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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

The Relationship between Affective Commitment (Ac) and
Organizational Citizenship Behavior (Ocb): A Study on
Public and Private Enterprises in Dinar District
Veysel Ağca
Afyon Kocatepe University, Afyon, Turkey
agca@aku.edu.tr

Hayrettin Ertan
Afyon Kocatepe University, Afyon, Turkey
hertan@aku.edu.tr
Meyer and Allen (1991) suggested a model of organizational commitment with
three dimensions: Affective commitment, continuance commitment and
normative commitment. The first one is related to willing to stay in
organizations. The employee wants to stay in his or her organization because
he or she loves his or her organization. Even if other organizations give better
job offers, they keep working in their organizations. So, this type of
organizational commitment is very important for organizations. Especially to
retain well-educated and hard-working human resources in organizations,
organizations must have employees that committed to their organizations by
affective.
Organizational citizenship behavior (OCB) can be defined as “the individual
behaviors not defined directly or clearly in formal reward system but
contribute to the organizational effectiveness”. Organ (1990) suggested a
model of organizational citizenship behavior with five dimensions:
Conscientiousness, altruism, civic virtue, sportsmanship, and courtesy.
The objective of this paper is to determine the relationship between affective
commitment (AC) and organizational citizenship behavior (OCB).
The
importance of the study is great for especially enterprises operating in crisis.
Employees committed to their organizations by affective and acting OCB will
probably keep working in the same organization even if there is economic
crisis.
The area of the study is public and private enterprises in Dinar district of
Afyonkarahisar. The samples will be selected from the population by the
method of decisional sampling.
To determine the relationship between affective commitment and
organizational citizenship behavior, the analysis of regression and correlation
will be performed. The data will be entered into the Statistics Program of
Social Sciences and processed. Finally, the findings, conclusions and
recommendations will be presented.

272

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                    <text>International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

The relationship between affective commitment (AC) and organizational
citizenship behavior (OCB): A study of public and private enterprises in
Dinar district
Veysel Agca
Afyon Kocatepe University, Afyon, Turkey
agca@aku.edu.tr
Hatrettin Ertan
Afyon Kocatepe University, Afyon, Turkey
hertan@aku.edu.tr

Abstract
Meyer and Allen (1991) suggested a model of organizational commitment with
three dimensions: Affective commitment, continuance commitment and normative
commitment. The first one is related to willing to stay in organizations. The
employee wants to stay in his or her organization because he or she loves his or her
organization.
Organizationalcitizenship behavior (OCB) can be defined as “the
individualbehaviors not defined directly or clearly informalrewardsystem but
contribute to the organizational effectiveness”. Organ (1990) suggested a model of
organizational citizenship behavior with five dimensions: Conscientiousness,
altruism, civic virtue, sportsmanship, and courtesy.
The objective of this paper is to determine the relationship between affective
commitment (AC) and organizational citizenship behavior (OCB). The importance
of the study is especially great for enterprises operating in crisis. Employers
committed to their organizations by affective and acting OCB will probably keep
working in the same organization even if there is an economic crisis.
The area of the study is public and private enterprises in the Dinar district of
Afyonkarahisar. The samples were selected from the population by the method of
decisionsampling. To determine the relationship between affective commitment and
organizational citizenship behavior, the analyses of regression and correlation were
performed. The data were entered into the Statistics Program of Social Sciences and
processed.
We found that AC would have a meaningful influence on conscientiousness
behavior. But we saw AC wouldn‟t have a meaningful influence on OCB, altruism,
civic virtue, sportsmanship and courtesy. In the second step, we determined the
variance between variables and type of enterprise. Accept the sportsmanship
behavior, the others change according to the type of enterprise. Thirdly, this time,
the variance about gender. We found that employees‟ AC, OCB and components of
OCB don‟t change according their gender. Finally, the findings, conclusions and
recommendations were presented.
Key words: Affective commitment, organizational citizenship
conscientiousness, altruism, civic virtue, sportsmanship, courtesy.

1

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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

Introduction
Enterprises that own employees working hard, willingly, and conscientiousnessly, will
have a competitive advantage. These characteristics are relevant to the concepts “affective
commitment” and “organizational citizenship behavior”. Employees, committed to their
organizations by affective and acting OCB, are expected to work hard, willingly, and
conscientiousnessly. They‟re also expected to be friendly to the others. The employees that
love their organizations will promote their organizations. Even if there are bad conditions
in the environment, they won‟t leave their organizations.
Enterprises have the two main objectives: Economical and social objectives. Profitable,
growing up and continuousness are the major economical ones (Dinçer, 1998: 146-154).
The objective “continuousness” is a very important one in enterprises. Enterprises that own
productive, experienced, hard-working, helpful, honest etc. employees will be able to live
for ever. So, enterprises will realize their economical and social objectives by only their
valuable human resources.
We think that valuable human resources are committed to their organizations by affective
and fulfill their formal tasks and informal works successfully. These are relevant to
“affective commitment” and “job performance”. Thus, task performance and
organizational citizenship behavior determine the level of job performance. The
importance of the study is especially great for enterprises operating in crisis. Employers
committed to their organizations by affective and acting OCB will probably keep working
in the same organization.
Literature Review
Affective Commitment
Meyer and Allen (1991) identified three distinguishable forms of organizational
commitment: affective (AC), normative (NC), and continuance (CC) commitment. AC
reflects an emotional attachment to, identify with, and involvement in the organization,
whereas NC is experienced as a sense of obligation to remain, and CC reflects the
perceived costs associated with leaving (Meyer and others, 2012: 226).
In other words, affective commitment, the desire to achieve goals in favor of the
organization; normative commitment, the obligation to be bound to an organization; and
continuance commitment, the calculative bond towards an organization (Breitsohl and
Ruhle, 2013: 162; Allen and Meyer, 1990a; Meyer &amp; Herscovitch, 2001). An employee
who is committed to the organization by affective, stays in the organization by his or her
will (Bilgin and Demirer, 2012: 471; Meyer and Allen, 1991).
In a study (in a financial service setting) in order to assess the impact of three
psychological antecedents (position involvement, volitional choice and informational
complexity) on affective commitment and the consequences of affective commitment of
loyalty in terms of word of mouth, purchase intention, price insensitivity and complaining,
Bloemer and Schröder (2003), found that affective commitment could best be explained by
position involvement. Moreover, affective commitment is a key determinant of word of
mouth, purchase intention and price sensitivity (Bloemer and Schröder, 2003: 33).

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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

In another study, Norris-Watts and Levy (2004) found that affective commitment mediated
the relation between the feedback environment and organizational citizenship behavior,
and this mediated relation was stronger for OCBs directed at individuals than directed at
the organization as a whole (Watts and Levy, 2004: 351).
An empirical study investigated how perceptions of organizational virtuousness (OV)
predicted affective well-being (AWB) and affective commitment (AC). The findings show
that perceptions of OV predict AC both directly and through the mediating role of AWB.
The study suggests that fostering organizational virtuousness (e.g., through honesty,
interpersonal respect, and compassion; combining high standards of performance with a
culture of forgiveness and learning from mistakes) improves employees' AWB and
promotes a more committed workforce. Considering these findings and mirroring the
growing contributions of the positive psychology, positive organizational behavior, and
positive organizational scholarship movements, the study suggest that a “positive-peoplemanagement” perspective should be considered, both by practitioners and scholars (Rego
&amp; et al, 2011: 524).
Loi, Lai, and Lam (2012) found positive relationships between supervisors' and
subordinates' affective commitment, and between subordinates' affective commitment and
their task and extra-role performance (Loi &amp; et al, 2012: 466).
A study investigated the impact of two types of organizational commitment, continuance
and affective, on the correctional staff life satisfaction at two Midwestern prisons, one
private and one public. Continuance commitment was negatively related and affective
commitment was positively related to life satisfaction for staff in both prisons (Lambert &amp;
et al, 2013: 1).
Another study examined the relationship between the preferences and perceptions of
employees regarding an ongoing share ownership plan on the one hand, and the
employees‟ affective organizational commitment on the other. At the end of the study, it
was found that a preference for ownership and the perceived fairness of the employee
ownership plan were significant predictors of affective commitment (Kuvaas, 2003: 193).
A research on 220 employees working in the higher education industry, shown that
perceived organizational reputation had a positive correlation with organizational
commitment and job satisfaction whereas it had a significant negative correlation with
turnover intentions. However, when they are jointly included in a multiple regression
analysis, perceived corporate reputation surprisingly exerted a positive effect on turnover
intentions (Alniacik &amp; et al, 2011:1177).
Meyer, Stanley, Herscovitch, and Topolnytsky (2002) found that the three forms of
commitment (affective, normative and continuance) were related yet distinguishable from
one another as well as from job satisfaction, job involvement, and occupational
commitment. (Meyer &amp; et al, 2002: 20).
In a study of 271 employees of 7 hotel organizations, Bilgin and Demirer (2012) found a
significant and positive relationship between perceived organizational support (POS),
affective commitment and job satisfaction (Bilgin and Demirer, 2012: 470).

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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

Organizational Citizenship Behaviors (OCB)
Organ (1988) explains OCB as a distinct behavior, which is not directly recognized by the
formal reward system but in the average promotes the organizational performance. He
views OCB as the extra-role behavior since it is the act of job performance beyond the
stated job requirement. Employees go beyond the contract signed by them at the time of
entering the organization and they perform non-obligatory tasks without expecting any
rewards or recognition (Swaminathan and Jawahar, 2013: 71).
Organ (1988) suggested a model of organizational citizenship behavior with five
dimensions: Conscientiousness, altruism, civic virtue, sportsmanship, and courtesy.
Conscientiousness, the act of carrying out duties beyond the minimum required levels.
Altruism, the act of helping a specific person with a work-related task. Civic virtue, actions
that represent responsible participation in or involvement with meetings and other
governance issues in the organization. Sportsmanship, actions that are positive when
people refrain from doing them, such as complaints or railing against perceived slights.
Courtesy, actions that include communicating with individuals affected by one's decisions
(Walz and Niehoff, 1996: 307).
The five dimensions of OCB are explained below (Swaminathan and Jawahar, 2013: 7180).
Conscientiousness
Organ (1988) defined conscientiousness as the dedication to the job, which exceed formal
requirements such as working long hours, and volunteer to perform jobs besides duties.
Barrick and Mount (2000) argue that conscientious people „„plan and organize their work,
and are careful, thorough, and detail oriented [and these traits are] likely to lead to fewer
accidents and safety violations” (Postlethwaite &amp; et al, 2009: 711).
Altruism
Smith, Organ and Near (1983) defined altruism as “voluntary behaviors where an
employee provides assistance to an individual with a particular problem to complete
his/her task under unusual circumstances”. Altruism is helping behaviors for supporting
personnel or the coworkers who have work related problems (Podsakoff &amp; et al, 2000).
Civic Virtue
Deluga (1998) defines civic virtue as “the subordinate participation in organizing political
life and supporting the administrative function of the organization”. It refers to the
employees‟ participation in the political life of the organization like attending meetings,
which are not really required by the firm and thus keeping up with the changes in the
organization (Organ, 1988). Generally, employees engage in civic virtue when they are
willing to participate actively in governing the organization, to monitor its environment for
threats and opportunities, and to look to its best interests, even at great personal cost
(Bellou, 2008: 780; Podsakoff &amp; et al., 1990).

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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

Sportsmanship
Sportsmanship is defined as refraining from actions which may lead to unfavorable tension
in the workplace and maintaining a synergistic atmosphere within the organization against
any adverse incidents (Polat, 2009:1593; Organ, 1988, 1990; Podsakoff and et al., 2000).
Courtesy
Courtesy refers to discretionary behavior on the part of an individual aimed at preventing
work-related problems with others from occurring (Hadjali and Salimi, 2012: 527; Borman
and Motowidlo, 1993; 1997). Courtesy also means members encouraging other members
in their work. The literature reveals that a courteous employee would help reduce the
intergroup conflict and thus reduce the time spent on conflict management activities
(Podsakoff et al., 2000).
In a study, some researchers found that the OCB had a significant impact on self-esteem.
Moreover, there was a significant relationship between educational background and selfesteem, but no relationship was observed between educational background and OCB
(Devin, Zohoorianb, Peymanizad, and Sane, 2012:1203). In another study among the staff
of Tehran University, the researchers investigated the relationship between organizational
citizenship behavior (OCB) and dimensions of personality. The results are following; 1)
OCB and personality dimensions, take a place higher than average position. 2) OCB has
positive relations with personality dimensions including: agreeableness, consciousness,
openness, and extraversion; however, the relation between neuroticism and OCB seems
negative. 3) Consciousness, agreeableness and openness predict the OCB (Mahdiuon, &amp; et
al, 2010: 178).
Methodology
In our empirical analysis, we determined if there was a relationship between affective
commitment and organizational citizenship behavior. We used Ellen and Meyer‟s (1991)
scale of affective commitment which was improved by Wasti (2000). And, for the OCB
scale, we used Konovsky and Organ‟s (1996) which was improved by Erdem (2003).
At first, we determined the levels of AC, OCB and subcomponents of OCB. Secondly, the
correlations between AC, OCB and the subcomponents of OCB were determined. Thirdly,
we tried to determine if the employees‟ levels of AC, OCB and subcomponents of OCB
change according to the types of enterprise and gender.
The area of the study is public and private enterprises which employ at least 10 employees
in the Dinar district of Afyonkarahisar. The samples were selected from the population by
the method of decisionsampling. The samples from about 25% of the population.
We chose eight enterprises for samples. Three of them are public (governmental) and the
others are private (non-governmental). Totally, 128 employees answered the questionnaire.
There are details about enterprises and employees in Table 1.
To determine the relationship between affective commitment (AC) and organizational
citizenship behavior (OCB), the analysis of correlation was performed. The data were
entered into the Statistics Program of Social Sciences and processed.

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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

Table 1: Demographic information about employees in enterprises in Dinar

TYPE

Age

Education

Marital
Status

Tenure

PRIVATE

1st

2nd

3rd

4th

5th

6th

7th

8th

T

%

Female
Male

20

8
12

1
12

10
10

2
12

15

20

2
4

23
105

18
82

- 21
22-28
29-35
36-42
43-49
50+

1
3
10
6
-

12
5
3
-

1
4
3
2
2

2
8
3
4
3
-

1
7
4
1
1
-

6
2
5
1
1

6
9
2
2
1

3
1
2
-

6
42
30
30
15
4

4
33
24
24
12
3

Elementary
High School
V.H.S.
Faculty
Master
Doctorate

12
6
2
-

3
14
3
-

1
2
3
5
1
-

13
5
1
1
-

1
12
1
-

11
3
1
-

7
13
-

1
3
2
-

49
58
9
10
1
-

39
45
7
8
1
-

Single
Married
Widow

1
18
-

7
13
-

4
8
-

8
12
-

3
11
-

5
10
-

2
18
-

3
3
-

33
93
-

26
74
-

- 1 year
1-5 year
6-10 year
11-15 year
16-20 year
20 years +

6
5
2
7
-

20
-

4
3
1
4
1

1
10
2
2
1
3

4
10
-

5
2
3
2
3

20
-

3
3
-

8
78
12
8
14
7

6
61
9
6
11
7

-

-

27

21

ENTERPRISE
Gender

PUBLIC

Table 1(continued)
First

8

1

4

10

2

2

Number of

Second

4

9

2

7

2

4

-

1

29

23

Workplace

Third

6

3

1

2

3

5

7

2

29

23

Fourth +

2

7

5

1

7

4

12

3

41

33

T = Total

V.H.S.=Vocational High School

The level of AC and OCB
Table 2 shows the level of AC and OCB for public and private enterprises. The rating is
following; “5,00-4,21 very high; 4,20-3,41 high; 3,40-2,61 medium; 2,60-1,81 low; 1,801,00 very low”. We evaluated the level of variables according to this rating.

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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

Table 2: Descriptive statistics for public (1,2,3) and private (4,5,6,7,8) enterprises
Vari
Conscientiou
Altruism
Civic virtue
Sportsman
Courtesy
OCB
AC
able
s
M
SD
M
SD
M
SD
M
SD
M
SD
M
SD
M
SD
Ent.
4,50
0,56
4,21
0,66
4,08
0,61
3,98
0,80
4,22 0,53 4,20
0,51 4,50 0,63
1
4,62
0,47
4,38
0,51
4,46
0,35
4,65
0,59
4,79 0,35 4,58
0,39 4,19 1,41
2
3,95
1,04
3,85
0,76
4,46
0,68
3,62
1,03
4,12 0,65 4,00
0,71 3,16 1,33
3
4,41
0,72
4,19
0,66
4,32
0,57
4,14
0,88
4,41 0,58 4,29
0,57 4,06 1,25
M
4,07
0,57
3,62
0,66
4,03
0,60
3,78
0,77
3,77 0,76 3,85
0,57 3,59 0,95
4
3,76
0,26
3,48
0,50
3,45
0,38
4,17
0,41
3,90 0,38 3,75
0,32 3,79 1,30
5
4,24
0,72
4,04
0,64
3,88
0,72
3,91
0,79
4,23 0,49 4,06
0,59 2,66 0,78
6
4,22
0,75
4,02
0,57
4,20
0,62
3,93
0,69
4,09 0,50 4,09
0,57 3,99 0,61
7
3,63
0,51
3,69
0,94
3,83
0,47
3,11
0,98
3,71 0,69 3,60
0,62 4,58 0,30
8
4,05
0,63
3,79
0,66
3,92
0,63
3,87
0,75
3,97 0,59 3,92
0,55 3,63 1,02
M
M=Mean; SD=Standard Deviation; OCB=Organizational Citizenship Behavior; AC=Affective Commitment; Ent.:
Enterprise

The general level of AC for public enterprises is high (4,06). The general level of OCB is
very high (4,29). The subcomponents of OCB are high or very high. The highest ones are
conscientiousness and courtesy behaviors (4,41).
The general level of AC for private ones is high (3,63). But this level, in fact, is not
enough; the managements must develop this type of commitment. Therefore, the
managements must take care of employees psychological and social needs. For example,
employees approved and rewarded by their managers, will probably commit to their
organizations emotionally. The general level of OCB is high (3,92). Conscientiousness
behavior is the highest (4,05). In comparison with conscientiousness behavior, altruism
behavior is low (3,79). Employees helping the others must be rewarded by the
management. For example, in basketball playing, number of assists is a dimension of
performance.
The questions and hypotheses of the study
We tried to answer following questions;
1. Does the AC have a meaningful influence on OCB and subcomponents of
OCB?
2. Does AC, OCB and components of OCB change according to the type of
enterprise?
3. Does AC, OCB and components of OCB change according to gender?
From the questions, we developed following hypotheses;
H1: AC has a meaningful influence on OCB (H1a: AC has a meaningful influence on
conscientiousness behavior; H1b: AC has a meaningful influence on altruisticbehavior;
H1c: AC has a meaningful influence on civic virtue behavior; H1d: AC has a meaningful
influence on sportsmanship behavior; H1e: AC has a meaningful influence on courtesy
behavior)
H2: AC changes according to the type of enterprise
H3: OCB changes according to the type of enterprise (H3a: Conscientiousness behavior
changes according to the type of enterprise; H3b: Altruism behavior changes according to

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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

the type of enterprise; H3c: Civic virtue behavior changes according to the type of
enterprise; H3d: Sportsmanship behavior changes according to the type of enterprise; H3e:
Courtesy behavior changes according to the type of enterprise)
H4: Employees‟ levels of AC change according to gender
H5: Employees‟ levels of OCB change according to gender (H5a: Employees‟ levels of
conscientiousness behavior change according to gender; H5b: Employees‟ levels of
altruism behavior change according to gender; H5c: Employees‟ levels of civic virtue
behavior change according to gender; H5d: Employees‟ levels of sportsmanship behavior
change according to gender; H5e: Employees‟ levels of courtesy behavior change
according to gender.
The relationship between AC and OCB
To determine the relationship between AC and OCB, and its subcomponents, we made
correlation and regression analyses. The outputs can be seen in Table 4.
Table 3: Correlations

OCB

AC
Conscien
tiousness
Altruism

civic
virtue
sportsma
nship
courtesy

Pearson
Correlation
Sig. (2-tailed)
Pearson
Correlation
Sig. (2-tailed)
Pearson
Correlation
Sig. (2-tailed)
Pearson
Correlation
Sig. (2-tailed)
Pearson
Correlation
Sig. (2-tailed)
Pearson
Correlation
Sig. (2-tailed)
Pearson
Correlation
Sig. (2-tailed)

OCB

AC
0,126

conscient
iousness
0,854(**)

1

0,126

0,157
1

0,157
0,854(**)

Altruism
0,911(**)

civic
virtue
0,796(**)

sportsman
ship
0,829(**)

courtesy
0,869(**)

0,000
0,170

0,000
0,123

0,000
0,113

0,000
0,059

0,000
0,079

0,170

0,056
1

0,167
0,740(**)

0,206
0,638(**)

0,510
0,618(**)

0,374
0,647(**)

0,000
0,911(**)

0,056
0,123

0,740(**)

0,000
1

0,000
0,728(**)

0,000
0,648(**)

0,000
0,783(**)

0,000
0,796(**)

0,167
0,113

0,000
0,638(**)

0,728(**)

0,000
1

0,000
0,490(**)

0,000
0,587(**)

0,000

0,206

0,000

0,000

0,000

0,000

0,829(**)

0,059

0,618(**)

0,648(**)

0,490(**)

1

0,704(**)

0,000
0,869(**)

0,510
0,079

0,000
0,647(**)

0,000
0,783(**)

0,000
0,587(**)

0,704(**)

0,000
1

0,000

0,374

0,000

0,000

0,000

0,000

** Correlation is significant at the 0.01 level (2-tailed); AC=Affective Commitment; OCB=Organizational Citizenship
Behavior

There is a low correlation between AC and OCB (%12,6). When we look at the correlation
between AC and the subcomponents of OCB, again we find the low correlations; %17,
%12, %11, %6 and %8, respectively. The highest correlation is between AC and
conscientiousness behavior (%17).
We tested H1, H1a, H1b, H1c, H1d and H1e, according to correlations above. The level of
significance (0,157) is higher than 0,05. There‟s a low correlation (%12,6) and there is not

8

�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

a meaningful relationship between AC and OCB. So, the hypothesis H1 “AC has a
meaningful influence on OCB” was rejected.
The level of significance about conscientiousness is 0,056. In spite of the low correlation
(%17), it‟s possible to say that there is a meaningful relationship between AC and
conscientiousness behavior. So, the hypothesis H1a “AC has a meaningful influence on
conscientiousness behavior” was accepted.
The levels of significance about altruism behavior, civic virtue, sportsmanship and
courtesy are higher than 0,05. So, the hypothesis H1b “AC has a meaningful influence on
altruism behavior”, the hypothesis H1c “AC has a meaningful influence on civic virtue
behavior”, the hypothesis H1d “AC has a meaningful influence on sportsmanship
behavior”, the hypothesis H1e “AC has a meaningful influence on courtesy behavior” were
rejected.
The Change of AC and OCB according to the types of enterprises
To determine if the employees‟ level of AC and OCB change according to types of
enterprises, Independent-Samples T Test was fulfilled. The findings are summarized in
Table 4. The employees‟ levels of AC and OCB in public enterprises are higher than the
private ones.
Table 4: The Change of AC, OCB, components of OCB according to the types of enterprise
t-test for Equality of Means
VARIABLE
S

OCB
AC
conscientio
usness
altruism
civic virtue
sportsmans
hip
courtesy

EVA
EVNA
EVA
EVNA
EVA
EVNA
EVA
EVNA
EVA
EVNA
EVA
EVNA
EVA
EVNA

t

df

Sig. (2-tailed)

MD

SED

-3,740
-3,721
-2,132
-2,061
-3,007
-2,942
-3,364
-3,363
-3,646
-3,712
-1,924
-1,869
-4,214
-4,226

126
110,080
126
97,565
126
102,899
126
111,999
126
118,719
126
99,762
126
113,307

0,000
0,000
0,035
0,042
0,003
0,004
0,001
0,001
0,000
0,000
0,057
0,065
0,000
0,000

-0,37508
-0,37508
-0,42994
-0,42994
-0,36065
-0,36065
-0,39632
-0,39632
-0,39604
-0,39604
-0,27799
-0,27799
-0,44439
-0,44439

0,10029
0,10079
0,20162
0,20863
0,11993
0,12259
0,11781
0,11784
0,10862
0,10668
0,14447
0,14874
0,10547
0,10515

95% CIOTD
Lower
Upper
-0,57354
-0,57482
-0,82894
-0,84399
-0,59799
-0,60378
-0,62946
-0,62981
-0,61099
-0,60728
-0,56389
-0,57309
-0,65311
-0,65271

-0,17661
-0,17534
-0,03093
-0,01589
-0,12331
-0,11753
-0,16318
-0,16283
-0,18109
-0,18479
0,00792
0,01712
-0,23567
-0,23608

EVA= Equal variances assumed; EVNA= Equal variances not assumed; MD=Mean difference
SED=Std.Error Difference; CIOTD=Confidence Interval of The Difference

Significance level is lower than 0,05. So, AC, OCB and subcomponents of OCB, except
sportsmanship, change according to the type of enterprise. Then, the hypothesis H3d
“Sportsmanship behavior changes according to the type of enterprise” is rejected but the
others are accepted.
AC, OCB, subcomponents of OCB and gender
To test the hypothesis H4 “Employees‟ levels of AC change according to gender”, the
hypothesis H5 “Employees‟ levels of OCB change according to gender” K Independent
Samples Kruskal Wallis H was applied. The findings are summarized in Table 5.

9

�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

Table 5: The Change of AC, OCB, components of OCB according to gender
OCB

AC

Conscientiousness

civic
virtue
1,204

sportsmanship

0,254

altruis
m
0,364

0,063

courtes
y
1,420

ChiSquare
df

0,045

1,605

1

1

1

1

1

1

1

Asymp.
Sig.

0,833

0,205

0,615

0,546

0,273

0,802

0,233

a Kruskal Wallis Test

b Grouping Variable: gender

Significance levels for each variable are higher than 0,05. So, the hypothesis H4
“Employees‟ levels of AC change according to the gender”, the hypothesis H5
“Employees‟ levels of OCB change according to the gender”, and other ones about
subcomponents of OCB were rejected. In Table 6, the results about hypotheses are
summarized.
Table 6: Accepted or Rejected Hypotheses
HYPOTHESES

ACCEPTED

H1: AC has a meaningful influence on OCB

REJECTED
X

H1a: AC has a meaningful influence on conscientiousness behavior

X

H1b: AC has a meaningful influence on altruism behavior
H1c: AC has a meaningful influence on civic virtue behavior

X
X

H1d: AC has a meaningful influence on sportsmanship behavior

X

H1e: AC has a meaningful influence on courtesy behavior

X

H2: AC changes according to the type of enterprise
H3: OCB changes according to the type of enterprise

X
X

H3a: Conscientiousness behavior changes according to the type of enterprise

X

H3b: Altruism behavior changes according to the type of enterprise

X

H3c: Civic virtue behavior changes according to the type of enterprise
H3d: Sportsmanship behavior changes according to the type of enterprise

X

H3e: Courtesy behavior changes according to the type of enterprise

X

X

H4: Employees‟ levels of AC change according to gender

X

H5: Employees‟ levels of OCB change according to gender
H5a: Employees‟ levels of conscientiousness behavior change according to gender

X
X

H5b: Employees‟ levels of altruism behavior change according to gender

X

H5c: Employees‟ levels of civic virtue behavior change according to gender
H5d: Employees‟ levels of sportsmanship behavior change according to gender

X
X

H5e: Employees‟ levels of courtesy behavior change according to gender

X

Conclusions
Firstly, we determined the employees‟ levels of AC and OCB by the types of enterprises
and gender. For the public enterprises, the mean of OCB is 4, 29 and the mean of AC is 4,
06. The mean for the private enterprises, OCB is 3, 92 and AC is 3,63. So, in comparison
with the employees in private enterprises, the employees in public ones are committed to
their organizations emotionally and have extra-role performance. For the subcomponents
of OCB are the same.

10

�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

Gender is not a determinant factor for the employees‟ AC and OCB. For the
subcomponents of OCB are the same.
In our study, we‟ve determined there is no meaningful relationship between AC and OCB
(and the subcomponents of OCB, except conscientiousness behavior). However, except
sportsmanship behavior, all the other variables change according to the type of enterprise.
The levels of the public enterprises are higher than the private ones.
The employees in public sector have higher OCB and AC than those in private ones. But,
gender is not a determinant for OCB and AC.
There is no meaningful relationship between AC and OCB. But AC has a meaningful
impact on conscientiousness behavior.
Higher OCB and AC don‟t mean privatization is bad. Definitely not. We all know that
hidden unemployment is in public enterprises generally. In addition, most public
enterprises have wasteful expenditure.
Most of the employees in private sector in Dinar have a low economical welfare. Most of
them earn the minimum wage and have long working hours. They have to work for their
company because there is unemployment in the environment.
Especially, in institutionalized private organizations which have distanced human resource
departments, employees‟ levels of AC, OCB, job performance, work motivation, job
satisfaction etc. will probably be higher.
In public enterprises, generally, the managers are not interested in employees‟
performance. But enterprises can exceed the objectives by only its human resources. So,
the key factor for success is “human”. We think the privatization of enterprises is the most
important factor for economical welfare. But the privatization is not enough itself. These
private enterprises must be institutionalized, have professional managers.
The managers of enterprises must develop their organizations. For this, the practitioners
and the academics must help each other. They, in fact, must work co-operatively. The
practitioners must provide information and the academics must share the findings with the
practitioners.
Academics, practitioners, representatives of government must participate in the
symposiums about management actively. They must discuss the problems of working life
in these meetings. Finally, advisable decisions must be made and fulfilled.
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11

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14

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ERTAN, Hayrettin</text>
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                <text>Meyer and Allen (1991) suggested a model of organizational commitment with  three dimensions: Affective commitment, continuance commitment and  normative commitment. The first one is related to willing to stay in  organizations. The employee wants to stay in his or her organization because  he or she loves his or her organization. Even if other organizations give better  job offers, they keep working in their organizations. So, this type of  organizational commitment is very important for organizations. Especially to  retain well-educated and hard-working human resources in organizations,  organizations must have employees that committed to their organizations by  affective.  Organizational citizenship behavior (OCB) can be defined as “the individual  behaviors not defined directly or clearly in formal reward system but  contribute to the organizational effectiveness”. Organ (1990) suggested a  model of organizational citizenship behavior with five dimensions:  Conscientiousness, altruism, civic virtue, sportsmanship, and courtesy.  The objective of this paper is to determine the relationship between affective  commitment (AC) and organizational citizenship behavior (OCB). The  importance of the study is great for especially enterprises operating in crisis.  Employees committed to their organizations by affective and acting OCB will  probably keep working in the same organization even if there is economic  crisis.  The area of the study is public and private enterprises in Dinar district of  Afyonkarahisar. The samples will be selected from the population by the  method of decisional sampling.  To determine the relationship between affective commitment and  organizational citizenship behavior, the analysis of regression and correlation  will be performed. The data will be entered into the Statistics Program of  Social Sciences and processed. Finally, the findings, conclusions and  recommendations will be presented. </text>
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PeerReviewed</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Bosnia and Herzegovina - Turkey Relations: Aid
Perspective
Engin Akçay
Turgut Özal University, Ankara, Turkey
eakcay@turgutozal.edu.tr

Turkey’s existence in Balkans dates back to centuries. As of this long
historical background Turkey has still strong ties with the Balkan countries
in general and particularly the population that are described as friend and
/ or relative communities. In this respect, Bosnia and Herzegovina has a
special place in Turkish approach not only in terms of foreign policy but
also public point of view. Resulting from its crucial importance, Bosnia and
Herzegovina has always been a preferential region by Turkish decisionmakers and considered one of the highest priorities of Turkish aid policy.
Turkey, which is a re-emerging donor and power at the region, tries to use
the assistance factor as a diplomacy instrument. Therefore this paper does
mainly focus on the role of Turkish aid in the bilateral relations. By
summarizing the cooperation and aid affairs at the late Ottoman period,
the article rather enlightens the post - independence years of the country.
While the study aims to briefly touch on the theoretical aspect of aid
instrument on one hand, it also scrutinizes both the characteristics and the
effectiveness of Turkish aid, on the other hand. When the past two decade
is taken into consideration, no doubt that Turkish International
Cooperation and Coordination Agency (TİKA) has put an appearance as the
institutional base for Turkish assistance. As TİKA has officially been
declared the national coordinator agency for Turkish foreign assistance by
2005, TİKA’s role is analysed under the selected aid activities. By using
these prominent examples, the article tends to reflect their impact to
bilateral relations and the perception in Bosnia and Herzegovina in this
context. How efficient was the Turkish aid to the country and what should
be done for a better cooperation are the basic problematic areas to be
handled. In order to contribute to the on-going altruistic efforts so far, the
paper points out a set of ideas which may give concrete results in
optimizing the current affairs.
Keywords: Aid Policy, Balkans, Bosnia and Herzegovina, TİKA, Turkey.

100

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                <text>AKCAY, Engin</text>
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                <text>Turkey’s existence in Balkans dates back to centuries. As of this long  historical background Turkey has still strong ties with the Balkan countries  in general and particularly the population that are described as friend and  / or relative communities. In this respect, Bosnia and Herzegovina has a  special place in Turkish approach not only in terms of foreign policy but  also public point of view. Resulting from its crucial importance, Bosnia and  Herzegovina has always been a preferential region by Turkish decisionmakers  and considered one of the highest priorities of Turkish aid policy.  Turkey, which is a re-emerging donor and power at the region, tries to use  the assistance factor as a diplomacy instrument. Therefore this paper does  mainly focus on the role of Turkish aid in the bilateral relations. By  summarizing the cooperation and aid affairs at the late Ottoman period,  the article rather enlightens the post - independence years of the country.  While the study aims to briefly touch on the theoretical aspect of aid  instrument on one hand, it also scrutinizes both the characteristics and the  effectiveness of Turkish aid, on the other hand. When the past two decade  is taken into consideration, no doubt that Turkish International  Cooperation and Coordination Agency (TİKA) has put an appearance as the  institutional base for Turkish assistance. As TİKA has officially been  declared the national coordinator agency for Turkish foreign assistance by  2005, TİKA’s role is analysed under the selected aid activities. By using  these prominent examples, the article tends to reflect their impact to  bilateral relations and the perception in Bosnia and Herzegovina in this  context. How efficient was the Turkish aid to the country and what should  be done for a better cooperation are the basic problematic areas to be  handled. In order to contribute to the on-going altruistic efforts so far, the  paper points out a set of ideas which may give concrete results in  optimizing the current affairs.  Keywords: Aid Policy, Balkans, Bosnia and Herzegovina, TİKA, Turkey.</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

The Impact of Infrastructure Investments on Regional
Economic Performance: A Meta-Analysis
Mehmet Akif Kara
Kahramanmaras Sütçü İmam University, Kahramanmaraş, Turkey
akifkara@hotmail.com
Serkan Ada
Kahramanmaras Sütçü İmam University, Kahramanmaraş, Turkey
ada13126@gmail.com
Today, the notion of regional competition shapes regional economic
policies, and these policies improve regions’ competitive power, in
addition to channelizing the resources into the underdeveloped regions
and supporting some of the activities in underdeveloped regions.
Infrastructure investments, which can be evaluated as among these policy
instruments, can be a determining factor in the choice of the facility
location and can increase the output as well as private sector investments
through increase in private capital and labour productivity. Furthermore,
increase in public infrastructure investment expenditures will promote the
demand through the multiplier impact in the short term and price
decreases caused by the productivity improvement in infrastructure
investments in the long term; this demand impact will cause an increase in
the whole production and employment. At the same time, public
infrastructure investments afford cities, regions, and nations the
opportunity to improve their competitive structures, due to the fact that
they are able to decrease transportation and production costs.
Gramlich (1994: 1177) defines infrastructure investments as natural
monopolies that require large capital intensity, such as highway and other
transportation means, water and drainage lines, and communication
systems and also alternatively defines and stresses that it is necessary to
focus on the tangible capital stock possessed by the public sector. The
expanded version of this definition also includes human capital as well as
research and development investments. These types of infrastructure
investments enable public policies to influence the long-term growth and
productivity at the regional level. Particularly following the study of
Aschaur (1989), many studies have been done in order to determine the
impacts of different infrastructure types on national and regional economic
growth by using various ways and methods. Some of these studies, that

195

�International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

were done particularly since 1990s, mentioned that economic and social
infrastructure investments directly impact (or indirectly impact through
externalities) regional output, private sector investments, costs, and
employment. Studies also showed that these investments increased the
competitive power of regions.
In this study, the impact of infrastructure investments on regional
economic performance has been investigated by using the meta-analysis
methodology. Meta-analysis is a method used for quantitatively aggregate
primary research studies in a particular field. A large collection of primary
studies from a particular body of literature is surveyed in accordance with
predefined coding protocols and procedures. Studies included in a metaanalysis need to be empirical and should examine similar and/or same
constructs and relationships. In the current study, we have examined the
relationship between infrastructure investments and regional economic
performance thus included the studies that examined this relationship. In
order to identify the sample of primary studies, we have initially searched
the bibliography of previously published review studies on the same topic.
We have also searched online databases for identifying the sample papers.
This process yielded 87 numbers of studies, which were then reduced to 70
due to the inadequate data. The papers will be coded based on certain
study characteristics, and then the data analysis will be done using SPSS
statistical software package.
Keywords: Public Infrastructure Investments, Private Investments,
Regional Income, Regional Economic Performance, Meta-Analysis.

196

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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Contributions of Non-governmental and Governmental
Organizations to Bosnian and Turkish Societies
İlker Akkaya
International Burch University, Sarajevo, Bosnia and Herzegovina
ilkerakkaya@gmail.com
In this research while it will be examined that the conquest of Bosnia and
Herzegovina by the Ottoman Empire, at the same time some historical
facts regarding to Bosniaks and Ottomans will be provided moreover prewar and post war durations will be examined, especially this study will
focus on situations right after the war and current situations between
Turks and the Bosniaks. For all of that during this period the contributions
of some Non-governmental and governmental foundations will be
provided. In order to explain contributions of these foundations, we will
use their activities which have been making in Bosnia and Herzegovina
and Turkey.
Keywords: Foundations, Governmental Organizations, Non-Governmental
Organizations, Contributions of the Organizations.

169

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                <text>In this research while it will be examined that the conquest of Bosnia and  Herzegovina by the Ottoman Empire, at the same time some historical  facts regarding to Bosniaks and Ottomans will be provided moreover prewar  and post war durations will be examined, especially this study will  focus on situations right after the war and current situations between  Turks and the Bosniaks. For all of that during this period the contributions  of some Non-governmental and governmental foundations will be  provided. In order to explain contributions of these foundations, we will  use their activities which have been making in Bosnia and Herzegovina  and Turkey.  Keywords: Foundations, Governmental Organizations, Non-Governmental  Organizations, Contributions of the Organizations.</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Transformational Approaches to Leadership of Alija
Izetbegovic from the Perspective of Bosnian University
Students
İlker Akkaya
International Burch University, Sarajevo, Bosnia and Herzegovina
ilkerakkaya@gmail.com
Ali Göksu
International Burch University, Sarajevo, Bosnia and Herzegovina
agoksu@ibu.edu.ba
The main aim of this study is making an examination over leadership of
Alija Izetbegovic during the 1992- 1995 war period and eight years right
after the war. It will be examined that how Alija Izetbegovic manage the
crises during the war and post war time period. In order to comprehend
the leadership of Alija Izetbegovic some questionnaires will be applied to
Bosnian University students. By this way it will be understood the
approaches of the students regarding this issue moreover all the
approaches of the students will be explained via statistical methods.
Keyword: Leadership and Characteristics of Leader, Crises Management,
Statistical Methods, Transformational Approaches.

168

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GÖKSU, Ali</text>
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                <text>The main aim of this study is making an examination over leadership of  Alija Izetbegovic during the 1992- 1995 war period and eight years right  after the war. It will be examined that how Alija Izetbegovic manage the  crises during the war and post war time period. In order to comprehend  the leadership of Alija Izetbegovic some questionnaires will be applied to  Bosnian University students. By this way it will be understood the  approaches of the students regarding this issue moreover all the  approaches of the students will be explained via statistical methods.  Keyword: Leadership and Characteristics of Leader, Crises Management,  Statistical Methods, Transformational Approaches.</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Social Security Expenditure and Income Distribution: An
Application of Turkey
Gül Aksoğan
Kahramanmaraş Sütçü İmam University, Kahramanmaraş, Turkey
gulaksogan@hotmail.com
Gülferah Bozkaya
Kahramanmaraş Sütçü İmam University, Kahramanmaraş, Turkey
gul_ferah_85@hotmail.com
Social security, in essence, people are likely to encounter in their economic
and social risks prior to them taking the necessary measures to ensure that
the income generated public expenditure programs. Social security,
poverty, unemployment, economic uncertainty about the future and old
age and illness that may occur due to the social dangers which includes
measures to eliminate or alleviate the negative.
Re-distribution of income in the fiscal policy of the State to intervene using
the tools of fiscal policy objectives is included. In this respect, the state,
directly affect the distribution of income through the tax system and the
secondary distribution of income transfer performs. In addition, public
expenditures for social services and their financing for the development of
infrastructure for the distribution of income through public revenues
collected direct.
Provision of social peace in a country largely depends on a fair distribution
of income. However, a fair distribution of income as self-realization is not
possible. State to intervene in the distribution of income through income
distribution policies of the welfare state is seen as a requirement.
This paper examines the relationship between social security expenditures
and the distribution of income in Turkey for the period of 1975-2010. The
study aims to reveal whether there is any relationship between the two
variables in the long term, utilizing basic cointegration and VAR (Vector
Autoregression) model.
Keywords: Social Security Expenditures, Distribution of Income.

131

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                <text>Social security, in essence, people are likely to encounter in their economic  and social risks prior to them taking the necessary measures to ensure that  the income generated public expenditure programs. Social security,  poverty, unemployment, economic uncertainty about the future and old  age and illness that may occur due to the social dangers which includes  measures to eliminate or alleviate the negative.  Re-distribution of income in the fiscal policy of the State to intervene using  the tools of fiscal policy objectives is included. In this respect, the state,  directly affect the distribution of income through the tax system and the  secondary distribution of income transfer performs. In addition, public  expenditures for social services and their financing for the development of  infrastructure for the distribution of income through public revenues  collected direct.  Provision of social peace in a country largely depends on a fair distribution  of income. However, a fair distribution of income as self-realization is not  possible. State to intervene in the distribution of income through income  distribution policies of the welfare state is seen as a requirement.  This paper examines the relationship between social security expenditures  and the distribution of income in Turkey for the period of 1975-2010. The  study aims to reveal whether there is any relationship between the two  variables in the long term, utilizing basic cointegration and VAR (Vector  Autoregression) model.  Keywords: Social Security Expenditures, Distribution of Income.</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Comparison between Industrial Policy of Turkey and
Bulgaria
İmren Alakuş
Dokuz Eylül University, Turkey
sandcastle_1989@hotmail.com
Paper will make a comparison between Turkey’s industrial policy and
Bulgaria’s industrial policy in terms of meeting European Union (EU)’s
criteria.
The topic is very significant because countries’ level of development
depend on their industrial policies. This is why EU gives more importance
to this sector and candidate countries have to meet chapter on industrial
policy for becoming full membership.
The paper will focus on improvement of two countries’ industrial policies
year over year for being of a member of EU.
Keywords: Industrial Policy, Turkey, EU, Bulgaria.

170

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                <text>Paper will make a comparison between Turkey’s industrial policy and  Bulgaria’s industrial policy in terms of meeting European Union (EU)’s  criteria.  The topic is very significant because countries’ level of development  depend on their industrial policies. This is why EU gives more importance  to this sector and candidate countries have to meet chapter on industrial  policy for becoming full membership.  The paper will focus on improvement of two countries’ industrial policies  year over year for being of a member of EU.  Keywords: Industrial Policy, Turkey, EU, Bulgaria.</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

The Effects of Deepening Debt Crisis in the Member
Countries of European Union on Turkish Economy
Erdal Alancıoğlu
Harran University, Şanlıurfa, Turkey
ealancioglu@harran.edu.tr
H. Mustafa Paksoy
Kilis December 7 University, Kilis, Turkey
hmpaksoy@yahoo.com
Sadettin Paksoy
Kilis December 7 University, Kilis, Turkey
spaksoy@kilis.edu.tr
The world's second largest market after the United States is the European
Union that has an important position in the context of the global economy.
Since the last quarter of 2008, the global financial crisis spread to Europe
from the U.S. Currently, the european Union crises which is perceived as
an international problem has a negative effect on also our economy as well
as on all over the world. Althought, Turkey is not a member of European
Union the country is effected by each kind of crises by the Europen Union
easily.
The effect of European Union on Turkish economy is are examined in this
study; foreign trade, credit and finance, dimensions of investment
channels and perspective of Turkey in terms of being member of European
Union will be evaluated.
Keywords: European Union, the Debt Crisis, Economy of Turkey.

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                    <text>International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

The Effects of DeepeningDebtCrisis in the Member Countries of European
Union on TurkishEconomy
ErdalAlancıoğlu
Harran University, Şanlıurfa, Turkey
ealancioglu@harran.edu.tr
H. Mustafa Paksoy
KilisDecember 7University, Kilis, Turkey
hmpaksoy@yahoo.com
SadettinPaksoy
KilisDecember 7University, Kilis, Turkey
spaksoy@kilis.edu.tr
Abstract
In the context of the global economy, the world's second largest market after the
United States, the European Union has an important position. Since the last quarter of
2008, the global financial crisis spread to Europe from the U.S., and especially in the
last period, the economy and the policy dilemmas and in this sense the observed Debt
Crisis in the European Union, which has become an international problem in our
country, along with the effects observed in the entire world. Although Turkey is not a
member state of the European Union, the European Union, the historical, social and
economic ties affected by any development which is due to causes in Europe.
In this study, the effects of the European Union Debt Crisis, Turkey's economy foreign
trade, credit and finance, and Turkey's European Union membership perspective to the
size of investment channels will be evaluated.
Keywords: European Union, The Debt Crisis, Economy of Turkey

1. Introduction
Integration of nations is getting stronger through increasing international goods and
services’ trade volume and capital-labor flows across borders especially from the late of
1980s until now. “Economic globalization” has been experienced thanks to technological
progress which enables faster and wide expansion all around the world.
Global financial crisis appears at the end of 2008 in USA affects very fast because of
characteristics of globalization. When the global crisis continues, European Union which
is the biggest international economic organization in the world, is the most affected part of
world economy. Financial fluctuations in European countries caused a devastating
problems on real economies and financial markets. Diminishing of aggregate demand and
financial markets involve lower trade volume.
In one sense, governments increase their public spending to lower the effects of global
financial crisis in EU countries. On the other hand, tax income of governments declines
due to economic recession and these circumstances cause series budget deficits and higher
debts in EU economies. The global financial crisis that shown as a debt crisis in Europe,
influenced the UE deeply. Member states such as Ireland, Spain, Italy, Portugal and
Greece are the first countries impressed by the global crisis. These five EU member
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countries had a crisis not only economic but also political way. Eventually, it involves
changes of governments in charge and shows the scope of the debt crisis.
With a globalization process in recent years shows that countries which have regional
integration and high trade volume are fully integrated on financial markets. Although
Turkey is not a member state of EU, consolidation of Turkey and EU exists in a quiet high
level. In this paper, current situation of EU debt crisis, effects through Turkish economy;
foreign trade, financial conditions, investment performances are evaluated with respect of
full membership process of Turkey.
2. Current Situation at EU Debt Crisis
European countries did not use its debts effectively. In other words, debts are used in
health, education and real estate sectors instead of covering the fields that create more
income. Low debt costs enable the loans more attractive. More credits are needed to meet
the cost of previous debts. Willingness of financial foundations to give loans and higher
returns of financial markets than real markets evolve great debts in European countries.
Banks and other institutions did not hesitate to give credits to EU countries and it is not
questioned. When credit institutions which affected by global financial crisis increased
interest rates, EU countries debt costs rose so that financing of debts is very hard. To
conclude Portugal, Ireland, Greece, Italy and Spain called PIGS countries were faced with
debt crisis in 2011 (Tunç, 2012:2).
Current conditions of EU countries between 2009 and 2012 are shown at Table 1.
Table : 1 Current conditions of EU countries
Greece
GDP
(Million Euro)
Public Debt

2009
231081

2010
222151

2011
208532

2012
193749

299685

329515

355172

303918

Public Debt / GDP %
Portugal
GDP
(Million Euro)
Public Debt
Public Debt / GDP %
İreland
GDP
(Million Euro)
Public Debt
Public Debt / GDP %
Spain
GDP
(Million Euro)
Public Debt
Public Debt / GDP %

129.7

148.3

170.3

156.9

168 529

172 859

171 065

165 409

141 055
83.7

162 473
94.0

185 241
108.3

204 485
123.6

161 275

156 487

158 993

163 595

104 544
64.8

144 164
92.1

169 226
106.4

192 461
117.6

1 048 060

1 048 883

1 063 355

1 049 525

565 082
53.9

644 692
61.5

736 468
69.3

883 873
84.2

Source: Eurostat, 2013.
Using common monetary policy carried out by European Central Bank (ECP) and common
currency unit in Europe cause tighter economic relations which facilitate to spread
damaging effects fast towards other European countries. Moreover, high integration level
of real and financial markets increase response velocity of countries among each other.

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Thus, debt crisis appeared in Greece in the second quarter of 2010, treated all of the Euro
Zone countries even the existence of economic and monetary union.
Euro Zone countries struggled with not only low economic growth but also huge debts of
governments and bankruptcy risk of Greece, Spain and Ireland in 2010. Briefly, global
financial crisis was turned into European Union debt crisis and then bankruptcy crisis of
Euro Zone countries. At this point, European Union faced with the biggest challenge that
EU ever seen (Kutlay, 2011:2).
Greek debt crisis started in 2009, expand to Portugal and Ireland. With an aid request from
Italy and Spain at the end of 2011 and 2012, debt crisis spread much. This deploys mainly
affected three ways: foreign trade, interest rates and exchange rates (KöseKarabacak, 2011:
300). When the member states of union are examined, the crisis originated different
reasons for any European countries. For instance, Greek crisis was originated from public
sector but Ireland suffered from banking sector and real estate. Being higher current
account deficit of Portugal caused great risk for banking system; Spain’s inadequate
internal and external demand leads to low economic performance with 20% unemployment
rate. The weaknesses of public finance of Italy and Belgium make these economies worse
(Ministry of EU, 2011:8).
3.

Effects of Debt Crisis into Turkish Economy

Global crisis appeared firstly in mortgage loans, expanded in financial markets in 20072009 before real markets. USA economy was faced with a serious unemployment rate and
recession process. Strong financial relations between USA and other developed countries
(especially EU countries) make the crisis easy to spread. Uncertainty and trust problems of
credit mechanism restricts the borrowing possibilities and increase costs of debts
(Kibritcioglu, 2010:6–7).
“ EU and Euro Zone is an important partner with Turkey. Many countries have same
position like Turkey and if the crisis deepen global economy will be affected and also
Turkey. It will affect Brazil and USA. In comparison with some other countries, Turkey’s
portion of trade with Euro Zone is higher but our trade structure is various, that a good
thing. Turkish economy either flexible and various and dependence to EU is not too much
(Dervis, 2011:1).
Financial crisis that surrounds the global markets, affects Turkish economy indirectly, not
directly. This indirect impact will continue as the crisis goes on. Euro-USD parity is
affected by the crisis and US Dollar became more valuable. This means for the side of
Turkey that decrease in export and increase in import because of imbalanced exchange
parity. Reflection to the economy will be inflationist impact. Credit volume of Turkey will
decrease because Turkish banks will not be able to find appropriate credit from EU
financial markets (Tunc, 2012: 2).
An economy which has free capital movements and great impacts of capital flows to
domestic economy such Turkey, policy volume of government brings different influences
on price stability and external balance (Aslan&amp;Korap, 2007: 43).
Essentially Greece, Ireland, Spain, Italy, Belgium and Portugal and developing countries
such as Turkey is influenced by debt crisis.

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3.1. Impact Channels of Crisis for Turkey Foreign Trade Impact
European Union consists of the biggest part of foreign trade of Turkey. Direct and indirect
effects of EU reflect to Turkish economy as well.
Intensity of Turkish export on EU originated by country’s export performance is quiet
relevant with demand conditions of EU countries. Recession of EU economies influenced
Turkish exporters and producers negatively (Vural, 2012: 52).
56 % share of Turkish export in 2007 is covered by EU and EU recession influenced the
trade balance of Turkey negatively (TEPAV, 2009: 10). According to floating exchange
rate system, exchange rate is determined in free market and it did not work properly
because Turkish financial structure is fit with this system. Especially hot money flows and
increasing foreign exchange debt of Turkish firms after 2003 put pressure on exchange
rates. In addition, higher interest rates prevent the rise in exchange rates. Low exchange
rates change the export-import equilibrium, and decrease inflation rate whereas current
account deficit grows (Yıldırım, 2010: 50).
With contracting external demand, manufacturing shrank. World bigger economies,
decrease the interest rate in order to accelerate and exposedemand, in other words, some
economic programs are applied to increase the demand. (Karagöz, 2009: 4).
Table:2. Share of EU Countries in total Turkish export
16000000
14000000
12000000
10000000
80000000

Total Export (Thousand $)
Total Import (Thousand $)

60000000
40000000
20000000
0
2008

2009

2010

2011

2012*

Source: Turkstat,2013
*Data for 2012 is for 10 months.
Global financial crisis which started as a Mortgage crisis in the USA influenced EU
countries substantially. Especially Greece, Spain, Italy and Ireland struggled with a huge
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amount of debt and finally the whole EU countries found themselves in the middle of the
crisis.
Developments in EU made Turkey worried about because Turkey aimed to solve its
current account deficit problem by export activity (Öztürkvd. 2012: 1). EU countries share
($) in Turkey’s total export is shown at Table 2. Turkey’s total export and export to EU
started to fall in 2009 and 2010 and total export rose again in 2011 and 2012.
Graph: 1.Turkey’s Export (2008–2011).

17.300%

AB

1.500%

ABD
46.800%

Rusya
İslam İşbirliği Teş

27.100%

Çin
Diğer

4.000%

3.200%

Source:Turkstat, 2013.
Trade relations between Turkey and EU affected negatively due to high budget deficits and
financial problems in EU member countries which involve a recession in domestic
aggregate demand and insufficient financial facilities. Especially, export amount of Turkey
to EU is diminished.
Foreign trade is fully related to EU debt crisis and Turkey. Still, EU is mainly trade partner
of Turkey but the share of EU is decreasing in past few years and Turkey is trying to create
new markets to meet this gap. At this point, a decline in EU import in generally causes a
decrease the share of EU on Turkey’s export. Although Turkey did not lose its share in EU
market, it is obvious that the crisis narrows Turkey’s export (Boyner, 2012:1). Turkey’s
export towards economic groups and organizations between 2008 and 2011 is shown at
Graph 1. The biggest share of export is in EU with percentage of 46 % and Muslim
countries with 27 %.
Notwithstanding economic relationships between EU and Turkey were influenced
negatively, the union is still the most important trade partner of Turkey (Akses, 2012:4).
A decline in aggregate demand in EU made Turkey to find alternative markets. Thus,
Turkey improved its trade relationships with Middle East countries and Commonwealth of
Independent States since 2008. Other reason to improve its trade relationship with third
world countries is European international trade laws that apply a mutual customs union
with inside and other countries. European Union is carrying out many negotiations about
free trade agreements with a new perspective of foreign trade. For this reason, it is so

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important that Turkey should execute new free trade agreements parallel to EU
negotiations (Akses, 2012:4).
Germany (13 billion $), Iraq (10.7 $) and UK (8 billion $) are the top countries in Turkey’s
export in 2012 (Graph 2). The most of those countries show that Turkey’s export is still
towards EU even though ongoing debt crisis. Additionally, 38.6 % of Turkey’s export is
still consisting of EU countries. It shows that an export structure of Turkey which higher
quality with low price, gave an advantage to Turkey. Besides, Turkey got a chance to make
the crisis an opportunity by using its geopolitical location advantages and responding
demands of other countries easily (Karagol, 2012:3).
Graph 2. Export of Turkey (billion $), 2012
14
12
10
8
6
4
2
0

Source:Turkstat, 2013
Turkey’s foreign policy decisions are started to applied with integrated economic policy
since a new political balance. New policies about the Middle East and African countries
made economic relations grown with those countries. It provides country variety in export
of Turkey even if it is argued that a huge change of Turkish foreign policy. Free trade
agreements that increase the diversity and visa exemption contribute to improve Turkish
foreign trade (Karagol, 2012:3).
When EU’s free trade agreements with third world countries contain Turkey, Turkey’s
trade benefits are not considered by EU because Turkey is still not a full-member of EU.
This case creates that third world countries that have an free trade agreement with EU gain
a right to get a free trade with Turkey. Also, concessions which are provided by third world
countries to EU are not valid for Turkey because of candidate membership of Turkey.
Moreover, those countries continue to apply tariffs on Turkey’s export and they are not
willing to agree on free trade agreements. For instance, Mexico and Algeria do not
negotiate with Turkey about an free trade agreement whereas they have free trade
agreement with EU (Akses, 2012:5). Turkey’s export amounts by countries are shown at
Table 3.

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Table:3. Export with Blocs, 2011-2012
Blocs

Total
A-EUROPEAN UNION (EU)
B-FREE ZONES IN TURKEY
C- OTHER COUNTRIES
1-Other European Countries
2-African Countries
North African Countries
Other African Countries
3-AmericanCountries
North American Countries
Central American and Caribbean Countries
South American Countries
4-AsianCountries
Near and Middle East Countries
Other Asian Countries
5-Australia and New Zealand
6-Diğer Countries
Source: Turkstat, 2013.

134 906 869
62 347 441
2 544 721
70 014 706
12 976 364
10 333 821
6 700 805
3 633 016
7 925 943
5 459 299
626 293
1 840 351
38 134 133
27 934 772
10 199 361
480 755

2011
Share(%)
100,0
46,2
1,9
51,9
9,6
7,7
5,0
2,7
5,9
4,0
0,5
1,4
28,3
20,7
7,6
0,4

152 560 775
59 240 765
2 295 409
91 024 601
14 373 164
13 361 451
9 448 432
3 913 019
9 635 644
6 673 256
769 879
2 192 509
53 058 624
42 476 952
10 581 671
490 446

2012
Share(%)
100,0
38,8
1,5
59,7
9,4
8,8
6,2
2,6
6,3
4,4
0,5
1,4
34,8
27,8
6,9
0,3

163 690

0,1

105 273

0,1

2011
Amount

2012
Amount

Change
(%)
13,1
-5,0
-9,8
30,0
10,8
29,3
41,0
7,7
21,6
22,2
22,9
19,1
39,1
52,1
3,7
2,0
-35,7

3.1.2. Credit- Finance Impact
Another impact of the relationship is about credits. Approximately 75 % of credits that
Turkish banks used are originated from EU and problems on banking and finance in EU
are very dangerous for Turkey because it can affect Turkey’s growth performance that is
dependent foreign savings. Turkish banking system that takes important cautions, still need
to conduct profound analysis because of threats about EU debts (Boyner, 2012:2).
Instability on foreign resource channel, global uncertainty and lack of confidence about
economy cause to decrease credit amount of domestic banks. Especially, a decline in
postdated check influences procurement of economy negatively such an environment.
Elimination of procurement reflects to SME’s performance like a domino effect. On the
other hand, narrowing volume in commercial credits affects in a very bad way to SMEs
(TEPAV, 2009:10).
Turkish economy applied an economic stability program with IMF after 2001 crisis
(İncekara, 2012:4). Great successes are gained and Turkish economy has an outlook as
below until debt crisis:
 Structural reform and transformation on national economy,
 Sustainable growth between 2002 and 2008 and a decreasing growth rate in
past few years,
 Creates employment and job opportunity,
 Increasing export,
 More efficient on manufacturing sector,
 Increasing foreign direct investment,
 Low inflation rates,
 Decreasing public debt stock,
 Conducting EU negotiations,
 GDP per capita above 10.000 $.

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Global economic crisis was skipped with a recession because of the reforms on banking
and financial after 2001 crisis (Karagol, 2011:3). Significant effect of the crisis was felt on
September of 2008. Finance channels are became tight, a strong decline in both internal
and external aggregate demand, production and employment losses are occurred in this
period. Serious concerns about “bankruptcy again” involved a psychological trauma in the
country (MÜSİAD, 2009:14). Global crisis influenced Turkey which is a profound
connections with the world. According to both internal and external demand comedown,
export and unemployment affected badly.
Debt crisis affects occurred in three different ways (Usta, 2010).
 Foreign Trade Channel: low external demand and production and
employment losses
 Credit channel: Scarcity of credit because of global finance system
problems
 Expectation channel: Domestic aggregate demand is declined because of
uncertainties.
3.1.3. Expectation Impact
Monthly expectation surveys of Turkish Central Bank did not show any good signal since
2007 and it showed that expectations were getting worse. Real sector confidence index did
not get better after the middle of 2007 and it was getting worse on the third quarter of
2008. Consumer’s confidence to the future are gone (Sonmez, 2008).
3.1.4. Investment Impact
When we evaluate the improvement on foreign direct investment of Turkey, one of the
important factor is investment impact. According to data for past few years , most of the
foreign direct investment to Turkey originated from European Union. In this respect,
restriction of foreign investment originated from EU debt crisis prevent the opportunities to
invest in Turkey and this is another risky factor of the crisis (Boyner, 2012:2).
Top 10 countries which attract investment mostly is shown at Table 4. USA, China and
Hong Kong are the top three countries and Turkey is the 17th most attractive country for
foreign investment in 2010. When we look at the year of 2008 (19.5 billion $), there is a
sharp decrease in foreign direct investment of Turkey.
Table 4: Most Attractive Countries on Foreign Direct Investment (2010)
Rank
1
2
3
4
5
6
7
8
9
10
17

Country
FDI* (Billion US $)
USA
228,2
China
105,7
Hong Kong
68,9
Belgium
61,7
Brazil
48,4
Germany
46,1
England
45,9
Russia
41,2
Singapore
38,6
France
33,9
Turkey
9,1
World Total
1.243,7
Source: Ministry of Economy of Turkey, Foreign Direct Investment 2012 Report p. 7.
*FDI: Foreign Direct Investment

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At present crisis is a situation where both parties are satisfied. Turkey is not insisting about
membership and EU is not in a hurry about it. While we're not aware of time passing by
this way, the biggest loss for the candidate countries, namely Turkey sees, or will see.
Because when the countries join the EU, they must accept all the terms and conditions.
Extension of the membership process means the arrival of new issues on the agenda.The
EU is a dynamic structure, and continuously develops new rules and practices. As long as
the membership process is extending, the candidate country countries have to adapt to the
new situations and it must accept the new rules (Ozdemir, 2012:2).
The decreasing of the support of EU to Turkey should not be interpreted as giving up the
EU projects. Taking a look at the perception of EU in the world and in the EU will be
useful to understand this situation. There are serious problems that disturb the public they
are not about the state of crisis in the EU. Due to the structure of the EU institutions and
decision-making mechanism, the lack of democratic accountability obligation has damaged
the legitimacy of the EU institutions and it has reduced the credibility of the EU
institutions. EU citizens are now on every occasion give the signal for that they do not like
the integration process which is leading by elite class. The EU has to deal with the new
regulations which provide legitimacy to overcome those problems. Meanwhile, the
financial and debt crisis in the EU up to a short time to exit the growth and employment,
rather than based on solid economic discipline and budget constraints compromising
stability and social welfare state debate agenda, EU citizens' aspirations for EU integration
is reduced(ArısanEralp, 2012: 3).
5. Conclusion
Starting in 2007, the United States, the EU and other countries, the impact of the global
financial crisis still continues to spread. Especially some EU countries are affected more
than others.
Despite all the problems and crises, the EU's economic model is still seen as a strong
economic zooming and transformation mechanism. This situation shows that EU crises are
not only financial but also structural. If the debt crisis will not be solved as soon as
possible, it is obvious that debt crisis will be long and problematic process. in this case,
Turkey should search for alternative markets to sustain, enhance the competitiveness of the
international markets and take steps to fill the loss of the perimeter of the EU countries on
world markets.
With the financial crisis which arise in 2007 and affect all over the world, the dominant
problems of economics such as growth dynamics, distribution problems in the financial
sector has been started to discussed (Yener, 2010: 1). Mortgage crisis of 2007 put end to
liberal economy policies which pretend that government interfere economy and the
increasing of the doubt about the future of the liberal capitalist system makes the policies
which regulate financial system important. Indeed, in the G-20 Summit of 2 April 2009
(referred to as the London Summit in London to made), it was stated that the cause of the
crisis is the failure of financial regulation, the capable global system should be established,
the global cooperation should be extended, transparency and market discipline should be
given importance (Er,2011: 323).
In this respect, derived lessons from mistakes are written below (Yeldan, 2009:16):

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

First of all, neo-liberal economics doctrines which mention about free market
without any government intervention will provide a stabilized and balanced
economy, is wrong.
 Second one is about process of financial system and structural characteristics.
Financial system is a world of expectation and manipulation on the contrary of real
sector. Financial system gains are came from “fast” decision mechanism that
embodied short term point of view, manipulation and risks. Decision makers who
ignore the characteristics of financial markets are still defending the thought that
transparency is good solution.
We can say the main things that should be done after the crisis
(YılmazveGaygusuz, 2009):
 Strong supervisions and regulations about extreme leverage are needed.
 Much transparency should be needed to lower the counterparty risk.
 New and different products that comes from financial system should be
controlled by international independent foundations.
 Standards and rules should be legislated on banking system and other
institutions such as “Basel II”
 Derived products markets must be controlled and supervised.
With all these regulations, financial system will work properly and risks are lowered.
Increasing desire for risk with profit maximization which has been in the nature of
capitalistic system should be decreased.
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                    <text>International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo

The Effects of DeepeningDebtCrisis in the Member Countries of European
Union on TurkishEconomy
ErdalAlancıoğlu
Harran University, Şanlıurfa, Turkey
ealancioglu@harran.edu.tr
H. Mustafa Paksoy
KilisDecember 7University, Kilis, Turkey
hmpaksoy@yahoo.com
SadettinPaksoy
KilisDecember 7University, Kilis, Turkey
spaksoy@kilis.edu.tr
Abstract
In the context of the global economy, the world's second largest market after the
United States, the European Union has an important position. Since the last quarter of
2008, the global financial crisis spread to Europe from the U.S., and especially in the
last period, the economy and the policy dilemmas and in this sense the observed Debt
Crisis in the European Union, which has become an international problem in our
country, along with the effects observed in the entire world. Although Turkey is not a
member state of the European Union, the European Union, the historical, social and
economic ties affected by any development which is due to causes in Europe.
In this study, the effects of the European Union Debt Crisis, Turkey's economy foreign
trade, credit and finance, and Turkey's European Union membership perspective to the
size of investment channels will be evaluated.
Keywords: European Union, The Debt Crisis, Economy of Turkey

1. Introduction
Integration of nations is getting stronger through increasing international goods and
services’ trade volume and capital-labor flows across borders especially from the late of
1980s until now. “Economic globalization” has been experienced thanks to technological
progress which enables faster and wide expansion all around the world.
Global financial crisis appears at the end of 2008 in USA affects very fast because of
characteristics of globalization. When the global crisis continues, European Union which
is the biggest international economic organization in the world, is the most affected part of
world economy. Financial fluctuations in European countries caused a devastating
problems on real economies and financial markets. Diminishing of aggregate demand and
financial markets involve lower trade volume.
In one sense, governments increase their public spending to lower the effects of global
financial crisis in EU countries. On the other hand, tax income of governments declines
due to economic recession and these circumstances cause series budget deficits and higher
debts in EU economies. The global financial crisis that shown as a debt crisis in Europe,
influenced the UE deeply. Member states such as Ireland, Spain, Italy, Portugal and
Greece are the first countries impressed by the global crisis. These five EU member
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countries had a crisis not only economic but also political way. Eventually, it involves
changes of governments in charge and shows the scope of the debt crisis.
With a globalization process in recent years shows that countries which have regional
integration and high trade volume are fully integrated on financial markets. Although
Turkey is not a member state of EU, consolidation of Turkey and EU exists in a quiet high
level. In this paper, current situation of EU debt crisis, effects through Turkish economy;
foreign trade, financial conditions, investment performances are evaluated with respect of
full membership process of Turkey.
2. Current Situation at EU Debt Crisis
European countries did not use its debts effectively. In other words, debts are used in
health, education and real estate sectors instead of covering the fields that create more
income. Low debt costs enable the loans more attractive. More credits are needed to meet
the cost of previous debts. Willingness of financial foundations to give loans and higher
returns of financial markets than real markets evolve great debts in European countries.
Banks and other institutions did not hesitate to give credits to EU countries and it is not
questioned. When credit institutions which affected by global financial crisis increased
interest rates, EU countries debt costs rose so that financing of debts is very hard. To
conclude Portugal, Ireland, Greece, Italy and Spain called PIGS countries were faced with
debt crisis in 2011 (Tunç, 2012:2).
Current conditions of EU countries between 2009 and 2012 are shown at Table 1.
Table : 1 Current conditions of EU countries
Greece
GDP
(Million Euro)
Public Debt

2009
231081

2010
222151

2011
208532

2012
193749

299685

329515

355172

303918

Public Debt / GDP %
Portugal
GDP
(Million Euro)
Public Debt
Public Debt / GDP %
İreland
GDP
(Million Euro)
Public Debt
Public Debt / GDP %
Spain
GDP
(Million Euro)
Public Debt
Public Debt / GDP %

129.7

148.3

170.3

156.9

168 529

172 859

171 065

165 409

141 055
83.7

162 473
94.0

185 241
108.3

204 485
123.6

161 275

156 487

158 993

163 595

104 544
64.8

144 164
92.1

169 226
106.4

192 461
117.6

1 048 060

1 048 883

1 063 355

1 049 525

565 082
53.9

644 692
61.5

736 468
69.3

883 873
84.2

Source: Eurostat, 2013.
Using common monetary policy carried out by European Central Bank (ECP) and common
currency unit in Europe cause tighter economic relations which facilitate to spread
damaging effects fast towards other European countries. Moreover, high integration level
of real and financial markets increase response velocity of countries among each other.

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Thus, debt crisis appeared in Greece in the second quarter of 2010, treated all of the Euro
Zone countries even the existence of economic and monetary union.
Euro Zone countries struggled with not only low economic growth but also huge debts of
governments and bankruptcy risk of Greece, Spain and Ireland in 2010. Briefly, global
financial crisis was turned into European Union debt crisis and then bankruptcy crisis of
Euro Zone countries. At this point, European Union faced with the biggest challenge that
EU ever seen (Kutlay, 2011:2).
Greek debt crisis started in 2009, expand to Portugal and Ireland. With an aid request from
Italy and Spain at the end of 2011 and 2012, debt crisis spread much. This deploys mainly
affected three ways: foreign trade, interest rates and exchange rates (KöseKarabacak, 2011:
300). When the member states of union are examined, the crisis originated different
reasons for any European countries. For instance, Greek crisis was originated from public
sector but Ireland suffered from banking sector and real estate. Being higher current
account deficit of Portugal caused great risk for banking system; Spain’s inadequate
internal and external demand leads to low economic performance with 20% unemployment
rate. The weaknesses of public finance of Italy and Belgium make these economies worse
(Ministry of EU, 2011:8).
3.

Effects of Debt Crisis into Turkish Economy

Global crisis appeared firstly in mortgage loans, expanded in financial markets in 20072009 before real markets. USA economy was faced with a serious unemployment rate and
recession process. Strong financial relations between USA and other developed countries
(especially EU countries) make the crisis easy to spread. Uncertainty and trust problems of
credit mechanism restricts the borrowing possibilities and increase costs of debts
(Kibritcioglu, 2010:6–7).
“ EU and Euro Zone is an important partner with Turkey. Many countries have same
position like Turkey and if the crisis deepen global economy will be affected and also
Turkey. It will affect Brazil and USA. In comparison with some other countries, Turkey’s
portion of trade with Euro Zone is higher but our trade structure is various, that a good
thing. Turkish economy either flexible and various and dependence to EU is not too much
(Dervis, 2011:1).
Financial crisis that surrounds the global markets, affects Turkish economy indirectly, not
directly. This indirect impact will continue as the crisis goes on. Euro-USD parity is
affected by the crisis and US Dollar became more valuable. This means for the side of
Turkey that decrease in export and increase in import because of imbalanced exchange
parity. Reflection to the economy will be inflationist impact. Credit volume of Turkey will
decrease because Turkish banks will not be able to find appropriate credit from EU
financial markets (Tunc, 2012: 2).
An economy which has free capital movements and great impacts of capital flows to
domestic economy such Turkey, policy volume of government brings different influences
on price stability and external balance (Aslan&amp;Korap, 2007: 43).
Essentially Greece, Ireland, Spain, Italy, Belgium and Portugal and developing countries
such as Turkey is influenced by debt crisis.

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3.1. Impact Channels of Crisis for Turkey Foreign Trade Impact
European Union consists of the biggest part of foreign trade of Turkey. Direct and indirect
effects of EU reflect to Turkish economy as well.
Intensity of Turkish export on EU originated by country’s export performance is quiet
relevant with demand conditions of EU countries. Recession of EU economies influenced
Turkish exporters and producers negatively (Vural, 2012: 52).
56 % share of Turkish export in 2007 is covered by EU and EU recession influenced the
trade balance of Turkey negatively (TEPAV, 2009: 10). According to floating exchange
rate system, exchange rate is determined in free market and it did not work properly
because Turkish financial structure is fit with this system. Especially hot money flows and
increasing foreign exchange debt of Turkish firms after 2003 put pressure on exchange
rates. In addition, higher interest rates prevent the rise in exchange rates. Low exchange
rates change the export-import equilibrium, and decrease inflation rate whereas current
account deficit grows (Yıldırım, 2010: 50).
With contracting external demand, manufacturing shrank. World bigger economies,
decrease the interest rate in order to accelerate and exposedemand, in other words, some
economic programs are applied to increase the demand. (Karagöz, 2009: 4).
Table:2. Share of EU Countries in total Turkish export
16000000
14000000
12000000
10000000
80000000

Total Export (Thousand $)
Total Import (Thousand $)

60000000
40000000
20000000
0
2008

2009

2010

2011

2012*

Source: Turkstat,2013
*Data for 2012 is for 10 months.
Global financial crisis which started as a Mortgage crisis in the USA influenced EU
countries substantially. Especially Greece, Spain, Italy and Ireland struggled with a huge
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amount of debt and finally the whole EU countries found themselves in the middle of the
crisis.
Developments in EU made Turkey worried about because Turkey aimed to solve its
current account deficit problem by export activity (Öztürkvd. 2012: 1). EU countries share
($) in Turkey’s total export is shown at Table 2. Turkey’s total export and export to EU
started to fall in 2009 and 2010 and total export rose again in 2011 and 2012.
Graph: 1.Turkey’s Export (2008–2011).

17.300%

AB

1.500%

ABD
46.800%

Rusya
İslam İşbirliği Teş

27.100%

Çin
Diğer

4.000%

3.200%

Source:Turkstat, 2013.
Trade relations between Turkey and EU affected negatively due to high budget deficits and
financial problems in EU member countries which involve a recession in domestic
aggregate demand and insufficient financial facilities. Especially, export amount of Turkey
to EU is diminished.
Foreign trade is fully related to EU debt crisis and Turkey. Still, EU is mainly trade partner
of Turkey but the share of EU is decreasing in past few years and Turkey is trying to create
new markets to meet this gap. At this point, a decline in EU import in generally causes a
decrease the share of EU on Turkey’s export. Although Turkey did not lose its share in EU
market, it is obvious that the crisis narrows Turkey’s export (Boyner, 2012:1). Turkey’s
export towards economic groups and organizations between 2008 and 2011 is shown at
Graph 1. The biggest share of export is in EU with percentage of 46 % and Muslim
countries with 27 %.
Notwithstanding economic relationships between EU and Turkey were influenced
negatively, the union is still the most important trade partner of Turkey (Akses, 2012:4).
A decline in aggregate demand in EU made Turkey to find alternative markets. Thus,
Turkey improved its trade relationships with Middle East countries and Commonwealth of
Independent States since 2008. Other reason to improve its trade relationship with third
world countries is European international trade laws that apply a mutual customs union
with inside and other countries. European Union is carrying out many negotiations about
free trade agreements with a new perspective of foreign trade. For this reason, it is so

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important that Turkey should execute new free trade agreements parallel to EU
negotiations (Akses, 2012:4).
Germany (13 billion $), Iraq (10.7 $) and UK (8 billion $) are the top countries in Turkey’s
export in 2012 (Graph 2). The most of those countries show that Turkey’s export is still
towards EU even though ongoing debt crisis. Additionally, 38.6 % of Turkey’s export is
still consisting of EU countries. It shows that an export structure of Turkey which higher
quality with low price, gave an advantage to Turkey. Besides, Turkey got a chance to make
the crisis an opportunity by using its geopolitical location advantages and responding
demands of other countries easily (Karagol, 2012:3).
Graph 2. Export of Turkey (billion $), 2012
14
12
10
8
6
4
2
0

Source:Turkstat, 2013
Turkey’s foreign policy decisions are started to applied with integrated economic policy
since a new political balance. New policies about the Middle East and African countries
made economic relations grown with those countries. It provides country variety in export
of Turkey even if it is argued that a huge change of Turkish foreign policy. Free trade
agreements that increase the diversity and visa exemption contribute to improve Turkish
foreign trade (Karagol, 2012:3).
When EU’s free trade agreements with third world countries contain Turkey, Turkey’s
trade benefits are not considered by EU because Turkey is still not a full-member of EU.
This case creates that third world countries that have an free trade agreement with EU gain
a right to get a free trade with Turkey. Also, concessions which are provided by third world
countries to EU are not valid for Turkey because of candidate membership of Turkey.
Moreover, those countries continue to apply tariffs on Turkey’s export and they are not
willing to agree on free trade agreements. For instance, Mexico and Algeria do not
negotiate with Turkey about an free trade agreement whereas they have free trade
agreement with EU (Akses, 2012:5). Turkey’s export amounts by countries are shown at
Table 3.

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Table:3. Export with Blocs, 2011-2012
Blocs

Total
A-EUROPEAN UNION (EU)
B-FREE ZONES IN TURKEY
C- OTHER COUNTRIES
1-Other European Countries
2-African Countries
North African Countries
Other African Countries
3-AmericanCountries
North American Countries
Central American and Caribbean Countries
South American Countries
4-AsianCountries
Near and Middle East Countries
Other Asian Countries
5-Australia and New Zealand
6-Diğer Countries
Source: Turkstat, 2013.

134 906 869
62 347 441
2 544 721
70 014 706
12 976 364
10 333 821
6 700 805
3 633 016
7 925 943
5 459 299
626 293
1 840 351
38 134 133
27 934 772
10 199 361
480 755

2011
Share(%)
100,0
46,2
1,9
51,9
9,6
7,7
5,0
2,7
5,9
4,0
0,5
1,4
28,3
20,7
7,6
0,4

152 560 775
59 240 765
2 295 409
91 024 601
14 373 164
13 361 451
9 448 432
3 913 019
9 635 644
6 673 256
769 879
2 192 509
53 058 624
42 476 952
10 581 671
490 446

2012
Share(%)
100,0
38,8
1,5
59,7
9,4
8,8
6,2
2,6
6,3
4,4
0,5
1,4
34,8
27,8
6,9
0,3

163 690

0,1

105 273

0,1

2011
Amount

2012
Amount

Change
(%)
13,1
-5,0
-9,8
30,0
10,8
29,3
41,0
7,7
21,6
22,2
22,9
19,1
39,1
52,1
3,7
2,0
-35,7

3.1.2. Credit- Finance Impact
Another impact of the relationship is about credits. Approximately 75 % of credits that
Turkish banks used are originated from EU and problems on banking and finance in EU
are very dangerous for Turkey because it can affect Turkey’s growth performance that is
dependent foreign savings. Turkish banking system that takes important cautions, still need
to conduct profound analysis because of threats about EU debts (Boyner, 2012:2).
Instability on foreign resource channel, global uncertainty and lack of confidence about
economy cause to decrease credit amount of domestic banks. Especially, a decline in
postdated check influences procurement of economy negatively such an environment.
Elimination of procurement reflects to SME’s performance like a domino effect. On the
other hand, narrowing volume in commercial credits affects in a very bad way to SMEs
(TEPAV, 2009:10).
Turkish economy applied an economic stability program with IMF after 2001 crisis
(İncekara, 2012:4). Great successes are gained and Turkish economy has an outlook as
below until debt crisis:
 Structural reform and transformation on national economy,
 Sustainable growth between 2002 and 2008 and a decreasing growth rate in
past few years,
 Creates employment and job opportunity,
 Increasing export,
 More efficient on manufacturing sector,
 Increasing foreign direct investment,
 Low inflation rates,
 Decreasing public debt stock,
 Conducting EU negotiations,
 GDP per capita above 10.000 $.

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Global economic crisis was skipped with a recession because of the reforms on banking
and financial after 2001 crisis (Karagol, 2011:3). Significant effect of the crisis was felt on
September of 2008. Finance channels are became tight, a strong decline in both internal
and external aggregate demand, production and employment losses are occurred in this
period. Serious concerns about “bankruptcy again” involved a psychological trauma in the
country (MÜSİAD, 2009:14). Global crisis influenced Turkey which is a profound
connections with the world. According to both internal and external demand comedown,
export and unemployment affected badly.
Debt crisis affects occurred in three different ways (Usta, 2010).
 Foreign Trade Channel: low external demand and production and
employment losses
 Credit channel: Scarcity of credit because of global finance system
problems
 Expectation channel: Domestic aggregate demand is declined because of
uncertainties.
3.1.3. Expectation Impact
Monthly expectation surveys of Turkish Central Bank did not show any good signal since
2007 and it showed that expectations were getting worse. Real sector confidence index did
not get better after the middle of 2007 and it was getting worse on the third quarter of
2008. Consumer’s confidence to the future are gone (Sonmez, 2008).
3.1.4. Investment Impact
When we evaluate the improvement on foreign direct investment of Turkey, one of the
important factor is investment impact. According to data for past few years , most of the
foreign direct investment to Turkey originated from European Union. In this respect,
restriction of foreign investment originated from EU debt crisis prevent the opportunities to
invest in Turkey and this is another risky factor of the crisis (Boyner, 2012:2).
Top 10 countries which attract investment mostly is shown at Table 4. USA, China and
Hong Kong are the top three countries and Turkey is the 17th most attractive country for
foreign investment in 2010. When we look at the year of 2008 (19.5 billion $), there is a
sharp decrease in foreign direct investment of Turkey.
Table 4: Most Attractive Countries on Foreign Direct Investment (2010)
Rank
1
2
3
4
5
6
7
8
9
10
17

Country
FDI* (Billion US $)
USA
228,2
China
105,7
Hong Kong
68,9
Belgium
61,7
Brazil
48,4
Germany
46,1
England
45,9
Russia
41,2
Singapore
38,6
France
33,9
Turkey
9,1
World Total
1.243,7
Source: Ministry of Economy of Turkey, Foreign Direct Investment 2012 Report p. 7.
*FDI: Foreign Direct Investment

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At present crisis is a situation where both parties are satisfied. Turkey is not insisting about
membership and EU is not in a hurry about it. While we're not aware of time passing by
this way, the biggest loss for the candidate countries, namely Turkey sees, or will see.
Because when the countries join the EU, they must accept all the terms and conditions.
Extension of the membership process means the arrival of new issues on the agenda.The
EU is a dynamic structure, and continuously develops new rules and practices. As long as
the membership process is extending, the candidate country countries have to adapt to the
new situations and it must accept the new rules (Ozdemir, 2012:2).
The decreasing of the support of EU to Turkey should not be interpreted as giving up the
EU projects. Taking a look at the perception of EU in the world and in the EU will be
useful to understand this situation. There are serious problems that disturb the public they
are not about the state of crisis in the EU. Due to the structure of the EU institutions and
decision-making mechanism, the lack of democratic accountability obligation has damaged
the legitimacy of the EU institutions and it has reduced the credibility of the EU
institutions. EU citizens are now on every occasion give the signal for that they do not like
the integration process which is leading by elite class. The EU has to deal with the new
regulations which provide legitimacy to overcome those problems. Meanwhile, the
financial and debt crisis in the EU up to a short time to exit the growth and employment,
rather than based on solid economic discipline and budget constraints compromising
stability and social welfare state debate agenda, EU citizens' aspirations for EU integration
is reduced(ArısanEralp, 2012: 3).
5. Conclusion
Starting in 2007, the United States, the EU and other countries, the impact of the global
financial crisis still continues to spread. Especially some EU countries are affected more
than others.
Despite all the problems and crises, the EU's economic model is still seen as a strong
economic zooming and transformation mechanism. This situation shows that EU crises are
not only financial but also structural. If the debt crisis will not be solved as soon as
possible, it is obvious that debt crisis will be long and problematic process. in this case,
Turkey should search for alternative markets to sustain, enhance the competitiveness of the
international markets and take steps to fill the loss of the perimeter of the EU countries on
world markets.
With the financial crisis which arise in 2007 and affect all over the world, the dominant
problems of economics such as growth dynamics, distribution problems in the financial
sector has been started to discussed (Yener, 2010: 1). Mortgage crisis of 2007 put end to
liberal economy policies which pretend that government interfere economy and the
increasing of the doubt about the future of the liberal capitalist system makes the policies
which regulate financial system important. Indeed, in the G-20 Summit of 2 April 2009
(referred to as the London Summit in London to made), it was stated that the cause of the
crisis is the failure of financial regulation, the capable global system should be established,
the global cooperation should be extended, transparency and market discipline should be
given importance (Er,2011: 323).
In this respect, derived lessons from mistakes are written below (Yeldan, 2009:16):

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

First of all, neo-liberal economics doctrines which mention about free market
without any government intervention will provide a stabilized and balanced
economy, is wrong.
 Second one is about process of financial system and structural characteristics.
Financial system is a world of expectation and manipulation on the contrary of real
sector. Financial system gains are came from “fast” decision mechanism that
embodied short term point of view, manipulation and risks. Decision makers who
ignore the characteristics of financial markets are still defending the thought that
transparency is good solution.
We can say the main things that should be done after the crisis
(YılmazveGaygusuz, 2009):
 Strong supervisions and regulations about extreme leverage are needed.
 Much transparency should be needed to lower the counterparty risk.
 New and different products that comes from financial system should be
controlled by international independent foundations.
 Standards and rules should be legislated on banking system and other
institutions such as “Basel II”
 Derived products markets must be controlled and supervised.
With all these regulations, financial system will work properly and risks are lowered.
Increasing desire for risk with profit maximization which has been in the nature of
capitalistic system should be decreased.
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�</text>
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                <text>The world's second largest market after the United States is the European  Union that has an important position in the context of the global economy.  Since the last quarter of 2008, the global financial crisis spread to Europe  from the U.S. Currently, the european Union crises which is perceived as  an international problem has a negative effect on also our economy as well  as on all over the world. Althought, Turkey is not a member of European  Union the country is effected by each kind of crises by the Europen Union  easily.  The effect of European Union on Turkish economy is are examined in this  study; foreign trade, credit and finance, dimensions of investment  channels and perspective of Turkey in terms of being member of European  Union will be evaluated.  Keywords: European Union, the Debt Crisis, Economy of Turkey.</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Anti-Dumping Measures in European Trade
Sato Alexej
University of Economics, Prague, Czech Republic
sato@vse.cz
Evolution of the globalization process is closely connected with a
separation of free-standing and independent macro-regions of North
America, Asia-Pacific and Europe. Despite their narrow and intense mutual
economic and political contacts in the process of globalization, each of
them try to defend the interests of its own members. The European
Commission has expressed its intentions and interests in New business
strategy, introduced in November 2010. This paper shows an example of
protection of EU interests in the form of price dumping and anti-dumping
measures, whereby the two macro-regions (European and Asia-Pacific)
trying to find solutions to some of their internal economic problems.
Keywords: Anti-Dumping Measures, Globalization, New Business Strategy

30

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                    <text>International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

Anti-dumping measuresin EuropeanTrade
AlexejSato
University of Economics,Prague, Czech Republic
sato@vse.cz

Abstract
Evolution of the globalization processisclosely connected with a separation of
freestanding and independent macro-regions ofNorth America, Asia-Pacific
andEurope. Despite theirnarrowandintensemutualeconomicandpoliticalcontacts
inthe process ofglobalization, eachof them try to defend the interests
ofitsownmembers. The EuropeanCommission hasexpresseditsintentions and
interests inNewbusinessstrategy, introducedinNovember 2010. Thispaper showsan
exampleof protectionof EU interestsinthe formof pricedumpingandanti-dumping
measures, whereby the twomacro-regions (EuropeanandAsia-Pacific) trying
tofindsolutions tosome oftheirinternaleconomicproblems.
Keywords:Anti-dumping measures, Globalization, Newbusinessstrategy

Introduction
The process of globalization is perceived by the public as a process of interconnecting
national, regional and local economies and their markets, accompanied by an increasing
dynamics of the exchange of goods, services, capital and labor, while also transferring
technologies and know-how. However, such processes, which we have been witnessing for
several decades, is neither an unexpected nor incidental phenomenon and it is not by far so
balanced, smooth and non-conflicting as has been presented to us. Quite the contrary: it
becomes apparent that the interconnection of regional economies is accompanied by the
separation of their structures and that while these processes concur, they demonstrate a
number of mutual contradictions. The development of global economies as a whole is thus
accompanied by the separation of three relatively independent and in many aspects closed
economic blocks – macroregions. In this respect, North American, Asian-Pacific and
European macroregions are usually mentioned, each of them being characterized by a
number of its own, distinctive integration tendencies and the related measures. The
economic and financial crisis we have been facing over the past several months has revived
considerations about the necessity, extent and intensity of regulation of integration
processes, both at the national and regional level.
New Trade Strategy EU 2020

In the EU countries, the extent and form of regulation in foreign trade is defined by the
principles of the common commercial policy. Article 207 of the Treaty on the Functioning
of the European Union (the so-called Treaty of Lisbon) states that it shall be based on
uniform tariff rates, common non-tariff measures, bilateral and multilateral agreements
relating to goods, services and intellectual property rights, foreign direct investment and
measures to protect trade, including dumping and subsidies. In order to be sufficiently
efficient, the common commercial policy must continuously adapt itself to the surrounding
economic environment and flexibly react to changes in such environment. The last reaction
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

to global economic changes is the strategic communication from the European
Commission of 9 November 2010 entitled „Trade, Growth and World Affairs“, which
indicates the way to increasing the openness of European economy and to improving trade
relationships with non-EU partners.
In its New Trade Strategy EU 2020, the European Commission mentions six current
priorities for its forthcoming negotiations:
-

To finalize, under the auspices of WTO, negotiations with the main trade partners
(such as India, Mercosur and others) and to achieve an increase in the EU GDP growth
by another, more than 1%.

-

To improve trade relationships with strategic partners (U.S., China, Russia and Japan),
in particular by removing non-tariff trade barriers.

-

To improve European companies' access to world markets by creating a mechanism of
balance renewal between open markets in the EU and more closed markets of trade
partners outside the Union (in the form of public procurement, for instance).

-

To initiate negotiations with key trade partners concerning profound changes of
investment conditions.

-

To ensure a wider applicability of EU law-based rules in trade.

-

To improve access to trading activities for all those who might be interested, to change
rules for providing trade preferences to developing countries.

In mentioning New Trade Strategy EU 2020, the European Commission expects that by
2015, 90% of world growth will be generated outside Europe, with approximately a third
from China. Nevertheless, it intends to continuously seek to maintain world trade
openness. In this respect, the European Commission works on the basic presumption that
open economies tend to grow faster than closed economies and therefore, open markets are
necessary to support its own, European competitiveness. These considerations also match
with the Commission's effort to further reduce tariff rates, to conclude on-going
negotiations concerning multilateral world trade liberalization, to open markets for services
and investment and the possibility to participate in public procurement. This time,
liberalization efforts should be more selective rather than general, in particular with respect
to the main initiators of world growth, such as the BRIC countries, U.S. and Japan, which
is also demonstrated by the current on-going process of negotiations. Of course, the
previously mentioned vision is not completely original; the European Commission took
numerous similar steps already in the past, although not always with clear positive results.
One of the serious problems which occurred in the past was the relatively limited
accessibility of liberalization steps for certain business entities. Especially small and
medium-sized enterprises, which face a number of restrictions and barriers of
administrative, legislative or fiscal nature when entering foreign markets, could not make
use of the negotiated benefits. According to the 2010 Eurobarometer survey, only 8% of
the total number of small and medium-sized European companies have been doing
business abroad.
As results from the strategic communication, the European Commission intends to be
helpful, but not naive, towards its potential trade partners in trade policy matters in the
future. The efforts to enhance the protection of intellectual property rights, to achieve the
global harmonisation of technical and technological standards and to fight unfair practices
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

as well as the infringement of global trade rules are evident. In particular, the efforts to
create and strengthen the role of tools for the enforcement of interests and rights, for
instance through the World Trade Organisation (WTO), are significant. The content of the
previously mentioned visions in discussions about the future trade and political strategy is
sometimes termed „Assertive Europe“.
Anti-dumping measures
Anti-dumping measures are relatively frequently used and very controversially viewed
protective tools of the EU trade policy. They allow to restrict the import of goods from
third countries in such cases when the seller (producer) offers its product in the EU market
at a price that is lower than the normal price for that product in such seller's (producer's)
domestic market, thus causing material injury to domestic (European) producers. Such
behavior (price dumping) is defined in Article VI of GATT, according to which dumping
occurs if the price of a product is lower than the price of the like product sold by the
exporter in the exporter's domestic market. If the producer does not sell the product in the
domestic market, the price of goods is considered to be lower in the following cases:
-

If it is lower than the price of other domestic producers of the like (comparable)
product destined for export to any other third country in the ordinary course of trade;

-

If the price is below the cost of production of the goods in the exporter's domestic
economy, increased by a reasonable profit on sales.

The investigation of complaints from the EU industry concerned due to alleged price
dumping is conducted by the European Commission, which also proposes measures if
dumping is ascertained. In the Czech Republic, protective measures associated with the
implementation of the common commercial policy are governed by the Ministry of
Industry and Trade. The Ministry collects and analyses information and opinions from the
interested parties, professional associations and unions, its own specialist departments and
other state administration bodies and institutions and formulates official opinions of the
Czech Republic through its Anti-Dumping and Anti-Subsidy Advisory Committee and for
the purpose of optimal defense of Czech entrepreneurs' interests.
The industries most frequently affected by international dumping include, in particular,
chemical and metallurgical production or clothing and textile industries. In the past, all
these industries gained a very strong position in the Union market, which they were,
however, not able to maintain being confronted with the competition from developing and
newly industrialized countries (mainly from Asia). In the past decade, the European
Commission initiated more than 330 investigations related to dumping allegations, in
particular in the manufacturing of chemical, steel or metallurgical products, of which
around 20% concerned exports from China. Almost 70% of investigations did prove the
existence of dumping and were concluded by announcing an anti-dumping measure.
However, in the same period, China applied only six measures of similar nature.
The stated reasons for alleged price dumping include, in particular, the low wages of
Chinese employees with relatively low production costs and the resulting high
competitiveness. In 2010, the EU-China trade reached 320 billion EUR with an annual
increase of almost one fifth. The growing volume of Chinese exports resulted in a rapid
increase in the EU trade and payment

3

�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

Balance deficit towards China and a number of Union industries became dependent on
imports from China.The individual EU member states have different opinions about the
trade policy in terms of dumping stations. Discrepancies exist mainly between the
countries with a more liberal view of the functioning of international trade (UK,
Scandinavia) and the countries who rather prefer protectionist principles of trading
(Germany, Italy, Portugal, Spain), mostly those most deeply affected by dumping. In order
to be able to objectively recognize the need for anti-dumping measures, the following facts
required by international conventions should be objectively identified and supported with
evidence:
-

The existence of dumping – which means to demonstrate the fact that a dumped
product is present in the market and is offered at a price that is lower than the price for
that product in the exporter's domestic market.

-

The existence (or threat) of material injury to an EU industry (for instance, the loss of
market share, a significant drop in sales, profit or productivity of the industry).

-

The causal link between the existing dumping and the injury caused.

A complaint leading to an anti-dumping investigation may be lodgedby any natural or legal
person, or any association, acting on behalf of the whole Community industry. The
preparation of the complaint, which is quite a demanding task from the administrative,
financial, technical and linguistic point of view, can be entrusted to national control and
administrative bodies before the complaint is lodged with the European Commission; in
the Czech Republic it is the Ministry of Industry and Trade. The Commission initiates the
investigation only when it makes sure that the complaint is supported by Union producers
whose production accounts for at least 25% of the total Union production of the product to
be investigated. Proceedings are not initiated against countries whose alleged dumped
imports represent a Union market share of below 1%, or against a group of countries
whose collective share does not exceed 3%. In exceptional cases, the Commission may
initiate proceedings also of its own decision and without any complaint being lodged.
When assessing the content and legitimacy of the complaint, the Commission follows
Council Regulation (EC) No. 384/96 of 22 December 1995 on protection against dumped
imports from countries not members of the European Community, which imposes an
obligation on the Commission to decide on the complaint within 15 months of the date of
lodging. Investigation may be terminated by one of the following steps:
-

Without adopting definitive measures the investigation is terminated if the complaint
does not comply, formally or materially, with the established requirements, or if the
complaint is withdrawn by the complainant and the Community has no interest to
continue the investigation.

-

By announcing a definitive anti-dumping duty, which however requires, besides
discussion in the European Commission, also approval from the EU Council. This
measure can also be used if it is demonstrated during the investigation that the effects
of a previously imposed anti-dumping duty are intentionally circumvented or
frustrated.

-

The investigation may be terminated by accepting a price undertaking if the exporter is
willing to change the price of its goods by the dumping difference so that the European
Community interests are not harmed.

4

�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

Both anti-dumping duties and price undertakings remain valid for a period of five years
and their existence is published in the Official Journal. The Official Journal also publishes
information about the expiration of the validity of individual protective measures, which
allows to assess whether there is a significant risk of dumping to continue or recur and
whether the Community might be exposed to injury. If no request for a further
investigation of the case is presented after the lapse of the five-year period, the duty or the
undertaking expires.
Conclusion

Within WTO and compared to other economic macroregions, the European Union is a very
frequent user of anti-dumping measures against third countries, and the most frequent one
in the long-term history. As regards dumping from Union producers, its share is
significantly lower and has been decreasing in the long-term. In 2009, only 5% of the total
number of complaints was lodged against Union producers.China is the leader among the
countries with which the European Union has to solve dumping disputes most frequently:
approx. 40% of all investigations are conducted against China, which is followed by other
countries of Southeast Asia. Trade disputes between the EU, China and other countries of
Southeast Asia have been rising proportionately to the deepening of the mutual trade and
payment balance deficit. The protective measure recently adopted by the European
Commission and aimed at roughly two hundred Chinese producers of screws and jointing
material aroused considerable displeasure in business circles also because it includes a
number of exceptions for Chinese branches of European companies raising concerns that
double standards are often used with respect to the entities affected. Globalization is
undoubtedly a necessary and inevitable process which brings the human society to a higher
evolutionary stage. However, it is by far not as smooth and natural as is sometimes
presented. Globalization is surely paralleled by a process which leads to the separation of
relatively independent and distinctive economic and political structures – macroregions.
Each of them uses, to a greater or lesser extent, their own organization, control and
executive tools by means of which they defend, in particular, economic interests of their
members on a global scale.
References
Agreement on Implementation of Article VI of the General Agreement on Tariffs and
Trade (1994)
Busch, K. (2010), World Economic Crisis and the Welfare State: Possible Solutions to
Reduce the Economic and Social Imbalance in the World Economy, FriedrichEbert-Stiftung, Berlin. Available at: http://library.fes.de/pdf-files/id/ipa/07000.pdf
ECIPE (European Centre for International Political Economy)Occasional Paper 2/2011:
Chinese Trade Policy after ten years in the WTO: A post-crisis stocktake
Communication from the Commission COM (2010) of 3 March 2010 A strategy for smart,
sustainable and inclusive growth
Commission Communication COM (2010) 612/4 of 9 November 2010Trade, Growthand
World Affairs

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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo

Council Regulation (EC) No 384/96 of 22 December 1995 on protection against dumped
imports from countries not members of the European Community
Kellermann, Ch., Ecke, M., Petzold, S., (2009): A new growth strategy for Europe beyond
2010, Friedrich-Ebert-Stiftung, Berlin. Available at: http://library.fes.de/pdffiles/id/ipa/06219.pdf

6

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                <text>Evolution of the globalization process is closely connected with a  separation of free-standing and independent macro-regions of North  America, Asia-Pacific and Europe. Despite their narrow and intense mutual  economic and political contacts in the process of globalization, each of  them try to defend the interests of its own members. The European  Commission has expressed its intentions and interests in New business  strategy, introduced in November 2010. This paper shows an example of  protection of EU interests in the form of price dumping and anti-dumping  measures, whereby the two macro-regions (European and Asia-Pacific)  trying to find solutions to some of their internal economic problems.  Keywords: Anti-Dumping Measures, Globalization, New Business Strategy</text>
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                    <text>International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo

Economic Crisis and Social Issues - The use of Islam by
French politicians
Farkhad Alimukhamedov
Turgut Özal University, Ankara, Turkey
falimukhamedov@turgutozal.edu.tr
In our paper we aim to analyze how French parties use the rhetoric of
social life problematiques during economic crisis and try to avoid direct
responsability. Among the social problematiques we will focus on
especially the issues relating to Islam as Muslims are among the most used
rhetorics while economic crisis in Europe.
According to the archives of Le Monde since the year 2000 the use of the
term Islam is much higher than the use of the word Christianity and
Judaism. The same applies to the use of the word Muslim which is higher
than Christian or Jew. We find out the similar tendencies in Le Parisien, the
journal which is mostly sold in France. Islam is mostly cited term among
the religions which is unproportional to its presence in France. This shows
that Islam overpasses purely religious aspects and includes more than
other religions when it comes to its media visibility.
French politicians use the different social problems in a critical situations.
Islam is one of these easy scapegoats that is oftenly utilized by politicians
in their difficulties. This shows that from one side Islam and Muslims are
very weak in France which are unable to defend, but from the other part, it
becomes a necessary tool for all parties to participate willingly or
unwillingly on the debate related to Islam. Our work will be based on two
steps: firstly, we focus on the main critical events related to Islam in France
and analyze the positions of the main parties. Afterwards, we observe their
approaches to Islam and compare their methods and outcomes.
We believe that, economic difficulties could be resolved, but social impacts
of the crisis may remain for the decades.
Keywords: Economic Crisis, Islam, Christianity, Judaism, Europe.

112

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                <text>In our paper we aim to analyze how French parties use the rhetoric of  social life problematiques during economic crisis and try to avoid direct  responsability. Among the social problematiques we will focus on  especially the issues relating to Islam as Muslims are among the most used  rhetorics while economic crisis in Europe.  According to the archives of Le Monde since the year 2000 the use of the  term Islam is much higher than the use of the word Christianity and  Judaism. The same applies to the use of the word Muslim which is higher  than Christian or Jew. We find out the similar tendencies in Le Parisien, the  journal which is mostly sold in France. Islam is mostly cited term among  the religions which is unproportional to its presence in France. This shows  that Islam overpasses purely religious aspects and includes more than  other religions when it comes to its media visibility.  French politicians use the different social problems in a critical situations.  Islam is one of these easy scapegoats that is oftenly utilized by politicians  in their difficulties. This shows that from one side Islam and Muslims are  very weak in France which are unable to defend, but from the other part, it  becomes a necessary tool for all parties to participate willingly or  unwillingly on the debate related to Islam. Our work will be based on two  steps: firstly, we focus on the main critical events related to Islam in France  and analyze the positions of the main parties. Afterwards, we observe their  approaches to Islam and compare their methods and outcomes.  We believe that, economic difficulties could be resolved, but social impacts  of the crisis may remain for the decades.  Keywords: Economic Crisis, Islam, Christianity, Judaism, Europe.</text>
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