The Impact of COVID-19 on the Size Distribution of New Firms in Turkey

A surge in new firm registrations have been one of the most intriguing outcomes of the economic turbulence caused by the COVID-19 pandemic. Turkey followed a similar pattern to many other economies that observed an initial drop and a rapid V-shaped recovery of entry when the virus hit the country. However, the size distribution of new firms has been very different. While others experience a strong rise in smaller entrants, larger firms have dominated the pack in Turkey. As a widely-known long-term problem of the Turkish economy, which has been accused of causing the stagnation of growth, miniscule firms have been losing their weight rapidly among the entrants. It revives lost hopes for the future of the economy and also motivates questions regarding the other determinants of such transformation in new firm formation.

Causality Relationship between Import, Export and Exim Bank Loans: Turkish Economy

Export promotion tools aim to increase exports and support the entrepreneur in reaching new foreign markets. The positive impact of incentives, especially on financial issues, on exports both before and after shipment is undeniable. Founded in 1987, Turkish Exim bank is Turkey’s official export credit institution. By observing macro-economic balances, Exim bank ensures that exporters, export-oriented production manufacturers and entrepreneurs operating abroad are supported by credit, guarantee and insurance programs to increase their competitiveness. The study aims to examine the causal relationship between imports, exports and Exim bank loans in the Turkish economy. In the study, stationarity with the extended Dickey-Fuller unit root test, long-term relationship with the Johansen co-integration test, and then causality with the Granger test were investigated. The causality relationship was analyzed using import, export and Eximbank loans data for the periods 2003–2020.

Cykl koniunkturalny w Turcji w latach 2005–2020 — interpretacja austriackiej szkoły ekonomii

Turkey was hit by the recession, defined in a classic way (as negative real GDP growth lasting at least two quarters), three times over the discussed period. The main goal of the central bank of Turkey is to keep inflation as close as possible to the inflation target. The use of the interest rate as a tool to stabilize the economic situation is therefore limited. The country has experienced periods of high inflation which was not temporary, but long-term. Using the approach appropriate to the Austrian School of Economics, the article analyzes the behavior of the Turkish economy in 2005–2020. In the discussed time horizon, two phases of the business cycle have been identified according to the Austrian School of Economics — the first from 2005 to the first quarter of 2014, and the second from the second quarter of 2014 to 2020. It can be assumed that the Turkish economy will enter the third phase of the business cycle in the near future, although it is difficult to determine when it will happen.

Membership Eligibility in a Europe of Parliamentary Democracies, 1962–1969

This chapter uses extensive archival evidence to demonstrate how the membership norm adopted by the community in early 1962—that only parliamentary democracies are eligible for membership—shaped European Economic Community decisions on Spain, Turkey, and Greece in the 1960s. Despite its prior openness to Madrid, the EEC rejected Spain’s quest for association in 1962 after trade union activists and members of the European parliament highlighted the gap between the new norm and the repressiveness of the Spanish regime. Despite deep concerns about the under-developed state of the Turkish economy, the EEC approved an association agreement in 1963 that recognized Turkey’s membership eligibility after the country re-established its democratic institutions. And despite the advanced state of the association agreement with Greece, the EEC froze further developments following that country’s military coup in 1967 and linked further progress to a restoration of democracy in Athens.

The Nexus among Competitively Valued Exchange Rates, Price Level, and Growth Performance in the Turkish Economy; New Insight from the Global Value Chains

Currently, global value chains (GVCs) are increasingly shaping the global economy, covering a growing share of international trade, GDP, and employment globally. Global trade is impacted by the emergence of GVCs in areas as diverse as commodities, electronics, and business service outsourcing, among other areas, since the countries involved in the GVCs hold some value(s) and benefit(s) from the exports of the finished product. In this study, the nexus among Competitively Valued Exchange Rates, Price level, and Growth Performance in the Turkish Economy; New insight from the GVCs is investigated using annual data from 1980 to 2020 within the framework of the ARDL bound test, Bayer and Hanck Cointegration (BHC) test, and ECM. The study results revealed that the relationship among real effective exchange rate, exports, and imports induced economic performance and external trade competitiveness particularly when directed at GVCs in both the short and long run. The study recommends that policies enhancing a 10% equilibrium convergence are required annually to competitively minimize the dependence on foreign value-added inputs by importing only world-class inputs for value addition and exports benefits in the competitive GVCs world. Furthermore, monetary policy, GVCs, and economic growth should be investigated.

Evaluation of Stackelberg Leader-Follower Interaction Between Policymakers in Small Open Economies

The problem of coordination between policymakers seems to have created fundamental problems related to economic and social costs, targeted inflation, potential growth, and a high budget deficit. To resolve these problems in this framework, it is important to see the results of the interaction between policymakers and to propose an optimal policy strategy. In this study, the interactions between monetary and fiscal policymakers are examined game theoretically within the framework of the New Keynesian model. The strategic interaction between these policymakers is assessed using the DSGE (Dynamic Stochastic General Equilibrium) model for a small open economy. From this point of view, the interaction between policymakers is assessed within the framework of hypothetical scenarios. The optimal monetary and fiscal policies for a small open economy are derived from the leader-follower mechanism solution known as the Stackelberg solution. Optimal Stackelberg policy rules derived for a small open economy contribute to the literature of economics. The performance of the game theoretically derived optimal policy rules is evaluated through dynamic simulation within the framework of counterfactual experiments. The parameters developed for the model are calibrated for the Turkish economy. Dynamic simulation of the models, the impulse response functions, and the social loss analysis shows that the optimal policy mix for the Turkish economy is when the monetary policymaker is the leader, and the fiscal policymaker is the follower.

Alteration of Consumption Habits in Turkey Over Time

Simon Kuznets and John Maynard Keynes did research on the subject of propensity to consume. Kuznets asserted that people do not alter their consumption/saving ratio and spend more when they have more disposable income. Keynes alleged that when disposable income increases, the rate of saving also increases over time because people tend to keep their consumption habits steady. Namely, the consumption/saving ratio of households or individuals tends to decrease as disposable income goes up. And in this study, the Keynesian consumption function is investigated in the Turkish economy. The result of this research might give insight into the future of the consumption/saving ratio in Turkey. In the study, the ARDL econometric model is operated with data from the Turkish Statistical Institute. The result of the study is that people change their consumption habits with the increase of disposable income. As a result, the consumption level has been slowing down, and the propensity to consume diminishes. That proves that the Keynesian consumption function holds in Turkey.

CRISIS AND CRISIS MANAGEMENT IN ORGANIZATIONS, THE IMPORTANCE OF CRISIS AND CRISIS LEADERSHIP, THE EFFECTS OF THE COVID-19 PANDEMIC CRISIS PROCESS ON THE TURKISH ECONOMY

Crisis (crisis) are difficult situations that threaten the high-level goals and business methods of an organization, or put the organization's existence in a dangerous situation, require quick decisions, and neutralize problem prevention systems. In other words, crisis can be defined as an unexpected situation or events that have an unexpected outcome (Sikich, 2002). Crises are a turning point for businesses by enabling organizations to gain new experiences and acquire new knowledge, and to turn this situation into an opportunity (Demirtaş, 2000). The ability of organizations to achieve their goals and to maintain their existence depends on their ability to adapt to their environment and to regulate their business skills depending on the expectations of the environment. The constantly changing environment creates major problems for businesses that cannot adapt to these changes and cannot balance. The success of organizations depends to a large extent on their ability to recognize and assess these dangers beforehand. Organizations can face many threats that can come from within the business or from the business environment. Because of its negative effects, organization managers' ability to cope with these threats is of great importance for businesses (Can, 2002). Organization managers' leadership, experience, knowledge and skills are most needed in times of crisis. Because the most important responsibility of a leader manager is to successfully prevent the crisis that occurs in the organization. Managers exist to manage unexpected conditions and solve problems in organizations. For this reason, administratorship is the problem management process in organizations. The manager is the person who prevents this problem. Therefore, leading managers appear and show themselves especially in times of crisis (Peker & Ayturk, 2000). In this study, the characteristics of the crisis in organizations, the reasons for the emergence of the crisis and the crisis management processes in organizations are mentioned. Crisis management processes of organizations in potential crisis situations are examined.