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on Central and Western Asia |
| 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 |
| URL: | http://d.repec.org/n?u=RePEc:tcb:wpaper:1624&r=cwa |
| By: | Eromenko, Igor |
| Abstract: | Dutch disease or resource curse is an adverse effect of high dependence on exports of natural resources, such as oil and gas, or other inflows, such as remittances or foreign aid. Dutch disease is known to lead to appreciation of the real exchange rate, decline in tradable sectors (mostly industry and agriculture) and surge in non-tradable sectors (services). This means unfavourable development of an economy where retail trade or construction would grow, but production sectors would be atrophied. Such economies become vulnerable and may suffer if inflow of currency from natural resources or remittances dries out. This study tests whether large inflow of foreign currency coming to Kyrgyzstan and Tajikistan from labour migrants has caused Dutch disease as described by Corden (1984) and Corden and Neary (1982): appreciation of the real exchange rate, decline in tradable sectors and surge in non-tradable sectors. Furthermore, the paper takes one step further and looks at this phenomenon from the point of view of importing Dutch disease from resource-rich countries to resource-poor countries. Results show that symptoms of Dutch disease are present in Kyrgyzstan and Tajikistan. There is an evidence of deindustrialisation, higher growth rates and larger share of service sector in GDP. In addition, high oil prices showed strong appreciation effect on local currencies of Kyrgyzstan and Tajikistan indicating the transfer of Dutch disease from resource-rich Russia. |
| Keywords: | Dutch disease, labour remittances, migration, natural resources, exchange rate |
| JEL: | F22 F24 F31 |
| Date: | 2016–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:74965&r=cwa |
| By: | Huzeyfe Torun |
| Abstract: | Previous research on military conscription exclusively focuses on the effect of military service on subsequent labor market outcomes. I examine the effect of peacetime conscription on early labor market outcomes of potential conscripts before they are called up for service. In a simple theoretical framework with costly job search and no job security, I show that an expected interruption in civilian life reduces the incentive of teenagers to search for a job. Using micro-data from Turkey, Argentina, Peru and Spain, I present evidence that the anticipation of compulsory conscription reduces the labor force participation of teenage men by 6.7 percent compared to men in their twenties, and employment by 11 percent, while raising unemployment in this group by 9 percent. Interestingly, I find mirroring effects on teenage women who are not subject to conscription. Women experience a 7.5 percent decrease in the labor force participation and a 10-13 percent decrease in employment after the abolition of conscription, suggesting a high degree of substitutability between men and women. |
| Keywords: | Military service, Labor force participation, Youth unemployment, Difference-in-Differences |
| JEL: | J21 J24 H56 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:tcb:wpaper:1622&r=cwa |
| By: | Hamide Merve Güçlü (Selcuk University Law Faculty) |
| Abstract: | Most of today’s legal system has accepted principle of freedom of contract with the effect of economic liberalism. Despite this, by considering weakness of workers against employer espeecially in working life, the idea that workers should be protected has been accepted and exceptions to the principle of freedom of contract has been introduced. For this reason, workers have been tried to be protectedagainst termination. If it is necessary to describe it briefly, if employer doesn’t dismiss worker arbitrarily, this means protection of worker against termination. Protection of workers against termination is among main objectives and issues of labor law.Union reasons are one of the reasons for employers to dismiss workers. In working life, dismissal of workers because of membership in union or union activities means “Termination due to union reasons†, protection of workers against these dismissals means “Protection of workers against termination due to union reasons†. Protection of workers against termination due to union reasons is the result of union freedom given to workers. As a result of giving this freedom to workers, employment contract of the worker can’t be terminated due to union; in case of termination due to this reason, legal remedies are provided such as returning to work. |
| Keywords: | Labor law, termination, union reasons |
| URL: | http://d.repec.org/n?u=RePEc:sek:ibmpro:4306983&r=cwa |