|
on Central and Western Asia |
| By: | Ilhom Abdulloev; Gil S. Epstein (Bar-Ilan University); Ira N. Gang |
| Abstract: | Some immigrants try to keep their ethnicity hidden while others become ever deeply more mired in their home culture. We argue that among immigrants this struggle manifests itself in the ethnic goods they choose to consume. Different types of ethnic goods have vastly different effects on immigrant assimilation. We develop a simple theoretical model useful for capturing the consequences of this struggle, illustrating it with examples of Central Asian assimilation into the Muscovite economy. |
| Keywords: | assimilation, migrants, culture, ethnic goods |
| JEL: | J15 |
| Date: | 2014–02 |
| URL: | http://d.repec.org/n?u=RePEc:biu:wpaper:2014-03&r=cwa |
| By: | Dreger, Christian; Rahmani, Teymur |
| Abstract: | In line with the neoclassical growth model a persistent stream of oil revenues might have a long lasting impact on GDP per capita in oil exporting countries through higher investment activities. This relationship is explored for Iran and the countries of the Gulf Cooperation Council (GCC) using (panel) cointegration techniques. The existence of cointegration between oil revenues, GDP and investment can be confirmed for all countries. While the cointegration vector is found to be unique for Iran, long run equations for GDP and investment per capita are distinguished for the Gulf countries. Both variables respond to deviations from the steady state, while oil income can be treated as weakly exogenous. The long run oil elasticities for the Gulf states exceed their Iranian counterparts. In addition, investment in Iran does not react to oil revenues in the long run. Hence, oil revenues may have been spend less wisely in Iran over the past decades. -- |
| Keywords: | oil exporting countries,oil revenues,panel cointegration |
| JEL: | F43 O53 Q30 C33 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:euvwdp:349&r=cwa |
| By: | Temel Taskin |
| Abstract: | In this paper, we discover the inclusiveness of GDP growth in Turkey over the course of the last decade. In doing so, we use a recently developed method a la Anand et al. (2013) which integrates efficiency and equity dimensions of economic growth in a single measure. We find that Turkish GDP growth was - on average - inclusive between 2002 and 2011. We also investigate cross-region and over-time developments for the available data period, and document significant heterogeneity in inclusiveness of economic growth across these dimensions. Moreover, the regional analysis based on 2006-2011 period reflects an efficiency-equity tradeoff in Turkey’s economic growth. |
| Keywords: | Turkey, inclusive growth, regional growth, income distribution, per capita income |
| JEL: | D63 O47 R11 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:tcb:wpaper:1408&r=cwa |
| By: | KARGI, Bilal |
| Abstract: | In the present study, labor markets were analyzed, in particular, the reasons of low labor force rate to make sense based on the data of Turkish economy. While in the advanced economies, the labor force rate is quite high and has small fluctuations around a certain extent over a long-term. In the Turkish economy, it prominently falls in a long-term. Turkey is 18th by population size and 17th by GDP in world ranking and although its population effectively provides labor force rate, it will be highly effective on its economic growth. The study that based on co-integration analysis with long-term of the labor data with respect to the economy of Turkey concluded that labor variables concern with GDP and co-integration in a long-term. In particular, when the presence of strong relation between the growth and the non-institutional population is produced, it is emphasized that the present relation between the growth and the labor variable isn’t strong enough. |
| Keywords: | Population, labor force rate, economic growth. |
| JEL: | J21 O40 O52 |
| Date: | 2014–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55186&r=cwa |
| By: | Cem Aysoy; Cevriye Aysoy; Semih Tumen |
| Abstract: | Using a national panel of housing units, this paper documents that the rate of nominal rigidities in housing rents is high in Turkey between 2008 and 2011. We find that, on average, 31.5 percent of the rents did not change from year to year in nominal terms. We then ask if the incidence of nominal rigidity depends on the turnover status of the housing unit. We show that 35.4 percent of the nonturnover units had rigid rents, while for only 17.1 percent of the turnover units rents did not change. We also present evidence that grid pricing is responsible for more than half of the observed nominal rigidities in housing rents. The household- and individual-level determinants of the nominal rigidities in rents, turnover status, and tenure in the same unit are also investigated using the micro-level details available in our dataset. Implications of these results for monetary policy, in ation accounting, welfare, asset prices, and other redistributional issues are discussed. |
| Keywords: | Housing rents; nominal rigidities; turnover; grid pricing |
| JEL: | E31 R21 R31 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:tcb:wpaper:1409&r=cwa |
| By: | Kurmas Akdogan; Burcu Deniz Yildirim |
| Abstract: | We provide a detailed classification of core and non-core liabilities for the Turkish banking system à la Shin and Shin (2010). We further carry out a two-stage liquidity stress test similar to Van Den End (2010) where we simulate inflow and outflow factors as well as the network topology of mutual liabilities between financial institutions. Our results indicate that Turkish banking system with relatively low level of non-core liabilities is to a great extent robust to liquidity shocks. Nevertheless, the level of non-core liabilities should be monitored closely considering its pro-cyclical behaviour over the business cycle and its strong correlation with credit growth |
| Keywords: | Financial stability, non-core liabilities, liquidity stress test, network topology |
| JEL: | C15 E44 G21 G28 G32 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:tcb:wpaper:1412&r=cwa |
| By: | KARGI, Bilal |
| Abstract: | Although some discussions about the relation between population and the economic growth are made for a long time, today there is a general opinion that the population growth has positive relation with the economic growth. This opinion is also supported by the empirical studies. Despite there is a growth directly advancing with the population growth, the advancing of the population in the opposite direction with the rate of the labor force participation is thought to be a paradox. This paradox reveals some concepts, namely, "jobless growth" and " unskilled growth". In this study, an explanation is sought about the remaining or less increasing of the rate of the labor force participation although a linear relation between the GDP and the population and the labor. The official statements refer that this paradox is related with the lack of female participation in the labor force and employment in the agricultural sector to be falling. This study tries to point that this quantity cannot create a quality although the growth is quantitative. |
| Keywords: | Economic Growth, Labor Force Participation Rate, Labor Markets, Turkey Economy. |
| JEL: | J01 O40 |
| Date: | 2014–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:55702&r=cwa |
| By: | Juan Luis Santos; Tomás Mancha; Jagoda Anna Kaszowska |
| Abstract: | In this work we analyze the importance of service innovation in the entrepreneurial and business activity in five countries that represent a 65 percent of the population of the Middle East. We study the characteristics of the owners of firms in the service sector according to the Standard Industrial Classification. We highlight the differences between services and industries with respect to innovation. Then we analyze the determinants of service innovation in this set of countries during the period 2001-2008 and the role of individual characteristics such as gender, age, skills and perception of business owners’ status. We estimate the most important factors for innovation in services sector and we compare them with the ones of manufacturing. |
| Keywords: | Middle East, Service innovation, Innovative entrepreneur, Service sector |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:uae:sermed:24&r=cwa |
| By: | Vuslat Us |
| Abstract: | This paper estimates NAIRU (Non-Accelerating Inflation Rate of Unemployment) for the Turkish economy as an unobserved stochastic variable. In doing so, the study adopts an empirical framework that is based on a systems approach. More specifically, the framework combines an Okun-type relationship between output gap and unemployment gap with a Phillips curve equation, and also imposes stochastic laws of motion for NAIRU and potential output, while assuming the parameters to be time-varying. However, the requirement to simultaneously estimate parameters and to solve the state-space problem introduces nonlinearity, which can be handled by employing Extended Kalman Filter (EKF), i.e. the use of standard Kalman filter equations to the first-order Taylor approximation of the nonlinear model about the last estimate. Estimation results suggest that NAIRU moves in tandem with the actual unemployment, but it follows a more volatile path than the latter. Accordingly, the estimated NAIRU series reacts more sharply to the crises than the actual unemployment. This observation is in line with the prior studies reporting the relatively persistent nature of actual unemployment compared to the non-accelerating inflation rate of unemployment. All of the derived series are plausible and capture the significant turning points of the economy. As for coefficients, the time-varying parameters indicate a stable, yet quite a weak link between unemployment and inflation. Meanwhile, the coefficient of exchange rate in the Phillips curve equation suggests a weakening, but significant pass-through to inflation. Moreover, estimation results also point to the presence of considerable inertia in inflation. To sum up, findings of this study provide guidance for future research on NAIRU, which is an important tool for monetary policy. The findings also lay the basis for further work that may adopt EKF. But most importantly, this study emphasizes the need for a more flexible and comprehensive framework for the conduct of monetary policy. |
| Keywords: | NAIRU, Systems approach, Phillips curve, Okun law, Time-varying parameter, Extended Kalman Filter, Inertia, Monetary policy |
| JEL: | C32 C63 E24 E31 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:tcb:wpaper:1406&r=cwa |
| By: | Müller, Kirsten; Musshoff, Oliver; Weber, Ron |
| Abstract: | Financial institutions still neglect to address agricultural clients. The main reasons for that are their perception that farmers bear higher risks than non-farmers and that their loan products are inadequate to accommodate the needs of agricultural entrepreneurs. As a result, many farmers still lack access to external finance. The aim of this paper is to investigate determinants of credit risk for agricultural loans disbursed by a Microfinance Institution (MFI) in Azerbaijan. In this context special attention is paid to repayment flexibility and the role of collaterals. MFIs are among the first financial institutions recently focusing on farmers with new loan products. We find that farmers are less risky than non-farmers, which is surprising because the opposite is widely believed. We furthermore find that the level of collateral has a negative influence on credit risk. Beyond that, we find that repayment flexibility increases credit risk. -- |
| Keywords: | microfinance,collaterals,Tobit Model,credit risk,small-scale farmer |
| JEL: | Q12 Q14 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:daredp:1402&r=cwa |