAE and HRM practitioners preparing expatriate leaders for their duties there. We also provide suggestions for expatriate leaders to enhance their adjustment to the organizational and political culture.Originality/value – Numerous studies have been done on organizational cultural adaptation, however comparatively little research has been offered on practical organizational adaptation and leadership specific to the UAE.
    Keywords: Expatriate leadership, leadership styles, management, organizational
    JEL: M10
  10. By: OECD
    Abstract: As a continuation of the 2014 SIGMA assessments and as part of a longer-term programme of work, SIGMA has identified country priorities for public administration reform (PAR) for Turkey. Priorities cover the overall PAR needs of the country, including areas which were not covered by the 2014 SIGMA assessments. Priorities in areas outside the scope of SIGMA assessments are based on other analytical sources and SIGMA’s practical experience of working with the country. SIGMA proposes priority 2020 targets for the countries, sub-targets when needed, and sequenced priority activities in 1-2, 3-5 and 5+ year time perspectives.
    Date: 2014–05–31
  11. By: Angela Greulich (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Aurélien Dasre (IEDUB - Institut d'Études Démographiques de l'Université Montesquieu-Bordeaux IV - Université Montesquieu - Bordeaux 4); Ceren Inan (COMPTRASEC - Centre de Droit Comparé du Travail et de la Sécurité Sociale - Université Montesquieu - Bordeaux 4 - CNRS - Centre National de la Recherche Scientifique)
    Abstract: In Turkey, female employment and education are still relatively low, while fertility levels are high compared with other European countries. However, Turkey stands just at the edge of an important social transition. Increasing female education and employment come along with important decreases in fertility. By mobilizing census and survey data, this paper finds that fertility decreases are mainly caused by fewer transitions to a third birth. Graduate women participating in the formal labor market are most at risk of deciding against child arrival in comparison with inactive or unemployed women. The third rank is particularly concerned, as women’s income contribution seems to be crucial for many families that already have two children, and the arrival of a third child risks reducing or stopping women’s working activities in the absence of institutional childcare support. Policies enabling women to combine work and family life, which have been proven effective in other European countries, emerge as useful to avoid a further fertility decline below replacement level in Turkey.
    Keywords: fertility, gender, Turkey
    Date: 2015–04–01
  12. By: GUIRA Amor (University of Jijel bp 98)
    Abstract: After the adoption of the 51/49 rule in the law of Algerian companies, many partners expressed their reservations; such a rule intended to cap the interests of foreign partners in joint ventures. The ultimate goal of this rule is to prevent foreign associate to access to some decision control.The purpose of this paper is to analyze 51/49 rule promulgated in Algeria and its impact on joint ventures, their ownership structure, their governance and their performance.Attention will focus on the mechanisms and corporate governance bodies, and the study try to highlight how the 51/49 rule impacting the balance of power in favor of the national partnerTo do this we will try to a survey based on the reference documents published by these joint ventures.
    Keywords: Algeria; Joint venture; Ownership structure; Performance; 51/49 Rule
    JEL: G30
  13. By: Mohammad A Al-hawari (University of Sharjah)
    Abstract: The major aim of this study is to investigate and compare the influence of service quality and openness to experience on customers switching costs. Self-administrated survey was used to collect data from bank customers in the UAE. Structural Equation Modeling (SEM) using AMOS.20 was used to test for the hypothesized relationship. The results showed that service quality has a positive and significant relationship with switching costs. However, the personality traits of openness to experience had a negative and significant relationship with switching costs. Bank managers should not keep a higher level of service quality regardless of the type of customers’ personality of openness to experience. Bank managers need to investigate the level of this personality in order for them to identify the relational oriented customers
    Keywords: Services Quality; Openness to experience; Switching Costs; Banks
    JEL: M39 M31 M31

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