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on Central and Western Asia |
| By: | Serkan Degirmenci |
| Abstract: | Many cross-country studies acknowledge the indispensable role of institutions in promoting economic growth and in sustaining economic development. So, their emphases have shifted to determine the most influential institution(s) in order to be specific. While these papers are widespread in the recent literature, the role of institutions within-country level has not been yet discussed in detail. Although the formal institutional structures of many nation-state countries apply to their all regions, results may differ depending upon various conditions. Considering these differentiated outcomes, this study aims to discuss the roles and functions of institutions in regional economic growth and development. To that end, first objective of this paper is to provide an introductory background by surveying and systematically documenting the evidences on the impact of institutions on regional growth and development outcomes from both the theoretical and empirical studies within a voluminous literature. Second objective is to elaborate this survey by classifying these studies with respect to their different conceptions about “institutions†and to their methodological approaches adopted. By doing that, this paper try to propose an analytical framework that identifies the channels of influence between institutions and economic performance outcomes. As the main concern of that study, third objective is to discuss whether institutions really matter for regional economic growth and development and, if so, how can institutions be included in the regional growth and development policies. Turkey is a convenient example for this discussion. Although its fundamental written institutions have a countrywide validity, their density and quality varies among regions. So, lastly, it is planned to be done an empirical exercise to reveal the linkages between prominent characteristics of these regional institutions and economic performances of regions for the case of Turkey. To sum up, the novelty of this paper is to provide an extensive but a systematic survey of many studies in related literature and to contribute in part to the empirics of the relationship between institutions and regional economic growth and development. Finally, it is expected to obtain a sound understanding about the institutional approach both in economic growth and economic development spheres within the regional context. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1180&r=cwa |
| By: | Serkan Degirmenci; Zeynep Yilmaz; Gulcin Elif Yucel |
| Abstract: | Standard trade theory relies on the assumption of long-run full-employment, thus implying that although trade can affect wage rates and change the sectoral distribution of employment, it has no effect on the overall level of employment. In the empirical literature, it is a controversial debate that trade openness is good for employment in the long-run. If so, the further question is about the poorer regions in the developing countries which are fully open to trade. Turkey is one of these countries experienced trade liberalization three decades ago. Although its regions’ connection to markets is effective due to limited lack of access to key inputs and low transport costs, their shares in total trade and labor market outcomes strikingly vary depending on the density of local economic activities. While trade volumes and employment creation capacities of some regions are quite high, relevant indicators for some others are disappointing. The aim of this paper is to explore the relation between regional trade volumes and major labor market indicators. To this end, empirical analyses are designed to test the hypothesis that more regional trade volume leads to more employment opportunities and stimulates the job creation capacities of local labor markets. The data sets used in the analyses are from Turkish Statistical Institute, one being trade statistics by province which consists of export and import volume data for 81 provinces. The other set contains individual-based micro data from Household Labor Force Survey and both of these sets are at NUTS level 2, analyzing Turkey with 26 statistical regions. Time-interval for the analyses is from the year 2004 to 2008. Since the nature of labor market data set is cross-sectional and the dependent variable created is a dummy, the methodology used in the study is based on the probit regression. The preliminary results of the paper shows that higher the trade volumes of regions generally improve the indicators of local labor markets in Turkey. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1371&r=cwa |
| By: | Sumru Altug (Koç University and CEPR); Erhan Uluceviz (Istanbul Bilgi University) |
| Abstract: | This paper develops a set of leading indicators of industrial production growth and consumer price inflation for the period 2001-2010. The choice of indicators is based on pseudo out-of-sample forecasting exercise implemented by Stock and Watson (2003), amongst others. We find that asset prices that reflect expectational factors or interest rates that capture the costs of borrowing for the Turkish economy tend to have the greatest predictive power for future real activity and inflation. Our findings provide evidence on the factors determining real activity and inflation in a period of disinflation and normalization for the Turkish economy. |
| Keywords: | Real activity, inflation, leading indicators, out-of-sample forecasting, combination forecasts, inflation targeting, Turkey |
| JEL: | E1 E32 E37 E58 F43 O52 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:koc:wpaper:1134&r=cwa |
| By: | Byung-Yeon Kim (Department of Economics, Seoul National University, Institute of Economic Research, Kyoto University) |
| Abstract: | This paper provides the various estimates of Russia’s unofficial economy during the transition period and discusses the estimation methods of the unofficial economy. It suggests that Russia’s unofficial economy, which substantially increased during the early 1990s and stands still high compared to other countries, is caused by the institutional and cultural legacy from the Soviet era and problems in the transition period such as poor quality of institutions and newly available opportunities. It emphasizes the importance of understanding the evolution of the unofficial economy over time and its heterogeneity across countries. |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:kyo:wpaper:797&r=cwa |
| By: | Mark Partridge |
| Abstract: | Abstract: Rural areas across the developed world have long been recipients of policies aimed to improve their well-being at great expense to public treasuries. Most of these policies are aimed at the agriculture sector as well other natural resource based industries. With productivity growth and consolidation, agriculture and natural resource based sectors employ relatively few workers in rural areas, leading to criticisms that these narrow sectoral based policies are misguided if their true aim is broad-based rural development. Others argue that rural policy is obsolete as formally rural communities have increasingly become part of urban-centered mega regions. These rural areas are now in an interdependent relationship with their urban neighbors in which urban areas are the primary drivers of economic activity in a knowledge economy, while rural residents are the stewards of the environment and natural resources. Others instead argue the globalization and technological change make regional policy obsolete and rural policy just slows needed adjustments toward cities or productive areas. After decades of rural placed based policy, this study will assess whether sectoral-based rural policy still makes sense and whether movements to a regional orientation will improve socioeconomic performance for rural residents and urban taxpayers. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p186&r=cwa |
| By: | Ercan Dulgeroglu; Sibel Bali Eryigit; Kadir Y. Eryigit; Filiz Gaygusuz |
| Abstract: | The Role of Physical, Human and Social Capital in Regional Financial Development Differences: An Analysis of Turkish Provinces Ercan Dulgeroglu , Sibel Bali Eryigit , Kadir Y. Eryigit and Filiz Gaygusuz Abstract With the undeniable importance of the financial markets in the economy, the factors stimulating financial development have started to be researched, particularly in recent times in a more intensive way. Starting from this point, the driving force of this study is both to contribute to international literature in this field and to fill a gap in the literature related to Turkey. The main purpose of this study is to explain the causes of regional financial development differences on the basis of capital accumulation. In order to answer the question ‘What is the effect and degree of importance of physical, human and social capital on the differences in regional financial development?’, in this study some indexes for financial development and each type of capital accumulation will be calculated using kernel principle components analysis and depending on the annual data of 81 provinces covering the period 2005 – 2009. As an index, the capital measurements can be seen in a comprehensive form allowing for more accurate measurement and evaluation of both the capital accumulation and financial development. By using the calculated indexes, then, financial development differences are evaluated with spatial panel data methods developed by Elhorst (2003). In this context, to our knowledge, this study is the first to take into account the effects of each type of capital on financial development in a model simultaneously. Keywords: Financial development, physical capital, human capital, social capital, spatial panel data analysis, |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1539&r=cwa |
| By: | Ferhan Gezici; Kemal Çetin |
| Abstract: | Economists who have been working on economic geography (Krugman, 1991; Porter, 1994) have emphasized that space should be taken into account as local rather than national as a mainstream of the studies of economic geography. Therefore, the relationship between the geographic location and industrial concentration and their performance has become the main concern (Malmberg, Sölvell and Zander, 1996). The studies which are looking at the relationship between the firm size and concentration indicate that small plants are concentrated in central locations and bigger ones have moved to peripheral cities, while another one points out “the relationship between establishment size and clustering is roughly characterized by an inverted u-shape, which means clustering increases up to some size threshold and then decreasesâ€Â. The aim of this paper is to explore intra-metropolitan distribution of manufacturing firms in Istanbul Metropolitan Area, while there has been an economic structural change in the metropolitan city. Ripley's K function is used to analyse whether the firms clustered or dispersed weighted by employment. The K function provide analysing co-location between firms of different industries. As a result of the analysis, mostly the concentration of manufacturing firms is in the central and first ring on the European side. Being in the center seems to provide the advantages of supplier, market and deep networks through the traditional structure of manufacturing activities. Further, the firms locating in the first ring use the positive impacts of transportation infrastructure. Another result indicates that there is a relationship between the firm size and its location; while the small and medium sized firms are clustered in the center, the big ones move to the periphery. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p146&r=cwa |
| By: | Sinan LEVEND; Rahmi ERDEM |
| Abstract: | In Turkey, The law of Institutional Strategic Planning (ISP) issued in order to compliance with European Union is unfortunately insufficient recovering spatial-oriented strategic planning (SSP) decisions. There is not a fundamental Spatial Strategic Planning model based on strategic spatial planning and an integrated structure that can be coordinated with both the strategic plans prepared by municipalities and strategic plans prepared by the government. Strategic Spatial Planning (SSP) process that sub-units have to correspond is not clearly defined although the Public Strategic Plan is mandatory by the legal regulation. İstanbul as a metropolis has got a lot of urbanization problems. Its operational planning boundaries surpasess its provincial boundaries. It exposes to a high level of risk because of earthquake, and its natural and cultural values are under threat because of rapid urbanization. The need for a planning organization that is taken as a whole up to the scale of urban design, transparent, comprehensive participated, cooperative and continuous is the major undisputed fact. This paper aims to evaluate SSP approach in Turkey in the case of İstanbul. For this purpose, firstly a literature review is conducted to define Strategical Planning. Eventually, in Istanbul Institutional Strategical Planning and Environment Arrangement Planing (100000 scale) are analyized and these plans are evaluated in terms of adequacy of strategical planning approach. Key Words: strategic, strategical spatial planning, İstanbul |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p481&r=cwa |
| By: | Kutlu Demirer |
| Abstract: | Turkey has achieved great success in the tourism sector which started a greater than ever trend towards hotel investments. While, new investors are entering to the market, international brands are pursuing strategies to increase their existing supply. Istanbul, Turkey’s largest city, besides being a world-famous tourist attraction, also draws substantial foreign investment which escalates both the demand and supply in the hotel market. In the light of previous researches conducted by Dökmeci and Balta (1999) this research focuses on the supply side and the spatial development of high-end hotels in Istanbul. By revisiting the works of von Thünen and Alonso, compares rings of urban location for hotels in Istanbul in terms of rent as overnight room rates. Location data are accumulated from Ministry of Tourism, local municipalities, chambers and unions. Overnight hotel rates were collected through internet booking sites, telephone inquiries and visits during October, November and December of 2010. As the polycentric development of the city has increased over the last decade and many functions have been decentralized or shifted, the analysis reveals valuable insight into urban tourism pattern. The results coincide with the concentric rings described by the previous researches although many new hotels were constructed, new sub-centers had formed and the importance of sub-centers has increased dramatically. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1030&r=cwa |
| By: | Elif GUNDUZ; Rahmi ERDEM |
| Abstract: | Mardin represents a distinctive variety of natural and cultural resources. It is considered a major destination for seasonal tourism in Turkey. However, the city suffers from a serious shortage in urban infrastructure necessary for sustainable tourism development. A field survey is carried out to identify the type and range of such problems in relation to the existing infrastructure system. The survey also examines both the role of local community in tourism development and potential revenues. This study analyses the major aspects of such shortages and their effects on tourism sustainability. The paper attempts to present and discuss 1) the effect of inadequate urban infrastructure (roads, waste disposal, and water supply) on the site tourism potential and local standards of living that represent a challenge for sustainable cultural tourism; 2) the role of locals' involvement in tourism development (e.g. safeguarding heritage sites) and in poverty alleviation mechanisms in addition to identifying main heritage assets and related tourism opportunities. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p214&r=cwa |
| By: | Sergey Kirillov |
| Abstract: | Transport and industrial enterprises are the reasons for the basic pollution of the environments of large cities. This problem is particularly acute in Russia, where strict environmental standards either do not exist or are not enforced. Improving the management of ecological and economic system of urban environmental resources usage is largely dependent on functional type of the city and the number of people inhabiting it. In this context, the author distinguishes the following urban areas: Capital (Moscow); Major regional centers of Russia, including St. Petersburg; Multifunctional cities; Medium-sized cities with one or two city-forming enterprises; County towns and other settlements. The author proposes a model for designing an economic mechanism of environmental management in large cities depending on management methods used at the present time, their ecological and economic efficiency and possibility of including new management tools into the mechanism. During the modeling of ecological-economic mechanism of urban land use it is necessary to choose a rational variant of regulative instruments which will lead the system of urban land use to the expected form. According to the author, there are three aims that could be achieved in the cities: reducing pollution, improving the stability of the system, increasing the profitability of the land due to optimization of its usage. The aims are interrelated but the local authorities must define in what direction the land affairs will develop. The combination of specific tools in ecological-economic mechanism of urban land use determines the features of urban environment and quality of life. The usage of market and administrative management tools of the urban land use mechanism changes the economical system, the environment, the transportation system, urban landscape and the structure of urban area zoning. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1068&r=cwa |
| By: | Alexander Pelyasov; Nataliya Galtseva; Igor Batsaev; Igor Golubenko |
| Abstract: | Economic role of the knowledge transfer is studied on the example of the Russian North-East and its two basic branches that is exploration and mining which form the core of the regional economy (regional mining system). Russian North-East can be considered as isolated industrial district with the basic gold mining activity. The scale of this activity has been determined regional socio-economic development for the last 80 years. The major information for this study has been taken from GIS on the spatial structure of exploration and mining branches in the Russian North-East on the district level for the last 80 years. On the basis of revealed regularities and specifics in the interregional knowledge transfer we have formed general understanding of this process. We have analyzed major channels of knowledge transfer from exploration as the branch generating new knowledge on the mineral resources to mining in which this knowledge is utilized. We have determined major systems of knowledge transfer from one branch to the other under different periods of regional economic history. We have examined how territorial structures of exploration and mining industries had been changed inside the regional system for the last 80 years. Main characteristics of knowledge transfer inside the regional mining system influence its productivity (volume of extraction, speed of development of the new deposits, etc.). Effective communication between exploration and mining industry, knowledge transfer from the geologists to the miners is critically important for the sustainable work of the regional mining system. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p52&r=cwa |
| By: | Maksim Belitski; Julia Korosteleva |
| Abstract: | We investigate variation in entrepreneurial activity across 98 Eastern Neighbourhood cities. The aim of study is twofold: to bridge the city-level gap in empirical research on entrepreneurship in the Eastern Neighbourhood urban areas; to focus on urban heterogeneity in entrepreneurship unlike regional level studies which deal both with urban and rural areas where entrepreneurial activity has different characteristics. Finally, in accordance with urban incubator hypothesis the incidence of entrepreneurship is higher in urban agglomerations. To measure entrepreneurship a number of small businesses is used which has been widely used in a number of studies for capturing entrepreneurial activities. We employ the System GMM estimator to establish our model, which is determined by the need to address some econometric problems, including the problem of potential endogeneity of some of our regressors; the presence of predetermined variables, namely the lagged dependent variable; the presence of fixed effects which may be correlated with the repressors; finite sample. We find that the heterogeneity in entrepreneurship is largely explained by the agglomeration effects and city socio-economic characteristics such as level of poverty. On the one hand this is puzzling, as the general perception of the nature of entrepreneurial activity in these countries is that it is necessity-driven. On the other hand, the role of the government and social benefits still seem to play an important role in the countries of transition discouraging individuals from considering entrepreneurship as a way out of poverty. We fail to support the hypothesis of Moscow proximity as an important driver for small business activity in these cities. At the same time our findings support capital-city hypothesis as an incubator for business start-ups. Unfortunately, the level of capital stock and criminality add little in explaining the variation of entrepreneurship. We also do not find any robust effect of transition reforms, including small-scale privatisation, banking transformation and business regulation on entrepreneurial entry in the Eastern Neighbourhood cities. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p288&r=cwa |
| By: | Deniz Deniz |
| Abstract: | In urban areas, fear of crime constitutes as much a problem as crime itself. Fear of crime is often associated with fear for one’s personal safety, particularly, safety from violent crimes and physical or sexual harassment in public areas. The fear of crime and feelings of insecurity keeps people off the public places where crime or anti-social behaviour are likely to occur and also limits people’s behaviour to access to opportunities and facilities in their public environment. In other words, it creates a barrier to participation in the public life which reduces the liveability and sustainability of the city. It is obvious that, level of the fear of crime is unequally distributed considering the varied user profiles and places of cities. This paper is aimed to analyse how fear of crime is influenced by a variety of factors including actual crime rate, physical and social characteristics of the environment etc. with a specific case study from İzmir, Turkey in order to create safer and livable cities. Note: The alternative choice was to put this abstract under : ZW-SS 'Turkish cases in Contemporary issues/dimensions for regional development' |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1176&r=cwa |
| By: | Edward Bergman |
| Abstract: | European universities have lost--and partially regained--key research academics to North American and other attractive university systems. EU efforts to reverse the cycle revolve around the establishment of an attractive European Research Area, within which future academic mobility--and commercial knowledge transmission--might be confined. This paper draws upon a survey of 1800 academics in 200 of Europe's most research-intensive universities to understand the principal reasons that underlie contemporary academic mobility. Mobility is conceptualised in Hirschmann terms as 'exit' from an inadequately performing university, rather than remaining 'loyal' to its existing regime or staying to exercise 'voice' in bringing about necessary improvements. The results from logit modeling of choices and options indicate clearly that academics who evidence either 'loyalty' or 'voice' are significantly less likely to be mobile. Moreover, those who are mobile refuse to restrict possible destinations to the ERA if they value better material conditions or better quality of colleagues, students or university reputation. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1134&r=cwa |