The American Journal of Economics and Sociology, Sep 5, 2013
This article asks whether the process of financial globalization and its recent crisis can be exp... more This article asks whether the process of financial globalization and its recent crisis can be explained by Karl Polanyi's notion of the double movement and argues, in tune with this notion, that capitalist market relations depend on certain institutional arrangements and yet the development of the market forces deteriorates these institutions' arrangements to such extent that even the “capitalist business itself had to be sheltered from the unrestricted working of the market mechanism” (Polanyi 1944: 193).
In this article, we construct an empirical framework to identify and measure the adoption of gree... more In this article, we construct an empirical framework to identify and measure the adoption of green technologies across countries. Using an annual dataset covering 89 countries from 1990 to 2016, we conduct a principal component analysis incorporating the different dimensions of the adoption of green technologies. The analysis allows us both to rank countries for their level of green technology adoption and also recommend policies to improve their current stance.
By considering the manufacturing pay inequality index as a proxy for overall income inequality an... more By considering the manufacturing pay inequality index as a proxy for overall income inequality and a novel index for the informal economy, this study analyzes the relationship between income inequality and the size of the informal economy in Turkey for the first time during the period of 1963-2008. For this purpose, we employ a time-series analysis with the Johansen cointegration test, a vector error correction model and the Granger causality tests. The findings suggest that while an increase in income inequality and foreign trade competitiveness leads to an expansion of the informal sector, unemployment has negative effects on the informal sector.
Gross national saving is one of the widely used economic data in empirical studies, and it used i... more Gross national saving is one of the widely used economic data in empirical studies, and it used in for saving-investment debate, economic growth and similar studies. However, there is a discrepancy between the general definition of saving and gross national saving data. Gross national saving does not represent a certain amount of funds, it is estimated or derived ex post. This study will focus on two different methods of the estimation of gross national saving and the methodology of these estimations. These findings show that using gross national saving cannot be used in empirical studies for saving-investment debate or similar studies.
Abstract: Capital flows to the “developing and emerging economies ” (DEEs) have surged in the 200... more Abstract: Capital flows to the “developing and emerging economies ” (DEEs) have surged in the 2000s. After a brief interruption during the 2008 global financial crisis, quantitative easing policies led to even stronger capital flows. This is reminiscent of the earlier capital flow waves that ended with financial crises. At the end of those waves, DEEs ran into problems due to three main issues: high government borrowing requirements, fixed exchange rate systems, and/or weak banking sectors. Turkey is a case in point. After capital account liberalization in 1989, it ran into crises in 1994, 1998 and 2001. Since then, the government borrowing requirement has gone down, the banking sector has been reformed and a more flexible exchange rate system adopted. However, we argue that, first, a capital-inflows-dependent, finance-led growth model emerged in the 2000s. Second, we show that this model led to an accumulation of fragilities both in the external accounts and within the domestic eco...
This paper analyses the effects of military expenditure on the rate of profits in Turkey during t... more This paper analyses the effects of military expenditure on the rate of profits in Turkey during the period of 1950–2008 by employing a Markov-switching autoregression model within a Marxist framework for the first time. Findings show that the effect of military expenditure on profit rates is nonlinear—negative during turbulent years and positive in more tranquil years. The negative effects are larger than positive effects, but the probability of positive effects prevailing is larger.
Bu calismanin ana amaci icsel para teorisinin kokenlerini incelemek ve bu konudaki guncel tartism... more Bu calismanin ana amaci icsel para teorisinin kokenlerini incelemek ve bu konudaki guncel tartismalara isik tutmaktir. Icsel para yaklasimi temel bir onermeye dayanmaktadir: Reel ekonomide faaliyet gosteren isletmelerin kredi talebi, bankalar tarafindan karsilandikca bankacilik sektorunde yeni mevduatlar olusur. Bu yeni mevduatlar icin gerekli rezervlerin bulunmasi ile de para arzi genislemeye baslar. Merkez bankasi bu surece mudahale edebilse de tamamen kontrol edemez. Icsel para yaratim sureci konusunda da tam bir fikir birligi yoktur ve bu teorinin savunuculari arasinda canli bir tartisma devam etmektedir. Bu calismanin amaci soz konusu tartismalarin miadini doldurdugunu ve degisen finansal yapi icinde gecerliligini kaybettigini ortaya koymaya calismaktir. Bu tartismalar, teorinin evrilip gelismesine yol acmis olsa da son yillarda finansal alanda yer alan yenilikleri gozden kacirmistir. Bu nedenle soz konusu teorinin bir kez daha gozden gecirilerek gunun sartlarina uyumlu hale ge...
Austerity policies have defined the economic and political landscape of Europe since the break of... more Austerity policies have defined the economic and political landscape of Europe since the break of the last economic crisis. These policies claim to promote long-term economic growth by promoting domestic savings so that savings can lead to investments and economic growth. Yet, saving-investment equality has always been a highly disputed topic in economics. Though various economists from different background accept this equality ex post, the causality ex ante is an area of dispute: the main issue, at least since Keynes published General Theory, whether investments lead to savings or ex ante savings are responsible for investment. This difference has serious macroeconomic policy outcomes; Feldstein-Horioka Puzzle (Feldstein and Horioka, 1980), Glut of Savings (Bernanke, 2005) and finally austerity programs have all built on the presumption that ex ante savings are responsible for investments and economic growth. However, heterodox economists, especially Post Keynesians, have gathered ...
The American Journal of Economics and Sociology, Sep 5, 2013
This article asks whether the process of financial globalization and its recent crisis can be exp... more This article asks whether the process of financial globalization and its recent crisis can be explained by Karl Polanyi's notion of the double movement and argues, in tune with this notion, that capitalist market relations depend on certain institutional arrangements and yet the development of the market forces deteriorates these institutions' arrangements to such extent that even the “capitalist business itself had to be sheltered from the unrestricted working of the market mechanism” (Polanyi 1944: 193).
In this article, we construct an empirical framework to identify and measure the adoption of gree... more In this article, we construct an empirical framework to identify and measure the adoption of green technologies across countries. Using an annual dataset covering 89 countries from 1990 to 2016, we conduct a principal component analysis incorporating the different dimensions of the adoption of green technologies. The analysis allows us both to rank countries for their level of green technology adoption and also recommend policies to improve their current stance.
By considering the manufacturing pay inequality index as a proxy for overall income inequality an... more By considering the manufacturing pay inequality index as a proxy for overall income inequality and a novel index for the informal economy, this study analyzes the relationship between income inequality and the size of the informal economy in Turkey for the first time during the period of 1963-2008. For this purpose, we employ a time-series analysis with the Johansen cointegration test, a vector error correction model and the Granger causality tests. The findings suggest that while an increase in income inequality and foreign trade competitiveness leads to an expansion of the informal sector, unemployment has negative effects on the informal sector.
Gross national saving is one of the widely used economic data in empirical studies, and it used i... more Gross national saving is one of the widely used economic data in empirical studies, and it used in for saving-investment debate, economic growth and similar studies. However, there is a discrepancy between the general definition of saving and gross national saving data. Gross national saving does not represent a certain amount of funds, it is estimated or derived ex post. This study will focus on two different methods of the estimation of gross national saving and the methodology of these estimations. These findings show that using gross national saving cannot be used in empirical studies for saving-investment debate or similar studies.
Abstract: Capital flows to the “developing and emerging economies ” (DEEs) have surged in the 200... more Abstract: Capital flows to the “developing and emerging economies ” (DEEs) have surged in the 2000s. After a brief interruption during the 2008 global financial crisis, quantitative easing policies led to even stronger capital flows. This is reminiscent of the earlier capital flow waves that ended with financial crises. At the end of those waves, DEEs ran into problems due to three main issues: high government borrowing requirements, fixed exchange rate systems, and/or weak banking sectors. Turkey is a case in point. After capital account liberalization in 1989, it ran into crises in 1994, 1998 and 2001. Since then, the government borrowing requirement has gone down, the banking sector has been reformed and a more flexible exchange rate system adopted. However, we argue that, first, a capital-inflows-dependent, finance-led growth model emerged in the 2000s. Second, we show that this model led to an accumulation of fragilities both in the external accounts and within the domestic eco...
This paper analyses the effects of military expenditure on the rate of profits in Turkey during t... more This paper analyses the effects of military expenditure on the rate of profits in Turkey during the period of 1950–2008 by employing a Markov-switching autoregression model within a Marxist framework for the first time. Findings show that the effect of military expenditure on profit rates is nonlinear—negative during turbulent years and positive in more tranquil years. The negative effects are larger than positive effects, but the probability of positive effects prevailing is larger.
Bu calismanin ana amaci icsel para teorisinin kokenlerini incelemek ve bu konudaki guncel tartism... more Bu calismanin ana amaci icsel para teorisinin kokenlerini incelemek ve bu konudaki guncel tartismalara isik tutmaktir. Icsel para yaklasimi temel bir onermeye dayanmaktadir: Reel ekonomide faaliyet gosteren isletmelerin kredi talebi, bankalar tarafindan karsilandikca bankacilik sektorunde yeni mevduatlar olusur. Bu yeni mevduatlar icin gerekli rezervlerin bulunmasi ile de para arzi genislemeye baslar. Merkez bankasi bu surece mudahale edebilse de tamamen kontrol edemez. Icsel para yaratim sureci konusunda da tam bir fikir birligi yoktur ve bu teorinin savunuculari arasinda canli bir tartisma devam etmektedir. Bu calismanin amaci soz konusu tartismalarin miadini doldurdugunu ve degisen finansal yapi icinde gecerliligini kaybettigini ortaya koymaya calismaktir. Bu tartismalar, teorinin evrilip gelismesine yol acmis olsa da son yillarda finansal alanda yer alan yenilikleri gozden kacirmistir. Bu nedenle soz konusu teorinin bir kez daha gozden gecirilerek gunun sartlarina uyumlu hale ge...
Austerity policies have defined the economic and political landscape of Europe since the break of... more Austerity policies have defined the economic and political landscape of Europe since the break of the last economic crisis. These policies claim to promote long-term economic growth by promoting domestic savings so that savings can lead to investments and economic growth. Yet, saving-investment equality has always been a highly disputed topic in economics. Though various economists from different background accept this equality ex post, the causality ex ante is an area of dispute: the main issue, at least since Keynes published General Theory, whether investments lead to savings or ex ante savings are responsible for investment. This difference has serious macroeconomic policy outcomes; Feldstein-Horioka Puzzle (Feldstein and Horioka, 1980), Glut of Savings (Bernanke, 2005) and finally austerity programs have all built on the presumption that ex ante savings are responsible for investments and economic growth. However, heterodox economists, especially Post Keynesians, have gathered ...
Gross national saving is one of the widely used economic data in empirical studies, and it used i... more Gross national saving is one of the widely used economic data in empirical studies, and it used in for saving-investment debate, economic growth and similar studies. However, there is a discrepancy between the general definition of saving and gross national saving data. Gross national saving does not represent a certain amount of funds, it is estimated or derived ex post. This study will focus on two different methods of the estimation of gross national saving and the methodology of these estimations. These findings show that using gross national saving cannot be used in empirical studies for saving-investment debate or similar studies.
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