nep-ara New Economics Papers
on MENA - Middle East and North Africa
Issue of 2016‒11‒13
eleven papers chosen by
Paul Makdissi
Université d’Ottawa

  1. Presentation of 2016 Rio Olympics in a Turkish Daily Newspaper with Non-sports Related Topics By Ömer Bakan; Süleyman Sırrı Yılmaz
  2. Exports, Real Exchange Rates and External Exposures: Empirical Evidence from Turkish Manufacturing Firms By Nazli Toraganli; Cihan Yalcin
  3. Does Financial Development Intensify Energy Consumption in Saudi Arabia? By Kumar, Mantu; Babu, M Suresh; Loganathan, Nanthakumar; Shahbaz, Muhammad
  5. Efficiency of selected camel markets in Sudan: A multivariate approach (1995-2011) By Bushara, Mohammed O. A.; Abdelmahmod, Murtada Kh. A.
  6. Estimation of Electricity Demand Function for Algeria: Revisit of Time Series Analysis By Khraief, Naceur; Shahbaz, Muhammad; Mallick, Hrushikesh; Loganathan, Nanthakumar
  7. How do consumers perceive the socially responsible activities of corporations: An emerging country’s perspective By Ipek Altinbasak-Farina; Gozde Guleryuz-Turkel
  8. Constructing Labor Market Transitions Recall Weights in Retrospective Data: An Application to Egypt and Jordan By Shaimaa Yassin
  9. The Nexus between Discretionary Expenditures and Corruption: Industry Level Perspectives from BRIC and Turkey By Ozlem KUTLU FURTUNA
  10. Israeli Products in the Eyes of Palestinians By islam hassouneh
  11. Finansal Küreselleşme Sürecinde Türkiye’de Para Politikalarının Evrimi, 1980-2014 By Hasan Cömert; Oktar Türel

  1. By: Ömer Bakan (Selcuk University Faculty of Communication); Süleyman Sırrı Yılmaz (Selcuk University Faculty of Communication)
    Abstract: The olympics are recognized worldwide as one of the largest sports events. The Olympic Games may have great amount of media coverage. The daily newspapers in Turkey published a lot of news about the 2016 Rio Olympic Games. In this study the non-sports related topics of Hürriyet about the 2016 Rio Olympic Games have been analyzed by using the web site of Hürriyet. The daily newspaper Hürriyet was selected because of its high circulation in Turkey in August 2016. Content analysis method was used in the study. It was determined that sometimes 2016 Rio Olympic Games took place on the agenda with non-sport related topics.
    Keywords: Olympics, Olympic Games, Rio 2016 Olympics, news,
  2. By: Nazli Toraganli; Cihan Yalcin
    Abstract: Turkish manufacturing firms are highly exposed to foreign currency (FX) denominated costs in the forms of liability dollarization and high imported input content in domestic production. This might limit the competitiveness effects of currency depreciation on exports. We attempt to uncover the relationship between the real exchange rates and exports of manufacturing firms in Turkey by taking account FX exposures and various firm characteristics. We use a large panel of manufacturing firms to carry out an empirical analysis for the period 2002-2010. We document that a real depreciation of the Turkish lira has a positive impact on export volumes and its impact is muted for manufacturing firms operating in sectors that use imported inputs intensively. That is, the cost of production channel seems to be effective in export performance of firms. In addition, we estimate that exports are less sensitive to real exchange rates for firms having moderate or low FX debt-to-export ratios (naturally hedged) and those are large and mature. Contrary to macro evidence, firm level findings suggest that a depreciation of Turkish lira seems to favor the external competitiveness of firms in general while for naturally hedged, large, mature, and high import intensity firms, the sensitivity is estimated to be smaller.
    Keywords: Exports, Real exchange rates, Currency mismatch, Firm characteristics
    JEL: F23 F31 G15 G31 G32
    Date: 2016
  3. By: Kumar, Mantu; Babu, M Suresh; Loganathan, Nanthakumar; Shahbaz, Muhammad
    Abstract: Using annual data for the period 1971-2011, this study explores the relationship between financial development and energy consumption for Saudi Arabia by endogenizing economic growth, capital and urbanization as additional determinants in the energy demand function. The combined cointegration test proposed by Bayer-Hanck (2013) is used to estimate the long-run and short-run relationships among the series. The robustness of cointegration results is also tested by employing Pesaran’s et al. (2001) Autoregressive Distributed Lag (ARDL) model accommodating structural break in the series. Both conventional and structural break unit root tests are applied in order to test the stationarity properties of the series. The causal relationship between the variables is further investigated by applying Innovative Accounting Approach (IAA). Both Bayer-Hanck’s combined cointegration and Pesaran’s ARDL bounds testing models confirm the presence of cointegration among the series. After confirming the existence of cointegration among the series, the overall results from the estimation of an ARDL energy demand function reveal that in the long-run, financial development adds in energy demand in Saudi Arabia. Furthermore, while economic growth is negatively related to energy consumption, urbanization and capital are the key factors leading to increased energy demand in the long-run. The findings also confirm the non-linear and inverted U-shaped relationship between financial development and energy demand for the Saudi Arabian economy. Finally, an evidence of unidirectional causality running from financial development to energy demand is found. These results urge for the attention of the policy makers in Saudi Arabia to design a comprehensive energy conservation policy to minimize the consequences of massive energy consumption on environmental quality and energy export-driven revenue by adding financial development, urbanization and capital as main explanatory determinants in the energy demand function.
    Keywords: Financial Development, Energy Consumption, Saudi Arabia
    JEL: C1
    Date: 2016–11–01
  4. By: Banu Külter DemirgüneÅŸ (Ahi Evran University); Bülent Özsaçmacı (Çankaya University)
    Abstract: It is important for marketers to understand the individuals’ buying decisions in a competitive environment. The concept of decision making style is one of the key determinants of consumers’ behavioral patterns. This study aims to explore the effects of consumers’ decision making styles on buying national and store branded food products. To examine consumer decision making styles, Sproles and Kendall’s (1986) The Consumer Style Inventory (CSI) is adopted in the study. The framework of this study is based on eight consumer decision making style, expected to shape consumers’ national and store brand choice on food products. The empirical analysis is based on data obtained from consumers living in Kırşehir, a city in Turkey. Questionnaires was handed over to 500 customer of retail stores both selling national and their own brands. Firstly, exploratory factor analysis is used to confirm the model, then multiple regression analysis is used to test the hypothesis and to compare consumer’s national and store brand choice, in the context of their decision making styles. The study is expected to help retailers develop suitable strategies for national and store branded food products. In fact it is important to develop a certain and an accurate understanding of consumers’ decision making styles for successful marketing and advertising strategies. Besides, different marketing strategies for both national and store branded food products can be tailored to the characteristics of consumers.
    Keywords: Consumer Decision Making Styles, The Consumer Style Inventory, Store Brand, National Brand
    JEL: M31
  5. By: Bushara, Mohammed O. A.; Abdelmahmod, Murtada Kh. A.
    Abstract: Despite the significant importance of camels to Sudanese economy but their markets still not well developed. The main constraints include poor market infrastructure, lack of market organization, inadequacy of market finance and transport services, these constraints are affecting marketing efficiency. Information of spatial market integration provides indication of competitiveness, the effectiveness of arbitrage, and the efficiency of pricing, however, markets that are not integrated may convey inaccurate price signal that might distort producers marketing decisions and contribute to inefficient production. The main objective of this study is to investigate price movements among important camel markets in Sudan to explore their performance and pricing efficiency. The study focused on scrutinizing the Camel markets in Sudan by considering the prices of five livestock markets which were Elobied, Omdurman, Sennar and Nyala. The study covered the periods from January 1995 to December 2011. The results showed that Omdurman camel market transforms the signal of prices toward other markets in the long run concluded that these markets were cointegrated, and the system was centered on Omdurman which mean the market was demand driven in the long run. Policies may draw attention to turn consumer behavior towards camel meat consumption. Clear strategy may be developed to improve the camel meat industry and exporting activities through developing the slaughterhouse and freezing, cooling storage, transportation and insures the health services in national capital.
    Keywords: Market efficiency, cointegration, causality, camels and Sudan, Livestock Production/Industries, Marketing,
    Date: 2016–09
  6. By: Khraief, Naceur; Shahbaz, Muhammad; Mallick, Hrushikesh; Loganathan, Nanthakumar
    Abstract: This paper aims to empirically re-examine whether economic growth has effect on electricity consumption for Algerian economy. We have incorporated urbanisation and trade openness in electricity demand function as additional determinants of electrictyy consumption for the period of 1971-2012. For empirical purpose, we have applied the recently developed combined cointegration test proposed by Bayer and Hanck (2013) and bounds testing approach to cointegration by Pesaran et al. (2001) for establishing the cointegration between the variables by accomodating structural breaks. The results expose that income growth leads to higher electricity demand along with urbanization being another major contributing factor of rising electricity demand. In contrast, trade openness leads to reduce electricity demand. The causal association between the variables is further exmained with the application of innovation accounting approach of Vector Autoregressive (VAR). The empirical evidence indicates the presence of the neutral effect between income growth and electricity use. Urbanization causes electricity use and electricity use causes urbanization in Granger sense.
    Keywords: Electricity, Growth, Urbanization, Trade Openness
    JEL: A1
    Date: 2016–10–27
  7. By: Ipek Altinbasak-Farina (Bahcesehir University); Gozde Guleryuz-Turkel (Bahcesehir University)
    Abstract: This paper aims to understand (1) the perceptions of Turkish consumers towards the products /services of socially responsible corporations and (2) whether demographics- age, gender, education- are effective to profile the socially responsible consumers. The extant marketing literature has focused on the Corporate Social Responsibility (CSR) concept but less emphasis has given to understand the behavioral intentions and perceptions of consumers towards socially responsible products/services. Moreover, past research within the literature mostly are done in developed countries such as US and UK while limited analysis are done in emerging country context. In the study, the instrument developed by Maignan (2001) is used to measure the readiness of consumers to support socially responsible products. Data collected from 463 respondents indicate that Turkish consumers have favorable intention to support socially responsible products. Another valuable finding is that although gender has significant influence over socially responsible behavior, age and education are not significant indicators.The findings support the results of recent studies that the demographics are not strong enough alone to profile the socially responsible consumers and segment the market for CSR initiatives.
    Keywords: Corporate Social Responsibility, Socially responsible consumers, Demographics, Segmentation, Marketing strategy
  8. By: Shaimaa Yassin (University of Neuchatel (Institute of Economic Research))
    Abstract: To be able to redress retrospective panels into random samples and correct for any recall and/or design bias the data might suffer from, this paper builds on the methodology proposed by Langot and Yassin (2015) and extends it to correct the data on the individual transaction level (i.e. micro level). It creates user-friendly weights that can be readily used by researchers relying on retrospective panels extracted from the Egypt and Jordan Labor Market Panel Surveys(ELMPS and JLMPS respectively). The technique suggested shows that it is sufficient to have population moments - stocks and/or transitions (for at least one point in time) to correct overor under-reporting biases in the retrospective data. The paper proposes two types of microdata weights: (1) naive proportional weights and (2) differentiated predicted weights. Both transaction-level weights i.e. for each transition at a certain point in time, as well as panel weights i.e. for an entire job or non-employment spell, are built. In order to highlight the importance of these weights, the paper also offers an application using these weights. The determinants of labor market transitions in Egypt and Jordan are analyzed via a multinomial regression analysis with and without the weights. The impact of these weights on the regressions estimations and coefficients is therefore examined and shown significant among the different types of labor market transitions, especially separations.
    Keywords: Panel Data, Retrospective Data, Measurement Error, Micro-data weights, Labor Markets Transitions, Egypt, Jordan.
    JEL: C83 C81 J01 J62 J64
    Date: 2016–11
  9. By: Ozlem KUTLU FURTUNA (Yildiz Technical University)
    Abstract: The conflict of interest between the managers and owners within opportunistic behaviours’ of managers has been a significant area of finance research. Uncontrolled moral hazard in management may result some typical forms of behaviours like excessive perquisite consumption, non-optimal investment decision, inefficient use of assets and discretionary expenditures. Their effects have a potential to destruct firm’s financial performance and the shareholder’s wealth. Several studies revealed the measurement of this managerial moral hazard behaviour by using accounting-based performance ratios. In this study, firms’ discretionary expenditures have been used as a proxy for managerial behaviour related to moral hazard. This problem can be more severe as a result of the bribery implications of firms and corruption issues. Taking all this account, this paper attempts to investigate the nexus between firms’ discretionary expenditures and corruption giving industry level perspectives from emerging markets and identifies the sectors that are most affected.The dataset constitutes 466 non-financial firms operating in four large emerging countries BRIC (Brazil, Russia, India, China) and Turkey covering the 10 year time span from 2005-2014. Results reveal that all industries in the sample countries with a high control of corruption tend to face less moral hazard related behaviour taking into account industrial differences. However, considering industrial breakdown reveal interesting findings. For some industries an upward sloping relationship has been seen between the control of corruption and the proxy for moral hazard related behavior, which indicates that the higher the level of corruption control, the higher moral hazard.
    Keywords: moral hazard, discretionary expenditures, corruption, emerging market, BRIC, Turkey
  10. By: islam hassouneh (Palestine Polytechnic University (PPU))
    Abstract: The effects of consumer ethnocentrism, animosity and product judgments on Palestinian consumer intention to purchase Israeli products was analyzed. To do so, a questionnaire was built, tested and distributed to a sample of 1550 Palestinian consumers in three main cities. Factor as well as multiple regression techniques were then applied. Results indicate that both ethnocentrism and animosity are positively related to consumer reluctance to buy Israeli goods. Findings also suggest that product judgment negatively impacts the reluctance of Palestinian consumers to purchase Israeli products. Furthermore, results show that education is the only personal characteristics variable that affects Palestinian purchase intention.
    Keywords: Animosity, ethnocentrism, Israeli-Palestinian conflict
    JEL: M31
  11. By: Hasan Cömert (Department of Economics, METU); Oktar Türel (Department of Economics, METU)
    Abstract: Dünya ekonomisinin son üç onyıldaki hızlı finansallaşması bağlamında, Türkiye’de para politikalarının geçirdiği evrimi konu alan bu yazı, kısa ve tanıtıcı Prolog da dâhil olmak üzere, dört bölümden oluşmaktadır. İkinci Bölüm’de 1980-2001 döneminde Türkiye’de para politikaları ve merkez bankacılığı (anlatının arka planına uluslararası gelişmeler yerleştirilerek) incelenmektedir. Çalışmanın en geniş ve ayrıntılı kısmını oluşturan Üçüncü Bölüm’de 1999-2001 Krizi ve 2001 tarihli (yeni) Merkez Bankası Kanunu’nun ardından Türkiye’de para politikalarının nasıl tasarlandığı ve yürütüldüğü ele alınmakta, bu politikaların eriştiği başarı düzeyleri tartışılmaktadır. Dördüncü (ve son) Bölüm, yazıyı sonuçlandırıcı gözlem ve değerlendirmelere ayrılmıştır. Makalenin bulguları TCMB’nin başarı veya başarısızlığının önemli ölçüde finansal akımlar ve enerji ve hammadde fiyatları gibi kendi etkisi dışındaki gelişmeler tarafından belirlendiğini göstermektedir. TCMB’nin daha etkin ve toplumsal olarak daha faydalı politikalar izlemesinin ön koşulu, bu kısıtların yapısal olarak aşılmasına bağlıdır.
    Keywords: Merkez bankacılığı; Ekonomik ve finansal krizler; Sermaye girişleri; Türkiye ekonomisi
    JEL: E52 G01 F31 F32 O53
    Date: 2016–11

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