146
10
3494
-
https://omeka.ibu.edu.ba/files/original/4e69830f6f0c4b54c0c03ea00653ad4b.pdf
c722635a986bece7729b6032f80cf6ab
PDF Text
Text
3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Positive Attitudes of Undergraduate Students toward Online Shopping
Ali Acılar
Bilecik Şeyh Edebali Üniversitesi
ali.acilar@bilecik.edu.tr
Abstract
In recent years, computers and the Internet have become an important part of modern
societies. These technologies have influenced almost all aspects of daily life; from education
to communication, from entertainment to business. Along with the spread of the Internet use,
the acceptance of online shopping has been growing, especially in the developed parts of the
world. However, electronic commerce is still in its infancy in developing countries. In this
study, the author explored positive attitudes of undergraduate students toward online
shopping and examined the association between positive attitudes of undergraduate students
toward online shopping and their demographics variables: gender, age and income. And
attitudes of online shoppers and non-online shoppers toward online shopping were compared.
Participants of this study were undergraduate business students in a public university in
Turkey. A paper-based questionnaire was used containing five-point Likert type scale to
explore students’ attitudes toward online shopping. A total of 314 students voluntarily
participated to the study. It is found that in general participants have positive attitudes toward
online shopping. Online shoppers have more positive attitudes than non-online shoppers
toward online shopping. Generally male students have more positive attitudes toward online
shopping than female counterparts. There is a positive correlation between income level and
positive attitude toward online shopping; as monthly family income increases, participants
have more positive attitudes toward online shopping.
Keywords: Online shopping, undergraduate students, positive attitudes
1.INTRODUCTION
Electronic commerce has become a worldwide phenomenon (Mahmood, Bagchi & Ford,
2004). According to Nielsen’s 2008 report, more than 85 percent of the world’s online
population has used the Internet to make a purchase (Nielsen, 2008). The volume of businessto-consumer (B2C) e-commerce transactions has continued to increase. According to the
United States Census Bureau, the total volume of B2C e-commerce transactions in the United
States was estimated to be 298 billion dollars in 2009 with an increase of 2.1 percent from
2008 (United States Census Bureau, 2010). As a developing country, in Turkey, Internet use
and B2C e-commerce transactions have also increased. The Interbank Card Center (BKM)
reported that, in Turkey, while domestic and international e-commerce transactions with
domestic cards were total of 1.8 billion Turkish liras (TL) (The total number of transactions =
17,668,587) in 2005, it reached to 14.1 billion TL (The total number of transactions =
96,138,157) in 2010 (BKM, 2011), (1 TL is about 0.55 U.S. dollars, December 06, 2011).
40
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Online shopping has become a popular way to purchase almost everything from electronics to
books and CDs to tickets and clothing. However there are considerable numbers of people
still hesitating to buy online because of various reasons, such as security and privacy.
Security issues, online fraud, reduced opportunity for sensory shopping, the postponement of
consumption or enjoyment of tangible products until physical delivery, poor design interface,
privacy concerns, limited product selection, and lack of face-to-face interactions with
salespeople are some of the challenges that are often cited in the literature as obstacles for
B2C e-commerce (Tamimi, Sebastianelli and Rajan, 2004). Barriers to online shopping can
be categorized such as functional and psychological barriers (Rudolph, Rosenbloom and
Wagner, 2004), as the major barriers which create customer resistance to innovations do
(Ram and Sheth, 1989). According to Ram and Sheth (1989), functional barriers are likely to
arise if consumers perceive significant changes from adopting an innovation and
psychological barriers arise when the innovation causes some conflict with customers' prior
beliefs. Usage, value and risk barriers refer to functional barriers, whereas tradition and
image barriers constitute psychological barriers (Ram and Sheth, 1989).
Demographics and lifestyle characteristics of customers play an important role in their buying
habits (Mahmood, Bagchi & Ford, 2004). While gender differences exist in choosing to visit
different types of website, possibly based on the different personality traits of males and
females, these differences also exist in online shopping experiences (Yang, Lester and James,
2007). Garbarino and Strahilevitz (2004) found that females perceive a higher level of risk in
online purchasing than do males. Jen-Hung and Yi-Chun (2010) studied gender differences in
adolescents' online shopping motivations based on utilitarian and hedonic motivations
surveying high school students in Taiwan and found that males hold significantly more
positive attitudes toward online shopping on utilitarian motivations (for example,
convenience, lack of sociality and cost saving) than the females whereas, females put more
emphasis on hedonic motivations (for example, adventure, sociality, fashion and value) on
Internet consumption. Hashim, Ghani and Said (2009) found that males tend to become more
online shopper compared to females. And their study supports that while males tend to be
convenience shoppers due to the high commitment on work and study, females tend to be
recreational shoppers and would prefer to do their shopping using the conventional way
(Hashim, Ghani & Said, 2009). Rodgers and Harris (2003) revealed that females were less
emotionally satisfied with online shopping than males, most likely because females skeptical
of online shopping and did not find it as convenient as males. In their study, males reported
greater trust in online shopping and perceived the Internet as a more convenient shopping
outlet than did females. Overall, males had more positive attitudes toward online shopping
than females (Rodgers and Harris, 2003). Previous studies have reported that age also affects
attitude toward online shopping. Hashim, Ghani and Said (2009) reported that there is
significant difference on the attitude toward online shopping differentiated by age. Their
study results revealed that those who are between 30 to 39 years old do more online shopping
compared to those between 20 to 29 years old and those over 40 years old. Sulaiman, Ng, and
Mohezar (2008) found that age is one of the affecting variables in e-ticketing adoption; eticketing is more popular among consumers, age between 26 to 35 years old than 18 to 26
years-old customers. Income levels affect the Internet users’ online shopping propensity
(Zukowski and Brown, 2007). Monsuwe, Dellaert and Ruyter (2004) reported that consumers
with higher household income intend to shop more online than lower income consumers do.
Teo (2006) found that online shopping adopters tend to have higher income level than nonadopters. Mahmood, Bagchi and Ford (2004) found that the factors of trust and economic
conditions make a significant positive contribution to online shopping behavior.
41
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
While security and privacy issues continue to play an important role in affecting customers
purchasing decisions online, understanding the attitudes of Internet users toward online
shopping also important for understanding the dynamics of customers’ behavior in online
environment. In this study, the author explores the positive attitudes of undergraduate
students toward online shopping and examines the association between positive attitudes of
undergraduate students toward online shopping and their demographics variables: gender, age
and income. Attitudes of online shoppers and non-online shoppers toward online shopping
were also compared.
2.METHODOLOGY
2.1.Instrument
A paper based questionnaire was used in order to examine students’ attitudes toward online
shopping. Students’ attitudes toward online shopping were assessed using eleven five-point
Likert-scale questionnaire items (1 = strongly disagree, 5 = strongly agree) adapted from
Yang, Lester and James (2007). The questionnaire also includes demographic questions.
2.2. Participants
Participants of this study were undergraduate business students in a public university in
Turkey. Participants were selected according to convenient sampling. The participation was
voluntary and anonymous. A total of 314 respondents completed the questionnaire, of which
311 were used for the purpose of this study. The sample included 194 female students
(62.4%) and 117 male students (37.6%). The average age of the participants was 20.81
excluding missing values. Majority of the participants are experienced Internet users. More
than 70 percent of the participants have been using the Internet for more than 3 years. While
55 percent of the participants use the Internet less than 9 hours weekly, 19.9 percent of the
participants use it more than 24 hours weekly. 171 participant students (54.98%) stated that
they have been shopped online at least once.
2.3. Data Analysis and Results
The respondent students generally have positive attitudes toward online shopping. Figure 1
shows the respondents’ agreement with selected statements about online shopping.
Concerning information, majority of the participants agree that Internet provides easy access
to information about goods/services (78.8 percent) and Internet provides comprehensive
information about goods/services (71.6 percent). Regarding purchasing goods online, 79.6
percent agree that they can order things from distant places and 78.6 percent agree that they
can purchase goods at any time of the day. 68.4 percent agree that they can access to a great
variety of products. But concerning price, 55.8 percent believe that they can get better price
online. 53.7 percent believe that online shopping saves walking from store to store. And 53.7
percent agree that they can stay home and shop.
42
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Figure 1: Respondents’ agreement with statements about online shopping
Table 1 presents the results of t-test concerning participant students’ attitudes toward online
shopping regarding gender. According to the results of t-test, there were significant
differences between males and females in their attitudes toward online shopping in six items.
Generally male students have more positive attitudes toward online shopping than female
students. Males agree that online shopping saves walking from store to store more than
females do. Females do not agree that online shopping saves walking from store to store, it
requires less effort and they can get better prices as much as males do. Male students agree
that they can order things from distant places; they can purchase goods at any time of the day
and they can choose from a greater variety of models of the product more than female
students do.
1. It provides easy access to information
2. It provides comprehensive information
3. I can purchase goods and services faster
4. I can stay home and shop
5. It saves walking from store to store
6. It requires less effort on my part
7. I can get better prices
8. I can order things from distant places
9. I can purchase goods at any time of the day
10. I can choose from a greater variety of models of the product
11. I can gain access to after-sales services online
Gender
F
M
F
M
F
M
F
M
F
M
F
M
F
M
F
M
F
M
F
M
F
M
Mean
3.99
3.85
3.84
3.85
3.76
3.53
3.25
3.47
3.21
3.53
3.43
3.77
3.33
3.63
3.82
4.08
3.82
4.06
3.60
3.86
3.47
3.66
SD
0.90
1.08
0.99
1.06
1.01
1.12
1.18
1.10
1.23
1.17
1.10
0.98
1.19
1.14
1.05
0.77
1.06
0.82
1.08
0.97
1.02
1.04
Mean
Diff.
t
p
0.14
1.17
0.242
-0.01
-0.11
0.912
0.22
1.76
0.080
-0.22
-1.61
0.108
-0.32
-2.28
0.023*
-0.33
-2.77
0.006**
-0.30
-2.19
0.029*
-0.26
-2.49
0.014*
-0.24
-2.21
0.028*
-0.26
-2.23
0.027*
-0.19
-1.55
0.123
Table 1: Differences between gender groups in their attitudes toward online shopping
SD = Standard deviation, * indicates significant at the 0.05 level, ** indicates significant at the 0.01 level
43
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
1. It provides easy access to information
2. It provides comprehensive information
3. I can purchase goods and services faster
4. I can stay home and shop
5. It saves walking from store to store
6. It requires less effort on my part
7. I can get better prices
8. I can order things from distant places
9. I can purchase goods at any time of the day
10. I can choose from a greater variety of models of the product
11. I can gain access to after-sales services online
Online
shopper
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Yes
No
Mean
4.04
3.82
3.94
3.73
3.86
3.45
3.63
2.97
3.55
3.05
3.78
3.28
3.78
3.04
4.17
3.61
4.19
3.57
3.97
3.36
3.80
3.22
SD
0.90
1.05
1.01
1.02
1.02
1.06
1.11
1.11
1.22
1.16
1.01
1.07
1.11
1.13
0.87
0.99
0.87
1.00
0.93
1.09
0.93
1.06
Mean
Diff.
t
p
0.22
1.95
0.052
0.21
1.84
0.066
0.41
3.44
0.001**
0.66
5.21
<0.001**
0.50
3.69
<0.001**
0.50
4.17
<0.001**
0.75
5.84
<0.001**
0.56
5.29
<0.001**
0.63
5.81
<0.001**
0.61
5.22
<0.001**
0.58
5.06
<0.001**
Table 2: Differences between online shoppers and non-online shoppers in their attitudes toward
online shopping
SD = Standard deviation, ** indicates significant at the 0.01 level
Table 2 presents the results of t-test concerning differences between online shoppers and nononline shoppers in their attitudes toward online shopping. T-test indicated that there is a
significant difference between online shoppers and non-online shoppers. As expected, online
shoppers have more positive attitudes toward online shopping than non-online shoppers.
Regarding age and income, the results of the correlation analysis indicate that there is no
significant correlation between age and students’ attitude toward online shopping (see table
3). However, there is a significant positive correlation between monthly family income and
seven attitude items related to online shopping. It reflects that income levels have a positive
effect on students’ attitudes on shopping online, as monthly family income increases,
undergraduate students have more positive attitudes toward online shopping.
Age
Income
1
2
3
4
5
6
7
8
9
44
Age
1
-.06
.00
-.03
-.04
.07
.08
.04
.08
.01
.09
Income
1
2
3
4
5
6
7
8
9
1
.08
.12*
.04
.15**
.13*
.08
.16**
.12*
.15**
1
.86**
.59**
.35**
.27**
.27**
.27**
.39**
.34**
1
.55**
.37**
.29**
.33**
.27**
.38**
.34**
1
.51**
.44**
.31**
.40**
.43**
.38**
1
.75**
.60**
.65**
.56**
.62**
1
.69**
.64**
.60**
.58**
1
.65**
.67**
.60**
1
.65**
.63**
1
.82**
1
10
11
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
10
11
.04
-.03
.12*
.10
.32**
.26**
.29**
.27**
.34**
.34**
.50**
.49**
.48**
.50**
.52**
.56**
.57**
.51**
.62**
.62**
.70**
.62**
1
.60**
1
Table 3: Results of correlation analysis
3. CONCLUSIONS
This study, which is part of ongoing research, has investigated the positive attitudes of
undergraduate students toward online shopping. The findings suggest that in general
participant students have positive attitudes toward online shopping. It is found that online
shoppers have more positive attitudes than non-online shoppers, as expected. In general male
students have more positive attitudes toward online shopping than female students. There is a
positive correlation between income level and positive attitude toward online shopping; as
monthly family income increases, participants have more positive attitudes toward online
shopping.
The findings of the present study should be viewed in the light of its limitations. First, the
convenience sampling technique was used for the selection of the sample. Second, the survey
was conducted among students in the Department of Business Administration in a public
university in Turkey.
REFERENCES
Garbarino, E. and Strahilevitz, M. (2004) Gender differences in the perceived risk of buying
online and the effects of receiving a site recommendation, Journal of Business Research, 57,
768-775.
Hashim, A., Ghani, E. K. and Said, J. (2009) Does Consumers’ Demographic Profile
Influence Online Shopping?: An Examination Using Fishbein’s Theory, Canadian Social
Science, 5(6), 19-31.
Jen-Hung, H. and Yi-Chun, Y. (2010) Gender differences in adolescents' online shopping
motivations, African Journal of Business Management, 4(6), 849-857.
Kim, S., R. Williams and Lee, Y. (2004) Attitude Toward Online Shopping and Retail
Website Quality, Journal of International Consumer Marketing, 16(1), 89-111.
Lohse, G. L. and Spiller, P. (1999) Internet retail store design: How the user interface
influences traffic and sales, Journal of Computer-Mediated Communication, 5(2), Retrieved
August 8, 2011, from http://jcmc.indiana.edu/vol5/issue2/lohse.htm
Mahmood, M. A., Bagchi, K. and Ford, T. C. (2004) On-Line Shopping Behavior: CrossCountry Empirical Research, International Journal of Electronic Commerce, 9(1), 9-30.
Mengli, M. (2010) A Study on Factors Affecting Consumers’ Attitude Towards Online
Shopping and Online Shopping Intention in Bangkok, Thailand, Proceedings of the 7th
International Conference on Innovation & Management, 1847-1853. Retrieved May 25, 2011,
from http://www.pucsp.br/icim/ingles/proceedings/papers_2010_2.html
Monsuwe´, T. P., Dellaert, B. G. C. and Ruyter, K. (2004) What drives consumers to shop
online? A literature review, International Journal of Service Industry Management, 15(1),
102-121.
Nielsen (2008) Over 875 Million Consumers Have Shopped Online -- The Number of
Internet Shoppers Up 40% in Two Years, Retrieved August 8, 2011, from
http://www.nielsen.com/us/en/insights/press-room/2008/over_875_million_consumers.html
45
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Ram, S. and Sheth, J. N. (1989) Consumer resistance to innovations: the marketing problem
and its solutions, The Journal of Consumer Marketing, 6(2), 5-14.
Rodgers, S. and Harris, M. A. (2003) Gender and E-Commerce: An Exploratory Study,
Journal of Advertising Research, 43(3), 322-329.
Rudolph, T., Rosenbloom, B. and Wagner, T. (2004) „Barriers to online shopping in
Switzerland, Journal of International Consumer Marketing, 16(3), 55-74.
Seock, Y. K. and Norton, M. J. T. (2008) College Student’ Perceived Attributes of Internet
Websites and Online Shopping, College Student Journal, 42(1), 186-198.
Sulaiman, A., Ng, J. and Mohezar, S. (2008) E-Ticketing as a new way of buying tickets:
Malaysian perceptions, Journal of Social Science, 17(2), 149-157.
Tamimi, N., Sebastianelli, R. and Rajan, M. (2004) Examining the relationship between
demographics and the frequency of online purchasing, Proceedings of 9th Asia-Pacific
Decision Sciences Institute Conference, Retrieved July 23, 2011, from
http://iceb.nccu.edu.tw/proceedings/APDSI/2004/pdf/097.pdf
Teo, T. S. H. (2006) To buy or not to buy online: adopters and non-adopters of online
shopping in Singapore, Behaviour & Information Technology, 25(6), 497-509.
The Interbank Card Center (BKM) (2011) E-commerce Transactions, Retrieved July 23,
2011,
from
http://www.bkm.com.tr/bkmen/istatistik/sanal_pos_ile_yapilan_eticaret_islemleri.asp
United States Census Bureau (2010) E-Stats, Retrieved July 23, 2011, from
http://www.census.gov/econ/estats/2009/2009reportfinal.pdf
Yang, B., Lester, D. and James, S. (2007) British and American attitudes toward buying
Online, Oxford Journal, 6(1), 18-27.
Zukowski, T. and Brown, I. (2007) Examining the Influence of Demographic Factors on
Internet Users’ Information Privacy Concerns, In Proceedings of SAICSIT Conf.'2007, 197204.
A Study About Mobbing On Students, The Relationship Between Their Personality
Traits And Mental Status
Zeki Akinci, Osman Nuri Demirel, Yusuf Yilmaz
Akdeniz University, Turkey
E-mails: zakinci@akdeniz.edu.tr, onuridemirel@mynet.com, yusufyilmaz@akdeniz.edu.tr
Abstract
The purpose of this study is to assess the effect of psychological violence (mobbing) on the
mood of students attending colleges and on how the mood affects their traits. In this context,
the effect of the violence level as psychological impact on the mood of students was
examined in the process of personality traits. The sample group of the study consists of 250
46
�
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Extent
The size or duration of the resource.
1147
Title
A name given to the resource
Positive Attitudes of Undergraduate Students toward Online Shopping
Author
Author
Ali , Acılar
Abstract
A summary of the resource.
In recent years, computers and the Internet have become an important part of modern societies. These technologies have influenced almost all aspects of daily life; from education to communication, from entertainment to business. Along with the spread of the Internet use, the acceptance of online shopping has been growing, especially in the developed parts of the world. However, electronic commerce is still in its infancy in developing countries. In this study, the author explored positive attitudes of undergraduate students toward online shopping and examined the association between positive attitudes of undergraduate students toward online shopping and their demographics variables: gender, age and income. And attitudes of online shoppers and non-online shoppers toward online shopping were compared. Participants of this study were undergraduate business students in a public university in Turkey. A paper-based questionnaire was used containing five-point Likert type scale to explore students’ attitudes toward online shopping. A total of 314 students voluntarily participated to the study. It is found that in general participants have positive attitudes toward online shopping. Online shoppers have more positive attitudes than non-online shoppers toward online shopping. Generally male students have more positive attitudes toward online shopping than female counterparts. There is a positive correlation between income level and positive attitude toward online shopping; as monthly family income increases, participants have more positive attitudes toward online shopping. Keywords: Online shopping, undergraduate students, positive attitudes
Date
A point or period of time associated with an event in the lifecycle of the resource
2012-05-31
Keywords
Keywords.
Conference or Workshop Item
PeerReviewed
H Social Sciences (General)
-
https://omeka.ibu.edu.ba/files/original/1926e18aa89feed5568bef95d9718ff6.pdf
fbc4f66507b30a672acd84060fe0f4fb
PDF Text
Text
3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Effects Of Gender Diversity On The Growth Of The Firms In The Incubators73
Akyüz Mürsel1, Albeni Mesut1, Bozdağ Hakan1, Karaöz Murat2
1Süleyman Demirel University, Isparta, Turkey
2Akdeniz University, Antalya, Turkey, mkaraoz@akdeniz.edu.tr
E-mails: murselakyuz@sdu.edu.tr,mesutalbeni@sdu.edu.tr, hakanbozdag@sdu.edu.tr
Abstract
Factors affecting the growth of the firms are usually divided into three groups. These are
factors related firms, factors related entrepreneurial, and industry – related factors. Gender
diversity is a entrepreneurial – based factor. In this study we investigated the effect of gender
diversity on the growth of the firms. So far, in empirical studies being male or female
entrepreneurs are found to be an impact on firm performance. It appears from studies that
survival probabilities of firms founded by women are lower than those firms founded by male
entrepreneurs and firms which established by women entrepreneurs grow more slowly than
firms established by male entrepreneurs was concluded.
To measure the impact of gender diversity on growth performance of firms we used data of
business incubation firms in Turkey. Face to face interviews were conducted with companies
operating in the 12 Business Incubators around the Turkey. The sample of this study is firms
still active in business incubators, firms are closing left and was graduated from Business
Incubators.
In the application part of the study we investigated Tobit Regression Model to measure the
effect of the gender diversity on the growth of the firms. Based on findings, gender diversity
was concluded to be effective on the growth of the firms in a meaningful way.
Keywords: Firm Growth, gender diversity, entrepreneurs, firm survival, incubators.
1.INTRODUCTION
Discussions of firm growth based on very old. Gibrat launched the debate on the growth of
the firm with his work in 1931. According to Gibrat firm growth rates is independent of firms
initial scale. Today the growth of the firms is an increasingly important area of debate. To
much work has been done so far on this subject in different countries but have little or no
literature on firm growth in Turkey.
73 This study includes some results of a project supported by TÜBİTAK. We thanks to TÜBİTAK for
their supports. (The project was; “İş Kuluçkalarında Yeni Kurulan Girişimlerin Hayatta Kalma Ve
Büyüme Performansını Etkileyen Faktörler: Kosgeb İş Geliştirme Merkezleri (İŞGEM) Üzerine Bir
Araştırma, 2010”, Project Director: Professor Dr. Murat KARAÖZ)
444
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Mentioned several factors that affect firm growth. They are devoted to three main
categories. These;
Entepreneur related factors
Firm related factors
Industry related factors
Which characteristics of entrepreneur, entrepreneur’s age, educational level, past work
experience and gender as factors affecting the growth of the firm discussed in the literature of
the growth of the firm.
In this study, we will investigate the affects of the gender diversity on the growth of the
firms. Until now, most of the studies concluded that gender differences affect firm
performance. Companies founded by women entrepreneurs, they grow more slowly than
male competitors and more likely to failure is expressed. To reveal the relationship between
gender and the firm performance we carried out analyses with the firms in the business
incubators aroun the Turkey.
In the second section of the study there is summary of the literature about the relationship
between gender and firm performance. After this in the third section we estimated the Tobit
Regression analysis to measure the relationship between gender and firm growth.
2. THE RELATIONSHIP BETWEEN GENDER AND FIRM PERFORMANCE
Gender of the entepreneur founded the firm are often associated with the firm
performance. The findings shows that, firms founded by women enprepreneurs demonstrates
lower growth rates than male competitors. (Coad, 2009; 89).The works which observed the
relationship between gender and firm growth generally concludes that founder of the firm
being male or female makes performance differences..
Empirical studies shows that firms founded by women grow more slowly than firms
founded by male entrepreneurs. The small firms founded by women have an important role
especially in developing countries. In developing countries firms established by women are
less ambitious about growth and financial performance than firms founded by men (Singh,
2001).
According to a compherensive study made by Mead and Liedholm (1998) in the African
countries; firms established by male entrepreneurs grew by 11% per annum, on the other
hand firms founded by women entrepreneurs grew by 7% per annum. Study suggests that;
entrepreneur’s gender has a signifciant effect on the firms growth or survival. Chance of
survival and growth of the firms established by women, other factors fixed, is lower than
firms founded by male entrepreneurs. However, reasons of the higher proportion of closures
for the firms founded by women entrepreneurs may be personal or other non-business.
Considering only work-related reasons, does not occur any difference in closing rates.
In a study in the Dominican Republic; Firms established by men have high labor
productivity, on the other hand firms founded by women have low productivity and growth
rates. (Downing and Daniels, 1992; Edit, Nichter and Goldmark, 2009). Coad and Tamvada
(2008) similarly have done a study for Indian firms. According to the results; firms managed
by women are more likely to decline than firms managed by male entrepreneurs. Also firms
founded by the women are less likely to growth. They also have concluded that the firms
established by women grow more slowly among the growing firms.
445
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Other studies examining the relationship between gender and firm performance;
Catley and Hamilton (1998), McPherson (1996).
3. IMPACT OF THE GENDER DIVERSITY ON THE FIRMS PERFORMANCE
3.1. Sample of the Survey
Sample of our study are the firms in the business incubators around the Turkey. There are 12
business incubators around the Turkey. We investigated the firms which currently operat in
incubators, graduated from incubators and closed. There are 466 firms in the incubators in
Adana, Diyarbakır, Elazığ, Ereğli, Zonguldak, Mersin, Tarsus, Samsun, Van, Yozgat,
Eskişehir and Nevşehir. We have used the 414 questionned firms as a sample in our
investigation.
3.2. The Variables Used In
Totally 23 variables there were used in our analysis. 22 of this are independent variables. In
accordance with literature there are entrepreneur related variables, firm related variables,
industry related variables and hatchery related variables. We have made the variables
categorical. For example, if a firm have grown the value is “1”, in contrary if a firm have not
grown the value is “0”.
The “gender” variable created to measure the impact of the gender diversity on the firm
performance is concerns us even more. “gender” variable were included in the analysis with
the other variables whether there is any meaningful effect on the growth of the firm.
Table 1: Variables Used In Analysis
VARIABLE
firmgrowth
gender
lnentage
enteduuni
workexp
entexp
manexp
ortaksay
export
lnempini
onlyloan
onlyselffin
networking
yen
marka
buro
ortakhiz
danisman
446
DESCRIPTION
Dependent Variable
Firm Growth (%)
ENTREPRENEUR FEATURES
İf entrepreneur is female; 1, if male; 0 (if there are both male and
female partner; 0)
Age of the entrepreneur(if there is a partnership the odest partner
age, logarithmic scale)
Education level of the entrepreneur , If a university degree; 1, if not;
0 (if there is a partnership and if one of the partner has university
graduates; 1)
Previous working experience of the entrepreneur as a worker (year)
Previous experience of entrepreneurship (year)
Previous management experience of the entrepreneur (year)
FIRM FEATURES
The number of the partner in the venture
The company has had an export; 1, if not; 0
İnitial size of the firm (logarithmic scale)
if the initial capital is fully loan; 1, if not; 0
İf the initial capital is fully own allowance; 1, if not; 0
İf entrepreneur has made network with the firms in the incubator or
firms outside the incubator; 1, if not; 0
İf entrepreneur has made innovation; 1, if not; 0
İf firm has a trademark; 1, if not; 0
INCUBATION SERVICES
İf entrepreneur has received one office services at least in the
incubator;1, if not; 0
İf entrepreneur has received one of common services offered at
least in the incubation;1, if onot; 0
İf entrepreneur has received one of advisory services at least in the
incubation 1, if not; 0
Number of
observation
Average
Min.
Max.
351
0.12
0
1
414
0.14
0
1
367
3.64
3
4.25
414
0.31
0
1
414
414
414
8.21
5.83
6.98
0
0
0
1
40
40
414
414
392
414
414
1.24
0.10
1.31
0.26
0.26
1
0
0
0
0
4
1
5.70
1
1
414
0.62
0
1
414
414
0.41
0.19
0
0
1
1
414
0.61
0
1
414
0.64
0
1
414
0.58
0
1
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
İf fhe firm has been established within the first 36 months of
incubation was established; 1, if not; 0
The number of rash in the incubation
INDUSTRY FEATURES
Intensity of competition in the sector (Likert scale of 1-5)
İf the company in the manufacturing industry; 1, if firm in the
service sector; 0
EXTERNAL FEATURES
The share of the city’s GNP per capita İn the Turkey’s GNP per
capita (%)
İf firm has experienced already a crisis 1, if not; 0
whenest
incubsize
compete
sektor
ilrank
cycle
414
0.55
0
1
414
43.14
14
84
410
411
3.53
0.81
1
0
5
1
414
1.51
0.59
2.07
414
0.76
0
1
3.3. The Model
3.3.1. Tobit Model
Using Tobit model the growth equation will be estimated. (Tobin, 1958). In this model the
continuous observation of the values and discrete changes in the values of zero is governed
by the same stochastic process. So decisions of both growth and to continue the activities
affected by the same set of exogenous variables. Tobit Model assumes that businesses closing
as a corner solution. All these assumptions makes Tobit model such a statistically restrictive
method. (Karaöz ve Albeni, 2010).
3.4. Empirical Findings
To bring out how gender diversity affects the growth of firms firmgrowth variable was taken
as the dependent variable and gender variable was included in the analysis together with all
other independent variables. Tobit regression was estimated for this purpose. There is a high
correlation between incubation services, buro, danisman and ortakhiz variables. So they were
made separately for the regression analysis. The entrepreneur features workexp, entexp and
mangexp variables in the same way were taken separately in the analysis to put forward the
individual contributions of each variables.
gender variable was included in the analysis as independent variable to measure the affect of
the gender differencies on the growth of the firms. İf the entrepreneur is women “1” was
given as a value. On the other hand if the entrepreneur is male “0” was given as a value. (if
there is both women and male partner “0” was given as a value)
We have 351 data belonging to firms for growth datas.74 144 of these firms has grown but
207 of them has not grown.
Table 2: Grown Firms (Categorical)
fg01 (grown, not grown,
categorical)
Number
%
0 (not grown)
207
58.97
1 (grown)
144
41.03
Total
351
100.00
74 NOTE: We have not reached historical information of some companies. So there is no evidence
about growing of this firms. For that reason This is why the 351 firms were used.
447
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Firms grow and not grow were put forward categorical with the fg01 variable. İf firm has
grown “1” was given, if firm has not grown “0” was given. According to the results 144
firms in the incubators has grown. The rate of the grown firms is %41.03.
132 firms of them 144 growing firms founded by male entrepreneurs. So %91 of growing
firms was founded by men. Only 12 0f 144 growing firms founded by women entrepreneur.
This corresponds to %9 of growing firms.
Table 3: Gender and Grown Firms (Categorical)
fg01 (grown, not grown
categorical)
gender (male, female, categorical)
0 (male)
1 (female)
Total
0 (not grown)
182
25
207
1 (grown)
132
12
144
Total
314
37
351
Tobit regression analysis results are given in the table below. According to the result of Tobit
regression anlysis gender differences has a significant affect on the growth of the firm
448
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
MODEL 1
Table 4:
Tobit
Regression
Analysis
Results
MODEL 2
MODEL 3
MODEL 4
MODEL 5
Coefficients
P Values
Coefficients
P Values
Coefficients
P Values
Coefficients
P Values
Coefficients
P Values
gender
-50.52
0.192
-59.55
0.123
-64.64
0.095*
-37.94
0.332
-40.99
0.294
Lnentage
-24.53
0.668
-29.27
0.608
-22.32
0.695
-81.14
0.163
-63.50
0.254
Enteduuni
-13.47
0.610
-13.78
0.600
-16.59
0.527
-11.73
0.657
-8.45
0.751
Workexp
-0.52
0.686
-0.77
0.546
-0.82
0.521
2.31
0.169
Entexp
Mangexp
2.63
0.087*
Ortaksay
64.25
0.002***
52.83
0.013**
57.48
0.007***
63.80
0.003***
63.84
0.003***
Export
-13.65
0.714
-14.35
0.698
-7.98
0.830
-9.18
0.805
-8.38
0.823
Lnempini
-66.24
0.000
-64.82
0.000
-67.66
0.000
-68.24
0.000
-67.66
0.000
Onlyselffin
-39.57
0.137
-45.75
0.083*
-35.84
0.177
-39.91
0.128
-37.41
0.156
Network
114.27
0.001***
107.53
0.001***
113.17
0.001***
110.37
0.001***
108.77
0.001***
Yen
83.33
0.001***
83.12
0.001***
83.37
0.001***
81.88
0.002***
80.27
0.002***
Buro
87.25
0.008***
82.35
0.013**
85.11
0.010**
Onlyloan
ortakhiz
Danisman
449
123.60
0.001***
91.92
0.002***
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Sektor
-54.75
0.085*
-51.50
0.105
-60.39
0.055**
-52.18
0.101
-52.30
0.101
Compete
5.67
0.579
1.27
0.902
3.32
0.745
4.08
0.689
4.47
0.662
Marka
89.84
0.004***
88.50
0.004***
96.83
0.002***
85.04
0.006***
85.89
0.005***
Whenest
12.16
0.642
24.37
0.353
11.77
0.651
11.79
0.651
8.89
0.735
İncubsize
0.22
0.652
0.23
0.629
0.10
0.836
0.20
0.673
0.21
0.666
Cycle1
28.42
0.317
35.70
0.204
34.41
0.221
27.31
0.335
32.46
0.256
ilrank
-38.49
0.203
-47.95
0.116
-33.06
0.270
-37.36
0.216
-42.06
0.167
Log likehood
-1740.36
-1738.47
-1739.18
-1738.96
-1739.49
LR chi2(18)
126.25
130.01
128.60
129.04
127.99
Prob>chi2
0.00
0.00
0.00
0.00
0.00
Pseudo R2
0.035
0.036
0.036
0.036
0.035
*; %10 Significance of importance level , **; %5 Significance of importance level , ***; %1 Significance of importance level
450
�4. CONCLUSION
Influence of gender differences in the performance of the company has become a much discussed
topic in the literature. So far, most of the studies has concluded that gender difference affects firm
performance. Companies founded or managed by women entrepreneurs are growing more slowly
than firms founded by male entrepreneurs was concluded in the studies. Some studies suggest the
possibility of the sinking of the companies founded by women entrepreneurs is high.
According to the results of the analysis in this study (10% significance level Tobit regression
analysis model, 3) the gender gap has a significant effect on firm performance.
There are 144 growing company according to our analysis. 132 of these companies was founded
by male entrepreneurs. Whereas, there are only 12 growing firms founded by women among the
144 growing firms. So companies founded by men entrepreneurs are more likely to growth than
firms founded by women entrepreneurs.
As a result, survival and growth of women entrepreneurs are less likely than male entrepreneurs
can be said. Main reasons for this, women entrepreneurs encounter financial difficulties, women's
business experience is less than and male-dominated an economy that the structure of such
reasons.
BIBLIOGRAPHY
CATLEY, S. ve R.HAMİLTON, “Small Business Development and Gender of Owner”, Journal
of Management Development, 17(1), 1998, 75-82.
COAD, A. , “The Growth of Firms”, UK: Edward Elgar Publishing Limited, 2009.
COAD, A. ve J.P. TAMVADA, “The Growth and Decline of Small Firms in Developing
Countries”, Papers on Economics and Evolution 2008-08, Max Planck Institute of Economics,
Evolutionary Economics Group, 2008.
COASE, R. , “The Nature of the Firm”, Economica, Cilt 4, Sayı 16, 1937, s.386-405.
DOWNING, J. ve DANİELS, L. “The Growth and Dynamics of Women Entepreneurs in South
Africa” GEMİNİ Technical Report Number 47, Washington, 1992. (Edit: Nichter, S. ve L.
Goldmark, “Small Firm Growth in Developing Countries”, World Development, Sayı 37, No 9,
s.1453-64, USA, 2009.
MCPHERSON, M.A. , “Growth of Micro and Small Enterprises in Southern Africa”, Journal of
Development Economics, 48, 1996, 253-77.
MEAD, D.C. ve C. LİEDHOLM, “The Dynamics of Micro and Small Enterprises in Developing
Countries”, World Development, 26(1), 1998, 61-74.
451
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
MERRIFIELD, D.B. , “New Business Incubators, Journal of Business Venturing, 2, 1987, ss.
277-284.
NICHTER, S. , L. GOLDMARK, “Small Firm Growth in Developing Countries”, World
Development, Sayı 37, No 9, s.1453-64, USA,2009.
NISKANEN, M. ve J. NISKANEN, ‘’The Determinant of Firm Growth in Small and Micro
Firms-Evidence on Relationship Lending Effects”, School of Business and Administration,
University of Kuopio, Finland, 2005.
PENROSE E. T. , “The Theory of the Growth of the Firm”, Oxford: Basil Blackwell ve New
York: Wiley, s.76, 1959.
SINGH, A. , ve G. WHITTINGTON, ‘’The Size and Growth of Firms’’ , Review of Economic
Studies, 42(1), 1975, 15-26.
SINGH, S. P., REYNOLDS, R. G., ve MUHAMMAD, S. (2001). A gender-based performance
analysis of micro and small enterprises in Java, Indonesia. Journal of Small Business
Management, 39(2):174–182. (Edit: Coad, A. , ve Tamvada, J.P., “The Growth and Decline of
Small firms in Developing Countries”, Papers on Economics and Evolution, Max Planck Institute
of Economics Evolutionary Economics Group, 2008.)
SINGH, S.P. vd. , “A Gender-based Performance Analysis of Micro and Small Enterprises in
Indonesia”, Journal of Small Business Management, 39(2), 2001, 174-82.
TOBİN, J. (1958), “Estimation of Relationships for Limited Dependent Variables”,
Econometrica, 26 (1), pp. 24-36.
TÜBİTAK Projesi ( Proje Yürütücüsü: Murat Karaöz), “İş Kuluçkalarında Yeni Kurulan
Girişimlerin Hayatta Kalma ve Büyüme Performansını Etkileyen Faktörler: KOSGEB İş
Geliştirme Merkezleri (İŞGEM) Üzerine Bir Araştırma”, TÜBİTAK Projesi, Ara Rapor, 2010.
YILMAZ, F. , “Güç İlişkileri ve Firma Teorisi”, Ankara Üniversitesi SBF Dergisi, Cilt 57, Sayı
1, 2002, ss.157-76.
452
�
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Extent
The size or duration of the resource.
1352
Title
A name given to the resource
Effects Of Gender Diversity On The Growth Of The Firms In The Incubators73
Author
Author
Akyüz , Mürsel
Abstract
A summary of the resource.
Factors affecting the growth of the firms are usually divided into three groups. These are factors related firms, factors related entrepreneurial, and industry – related factors. Gender diversity is a entrepreneurial – based factor. In this study we investigated the effect of gender diversity on the growth of the firms. So far, in empirical studies being male or female entrepreneurs are found to be an impact on firm performance. It appears from studies that survival probabilities of firms founded by women are lower than those firms founded by male entrepreneurs and firms which established by women entrepreneurs grow more slowly than firms established by male entrepreneurs was concluded. To measure the impact of gender diversity on growth performance of firms we used data of business incubation firms in Turkey. Face to face interviews were conducted with companies operating in the 12 Business Incubators around the Turkey. The sample of this study is firms still active in business incubators, firms are closing left and was graduated from Business Incubators. In the application part of the study we investigated Tobit Regression Model to measure the effect of the gender diversity on the growth of the firms. Based on findings, gender diversity was concluded to be effective on the growth of the firms in a meaningful way. Keywords: Firm Growth, gender diversity, entrepreneurs, firm survival, incubators.
Date
A point or period of time associated with an event in the lifecycle of the resource
2012-05-31
Keywords
Keywords.
Conference or Workshop Item
PeerReviewed
H Social Sciences (General),HB Economic Theory,HG Finance,HJ Public Finance
-
https://omeka.ibu.edu.ba/files/original/ba794ea282194819e0032dfd57c587c0.pdf
dd0aa0160c601614ff744e51c00fa60d
PDF Text
Text
3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
TCMB (2012) Elektronik Veri Dağıtım Sistemi (EVDS), www.tcmb.gov.tr
Utkulu U. (2003) Türkiye’de Bütçe Açıkları ve Dış Ticaret Açıkları Gerçekten İkiz mi?
Koentegrasyon ve Nedensellik Bulguları”, D.E.Ü. İİBF Dergisi, 1(18), 45–61.
Sever, E. And M. Demir (2007) Türkiye’de Bütçe Açığı ile Cari Açık Arasındaki İlişkilerin
VAR Analizi ie İncelenmesi, Eskişehir Osmangazi Üniversitesi İİBF Dergisi,2(1),47-63.
Vamvoukas, G. (1999) The Twin Deficits Phenomenon: Evidence From Greece, Applied
Economics,31, 1093-1100.
Zengin, A. (2000) İkiz Açıklar Hipotezi (Türkiye Uygulaması), Gazi Üniversitesi Ekonomik
Yaklaşım Dergisi,11(39), 37–67.
The Eu Integration And The Monetary Union: Why England Don’t Join The Euro
Akcay Ekrem Yasar1,Akman Elvettin2,Akman Cigdem2
1Ankara Unıversity,Ankara/Turkey
2Suleyman Demirel University,Isparta/Turkey
E-mails: ey_akcay@hotmail.com,elvettinakman@sdu.edu.tr, cigdemargun@sdu.edu.tr
Abstract
EU which was established in 1957 with Rome Treaties and in 1992 with Maastricht
Treaty made process from economic union towards political union, also has tried considering
the harmony many issues such as agriculture, commerce. One of these issues is monetary
union.
Within the Monetary Union that came into make its plans in 1969 and it was thought
that could prevent the cycle and consider the common monetary policy. In this framework, in
1979, The European Monetary System was established and then in 1986 within the Single
European Act, this process continued and in 1992 with Maastricht Treaty it became clearer.
Then in 1997, The European Monetary Institute was established and finally in 1999,
EURO was accepted as monetary unit for EU members. Now, 17 members put the EURO
account but England hasn’t yet. There are many causes about this issues such as political,
economics, social, national interests. for England. In addition, this issue or policy effected the
other relationships of England.
Keywords: EU, England, The Monetary Union, EURO, National Interests.
1. INTRODUCTION
The idea of integration in Europe begins with Dante in the 13. Century, embodied by the
Organization for European Coal and Steel established by the Treaty of Paris (ECSC) after
World War II in 1951 and the European Economic Community (EEC) established by Treaties
of Rome in 1957, the Union lived an important process of deepening and enlargement over
time (Akçay, Akman and Argun, 2011).
268
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
The Union that also goes the political integration with the Maastricht Treaty signed in 1992
and took the name of European Union (EU), started common policy in many areas such as
Common Foreign and Security Policy, Common Commercial Policy, Common Monetary
Policy for providing integration by all means. The foundation of the Common Monetary
Policy which appears as one of these policies was implemented in the 1960s; concrete steps
have been taken in 1999 by the acceptance and implementation of the euro as the currency
(Karluk and Tonus, 1998).
Economic crisis that has started in 2008 and influenced and many Community member
countries such as Greece, Italy, influenced the world in general and the European Union in
particular. Although many countries use the euro especially in a period when the future of the
euro and the European Union is discussed, Britain's not use despite being a member of the
Unity, is seen in the current situation provides an advantage to England.
Our study focuses on why Britain doesn’t use the euro. In this sense, in our study, initially the
Community's Common Monetary Policy’s historical process will be addressed, then British
perception of the Community and the Common Monetary Policy will be mentioned and
finally the question of why Britain did not want to use the euro will try to be answered.
2. Common Monetary Policy’s Historical Development Process
The basis of the Common Monetary Policy are taken to the period starts with La Haye
Summit in December 1969 and report that was prepared under the chairmanship of postperiod Luxembourg Prime Minister Pierre Werner and was named as "Werner Report". By
the report that was completed in October 1970, Common Monetary Policy which is planned
up to 10 years in three-stage is intended. The main objective of the Common Monetary Policy
has been the liberalization of capital movements, fixing exchange rates and the creation of the
single currency (Karluk and Tonus 1998).
While the Common Monetary Policy is being designed in this way, the collapse of the Bretton
Woods system in August 1971 and U.S.A.’s let to dollar fluctuate have created instability and
made it difficult to make planned things. In this sense, monetary integration had been arrested.
Thereupon, in March 1972, member states proposed the concept monetary snake "(Snake in
the tunnel) (Gavin, 2002; Möckli, 2009). Accordingly, this system is the fluctuation of
national coins against U.S. dollars, in a narrow margin (the tunnel). (snake) However, the oil
crisis was lived during this period and the weaknesses of the dollar have completed this
process, and a Mark region consists Germany, Benelux countries, Denmark was created
(Karluk and Tone, 1998).
Then, monetary integration was replicated with the support of France and Germany in 1979
and as a concrete step European Monetary System was established (Tunçsiper and Ruby,
1998). This system is based on fixed but adjustable exchange rates. All member states except
Britain, has been included in this system. However, this system that is applied about 10 years
did not create much change.
A committee chaired by J. Delors who is the president of the European Commission was
established at the European Summit in 1988 in Hanover, for economic and monetary
integration and a report was presented in April 1989. According to this report, establishing an
institution that is responsible for economics, political coordination, national budget deficits
and monetary policy was suggested.
269
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
In the light of this report and proposal, starting the first phase of the Economic and Monetary
Union was decided at the Madrid Summit in June 1989 and even the United Kingdom is
against, fully liberalization of capital movement in eight member states until 1 July 1990 was
intended (Karluk and Tonus, 1998).
However, with the Maastricht or European Union Treaty that was signed after the Maastricht
Summit in 1992 Community came into a political integration process and completion of
Common Monetary Policy process within a calendar was decided.
In addition, in 10 January 1994, member states have agreed to the concrete but non-binding
rules about the approximation of the economic policies. In parallel with these steps, European
Monetary Institute was established for the coordination of monetary policy. After that, related
to the single monetary policy, the national central banks have been left to the European
System of Central Banks created by the European Central Bank and this structure has taken
the place of the European Monetary Institute.
Volatility in the U.S. dollar in 1995 has show that a single monetary policy is needed in the
European Union and required, the decision of pass of the member states before 1 January
1999 to a single monetary policy that has been called "Euro”, is held at the Madrid Summit
carried out at 15-16 December 1995 and the Amsterdam Summit in 1997. The design of euro
banknotes that was accepted in 1999 passed in 2002 and while initially 12 member countries
were participated in Euro, this number today has became 17. (Erçel,
http://www.tcmb.gov.tr/yeni/banka/emu/SORULAR5.html, 2012).
3. View of England to the EU and the Common Monetary Policy
England, throughout history, didn’t look at to an integration that will be lived in Europe too
hot. Because both it doesn’t consider such an integration could be achieved and doesn’t want
the presence of another power in continental Europe except it.
Historically, Commonwealth countries are important for both commercial and foreign policy
in England. Commonwealth countries, has a share of 43% in British trade (Gavin, 2002). But
the main point in here is that England makes cheap agricultural policy with the
Commonwealth countries. In this sense, when look at to Europe, the Common Agricultural
Policy, is a policy that is under the influence of France, and more expensive than Britain's
Commonwealth policy. Because of expensiveness of Europe Common Agricultural Policy
and scarcity of agricultural land in England, and therefore the fact that England will receive
less money from Europe, than it pays, Britain was not hot to the issue, it has created
hesitation. Because this policy will create a deficit on the balance of payments in England
(Young, 2000).
However, deteriorating relations with Commonwealth countries of England in time led it to
the EEC. In fact, although United Kingdom wasn’t hot for EEC membership, it wanted to
make a Free Trade Agreement with the EEC and thus close the trade deficit by continuing
relations with the countries of the Commonwealth. However, the integration of Britain with
EEC delayed due to political events such as both the common agricultural policy, both the
pound and the Fouchet Plan area, Nassau Agreement with the EEC (Young, 2000).
While England was trying to establish a relationship with the EEC, on the other hand, it tried
to continue its relationship with countries of the Commonwealth. One of the important
reasons of this is for this is Sterling Area. England uses Sterling in trade with Commonwealth
countries and also uses excess of the sterling appears in the Commonwealth countries as a
270
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
result of being deposited to London banks, in the banking system and tries to eliminate trade
deficit (Young, 2000).
As addition to this, when it is looked to international conjuncture at the inter-war period,
economic disturbances, and crises carried the world to the World War II, and the world is
connected to dollars by Bretton Woods system that was made after war. With this system,
members of the IMF were attached to a certain extent to the dollar and it was called the fixed
exchange rate. With this system, states were connected their money to dollar, their dollars to
the gold. Now, countries have excess of dollar at the end of trade started to take back this
excess (Gavin, 2002).
In this environment, even though Great Britain caught up advantage with the Pound Sterling
Area, this situation began to deteriorate in 1949. Commonwealth countries wanted to convert
their money in dollars but because of the absence of enough dollars in the hands of England, it
was forced to devalue. In fact, Britain didn’t want to devalue, and resisted until the last point.
In this sense, it banned the exits to abroad for tourism, made restriction of the sterling,
restricted military expenditures, even began to withdraw from east of Suez. Because
devaluation will be a significant loss of prestige for a strong state such as Britain. However,
when the situation deteriorated, it had to go to the devaluation. By the devaluation, moneys
value was devalued against other currencies, the price of manufactured goods was reduced
over other currencies and exports have been encouraged (Parr, 2006). In this case although
trade deficit is reduced and it also increases the value of reserves, Commonwealth countries
that have more Sterling in their hands suffered a loss and England that is a major financial and
banking center has experienced the loss of prestige. In addition, although it tries to reduce its
burden of military spending by making offset agreements with Germany, it couldn’t be
successful, and in 1967 it was forced to make one more devaluation (Zimmermenn, 2000).
Britain's EEC approach was been as result of this situation but was rejected by De Gaulle
because of the political and economic reasons
At the same time, the dollar was connected to gold by the Bretton Woods system and gold
wase demanded with the dollar surplus but because of the absence of gold reserves in the U.S.
that will do so, United States began to fall into difficulty. When U.S.A. considered that it
couldn’t protect the gold, it also directed to Germany like Britain and has worked to alleviate
its burden by Offset Agreements. However, the devaluation in England in 1967 put also the
United States into trouble. Because sterling is now transformed into dollar. Thereupon, when
De Gaulle wanted to exchange gold in its hand to gold for political reasons, the United States
lived a little more trouble and provided not to be gold demanded by applying pressure (Gavin,
2002; Hoffmann, 1964). In the meantime, Britain turned its famous banking infrastructure
into a structure that based on dollars and has become the world's second largest market in
dollar reserves. In other words, Britain now tied up its everything in dollars and became
dependent on dollars by transforming into a structure that is finance dominated than industry
4. Instead of conclusion: Britain and the Euro
Britain, whose EU membership was rejected by the French leader De Gaulle because of
political and economic reasons between 1963 and 1967, became a member of the community
after the death of De Gaulle in 1973. Since this date, although it is a member of the
Community, it approached cautiously because of particularly the Community's Common
Agricultural Policy (even it participates) and Common Monetary Policy.Because, also called
two policies may cause ill effects at England's trade policy and the banking system such as
trade deficit, deterioration in the balance of payments
271
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Although, England who connected itself to the U.S. dollar in terms of financial and banking
system and convert its system from Sterling into dollars as the world's second largest dollar
reserves, being a member of the community, it didn’t obey the Community's common
monetary policy especially, refused to use the euro came into force in 1999.
Britain's entry into the agricultural policy would harm Commonwealth countries, which have
an important place with Britain, both politically and commercially. Britain that has already
been damaged by the Community's agricultural policy, is working to resolve this situation by
regional development policies (Eraktan, 2006).
If we look at in terms of the Common Monetary Policy, Britain’s which is so dependent to
U.S. Dollar; inclusion to Euro will cause its damage in terms of economic, political and
prestige. In the environment that the EUROZONE whose basis was constructed by The Hague
Summit in 1969 and Werner Report, became a threat to the EU’s future by recently living a
difficult test because of the crisis, it is a fact that it provided a significant advantage to
England.
Eu Economic Integration Process Of Macedonia
Agim Mamuti
International Balkan University (IBU),Skopje, Macedonia
agim.mamuti@yahoo.com
Abstract
The purpose of this research is to provide a general overview of the accession process with a
special reference to the economic integration and the challenges of the Republic of Macedonia
in the road of joining the European Union.
The European Council of December 2005 granted the status of candidate country to the
Republic of Macedonia. The Stabilization and Association Agreement (SAA) between the
Republic of Macedonia and the EU was signed in April 2001 and entered into force in April
2004. The Council adopted the Accession Partnership for the country, including key priorities
for reform, in February 2008. In October 2009, the Commission recommended to the Council
to open negotiations with the country, as well as to move to the second phase of SAA
Implementation. These recommendations were reiterated in 2010. The Council has not yet
concluded its deliberations on the Commission's proposals. Visa liberalization for citizens
travelling to the Schengen area has been in force since 19 December 2009.
The country has a small, open economy, with total trade in goods and services recovering to a
level of 114% of GDP in 2010, following the 2009 recession. Trade integration with the EU is
advanced, with about 63% of all exports currently going to and about 53% of imports
originating from the EU. The CEFTA region is the country's second most important trading
region, accounting for around 24% of exports and around 10% of imports. The export
structure continues to be highly concentrated on a limited range of products, with textiles and
clothing accounting for about 17% of total exports and manufactured iron products for 26% in
272
�
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Extent
The size or duration of the resource.
1333
Title
A name given to the resource
The Eu Integration And The Monetary Union: Why England Don’t Join The Euro
Author
Author
Akcay , Ekrem Yasar
Abstract
A summary of the resource.
EU which was established in 1957 with Rome Treaties and in 1992 with Maastricht Treaty made process from economic union towards political union, also has tried considering the harmony many issues such as agriculture, commerce. One of these issues is monetary union. Within the Monetary Union that came into make its plans in 1969 and it was thought that could prevent the cycle and consider the common monetary policy. In this framework, in 1979, The European Monetary System was established and then in 1986 within the Single European Act, this process continued and in 1992 with Maastricht Treaty it became clearer. Then in 1997, The European Monetary Institute was established and finally in 1999, EURO was accepted as monetary unit for EU members. Now, 17 members put the EURO account but England hasn’t yet. There are many causes about this issues such as political, economics, social, national interests. for England. In addition, this issue or policy effected the other relationships of England. Keywords: EU, England, The Monetary Union, EURO, National Interests.
Date
A point or period of time associated with an event in the lifecycle of the resource
2012-05-31
Keywords
Keywords.
Conference or Workshop Item
PeerReviewed
H Social Sciences (General),HB Economic Theory,HG Finance,HJ Public Finance
-
https://omeka.ibu.edu.ba/files/original/f5f9f679db9fd3ed52ccf52375d25035.pdf
f3d17ee44529b830f54edf7b006f849f
PDF Text
Text
Sustainable Consumer Behaviour in the UK
-In general and in relation to outdoor equipment and vehicle accessoriesAjla Ćosić1,Hana Ćosić2
International Burch University, Sarajevo,Bosnia and Herzegovina,
Scuola Superiore Sant’ Anna, Pisa, Italy
Emails: ajlacosic@gmail.com, hana.cosic@gmail.com
Abstract
Sustainability is becoming an important factor to consider while buying different products such
as outdoor equipment and vehicle accessories. Also there is a growing awareness that business
side should take an important role in promotion of sustainable consumer behaviour.
This paper investigates sustainable consumer behaviour in general and in relation to outdoor
equipment and vehicle accessories in the UK. It explores sustainable consumer behaviour through
50 phone interviews with retailers in outdoor equipment and vehicle accessories over the UK.
The findings reveal there is a large awareness on sustainability issues in the investigated
segments. Also there is willingness to pay more up to 20 % more for products with sustainability
features in the outdoor equipment and vehicle accessories. Moreover projections on development
of sustainable consumer behaviour are very positive. Business plans for more sustainable
consumption include an increase in number of products with sustainability features and following
manufacturers.
The paper concludes with some reflections on how sustainable consumption behaviour should be
promoted from the business side and gives recommendations for the businesses in the
investigated segments.
Keywords: sustainable consumer behaviour; the UK; outdoor equipment; vehicle accessories;
interviews.
1.INTRODUCTION
Every day, sustainable consumption and sustainable production are becoming more and more
important and at the same time they are helping us to move toward sustainable development.
Over the years, majority of people have realized that their purchasing behaviour had a direct
impact on the global warming, climate change and other ecological problems Michel et al (2001).
Maybe this is one of the reasons why people are becoming more and more aware about
sustainable consumption, and its positive impact on the whole society. In our opinion consumers
are the main drivers that will help us to move towards more sustainable production and
consumption. This is one of the reasons why we chose to do a research on the sustainable
consumer behaviour in the UK because we think that sustainable development can help us to
improve the quality of life of present and future generations.
1
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
The purpose of this paper is to determine sustainable consumer behaviour in the UK in general
and in relation to outdoor equipment and vehicle accessories. We think sustainable consumer
behaviour is of extreme importance for the future as consumers are drive force of consumption.
In this paper we will try to answer through secondary and primary data:
what is level of environmental awareness in the UK
where is the UK among other countries in sustainable consumer behaviour
how important is sustainability in consumer’s purchasing decision making in general and
in the outdoor equipment and vehicle accessories segment
analyze sustainability as a trend few years ago and now
check what are plans from business perspective in terms of sustainability
1.1.What is sustainability?
Sustainability plays an important role in our every day life. Hundred years ago people did not
know much about sustainability, but today sustainability is a wide ranging term that can be
applied to every segment of our life.
The concept of sustainability was first discussed in 1983 in corporate agenda via the UN
Commission on Environment and Development, where the term of sustainable development was
defined as development that “meets the needs of the present without compromising ability of
future to meet their own needs” (United Nations, 1987). Today they are many discussions and
debates about sustainability, and sustainable development describing various approaches and
solutions, but when it comes to implementation rare are those who follow those sustainable rules
and principles. Whether we want to accept or not, sustainability is global issue that should
concern all of us, and that we should work together towards achieving global solution.
Beside the widely accepted definition there are also three types of sustainability and they are:
social, economic and environmental as stated (United Nations General Assembly, 2005).
Social- Social sustainability is related to retention of social capital. This social capital
according to many scholars is called moral capital. To have social sustainability achieved it is
required to share values and provide equal rights as well as to promote cultural and religious
interactions by the society (Wiley, 2009).
Economic- One of the most accepted views on economic sustainability is maintaining the
level of capital which can be easily explained by the Hick’s definition of income where the
amount of income that person can consume and be as well off at the end of the period
(Burgess,2003).
Environmental- Environmental sustainability includes natural capital such as water,
minerals, ecosystems which are often converted to economic capital (Nordhaus, 1994).
In this paper environmentally friendly products mean a wide range of different sustainability
features incorporated not just environmentally friendly features. We have done this as many
studies that are investigating sustainable consumer behaviour name products that have
2
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
incorporated sustainability features environmentally friendly products. In our paper as well,
environment is considered as a wide concept including all three perspectives on sustainability.
1.2.What is sustainable consumption?
Today there are many signs that consumption issues are becoming of central concern for
business. Currently we are living in an era in which global consumption patterns are
unsustainable. In order to avoid this and bring global consumption to a sustainable level many
changes are required both from consumers and producers. Changes are required but not just in
technology, it will also be required in consumer lifestyles, including ways in which consumers
choose and use products and services. This is a big challenge, but we think that business should
take a leading role and try to move toward more sustainable levels and patterns of consumption.
One of the propositions how this could be done is that business should use their current business
processes such as innovation, communication and marketing and by working together with
consumers, governments and stakeholders they can define and achieve more sustainable lifestyle
(WBCSD, 1997).
To meet the challenges of sustainable development, business should help consumers to choose
and use their goods and services sustainably. In order to do so, business should create sustainable
value for their consumers offering them products and services that will meet their functional and
emotional needs but at the same time respecting environmental limits and common values
(WBCSD, 1997).
When global drivers of consumption come to the role, business should consider rapid global
population growth, because world population is projected to reach 9 billion by 2050 (UNDP,
2008).
1.3.Why there is a need for sustainable consumer behaviour?
Recent studies show that we are already exceeding the Earth’s ability to support our lifestyles,
and have been doing so for approximately twenty years (WWF, 2006).
Also there are predictions that the supply of energy and material resources needed for industrial
growth, such as natural resource consumption is expected to rise to 170% of the Earth’s biocapacity by 2040 (WWF, 2006). So this is a big challenge and task for us, it can be solved only if
we see the importance of sustainable consumption.
The projections mentioned previously should help us to answer the question: Why do we need
sustainable consumption?
However it is good to know that consumer’s attitudes and behaviours are changing over the last
two decades. Consumers are increasingly concerned about environmental, social and economic
issues, and increasingly willing to act on those concerns. According to recent studies 96% of
3
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Europeans say that protecting the environment is important for them personally. Two-thirds of
this group say that it is “very important” (European Commission, 2008). In the UK, 18 % of
consumers are willing, able and motivated to take action on environmental issues.
The role of consumers and their willingness to change is a key driver in this process.
2.LITERATURE REVIEW
2.1.Available surveys and studies in the UK- National geographic surveys
For our study it is important to see how the UK is ranked in worldwide studies and surveys on
sustainable consumer behaviour. One of these studies is Greendex.
National Geographic conducted Greendex survey in January 2009. This survey is a world wide
tracking survey on consumer choice and the environment. One of the findings of this survey is
that consumers are paying more attention to sustainability as their knowledge improves.
This survey tracks behaviour in 65 areas related to four major categories housing, transportation,
food and consumer goods (Greendex, 2009).
When it comes to overall results for the 14 countries included in this survey in 2008, overall
results showed there is an increase in environmentally friendly consumer behaviour in 2009.
This tells us there is an upward trend in sustainable consumer behaviour. Overall green index for
Great Britain was a slight increase from 2008 to 2009 from 48.2 to 49.4 points, what ranked it at
the 13th place out of 17.
According to this survey (Greendex, 2009) there are two main reasons for the improvements of
results. These are cost considerations and environmental concerns.
2.2.DEFRA survey from 2007
DEFRA is the Department for Environment Food and rural Affairs in England and it released a
Survey of Public Attitudes and Behaviours in England in 2007. This study covers what customers
think and how they behave in relation to different environmental issues. It covers for each
different section attitudes, behaviours and barriers. In this paper we will summarize findings
(DEFRA, 2007) from three different sections that are relevant to our topic. These will be attitudes
and knowledge in relation to the environment, transport and eco-friendly purchasing.
In each section of this survey respondents were asked on their attitudes towards eco-friendly
purchasing.
4
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Results showed that 52 % of respondents agreed or tended to agree that they ‘try not to buy
products from a company whose ethics they disagree with’. Also 45 % of respondents agreed
they would be prepared to pay more for environmentally friendly products’, but at the same time
over a quarter disagreed. This shows there is a mix of consumers who would be willing to pay
more and those who would not.
To test their attitudes respondents were then asked on their behaviours in eco-friendly
purchasing.
We think these results are expected as there in the UK Fair trade development is helped by
government programme for sustainable development.
This study also asked on barriers that stopped people from purchasing environment friendly
products and the first barrier was price. 47 % of respondents said these products are too
expensive. The second barrier was lack of availability with less than 12 % of respondents
answering. The third barrier was a lack of labelling.
Again we think that attitude and behaviour gap repeated as larger proportion of respondents said
that it would pay and then minority said it would not pay.
3.METHODOLOGY
As our task is to investigate and try to determine sustainable consumer behaviour in the UK in
general and in relation to the outdoor equipment and vehicle accessories segment, we can say that
we will use both secondary and primary data.
Secondary data will be used to answer questions more in general about sustainable consumer
behaviour in the UK. Different studies, books, journal articles and legislature documents will be
used (e.g. OECD (Organization for Economic Co-operation and Development) and WBCSD
(World Business Council on Sustainable Development)).
We decided to collect data in three different types of stores as we think they are in a close
relationship. We collected data through phone interviews in the outdoor equipment (Patagonia’s
stores), vehicle accessories (Thule’ stores) and car stores (Toyota’s, Volvo’s and BMW’s).
We think that all the three selected type of stores will give us more knowledge about sustainable
consumer behaviour in the outdoor equipment and car and vehicle accessories segment as they
are related. For example customers need vehicles to transport their outdoor equipment and they
will use vehicle accessories (for example Thule’s) such as bike carriers or ski carriers. Also they
need outdoor equipment such as Patagonia’s products to perform outdoor activities. We think that
we can get better knowledge if we connect all these three and then draw conclusions.
In addition to phone interviews with retailers/managers we did phone interviews with experts on
sustainable consumer behaviour in the UK that will help us to deepen our knowledge and
understanding on sustainability and sustainable consumer behaviour in the UK.
As we intend to measure consumer behaviour, through open ended questions we can find out a lot
about this from our respondents. To achieve content validity we did literature searches on this
5
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
topic and pretested open ended questions. Literature searches helped us to have adequate
coverage of our topic and pretested open ended questions helped us to get more valid questions.
As this paper investigated sustainable consumer behaviour in the UK in the outdoor equipment
and cars and vehicle accessories segment the same set of questions were used in the both
segments to get consistent results. Also to improve reliability, a test retest method was used. The
same questions we asked to the same group of respondents (retailers/experts) at different points
in time. With multiple sources reliability of this paper will be improved.
3.1.Strengths and weaknesses
Given that many discussion papers and studies showed misleading sustainable consumer
behaviour through consumer surveys/interviews where consumers tend to show ‘right behaviour’
and not the real, using phone interviews with retailers can be considered as a strength.
We think that phone interviews with retailers/mangers will answer us through their experience
how important is sustainability for customers, are they willing to pay more, how much more but
at the same time check through their experience trend, what sustainability feature are customers
interested in and similar. Also as this is an opportunity to listen to the business side we can find
out about their plans when it comes to sustainability in the next years.
The main weakness of this method is that we are investigating consumer behaviour indirectly by
not asking consumers. We will lose opportunity to learn directly from consumers about
sustainable consumption in the UK. Moreover we will lose opportunity to learn more about the
main barriers for sustainable purchasing behaviour.
All in all, we think that from phone interviews with retailers/managers and experts in this field
combined with secondary data, we can learn a lot about sustainable consumer behaviour in the
UK. Also we think that our findings can be useful for the business side (producers and
distributors) especially in the investigated segments of outdoor equipment, cars and vehicle
accessories.
We think that our research is exploratory and unique because as far as we know, no similar study
that investigates sustainable consumer behaviour in relation to outdoor equipment and car and
vehicle accessories in the UK has ever been done before.
3.2.Sampling procedure and data collection
The study was conducted between 6 and 11 May 2010 in the UK. The population for this study is
defined as all retailers/managers of Patagonia’s, Thule’s, Volvo’s, Toyota’s and BMW’s dealer
stores in the UK. Over 260 of these retailers in the outdoor equipment and car and vehicle
accessories were randomly selected in the UK. They were interviewed via phone.
6
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
During randomization, it was considered to cover larger geographical area in the UK.
From 260 called retailers only 50 of them replied. Initial plan was to conduct interviews with
100 retailers/managers but response rate was unexpectedly low.
Our assumption for this low response rate is lack of knowledge and fear that it will not be done as
it should.
From 260 phoned interviewees 170 were selected in the Patagonia’s dealer stores, 30 in the
Thule’s dealer stores, and 60 in the different car dealers’ stores. In total 50 interviewees were
conducted which gives 20 % response rate. This will decrease our sample representativeness of
population in the selected segments.
We need to mention that the lowest response rate was in vehicle accessories stores in the Thule’s
dealer stores. Out of 30 only 3 replied and it was only 10 % response rate. Our assumption is that
sustainability is not developed in this segment and that by conducting these interviews we had a
feeling that retailers/managers were even a bit afraid to talk about sustainability. In addition to
this, probably they lack of products that have sustainability features incorporated.
From these 50 who responded, 37 were with the selected retailers/managers in the Patagonia’s
dealer stores, 3 were with the Thule’s and 10 were with different car dealers.
This research is of a qualitative type. However we will show graphs with statistics to get better
understanding and quality of analysed data. To get more reliable results interviewers were asked
the same questions. To increase reliability verbatim answers on all questions are available in the
Appendix.
Our phone interviews contained 6 questions for the selected retailers/managers.
4.RESULTS
4.1.Summary of main findings
Sustainable consumer behaviour in the outdoor equipment and car and vehicle accessories in the
UK
in the both segments over two thirds of respondents said sustainability is either fairly or very
important for customers
in the car and vehicle accessories ‘very important’ was the most frequent answer with slightly
less than half of respondents, while in outdoor equipment ‘fairly important’ was the most
frequent answer with slim majority of respondents
We can say that when combined these segments, sustainability is important for customers while
purchasing goods in the selected segments.
in the outdoor segment around 70 % of respondents said that customers are willing to pay more
for sustainability features, comparing to 85 % of respondents in the car and vehicle accessories
7
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
A customer buying products in these segments is willing to pay more for sustainable features.
the most frequent willingness to pay is up to 5 % more in the outdoor segment and maximum
willingness to pay is 20 % more
in the car and vehicle accessories maximum willingness to pay is 10 % more and the most
frequent answer was that is hard to quantify how much customers are willing to pay more
When combining these two, we can say customers are willing to pay more but with differences in
the maximum willingness to pay, probably due to differences in the base price.
slightly over 50 % of respondents said market for sustainable products or sustainable consumer
behaviour developed gradually or in an upward trend direction over the last few years in the
outdoor segment, comparing to one third of respondents who said it did not change-‘fairly steady’
in the car and vehicle accessories segment 38 % respondents said it developed well over the last
few years, while one third said it did not change
When comparing these two we can assume that the outdoor equipment market for sustainable
products is more developed.
in prediction of development for this market or sustainable consumer behaviour in the outdoor
equipment segment slightly less than 40 % of respondents think it will be an upward trend
In the car and vehicle accessories almost two thirds see it as an upward trend
This difference is probably due to lower development in the past years in the car and vehicle
accessories segment. When we combine result, we can say that respondents see it as an upward
trend. It is important to mention that mostly price is a barrier for predictions for non development
or a very slow development of this market.
Vast majority of respondents in the both segments said customers are interested in sustainability
features and they ask about these.
In the outdoor equipment the most frequent sustainability feature is recycling. Other two
important features are longevity and whether product is organic.
Fuel efficiency and lower emission are the most frequent features that customers are interested in
the car and vehicle accessories segment.
When combining results for sustainability features we can say they are pretty different. Probably
this is because of different products offered. But basically for the outdoor equipment customers
are interested in recycling, organic and longevity, while in the car and vehicle accessories
customers are interested in fuel efficiency (probably due to costs) and lower emission.
8
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Plans from the business side for the future when it comes to sustainability in the outdoor
equipment segment were again in recycling direction with around 40 % of respondents. Either to
increase more products made from recyclable materials or to improve recycling in their business
activities. Other two most frequent plans were for energy saving, probably cost driven and the
third group of these plans are related to customer-manufacturer actions. This is an important
piece of information for manufacturers.
In the car and vehicle accessories segment a third of respondents said their plans are
manufacturer driven. Other third said to increase number of hybrid and fuel efficient cars. We
think that in the both segments when combined there is an important message for producers that
managers want to increase their offers of environmentally friendly products. Moreover their plans
are also manufacturer driven, so it is up to manufacturers to increase their offers of products with
sustainability features.
4.2.Comparison of our study results to other study results
Our first question was testing customers’ attitudes towards sustainability. Our study results were
positive as in the outdoor equipment around two thirds of respondents said that for customers
sustainability is either fairly or very important. Similar results were also in the vehicle accessories
and car segment where around two thirds of respondents said that sustainability is either very or
fairly important for customers. Other studies found similar results when testing attitudes of
customers. A study done by PricewaterhouseCoopers (2008) found that over 80 % of 4 thousand
customers surveyed, demonstrated awareness and concerns about sustainability issues.
Moreover in a study done by DEFRA (2008) where consumers were asked on their attitudes on
eco-friendly purchasing, 52 % strongly agreed or tended to agree that they “try not to buy
products from a company whose ethics they disagree with”. We think our results even though
with much smaller sample are similar with other study results and it shows its larger reliance.
When comparing our results for the second question on willingness to pay for more
environmentally friendly products again we have similar results as other studies. In our study we
found that over two thirds of customers in the both segments are willing to pay more for
environmentally friendly products.
There are similar results in a study done by DEFRA (2008) where 45 % of respondents, strongly
agreed or tended to agree that they ‘would be prepared to pay more for environmentally friendly
products’.
In this study (DEFRA, 2008) over a quarter of respondents disagreed that are not ready to pay
more. In our study results are similar as one third of customers are not willing to pay more for
environmentally friendly products.
As it is important to have an estimate on percentage that customers are willing to pay we will see
also check other study results. In the PwC study (2008) top six UK grocery’s products were
9
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
examined and it was found that price premium was over 40 % for some environmentally friendly
products.
In our study we found that maximum willingness to pay for environmentally friendly products is
20 % price premium in the outdoor segment, but it is important to say that this was only 10 % of
respondents. On the other hand in the car and vehicle accessories segment maximum price
premium is 10 %. The most frequent price premium is 5 % in the both segments.
Moreover PwC study (2008) found that willingness to pay a social or environmental premium on
everyday items was closer to c.20 %. This is similar to our results that showed a premium of 20
% for the outdoor segment and a lower premium of 10 % for the car and vehicle accessories
segment as prices are larger.
Also one more study showed similar results on customer willingness to pay more for
environmentally friendly products. In the EU Commission study (EU attitudes, 2008) results
showed that customers would pay more for environmentally friendly products: 7 in 10 said they
would be willing to pay up to 20 % more. Our findings about customer willingness to pay more
for environmentally friendly products also showed that around 70 % of customers are willing to
pay more to 20 % more.
In our third study question retailers/managers were asked about development of this market for
sustainable products or in more general sustainable consumer behaviour over the last few years.
Over 50 % of our respondents in the outdoor equipment said it developed gradually or it is an
upward trend. In the car and vehicle accessories segment around 40 % said it is an upward trend.
For our study it is important to mention that growth is present in Fairtrade and organic clothing
purchase in the UK. There is a growth from 2005 to 2008 from 7 % of shoppers to 17 % in 2008
(PwC, 2008).
Also we asked our respondents on development’s projection of market for environmentally
friendly products. Results showed that over half of respondents said they think it will be an
upward trend or a gradually increase in the outdoor equipment. Moreover in the car and vehicle
accessories segment there are even more positive projections. More than a half of respondents see
an upward trend in the market for sustainable products.
We think these results could be taken seriously as results of a study (EUbarometer, 2008) showed
that consumers clearly show that want to buy more sustainable products in the future. In this
study 58 % said they want to buy more environmentally friendly products.
The most frequent sustainability feature that customers are interested in the outdoor equipment
segment was recycling. It seems that other study results showed similar results. For example in
the Greendex survey (2008) the British were among the top three countries when it comes to
recycling actions undertaken. It seems that recycling is very present in the UK and that customers
usually relate it to sustainability features.
10
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Also over the 30 % of the EU citizens, among them the British were the most likely to select
minimising waste and recycling as the actions having the greatest impact on solving
environmental problems (EU barometer, 2008).
DEFRA's (2008) results showed that 71 % of respondents were engaged in recycling more and
intended to continue to do the same in the UK.
Other sustainability features in our study were longevity, the way products are produced, where
products are produced, packaging and similar results were found in other survey. A survey done
by (PwC, 2008) showed that customers care more about what they buy, how it is made, what it is
made from, how far it travels and how it is packaged.
Also in the car and vehicle accessories segment customers want to have more fuel efficient cars
as our study results showed. Also some other studies showed that people are reluctant to change
their behaviour in transportation sector and that people just love convenience of car use (DEFRA
2008&Greendex 2009).
However we found through our interviews that customers are largely affected by taxes on fuels
and they want to pay lower taxes especially for companies’ cars.
In our analysis we showed some statements that showed us a large influence of regulations on
retailers/managers.
Our study results showed that the business sustainability plans were in direction of recycling and
energy efficiency in the outdoor equipment segment. In the car segment plans are to increase
offer of fuel efficient and hybrid cars.
It seems again as other studies showed that the business side plans are in a large proportion in
direction of recycling (EUbarometer, 2008).
Also customers and manufacturer driven was something that was found in our study.
It seems that statistics were very similar to some other studies but we think beside these statistics
we have more knowledge about sustainable consumer behaviour in the UK and especially in the
selected segments through statements.
5.CONCLUSION
Going through different perspectives we saw that sustainable consumer behaviour in the UK is
very important.
Investigating the existing EU’s and the UK’s regulation we found it is changing over the past
years.
At the EU level there is a sustainable consumption and production programme that includes
different areas of action. In the UK there is a national sustainable development plan and many
other instruments explained that will encourage greater sustainable consumption.
After giving a background intro to the mentioned issues, we then started with investigation of
sustainable consumer behaviour in the UK.
Firstly, the world tracking survey on sustainable consumer behaviour was analysed.
11
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
This was National Geographic survey Greendex.
After checking the UK’s ranking in the worldwide survey, we then investigated sustainable
consumer behaviour in the UK only.
The main findings of this survey were that environmental awareness increased and the British are
more aware of the environmental issues. Also it was found that they are starting to buy more
environmentally friendly products. When it comes to actions that are undertaken mostly British
are undertaking recycling. Also this survey showed reluctance of changing transportation
behaviour because the British like to travel by car.
But as these surveys were more in general not related to any specific segment of the industry, we
did our own research in the outdoor equipment and car and vehicle accessories segment.
Results showed that in the both segments outdoor equipment and car and vehicle accessories
sustainability is important for customers. Over two thirds in the both segments said sustainability
is either fairly or very important for customers.
When analyzing customers’ willingness to pay, again around two thirds in the both segments said
that customers are willing to pay more for sustainable products. Also there are some respondents
who did not quantify how much customers are willing to pay more.
The most frequent willingness to pay for environmentally friendly products in the outdoor
equipment was up to 5% more, comparing to car and vehicle accessories of 5-10% more.
However maximum willingness to pay was larger in the outdoor equipment with 20 % more,
while in the car and vehicle accessories this was up to 10 % more.
Probably this is due to larger prices in the car and vehicle accessories segment. We also need to
mention that from this answer we found out that price is the main barrier while purchasing
sustainable products.
Also we found this through the interviews with experts on sustainable consumer behaviour in the
UK.
Our respondents in the both segments told us that market for environmentally friendly products
developed well over the last few years. This answer was in less than a half of the sample. When
analyzing projection on development of this market in the future, more positive projections were
in the car and vehicle accessories segment. In this segment around 40 % respondents said they
see it as an upward trend. This can tell us maybe that the outdoor equipment segment is better
developed. But as this customer can be in the both segments we can expect better development
for the car and vehicle accessories segment.
In the outdoor equipment segment recycling is the sustainability feature that customers are mostly
interested in, comparing to fuel efficiency in the car and vehicle accessories segment. It seems
there is a large percentage of customers that think recycling is important sustainability feature.
Other two studies, DEFRA’s and Greendex showed similar studies.
Also in the both segments many retailers related their plans with sustainability to government
regulations and following the same.
12
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
When asking about plans regarding sustainability in the outdoor equipment segments recycling is
again the most frequent answer. On the other hand in the car and vehicle accessories segment
plans are to increase number of fuel efficient cars and hybrid cars and to follow what
manufactures do.
We think this is an important piece of information for manufacturers that retailers will follow
what they do.
Through interviews we found there is a shifting from niche products sustainable market to
mainstream products market. This is important for the segments that we investigated, as we think
it is more mainstream product market.
Based on our research we think there is going to be positive development of market for products
having incorporated sustainability features.
Our research showed there is a large awareness about sustainability features in the selected
segments. Also customers are willing to pay more for environmentally friendly products in the
both segments. It is important to say that still price is a barrier for more sustainable products
purchase. Supported with our study results currently products with sustainable features
incorporated are overpriced. We think if prices would be up to 10 % more in the investigated
segments, this would be a winning combination for more sustainable consumer behaviour in the
UK.
Also it is important to mention that manufacturers of the products in the selected segments can
produce more products that have sustainability features incorporated. We say this as our results
showed there is a large awareness among customers on sustainability in the selected segments.
Moreover also retailers have plans to increase their offers of products that have sustainability
features incorporated and to follow what manufacturers will do.
Our projections about development of sustainable consumer behaviour in the UK are very
positive. In the future probably also regulations will be stricter. Probably customers will demand
more products that have sustainability features incorporated.
Doing nothing for the business side in the outdoor segment and car and vehicle accessories is no
longer an option. We think consequences of doing business unethically or in an environmentally
unfriendly manner in the investigated segments can be large in the long run.
All in all we think future will bring more sustainable consumer behaviour in the UK in general
and in the outdoor equipment and vehicle accessories. Business side should seriously involve in
this market in order not to lose the game and market share. With all market players’ involvement,
consumers, businesses and regulators we will witness more sustainable consumption that can lead
us to more sustainable development in the future.
REFERENCES
Andersen, 1972, ‘The socially conscious consumers’ Journal of Marketing, vol.36, no.7, pp. 2331
Burgess, Jacquie 2003. Sustainable Consumption: is it really achievable? Consumer
Policy Review 13(3), 78-84.
13
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Banerjee, B. and McKeage, K. 1994, ‘How green is my value: exploring the relationship between
environmentalism and materialism’, in Allen, C.T. and John, D.R. (Eds), Advances in Consumer
Research, Association for Consumer Research, Provo, UT, Vol. 21, pp. 147-52.
Berkowitz and Lutterman, 1968, 'The Traditional socially responsible personality', Public
Opinionion Quarterly, vol. 126 no. 32, pp.85-169.
Burgess, Jacquie 2003. Sustainable Consumption: is it really achievable? Consumer
Policy Review 13(3), 78-84.
Chan, K. 1999, ‘Market segmentation of green consumers in Hong Kong’, Journal of
International Consumer Marketing, Vol. 12 No. 2, pp. 7-24.
Consumers International, 2007, GlobeScan/CSR Monitor
DEFRA 2007, 2007 Survey of Public Attitudes and Behaviours Toward the Environment
[Online]
Available
at:
http://www.defra.gov.uk/evidence/statistics/environment/ensurvey/index.htm
[ Accessed 10 May 2010].
DfT (Department for Transport) 2006, Fuel efficient cars, . [Online] Available at:
http://www.dft.gov.uk/gcda/cars/greenCars.php [Accessed 12 May 2010].
EUbarometer 2009, European’s Attitudes Towards the Issue of Sustainable Consumption and
Production, [Online] Available at: http://ec.europa.eu/publicopinion/archives/ebs/ebs295en.pdf [
Accessed 12 May 2010].
EU commission 2008, Sustainable Consumption and Production- a challenge for us all, [Online]
Available
at:
http://ec.europa.en/environment/eussd/esc_en.htm
[Accessed 30 April 2010]
European Commission Directorate General Environment, 2008, Eurobarometer 295, Attitudes of
European Citizens towards the Environment
FLO 2005, Fair Trade Labelling Organisation, Fair Trade in Europe
14
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
2005: Facts and Figures in 25 European Countries
Greendex 2009, Consumer Choice and the Environment – A Worldwide Tracking Survey
[Online] Available at: http://www:nationalgeographic.com/greendex/
[ Accessed 5 May 2010].
Greendex 2009, Consumer Choice and the Environment – A Worldwide Tracking Survey
[Online] Available at: http://www:nationalgeographic.com/greendex/
[ Accessed 5 May 2010].
Market Basket 2009, Consumer Choice and the Environment- Market Basket Report
[Online] Available at: http://www:nationalgeographic.com/greendex/marketbasket
[ Accessed 5 May 2010].
Nordhaus 1994, Managing the global commons, Cambridge University Press, UK.
Michael et al, 2001, ‘Targeting consumers who are willing to pay more for environmentally
friendly products’, Journal of consumer marketing, vol. 18 no. 6,
[Online] Available at: http://www.emerald-library.com/ft [ Accessed 28 April 2010].
United Nations Development Programm(UNDP),1998, Human Development Report – Special
Report on Sustainable Consumption
Henion,1972, ‘The effect of ecologically relevant information on detergent sales’ Journal of
Marketing, vol.9, no.2, pp. 10-14.
Jackson, 2005, What Motivates Consumers
Laroche M., Toffoli, R., Kim, C. and Muller, T.E. 1996, ‘The influence of culture on proenvironmental knowledge, attitudes, and behaviors: a Canadian perspective’, in Corfman, K.P.
and Lynch, J.G. (Eds), Advances in Consumer Research, Association for Consumer Research,
Provo, UT, Vol. 23, pp. 196-202.
Market Basket 2009, Consumer Choice and the Environment- Market Basket Report
[Online] Available at: http://www:nationalgeographic.com/greendex/marketbasket
[ Accessed 5 May 2010].
15
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Maloney, M.P. and Ward, M.P. 1973, ‘Ecology: let’s hear from the people: an objective scale for
the measurement of ecological attitudes and knowledge’, American Psychologist, Vol. 7, pp. 5836.
MamboTrack,
2009,
Mambo
Track
online
survey,
[Online]
Available
at:
http://www.marketingcharts.com/topics/behavioral-marketing/green-consumers-still-willing-topay-more-for-natural-and-organic-products-7260/ [ Accessed 18 May 2010].
Michael et al, 2001, ‘Targeting consumers who are willing to pay more for environmentally
friendly products’, Journal of consumer marketing, vol. 18 no. 6, viewed 28 April 2010,
http://www.emerald-library.com/ft
McCarty, J.A. and Shrum, L.J. 1994, ‘The recycling of solid wastes: personal values, value
orientations, and attitudes about recycling as antecedents of recycling behavior’, Journal of
Business Research, Vol. 30 No. 1, pp. 53-62.
Nordhaus 1994, Managing the global commons, Cambridge University Press, UK.
OECD (Organization for Economic Co-operation and Development) 2007, Improving the
Environmental Performance of Public
Procurement: Report on Implementation of the Council
Recommendation.
OECD (Organization for Economic Co-operation and Development) 2008, Promoting
Sustainable Consumption – Good Practices in OECD countries, [Online] Available at:
http://www.oecd.org.dataoecd/1/59/40317373.pdf [Accessed 5 May 2010].
Online Etymology Dictionary, Douglas HarperDictionary, 2010 . [Online] Available
at:http://dictionary.reference.com/browse/sustain [Accessed 2 May 2010].
PetrolPrices 2009, Fuel tax in the UK [Online], http://www.petrolprices.com/fuel-tax.html
Accessed 25 April 2010].
PricewaterhouseCoopers 2008, Sustainability: Are Consumer buying it?
[Online]
Available
at:
http://www.pwc.co.uk/eng/publications/sustainability_are_consumers_buying_it.html [ Accessed
15 May 2010].
16
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Sandhl, 1989, ‘Social determinants of environmental concern: specifications and test of the
model’ Environment and Behavior, vol. 21, no.1, pp.57-81.
Schwartz, S.H. 1994, ‘Are there universal aspects in the structure and contents of human
values?’, Journal of Social Issues, Vol. 50 No. 4, pp. 19-45.
Sustain 2009, Fair trade certified products. [Online] Available at:
http:// www. sustainweb.org/fairtradeschools/fair-trade_certified_products/[ [Accessed 20 May
2010].
Swedish Environment Advisory Council (SEAC) (2007), Gender Equality as a Prerequisite for
Sustainable Development
Schwartz, S.H. 1994, ‘Are there universal aspects in the structure and contents of human
values?’, Journal of Social Issues, Vol. 50 No. 4, pp. 19-45.
United Nations General Assembly 1987, Report of the World Commission on Environment and
Development: Our Common Future. [Online] Transmitted to the General Assembly as an Annex
to document A/42/427 - Development and International Co-operation: Environment. Available at:
http://www.un-documents.net/wced-ocf.htmRetrieved [Accessed 15 November 2009].
United Nations Development Programm(UNDP),1998, Human Development Report – Special
Report on Sustainable Consumption
United Nations General Assembly. 2005 World Summit Outcome. [Online] Resolution A/60/1,
adopted by the General Assembly on 15 September 2005. Available at:
http://www.un.org/summit2005/documents.html [Accessed 10 November 2009].
Vining, J. and Ebreo, A. 1990, ‘What makes a recycler? A comparison of recyclers and
nonrecyclers’, Environmental Behavior, Vol. 22, pp. 55-73.
WBCSD, 1997 Sustainable Production & Consumption from a Business Perspective
WBCSD 2008, Sustainable Consumption Facts and Trends, [Online] Available at:
http: //www.wbcsd.org/templated/ TemplateWBSCD/layoutap?MendID=1
[Accessed 25 April 2010].
17
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Women’s Environmental Network (WEN) 2007, Women’s Manifesto on Climate Change
Wiley
2009,
Social
sustainability.
[Online]
Wiley.
http://eu.wiley.com/legacy/wileychi/egec/ [Accessed 20 April 2010].
Available
at:
WWF-UK, 2006, Let Them Eat Cake: Satisfying the New Consumer Appetite for Responsible
Brand
Wiley
2009,
Social
sustainability.
[Online]
Wiley.
http://eu.wiley.com/legacy/wileychi/egec/ [Accessed 20 April 2010].
Available
at:
WBCSD 2008, Sustainable Consumption Facts and Trends, [Online] Available at:
http: //www.wbcsd.org/templated/ TemplateWBSCD/layoutap?MendID=1
[Accessed 25 April 2010].
WWF-UK, 2006, Let Them Eat Cake: Satisfying the New Consumer Appetite for Responsible
Brand
Persuade to Buy: Implications for Online Advertising
Alma Jeftić1, Dženan Đonko
International University of Sarajevo1, Faculty of Arts and Social Sciences,
71000 Sarajevo, Bosnia and Herzegovina
E-mail: ajeftic@ius.edu.ba
Abstract
The aim of this article is to explore the development of a variety of online advertising tools and
the implications that the characteristics of these tools have on their effectiveness, as well as to
discover how important are the amount and nature of cognitive processing that a person does
about a persuasive message in order to determine the kind of persuasion that occurs.
Even though advertisements are a necessary and important component of the Internet, most users
are merely concerned with the quality of online experience and do not appreciate pop-up ads.
However, the majority of previous researches in the area of online advertising lack in application
of psychological theories of information processing and attitude change. This article seeks to
explore the connection between cognitive processing and consumers' online experience as well as
behaviour change in order to provide the most important factors that attract customers. The study
18
�
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Extent
The size or duration of the resource.
1358
Title
A name given to the resource
Sustainable Consumer Behaviour in the UK -In general and in relation to outdoor equipment and vehicle accessories-
Author
Author
Ajla , Ćosić
Abstract
A summary of the resource.
Sustainability is becoming an important factor to consider while buying different products such as outdoor equipment and vehicle accessories. Also there is a growing awareness that business side should take an important role in promotion of sustainable consumer behaviour. This paper investigates sustainable consumer behaviour in general and in relation to outdoor equipment and vehicle accessories in the UK. It explores sustainable consumer behaviour through 50 phone interviews with retailers in outdoor equipment and vehicle accessories over the UK. The findings reveal there is a large awareness on sustainability issues in the investigated segments. Also there is willingness to pay more up to 20 % more for products with sustainability features in the outdoor equipment and vehicle accessories. Moreover projections on development of sustainable consumer behaviour are very positive. Business plans for more sustainable consumption include an increase in number of products with sustainability features and following manufacturers. The paper concludes with some reflections on how sustainable consumption behaviour should be promoted from the business side and gives recommendations for the businesses in the investigated segments. Keywords: sustainable consumer behaviour; the UK; outdoor equipment; vehicle accessories; interviews.
Date
A point or period of time associated with an event in the lifecycle of the resource
2012-05-31
Keywords
Keywords.
Conference or Workshop Item
PeerReviewed
H Social Sciences (General)
-
https://omeka.ibu.edu.ba/files/original/790acea8b5889fc8a21f4d5073f010a1.pdf
534a7caff2f5e3a66e428c5e1686c29b
PDF Text
Text
3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Facilitating Competitiveness and Change in the Global Environment Proceedings. Global
Business
and
Technology
Association,
pp.
838–844.
Available
at:
http://sari_r2.web.ibu.edu.tr/yayinlarim/Energy%20Soytas_Sari_Ozdemir.pdf.
Soytas, U., Sari, R., 2009. Energy consumption, economic growth, and carbon emissions:
challenges faced by an EU candidate member. Ecological Economics 68(6), 1667-1675.
''Sustainable Development Projects as Opportunity for Economic Development of
Bosnia and Herzegovina''
Ajdin Perčo, Erkan Ilgun
International Burch University, Faculty of Economics
71000, Sarajevo, Bosnia and Herzegovina.
E-mails: ajdin_tesanj@hotmail.com
Abstract
The global climate changes as a worldwide phenomena are on the top of the agenda of most
states and international organizations. The adverse effects we currently feel and even worst
things to come are stressing the need for action and firm resolution of this problem. In this
sense, the need for ‘’environment friendly’’ energy is becoming top priority and renewable
energy sources are in high demand. Furthermore, many countries are noticing this as a
development potential and are investing in this sector. One of these countries is Bosnia and
Herzegovina with its unlimited natural resources including wind, water etc. This paper will
analyze ongoing and planed projects in the area of renewable energy and economic benefits
Bosnia and Herzegovina will experience from it. Furthermore, after the adoption of Kyoto
Protocol and creation of state agency Bosnia and Herzegovina is now eligible to apply for
CDM (Clean Development Projects). These projects are financed by developed countries and
are to be implemented in developing countries. It goes without saying that this is enormous
opportunity for Bosnian companies and agencies to apply for these projects and bring foreign
investments that will boost domestic economy. Besides this, the journey of Bosnia and
Herzegovina towards European Union is requiring various laws to be adopted and
implemented. One of these laws are rules and regulations related to the various aspects of
climate changes and ways on how to combat climate changes. Financial incentives that
European Union is providing to ‘’green energy’’ companies and renewable energy sources are
additional motivation for Bosnia and Herzegovina to develop this are furthermore. Thereby in
this paper I will address the current issue of climate changes and the need for renewable
energy sources. Special focus will be on Bosnia and Herzegovina and the opportunities for
economic development available through investing and working on ‘’green energy’’ and
renewable energy projects. I will analyze current projects and future planned projects and
their impact on economic development of Bosnia and Herzegovina. The focus of the research
will be on various documents, projects and analysis currently available for this purpose. The
main finding is that Bosnia and Herzegovina is truly a country with great potential for
investments in renewable energy projects and the research paper will provide abundance of
arguments for this statement.
27
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Keywords: sustainable development, developing countries, Bosnia and Herzegovina,
renewable energy, ‘’green energy’’ projects, economic development, CDM (Clean
Development Mechanisms)
1. INTRODUCTION
Global climate changes are a long term changes in weather conditions including temperature,
rain, wind, level of water etc. According to many scientists and organizations including
United Nations Intergovernmental Panel on Climate Change (IPCC) these changes are mainly
caused by human actions that include increased level of greenhouse gas emissions.
Furthermore, scientists are predicting temperature increase in the range of 1.1 to 6.4 ºC
depending on the extent of the current greenhouse gas emission (The Carbon Neutral
Company, 2012).
Main sources of greenhouse gas emission are fossil fuel burn, industrial processes, waste
disposal, and traffic. The emitted gas is contained within Earth’s atmosphere and that way the
temperature is increasing and producing adverse effects. At the next stage, these adverse
effects will result in the extreme weather conditions, destruction of biodiversity, expansion of
desert area, rising sea level, spread of diseases, and possible disappearance of Gulf Stream. It
is obvious that the dramatic events will occur unless humanity find new ways to combat
climate change problems. One of the solutions offered is the concept of ‘’environment
friendly’’ energy that will provide new sources of energy. In the following part, we will
briefly examine the various sources of this type of energy.
2. Concept of ‘’Environment Friendly’’ Energy
‘’Environment friendly’’ energy or ‘’green energy’’ is usually considered to be made of the
following technologies and processes: biomass, solar energy, hydropower etc. Biomass as a
renewable energy source is biological material from living, or recently living organisms
(Biomass Energy Centre, 2011). Biomass energy derived from organic substances has been
used for thousands of years as from the moment when people started to use wood for cooking
and heating. Even today the wood is most important source of biomass energy. However,
many other materials including plants, wood industry waste and organic component of
industrial scrap are usable for production of biomass energy. Next technology is solar energy
has been used since the ancient times through the application of evolving technologies. Solar
energy technologies include solar heating, solar photovoltaic, solar thermal electricity and
solar architecture, which can make considerable contributions to solving some of the most
urgent problems the world now faces (Solar Energy Perspectives: Executive Summary, 2011).
Hydropower is mostly associated with the production of electricity through use of energy of
falling water. Energy produced this way is called hydroelectricity and it is being produced
with the use of dams. Bosnia and Herzegovina did not use its entire hydropower potential
since it is using only 40% of available capacity which is low level compare to some other
countries. In year 1991 there was 11 small dams which represented only 4,4% of available
capacities. However in the last few years there is rapid expansion in building of small dams
with hundreds of projects being constructed or waiting for approval. In year 2008, Bosnia and
Herzegovina operated with 14 big dams and with several of small dams that generate total
28,3 MW of electricity (Energis, 2010). Finally, wind power is the process of conversion of
wind energy into a practical form of energy. This can be done in several ways but mostly used
are wind turbines for production of electricity, windmills for mechanical power, and wind
pumps for drainage.
28
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
3. Global Trends in Sustainable Development Projects Investments
Sustainable development projects are attracting interests of investors and there has been a
steady rise in the funding of these types of projects. The projects being financed include
biomass, geothermal and wind generation projects, hydro projects, solar projects, marine
energy projects, and biofuel projects. According to analysis conducted by Bloomberg, year
2010 was record setting in the amount of money of $211 billion being invested into
sustainable development (Bloomberg New Energy Finance, 2011). These funding were used
into various areas including: technology research and development, manufacturing scale up,
production etc. Furthermore, striking feature occurring in the couple of last years is the fact
that developing countries overtook developed countries in terms of investments. This has been
mostly due to China heavily investing into various projects amounting up to $48.9 billion
(Bloomberg New Energy Finance, 2011). As time goes on, the interest for sustainable
development projects can only increase and attract more investors from both governmental
and private sector.
4. THE OVERVIEW OF RENEWABLE
DEVELOPMENT PROJECTS IN BIH
ENERGY
AND
SUSTAINABLE
4.1. Hydropower Potential
Small dams, along with biomass energy, are currently the most significant source of
renewable energy in BiH, and their development should be a priority when defining strategy
and policy for the sector of renewable energy. There are various evaluations about the
potential of small dams but there are no major differences between them. In the past studies of
JP EPBIH (conducted prior to year 1992) the hydro potential of BiH is evaluated around
99.256 HWh/year, technical potential of 23.395 GWh/year, and of which 2.599 GWh/year is
related to small dams with installed power of 700 MW that could be achieved by building
around 800 small dams with average capacity of 700 MW (Aleksandar Knezevic and Martin
Tais ,2007). According to study of EPBiH, technical potential of rivers eligible for small dams
construction is around 100 MW or 12.64% of total hydro potential of BiH. According to
ADEG, the potential for small dams construction is estimated on 1,004.63 MW or 3.519,74
GWh. Out of this, Federacija of BiH posses 2.090 GWh, and Republika Srpska 1.430 GWh.
Also, according to ADEG, a study has been conducted for around 160 locations for small
dams, and estimated capacities of those facilities were around 122 MW, which is 552 GWh of
electric power (Aleksandar Knezevic and Martin Tais ,2007).
4.2. Biomass energy potential
The most significant source of biomass for the purpose of energy production is a wood and
related waste produced in lumber industry. However, remaining of biomass from agriculture
also represent a substantial energy potential especially in the regions of northern, central, and
southern Bosnia and Herzegovina. Prior to year 1991, big companies from lumber industry
used wooden waste to produce steam within their own facilities and using available
technology. However, these facilities are now outdated and they run business creating huge
losses, or are completely shut down. The most detailed analysis has been done through
EU/FP6/INCO/ADEG project, and in the table below we can see the results (57% of the
potential is related to Federacija BiH, while 43% to Republika Srpska). Besides this
evaluation, it is worth of noting that assessment for the waste solely from lumber industry are
around 4,45 mil.m3 (Aleksandar Knezevic and Martin Tais ,2007). However it must be noted
29
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
that none of the evaluations clearly defined what kind of potential is being described, whether
it is theoretical, technical, economic, or ecological potential.
4.3. Solar energy potential
Bosnia and Herzegovina on average has around 1840.9 solar hours, while on the south that
value is even higher and is around 2352.5 h/y. Theoretical potential for solar energy in BiH is
around 74.65 PWh which is 1.25 greater than the total of primary energy necessary for
Federacija BiH. Bosnia and Herzegovina is country with favorable conditions when it comes
to radiation of sun heating. According to available data, the sun is annually transmitting 1,250
kWh of energy in northern Bosnia, and 1,600 kWh energy in southern Bosnia. It is reasonable
to claim, considering the declining costs, that number of installed solar panels in BiH by ear
2015 could reach the area of 50 000 m2. This capacity could annually produce around 33
GWh of solar energy.
5. CDM Projects in Bosnia and Herzegovina
The view that human activities have resulted in global climate changes is supported by current
scientific thinking (NRC, 2011). From the onset of industrial revolution till the present days
of mass production, the damage to environment that industry caused has been immense. Since
the level of climate change has reached dangerous level, it was of utmost importance to
address issue on a global scale. At this point, The United Nations Framework Convention on
Climate Change has been produced in 1992, and Kyoto Protocol subsequently adopted in
1997.
Beside national laws, Kyoto Protocol established market based mechanisms to combat the
climate changes. Those measures include the following:
Emission trading
Clean Development Mechanism (CDM)
Joint Implementation (JI)
We will focus on Clean Development Mechanism which is allowing Annex I countries to
meet their target by investing globally into emission reduction projects. Through this
mechanism the Kyoto Protocol is offering industrialized countries cost-effective way of
reducing their emission and it benefits developing countries with new investments, and
thereby CDM is ‘’important instrument in fight against climate change’’(Schneider, 2007)
CDM projects can earn credits, so called CER (Certified Emission Reduction), where each
credit is equivalent to one tone of CO2. Credits can then be sold to contracted parties within
Annex B of Kyoto Protocol. In order for project to earn CER, it must present verified analysis
that will prove that the carbon emission reduction occurred, its proven and that the project is
solely responsible for that reduction.
Bosnia and Herzegovina ratified UNFCCC on May 17, 2000. The Kyoto Protocol was ratified
on April 22, 2007, after lengthy procedure that included ratification of agreement by various
state levels. But due to complicated procedures, BiH constituted Designated National
Authority only in September, 2011. Because of this delay the country missed investments
worth in millions of Euros that were part of Clean Development Mechanism (CDM). Head of
UNDP Regional Office in Banja Luka stated that ‘’the establishment of the DNA enabled
Bosnia and Herzegovina to start implementing the CDM projects of about EUR 400 million
30
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
worth investments’’ (UNDP, 2011). Since Bosnia is non-Annex I country it is thereby eligible
to receive investments that are to reduce carbon emission, but has no any obligations to
reduce level of emission. The economic benefits would be worthy as it would boost economy
and create additional jobs. Furthermore, Bosnia has a great potential in renewable energy
sources including wing and solar energy. The region of Hercegovina is especially favorable to
renewable energy projects and by developing high quality CDM projects, Bosnian companies
have chance of attracting foreign investments.
6. Activities of EU and other international organizations
The biggest challenge of the modern era both globally and more profoundly in EU is the issue
of climate change, growing dependence on energy import, and restriction on free access to
energy resources. European Union prepared and is currently implementing ambitions energy
policy – the one that includes full spectrum of energy sources ranging from fossil fuel, nuclear
energy, and renewable energy (solar, wind power, biomass, geothermal energy, hydro power)aimed at starting new industrial revolution that will create economy with lower energy needs.
Bosnia and Herzegovina is clearly oriented toward EU integration. Led mostly by its
participation in The Energy Community Treaty for South Eastern Europe, BiH made some
important steps in adjusting its energy system and market mechanisms to the international
standards listed in international treaties, policies and best practices. Beside ECT SEE which
also includes signing certain EU rules for energy sector, BiH signed Stabilization and
Association Agreement (SAA) with EU, Energy Charter Treaty (ECT) and Protocol on
Energy Efficiency and Related Environmental Aspects (PEEREA), ratified Kyoto Protocol, as
well as many other international treaties. Those other treaties and projects include cooperation
with Instrument for Pre-Accession Assistance (IPA) funds, UNDP, World Bank, EBRD,
KfW, bilateral projects of technical assistance etc.
Another influential international organization that is playing its part in BiH when it comes to
sustainable development and renewable energy projects is GEF (Global Environmental
Facility). GEF has been founded in 1991 as a international financial mechanism for financial
and technical help to the developing countries with the aim of helping them achieve
international treaties they signed. Bosnia and Herzegovina is also participating in GEF, and
the following projects are currently being implemented: ''National Capacity Self Assessment
for Global Environmental Management’’, ‘’Promoting Energy Efficiency in Buildings’’,
‘’BiH Biomass Energy for Employment and Energy Security Project’’, and ‘’Preparation of
the Initial National Communication the United Nations Framework Convention on Climate
Change – UNFCCC’’.
7. CONCLUSION
As presented through this paper, the renewable energy projects and sustainable developments
have truly a great potential for economic development of Bosnia and Herzegovina. Through
the development of different kind of green energy, participation in CDM Projects, and
partnership with EU, Bosnia and Herzegovina can truly develop its economy and create new
jobs. Nevertheless, it is important to note that the country still did not use even the smallest
available potential in this area and there is still a long way ahead. But the prospects for the
future are good and look promising. In the coming period there will be a need for greater
involvement of state in this sector. The modern laws harmonized with EU regulations will be
31
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
key in enabling Bosnia to attract foreign investments in this sector. Furthermore, NGOs and
governmental agencies will need to educate themselves in order to be able to apply for various
funds available in EU. Hundreds of millions of euros are available, but the projects proposal
must be of high quality and skillful people are key in bidding for these funds. Overall, Bosnia
and Herzegovina must continue the same way but should accelerate reforms and adjust its
market to more easily accommodate foreign investments in green energy and sustainable
development sector.
REFERENCES
1. NRC (2001). Climate Change Science: An Analysis of Some Key Questions, National
Academy Press, Washington, D.C., U.S.A.
2. Aleksandar Knezevic and Martin Tais (2007) Energetska efikasnost i obnovljivi izvori
energije, Prioriteti energetske strategije u BiH, Fondacija Heinrich Boll, p 91,92,93. URL
http://www.boell.ba/downloads/energetska_efikasnost_i_obnovljivi_izvori_energije_final.pdf
, retrieved on April 23, 2012
3. Schneider, L. (2007), An evaluation of the CDM and options for improvement, URL
http://wwf.panda.org/what_we_do/footprint/climate_carbon_energy/energy_solutions/resourc
es/?118000/An-evaluation-of-the-CDM-and-options-for-improvement , retrieved on February
12, 2012
4. Energis (2010) Hydropower, URL http://energis.ba/?lang=bh&n1=3&n2=17&n3=0&c=16
, retrieved on February 2, 2012
5.
Biomass
Energy
Centre
(2011)
What
is
biomass?,
URL
http://www.biomassenergycentre.org.uk/portal/page?_pageid=76,15049&_dad=portal&_sche
ma=PORTAL retrieved on March 10, 2012
6. International Energy Agency (2011) Solar Energy Perspectives: Executive Summary, URL
http://www.webcitation.org/63fIHKr1S , retrieved on January 15, 2012
7. Bloomberg New Energy Finance (2011) Global Trends in Renewable Energy Investment,
5, ISBN: 978-92-807-3183-5
8. UNDP (2011), Clean Development Mechanism Projects – Pathway to New Investments in
BiH, URL http://www.undp.ba/index.aspx?PID=7&RID=723 , retrieved on January 18, 2012
9. The Carbon Neutral Company (2012) Climate change summary, URL
http://www.carbonneutral.com/knowledge-centre/climate-change-summary/ , retrieved on
February 25, 2012
The Relationship Between Tax Revenue And Economic Growth In Turkey: The Period
Of 1975-2011
Yeşim Helhel,Yakup Demir
Akdeniz University, Tourism Faculty, Antalya, TR
Abstract
In the study, the relationship between tax revenues and economic growth for the Turkish
economy has been examined in the period of 1975-2011. Johansen Juselious cointegration test
32
�
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Extent
The size or duration of the resource.
1310
Title
A name given to the resource
Sustainable Development Projects as Opportunity for Economic Development of Bosnia and Herzegovina
Author
Author
Ajdin , Perčo
ERGÜN, Uğur
Abstract
A summary of the resource.
The global climate changes as a worldwide phenomena are on the top of the agenda of most states and international organizations. The adverse effects we currently feel and even worst things to come are stressing the need for action and firm resolution of this problem. In this sense, the need for ‘’environment friendly’’ energy is becoming top priority and renewable energy sources are in high demand. Furthermore, many countries are noticing this as a development potential and are investing in this sector. One of these countries is Bosnia and Herzegovina with its unlimited natural resources including wind, water etc. This paper will analyze ongoing and planed projects in the area of renewable energy and economic benefits Bosnia and Herzegovina will experience from it. Furthermore, after the adoption of Kyoto Protocol and creation of state agency Bosnia and Herzegovina is now eligible to apply for CDM (Clean Development Projects). These projects are financed by developed countries and are to be implemented in developing countries. It goes without saying that this is enormous opportunity for Bosnian companies and agencies to apply for these projects and bring foreign investments that will boost domestic economy. Besides this, the journey of Bosnia and Herzegovina towards European Union is requiring various laws to be adopted and implemented. One of these laws are rules and regulations related to the various aspects of climate changes and ways on how to combat climate changes. Financial incentives that European Union is providing to ‘’green energy’’ companies and renewable energy sources are additional motivation for Bosnia and Herzegovina to develop this are furthermore. Thereby in this paper I will address the current issue of climate changes and the need for renewable energy sources. Special focus will be on Bosnia and Herzegovina and the opportunities for economic development available through investing and working on ‘’green energy’’ and renewable energy projects. I will analyze current projects and future planned projects and their impact on economic development of Bosnia and Herzegovina. The focus of the research will be on various documents, projects and analysis currently available for this purpose. The main finding is that Bosnia and Herzegovina is truly a country with great potential for investments in renewable energy projects and the research paper will provide abundance of arguments for this statement.
Date
A point or period of time associated with an event in the lifecycle of the resource
2012-05-31
Keywords
Keywords.
Conference or Workshop Item
PeerReviewed
H Social Sciences (General),HB Economic Theory,HG Finance,HJ Public Finance
-
https://omeka.ibu.edu.ba/files/original/9557ae8b86b9c10032d8632a894e019f.pdf
7cc145f7818bc702d3ccf9e5a67ec071
PDF Text
Text
3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
http://eur-lex.europa.eu/en/index.htm
http://worldbank.org
http://imf.org
Corporate Governance Practices in Bosnia and Herzegovina
Aida Nušinović
International Burch University, Faculty of Economics,
71000, Sarajevo, Bosnia and Herzegovina.
E-mail: aida.nusinovic@gmail.com
Abstract
The purpose of this paper is to present the state of corporate governance in Bosnia and
Herzegovina, to determine the degree of its principle applications, and to emphasize the
importance of good corporate governance practices for transition economies, such as Bosnia
and Herzegovina. Corporate governance, by its simplest definition, presents a system of
management and control over the company. Good corporate governance practice is important
for the investment climate, because it provides greater security for investors and shareholders
and leads to sustainable long-term economic development. Because of the reorganization of
the still present economic system, developing countries are faced with many problems related
to the implementation of corporate governance, such as insufficient use of existing legislation,
underdeveloped capital markets and insufficient bussiness transparency of the company.
Foreign investors do not wish to invest in companies that do not apply the principles of
corporate governance and studies have shown that for making investment decisions, the
application of good corporate governance practices plays an important role. The problems
Bosnia and Herzegovina is facing are still a lack of business transparency of company
operations, as well as the insufficient protection of minor shareholders. At the end of this
paper certain guidelines are given in order to improve practices of corporate governance in
Bosnia and Herzegovina, and also the importance of their application to the company and the
country itself is highlighted.
Keywords: corporate governance, transition economies, economic development, principles,
business transparency
1. Definition of Corporate Governance
The term of corporate governance is far more complex than thought of at first, and implies not
only the way in which a company is governed, but a full range of internal and external
relations, as well as legal regulations. According to the definition of the OECD (Organization
for Economic Cooperation and Development), corporate governance involves a set of
relationships between a company’s management, its board, its shareholders and other
stakeholders. Good corporate governance should provide proper incentives for the board and
management to pursue objectives that are in the interests of the company and its shareholders
278
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
and should facilitate effective monitoring. The presence of an effective corporate governance
system, within an individual company and across an economy as a whole, helps to provide a
degree of confidence that is necessary for the proper functioning of a market economy. With
good corporate governance practice, values as justice, responsibility and transparency of
business are promoted. In economic societies in which a clear separation exists between
ownership and governance, conflicts of interest appear amongst interested participants in the
process of corporate governance, the influence of institutional investors, stockholders,
creditors, the administration, and employees. It is necessary that all of these relationships be
regulated in the aim of the successful running of the company.
According to who has the crucial position and role as concerns the relationships in a
company, that is, which interest groups affect decision-making, and in which way do these
interest groups participate in corporate governance, we differentiate between two types of
corporate governance:
-
The open corporate governance system
The closed corporate governance system
The open system of corporate governance is called also the market, outsider, and Anglo
American system of corporate governance, and is characteristic for corporations in the
countries of the USA, Great Britain, Australia, and New Zealand. In the open system of
corporate governance the supervision of management and the company is not in the hands of
any influential interest group, while the main role falls to the capital market and the actions of
the investors who invest in it. Managers have a key role in governing the company.
The closed system of corporate governance is also called the internal (insider) and the
European system of corporate governance, and is characteristic for the countries of Europe as
well as for countries which have harmonized their corporate governance principles with
OECD recommendations which refer to corporate governance. A closed system of corporate
governance is often used in countries with a poorly developed capital market and a
concentrated ownership structure. It is characteristic of this system for a group of stockholders
to hold a large percentage of the total number of stocks, that is, they are the owners of a
significant package of stocks, and in this way actively govern the company. In this system, the
capital market has a secondary meaning as opposed to the open system of corporate
governance.
Bosnia and Herzegovina is closer to a closed system of corporate governance, considering its
poorly developed capital market, but also due to the other characteristics of the closed system
of corporate governance.
2. Corporate governance in developing and transition economies
Developing countries are still reorganizing their economic systems, so that they face
numerous problems tied to the application of corporate governance, such as the insufficient
application of existing legal regulations, lack of personnel for corporate governance, an
undeveloped capital market, the still great presence of the state in company ownership, as
well as other problems which impede upon the application of corporate governance principles.
Good corporate governance practice is extremely important for countries in transition, and has
influence on the optimization and growth of the country's economy. A lack of corporate
governance practice leads to a negative investment climate, negatively influences the capital
market, and impedes upon the further economic growth of the country. Good corporate
governance leads towards long-term, sustainable survival of an economy. Developing
279
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
countries need new, fresh capital and due to higher risk, foreign investors do not wish to
invest in companies who do not apply the principles of corporate governance, which reduces
the chances of the flow of direct foreign investments.
33McKinsey's study has shown that foreign investors are ready to invest 30% more of their
resources into shares of companies from Eastern Europe with good corporate governance
practice, while 40% of investors stated that corporate governance is a more important factor in
deciding whether they will invest in a company in Eastern Europe than growth potential or
profit. It is important that a company itself realize that corporate governance improves its
economy's competitiveness on the international market. A company with a good corporate
governance practice is a transparent and responsible company and as such has greater chances
for access to international sources of financing.
3. OECD principles of Corporate Governance
OECD principles (Organization for Economic Cooperation and Development) were adopted
in the year 1999 and revised in 2004, and they represent elements of good corporate
governance and contain recommendations for policy makers, law regulation makers,
investors, and companies for OECD countries, as well as in countries outside of the OECD.
The principles represent non-binding standards, good customs and instructions for use, and
may be adjusted to specific conditions in certain countries. The principles help companies in
defining their own corporate governance practices. OECD principles cover six key areas of
action: 1) construction of the frame of corporate governance, 2) rights of shareholders and
key ownership functions, 3) equal treatment of shareholders, 4) the role of interest groups in
corporate governance, 5) publishing of data and transparency, and 6) the board's
responsibility.
In the aim of promoting the application of OECD principles of corporate governance in
countries which are not OECD members, such as Bosnia and Herzegovina, regional round
tables were held, in collaboration with the World Bank, in which the policies of corporate
governance were discussed. In the year 2002, the Regional Round Table result was the White
Paper document - a recommendation on corporate governance in southeastern Europe, which
was officially adopted in Sarajevo in the year 2003. White Paper provides a list of practical
recommendations, guidelines, and suggestions to policy creators, stock markets, companies,
and others who have interest in the application of good corporate governance practices, and
helps SEE countries in the promotion of corporate governance practices. This document is
primarily focused on companies whose stocks are publically traded, but can also be applied to
companies whose stocks are not listed on the stock market. OECD principles as well as
recommendations within White Paper help in the development of national codex of corporate
governance. One such codex is the corporate governance Codex for companies listed on the
Sarajevo Stock Exchange (SASE) which represents a group of the best company leadership
practices in the world, adapted to a transitional market such as Bosnia and Herzegovina. The
codex includes the following areas: transparency in business, relationships with investors and
interest carriers, assemblies, the supervisory board, the administration, auditing and
mechanisms of internal control, as well as social responsibility. Accepting the corporate
governance codex is a requirement for companies in quotation (A list companies), while the
application of the codex is not required of the companies listed and included on the free
33 Christ College Institute of Management, Hosur Road, Bangalore 560 029
280
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
market. A company which has accepted the corporate governance codex is obliged to abide
by the provisions of the codex, and if it is unable to implement certain provisions, it is obliged
to, within the questionnaire, which is a constituent part of the codex, state why it is not
implementing the enclosed recommendations. In this way, investors can decide whether they
wish to invest in a certain company on the Sarajevo Stock Exchange. In 2011 also Banja Luka
Stock Exchange has adopted the Standards of Corporate Governance with the aim to improve
corporate governance practices in companies which are listed on this stock exchange.
4. Corporate governance practices in Bosnia and Herzegovina
In order to analyze the application of corporate governance principles in Bosnia and
Herzegovina, the World Bank, for the first time in the year 2006, made a Report on the
Observance of Standards and the Codes ( ROSC ). An analysis of the following adherence to
OECD principles was conducted:
Table 1. OECD Principles
Section I: Ensuring the basis for an effective corporate governance framework
Principles: Overall corporate governance framework; Legal framework enforceable/ transparent;
Clear division of regulatory responsibilities; and Regulatory authority, integrity, resources
Section II: The right of shareholders and key ownership functions
Principles: Basic shareholder rights; Rights to part. in fundamental decisions, Shareholders GMS
(general meeting shareholders) rights; Disproportionate control disclosure; Control arrangements
allowed to function; Exercise of ownership rights facilitated; and Shareholders allowed to consult each
other
Section III: Equitable treatment of shareholders
Principles: All shareholders should be treated equally; Prohibit insider trading; and Board/Managers
disclose interests
Section IV: Role of stakeholders in corporate governance
Principles: Legal rights of stakeholders respected; Stakeholder redress; Performance-enhancing
mechanisms, Stakeholder disclosure; Whistleblower protection; and Creditor rights law and
enforcement
Section V: Disclosure and transparency
Principles: Disclosure standards; Standards of accounting & audit; Independent audit annually;
External auditors should be accountable; Fair & timely dissemination; and Research conflicts of
interests
Section VI: Responsibilities of the board
Principles: Acts with due diligence, care; Treat all shareholders fairly; Apply high ethical standards;
The board should fulfill certain key functions, Exercise objective judgment, and Access to information
281
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
To adhere to certain principles, the assigned grades were “observed”, “largely observed”,
“partially observed”, “materially not observed” and “not observed”. The results of the study
are represented in the following table:
Table 2. Frequency of Each Category – Compliance with Corporate Governance Principles
Principles
%
Observed
0
0
Largely observed
4
12,5
Partially observed
22
68,8
Materially not observed
6
18,7
Not observed
0
0
Total
32
100 %
For adhering to the majority of principles, Bosnia and Herzegovina received the grade
“partially observed”. For adhering to the principles of the basic stockholders right, the
shareholders GMS rights, the principle stakeholder redress, and the creditor rights law and
enforcement, B&H received a poorer grade, namely “largely observed”. The grade
“materially not observed”, B&H received for not adhering to the following principles: the
rights of shareholders to participate in fundamental decisions, Board/Managers disclosure of
interests, stakeholder disclosure, whistleblower protection, disclosure standards and acting
with due diligence, care. In no case did Bosnia and Herzegovina receive the grades
“observed” or “not observed”.
4.1. Application of Corporate Governance Principles by companies in Federation of BiH
In 2011 the independent consulting firm SEE Business Solutions d.o.o. Sarajevo has
conducted an analysis of the application of corporate governance principles by companies in
Federation of Bosnia and Herzegovina. The study processed 55 joint stock companies. The
results according to the analyzed areas were the following:
The Management and Supervisory board: in more than 50 % of the analyzed companies
the supervisory board consists of only 3 members and only 11% of companies board members
are independent, while 38 % members are either stockholders or employees in the company.
In 38 companies the compensations for supervisory board members are fixed, and 12
companies don’t pay compensation to the board members. Only 8 companies have formed
Commissions of the Supervisory/Management board.
Control environment: of the 55 analyzed companies, 43 have established a system of
internal control, while the position of internal auditor exists in 28 companies. 31 companies
have established a risk management system.
Publications: in 23 companies financial reports are available on the web site, which is less
then 50% of analyzed companies. Independent auditor’s reports can be found at only 21 web
282
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
sites. Regarding the publishing of transaction with concerned parties and information on
materially significant events, 28 companies publish these information.
Stockholders' rights and protection: payment of dividends in the past 3 years did only 10
companies, while 45 companies did not pay their dividends. On 38 % companies web sites the
information about the general assemblies can not be found. Of the 55 of analyzed companies,
41 companies stated that they formally incorporate social responsibility through internal
documents.
Based on recommendations given in the OECD report from year 2006 and accordance to the
newest researches, we can single out some key courses for corporate governance development
in Bosnia and Herzegovina:
The companies should strengthen the supervisory board, increase the number of members,
insist upon the independence of members, form commissions for the naming of supervisory
board members, as well as define compensation policy for the members of the supervisory
board
It is necessary for more companies to organize their own control environment in accordance
with their own level of risk exposure and to manage risk more intensively
According to OECD principles, companies should publish all significant information such as
financial and business company results, the goals of the company, the ownership structure,
data on board members and their compensations, as well as their corporate governance
policies
Greater the protection of interests of minor shareholders. Shareholders very often do not have
at their disposal important information on the business of the company and this impedes upon
their security
The access to relevant information has to be simple and timely, and the publishing of data on
transactions of connected parties should be strengthened.
This research has shown that joint stockholder companies in the Federation of Bosnia and
Herzegovina, and the situation being similar in companies in the smaller Bosnian and
Herzegovina entity, the Republika Srpska, have not attained significant improvement in the
past few years. The reason for the stated problem can be in the misunderstanding of corporate
governance principles and the importance of incorporating good corporate governance
practices.
5. Conclusion
Good corporate governance practice decreases the risk for investors, increases the
performance of the company, improves access to capital markets, increases transparency and
social responsibility in business. Since the goal of Bosnia and Herzegovina is to get closer to
the European Union, companies will have to incorporate corporate governance principles in
their business transactions if they wish to be competitive on the international market.
Spreading good corporate governance practice implies recognizing the significance and the
usefulness of corporate governance for the company as well as for the country itself.
Corporate governance is important, for the country, the companies, as well as for society as a
whole. Corporate governance leads to the achievement of social wealth, increases
competitiveness on the international capital market, leads towards a positive investment
climate, and to the long-term development of the economy. Good corporate governance
283
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
practice contributes to the greater transparency of business, better supervision of the
company, and therefore its better reputation. For the aim of further promotion of corporate
governance, special care should be taken of the greater promotion of good corporate
governance practice, greater protection of the interests of minor shareholders, strengthening
the role of the supervisory board, greater compliance of entity laws, as well as greater
transparency in company's business transactions.
In the past years, corporate governance gained more importance, and many studies have
shown that the application of good corporate governance practices leads to the greater value
of the company and a smaller risk of financing.
REFERENCES
Ana Bobirca, and Paul-Gabriel Miclaus (2007), Extensiveness and Effectiveness of
Corporate, Governance Regulations in South-Eastern Europe.
Corporate Governance Country Assessment, Bosnia and Herzegovina, June 2006 ,
http://www.worldbank.org/ifa/rosc_cg_bih_eng.pdf.
Corporate Governance in FBiH – the results of research in 2011., SEE Business Solution
d.o.o. Sarajevo , http://conference.capitalmarket.ba/6/prezentacije/Sanja%20Jokic.pdf
Corporate Governance Codex SASE ( 2009. ), http:/www.sase.ba and Standards of Corporate
Governance BLSE ( 2011 ) http://www.blberza.com
Corporate Governance, News in international standards, legislation and practice in Bosnia and
Herzegovina (2008 ), Revicon.
Dr. Hubertus G. Tschopp ( 2002 ), Corporate governance, The Key to Success of Failure,
Boardroom, Magazine of Corporate Governance, Leadership and Quality of Life.
Mc Kinsey ( 2000 ), Global investor Opinion Survey on corporate Governance.
OECD Principles of corporate governance ( 2001 Edition ).
Robert W. McGee ( 2008 ), Corporate Governance in Transition Economies, Springer.
White paper on Corporate Governance in South East Europe (2003.), OECD 2003
www.stabilitypackt.org
Economic Diplomacy and Business Negotiation- managerial approach
Amra Nušinović, Erkan İlgun
International Burch University, Faculty of Management,
71000, Sarajevo, Bosnia and Herzegovina.
E-mail: amra.nus@gmail.com
Abstract
Economic Diplomacy explains how states conduct their external economic relations in the
21st century: how they make decisions domestically; how they negotiate internationally; and
284
�
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Extent
The size or duration of the resource.
1335
Title
A name given to the resource
Corporate Governance Practices in Bosnia and Herzegovina
Author
Author
Aida , Nušinović
Abstract
A summary of the resource.
The purpose of this paper is to present the state of corporate governance in Bosnia and Herzegovina, to determine the degree of its principle applications, and to emphasize the importance of good corporate governance practices for transition economies, such as Bosnia and Herzegovina. Corporate governance, by its simplest definition, presents a system of management and control over the company. Good corporate governance practice is important for the investment climate, because it provides greater security for investors and shareholders and leads to sustainable long-term economic development. Because of the reorganization of the still present economic system, developing countries are faced with many problems related to the implementation of corporate governance, such as insufficient use of existing legislation, underdeveloped capital markets and insufficient bussiness transparency of the company. Foreign investors do not wish to invest in companies that do not apply the principles of corporate governance and studies have shown that for making investment decisions, the application of good corporate governance practices plays an important role. The problems Bosnia and Herzegovina is facing are still a lack of business transparency of company operations, as well as the insufficient protection of minor shareholders. At the end of this paper certain guidelines are given in order to improve practices of corporate governance in Bosnia and Herzegovina, and also the importance of their application to the company and the country itself is highlighted. Keywords: corporate governance, transition economies, economic development, principles, business transparency
Date
A point or period of time associated with an event in the lifecycle of the resource
2012-05-31
Keywords
Keywords.
Conference or Workshop Item
PeerReviewed
H Social Sciences (General),HB Economic Theory,HG Finance,HJ Public Finance
-
https://omeka.ibu.edu.ba/files/original/2152437067a737d4cc3305ec787225ad.pdf
d5d234fe994221fe256dbb367e57a593
PDF Text
Text
3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Raiffeisen
Researh
CEE
Banking
Sector
Report
http://www.rbinternational.com/eBusiness/services/resources/media/677012584775275435677012584775275436_677251119927032833-772104317120223179-1-9-DE.pdf
Simon Jr, G. (2012) An Economic History of Socialist Yugoslvaia, Social Science Research
Network,
Rochester,
New
York,
Available
at
:
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1983907
Stubos, G. and Tsikripis, I.(2004) Banking Sector Developments in South –Eastern Europe,
Working Paper No.44, ELIAMEP, WP4,Regional Cooperation, ELIAMEP, Athens, Available
at: http://balkan-observatory.net/archive/stubos.pdf
Stubos, G. and Tsikripis, I.(2005) Regional Integration Challenges in South East Europe:
Banking Sector Trends , Working Paper, Bank of Greece
Available at:
http://www.bankofgreece.gr/BogEkdoseis/Paper200524.pdf
Basel II – Policy Implications and Implementation Challenges for Bosnia and
Herzegovina
Aida Bulbul, Ugur Ergun
International Burch University, Faculty of Economics
71000 Sarajevo, Bosnia and Herzegovina
E-mails: bulbul.aida@gmail.com, uergun@ibu.edu.ba
Abstract
The financial sector and international banking environment in particular has changed
dramatically over the past years. In order to reach and maintain stability and sustainability in
the global banking system, decrease risk of insolvency, and to cover unexpected losses,
countries (EU in particular) have started implementing the new capital adequacy rules (Basel
II) following the worldwide consensus among G-10 central bank Governors by which banks’
capital levels should be regulated to enhance global financial stability.
Since Bosnia and Herzegovina is still in the beginning of its path towards Basel II legislation
and implementation, using detailed literature review and an in-depth analysis this study
conducts a comparative analysis on the implementation of Basel II in Bosnia and
Herzegovina, Slovenia, Croatia, and Serbia, with regard to both the qualitative and
quantitative implementation details and issues which include the implementation stages,
progress, and timetables and particular challenges faced by the countries.
Moreover, study reveals Bosnia and Herzegovina’s unique situation, challenges and obstacles
on the path towards full implementation of Basel II standards and puts an emphasis on how
implementation and adoption will affect its banking and economic stability, future and
conditions.
74
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Keywords: Basel II, banking supervision, capital adequacy, Bosnia and Herzegovina, central
bank, banking agency, risk, risk weight, challenge, adoption, implementation.
1. INTRODUCTION
The ultimate goal of all economies is to reach financial stability and to improve key elements
of living standards within that economy. Financial markets, in that regard, are supposed to be
active, liquid and trusted regardless of the threats, changes and complexities in the economy.
One of the crucial players of the whole economic growth and stability process are banks.
Their function has traditionally been to help or mediate funds transfer between those who
have a surplus of funds and those who have a fund deficit.. As a consequence of banks’
specific role for the society, their impact on the whole economy and their explicit functions,
governments worldwide tend to regulate and supervise banks’ activities, operations, and risk
management in particular, in order to protect banks’ customers, liquidity, themselves, but
most importantly, to preserve economic stability. In addition to this, fast integration of global
financial markets, innovations, and all other complexities highly affected banking sector and
the way banks collect, measure and manage risks, and the way they regulate they capital
requirements (Makwiramiti, 2008).
In writing of this work the author relayed mostly on Basel Committee on Bank Supervision
(BCBS) official publications, scientific articles on Basel II, benefits, weaknesses and
challenges. For analysis of BiH in terms of harmonization with Basel II standards, author used
publications of Central Bank of BiH (CBBH) and annual reports of Banking Agencies and
key banks in BiH. For comparative purposes, data on Basel II implementation stages in
Slovenia, Croatia and Serbia was used, mainly from aforementioned countries’ Central Banks,
and available relevant publications.
These literature resources combined with one year working experience at USAID/PARE
project, provided the author with the knowledge base for completion of this work. Due to
internal regulation on sensitive information within USAID/PARE project, no report or case
study produced by the project could be included in this work. Nevertheless, a significant part
of this work is based on knowledge and experience acquired at USAID/PARE project.
2. THE BASEL COMMITTEE AND REGULATIONS
The Basel Committee (‘the Committee’), established in Basel (Switzerland), was founded in
1974 by the governors of G-10 group countries and today consists of senior representatives of
bank supervisory authorities and central banks from Belgium, Canada, France, Germany,
Italy, Japan, Luxembourg, Netherlands, Spain, Sweden, Switzerland, United Kingdom and the
United States (Sarlija & Gerec Z, 2008). The Committee is an international body that has an
aim to harmonize banking supervision, formulate financial regulation policy at the
international level and to create preconditions for intensifying international competition of
banks (Plochan, 2007).
With increase of competition among banks and with continuing erosion of capital that
happened in late 70s, regulators realized that approach to these problems on the international
level and standardization of capital regulations was the only possible solution for securing the
global banking system. As a result, a common framework for calculating the capital adequacy
of banks was proposed. Although subject to implementation variations from one country to
another, the Basel regulatory framework was and is being accepted and implemented in all
major economies (CEPS Task Force Report, 2008)
75
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
2.1. Basel I
Basel I represented a revolutionary agreement whose core was to develop a common riskadjusted capital standard that would be applied internationally, and by which banks would be
obliged to put aside a certain percentage of its capital as reserve when providing loans.
Basel I had two fundamental objectives:
First, to “strengthen the soundness and stability of the international banking system” (by
setting the minimum capital adequacy requirements); and
Second that the “framework should be in fair and have a high degree of consistency in its
application to banks in different countries” (BCBS, 1988)
To achieve these goals, the Committee concluded that the minimum target standard ratio of
capital to weighted risk assets should be set at 8% (of which the Tier 1 capital element will be
at least 4%). This basically means that banks were to put aside 8% of the total amount of a
loan in reserve when there is a 100% risk associated with that loan.. For simplicity purposes,
the Committee decided that only five weights were to be used: 0, 10, 20, 50 and 100%.
Even though it was only “morally, not legally binding, the provisions of the 1988 Basel
Accord quickly became the reference point for regulation on credit risk, not just in the
original G-10 member countries, but also eventually in over 100 countries throughout the
globe” (Ong, 2007).
2.2. Basel II
The Basel II framework is built on three mutually reinforcing pillars, which together should
contribute to safety and soundness in the financial system.
The first pillar, covering minimum capital requirements, offers novelties in terms of credit
risk quantification (standardized and internal rating based (IRB) approach of measurement);
and introduces category of operational risk measurement in the calculation of capital
adequacy ratio.
The second pillar concerns supervisory review process is intended not only to ensure that
banks have adequate capital to support all the risks in their business, but also to encourage
banks to develop and use better risk management techniques in monitoring and managing
their risks. (BCBS, 2006)
The third pillar concerning market discipline is to complement the minimum capital
requirements (Pillar 1) and the supervisory review process (Pillar 2).
While the Framework takes the form of an agreement among the BCBS members – and so the
implementation is voluntary – in the EU, the framework is a part of legislation and is binding
for all EU countries. EU, by the means of Capital Requirements Directive (CRD) required all
financial institutions (regardless of size and geographic activity to fully implement the basic
Basel II approaches by January 2008, which is when Basel II is compulsory for all
approaches. (ECB, 2005)
76
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
3. BASEL II IMPLEMENTATION – COMPARATIVE ANALYSIS
3.1. Slovenia
Lessons that can be learned from the case of Slovenia are: due to the fact that Basel II can
adversely affect SMEs and can be extremely costly for low profile domestic banks, the
government (and Central Bank in particular) should consider introducing slight changes into
legislation (as compared to original Accord) in order to protect businesses and banks within
country, but also to preserve financial stability and prosperity of the country. Moreover, in
order to overcome the problem with lack of skilled staff for implementation of Basel II,
timely trainings and capacity buildings should be organized, so that institutions have people
that can cope with all of the tasks and challenges the implementation and understanding of
Basel II brings. (Jagric, Jagric, & Podobnik, 2008)
3.2. Croatia
Problems and challenges Croatia faced during Basel II implementations are similar to those
already mentioned in the case of Slovenia. Nevertheless, Croatia can be used as an example of
Country that managed to increase awareness of all benefits of Basel II through regular
publications by National Bank that served as a “manual” for understanding Basel II theory,
practice and all relevant surrounding issues. Moreover, it organized various workshops,
seminars and trainings for banks even before adoption of Basel II, so that they were able to
prepare for all of the challenges and tasks of it, and to be able to continue operating
successfully. (Jakovcevic, 2003; CNB, 2008; CNB, 2011)
3.3. Serbia
The biggest problems banks in Serbia faced during the implementation of Basel II standards
were primarily the costs of staff training and building information systems, improvement of
information technology - the development of models and databases, as well as the lack of
qualified staff (NBS, 2009). To solve the IT problem, a group of banks purchased ready
software, while some banks began creating and designing their own software to be used in
meeting the Basel standards. Another solution for overcoming this problem is a domestic
product developed by Serbia Center for Investment and Finance that could be a unique and
less expensive solution for the introduction of Basel II standards. (http://www.cif.co.rs/). This
is not only a less costly solution, but also an easier way for the banks to employ, adapt and get
their staff experienced with IT systems and software.
4. BOSNIA AND HERZEGOVINA AND BASEL II
Table 1 displays the total number of banks in Federation of Bosnia and Herzegovina and Republika
Srpska over the period 2000 to 2011.
77
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Year
FBiH
CAR*
RS**
CAR*
2000
N/A
26,3%
18
36,1%
2001
N/A
22,4%
16
37,5%
2002
29
19,8%
11
24%
2003
27
19,6%
10
24%
2004
24
18,6%
9
19%
2005
24
17,5%
9
19%
2006
23
17,6%
9
18%
2007
22
17,3%
10
16%
2008
20
16,4%
10
15,7%
2009
20
16,1%
10
15,8%
2010
19
16,2%
10
16,19%
2011
19
15,3%
10
N/A
*CAR – Capital Adequacy Ratio (calculated as ratio of net capital and risk weighted assets)
** + Organizational Units of Banks from Federation BH
Table 1 - Compiled from FBiH and RS Banking Agencies’ annual reports
Current regulations in BiH (in both entities) are in accordance with Basel I. Since there are
differences in legislation across entities and due to complexity of political and economic
situation in BiH, it would be extremely hard to harmonize this legislation on the state level.
Competent people from both agencies agree however that harmonizing with EU Directives
and Accord Rules is much simpler and “painless” process that would eventually result in
harmonization on the state level. Since 2008 the activities on preparation and adoption of
Basel II were initiated. It is important to emphasize that while BiH is working on introduction
of Basel II, Basel III is in the process of adoption and entry into force across the EU.
As of December 2008 in FBiH and February 2009 in RS, Banking Agencies adopted a
strategy for introducing the Basel II standards. Both Agencies emphasized the fact that Bosnia
and Herzegovina, as a country that strives to join the EU, is obliged to make preparations for
full adoption of Basel II and EU Directives and that this is one of the conditions for becoming
a candidate country. Furthermore, with a strong believe in positive impacts of implementation
on banking sector, they concluded that transition is to be done cautiously, gradually and
according to the principle “from simple to more complex”, with insuring that banks gradually
develop their capacities and capabilities to apply new frameworks and that Agencies develop
capacities to design and implement the supervisory procedure defined by Basel II. (FBA,
2008; ABRS, 2009)
As of today, BiH is in the phase adopting legislation (draft legislation is prepared, but not
published and adopted). Although all major banks (in accordance with parent bank
requirements) in practice follow the EU requirements, they still create reports in accordance
78
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
with the domestic legislation and requirements, which without any doubt creates many
complexities and increases uncertainty about banking sector of BiH.
4.1. Proposed Next Steps
Having in mind lessons learned from previously analyzed countries, the following suggestions
can be identified:
In order to avoid resistance to change and further delays, educational component is very
important. Besides regulators, a knowledge base for banks should also be created. This can be
done either by organizing regular sessions and workshops, or by publishing manuals, as it was
case in Croatia.
Bring consultants to take one bank (preferably domestic), guide it throughout the whole
process of implementation, promote new models and reporting system, teach its people how
to interpret data using new approaches and make them aware that these changes will not bring
additional risks. Processes and exercises made with this bank can eventually serve as a
template for all other banks across country.
Developing proper and common IT/MIS systems – since there will be need for ongoing
coordination between the BSAs, CBBH and key regulatory institutions, and since it will be
necessary to harmonize reporting formats and protocols, interactive IT systems will play a
crucial role. As examples of Slovenia, Croatia and Serbia showed, this is a very expensive and
challenging process, and it could be worth considering developing domestic IT solutions, as a
less expensive solution.
Finally, it is necessary to emphasize the need for undertaking all these activities without
disturbing and interfering with banks’ everyday business. Customers should not be adversely
affected by the transition period and should not bring into question the trustworthiness of the
bank.
5. CONCLUSION
Effects of the implementation of Basel II/III to the banking sector in BiH will surely cause the
reorganization of banks, whose capital requirements would be significantly increased.
Moreover, pressure on banks to increase the amount and quality of capital would impose costs
and lead to increased interest rates to customers. Even though these conservative policies and
increase in interest rates would in the short-term lead to decrease in the number of granted
loans, in the long-term, the successful implementation would lead to greater stability of the
banking system and increase the competitiveness of banks in BiH with the banks in the world.
In the short term, the introduction of Basel II/III could endanger the competitiveness of
weaker banks since the increase of the capital level is more expensive for them than for larger
banks. When it comes to profits of the banks in general, they would also be decreased in the
short-term, since a particular amount would be separated to meet the minimum credit
requirements.
Nevertheless, a successful implementation of Basel II/III in BiH would lead to safer and more
stable banking system. Improved and more formalized risk management would result in better
assessment, quantification and greater awareness of risks in general. Also, bringing BiH
banking sector regulations closer to the policies of EU banking would take BiH a step closer
to the EU. Successful implementation of Basel II will unquestionably contribute to a more
resilient and stable banking system that is capable of not only being a good intermediary, but
also promoting sustainable economic growth. (Caruana, 2006)
79
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
REFERENCES
ABRS. (2009, February). Strategija za uvođenje "Međunarodnog sporazuma o mjerenju
kapitala i standardima kapitala" BAZEL II. Retrieved February 08, 2012, from Banking
Agency of RS website: http://www.abrs.ba/publikacije/StrategijaBaselII.pdf
BCBS. (1988, June). International Convergence of Capital Measurement and Capital
Standards. Retrieved February 01, 2012, from Bank For International Settlements website:
http://www.bis.org/publ/bcbs04a.pdf
BCBS. (2006, June). International Convergence of Capital Measurement and Capital
Standards. Retrieved February 1, 2012, from Bank for International Settlements website:
http://www.bis.org/publ/bcbs128.pdf
Caruana, J. (2006). The implementation of Basel II. Retrieved April 15, 2012, from Bank for
International Settlements website: http://www.bis.org/events/cbcd06f.pdf
CEPS Task Force Report. (2008). Basel II Implementation in the Midst of Turbulence.
Brussels: Centre for European Policy Studies.
CNB. (2008, December). Bilten o Bankama 17. Retrieved March 15, 2012, from Croatian
National Bank Website: http://www.hnb.hr/publikac/bilten-o-bankama/hbilten-o-bankama17.pdf
CNB. (2011, December). Bilten o Bankama, 23. Retrieved March 15, 2012, from Croatian
National Bank website: http://www.hnb.hr/publikac/bilten-o-bankama/hbilten-o-bankama23.pdf
ECB. (2005, December). The New Basel Capital Framework and its Implementation in the
European Union. Retrieved March 15, 2012, from European Central Bank website:
http://www.ecb.int/pub/pdf/scpops/ecbocp42.pdf
FBA. (2008, December). Strategy For introducing the «International Convergence for Capital
Measurement and Capital Standards» adopted in 2006 - Basel II. Retrieved February 08,
2012, from Banking Agency of the FBiH website: http://www.fba.ba/index.php?page=17
Jagric, V., Jagric, T., & Podobnik, B. (2008). Implications and consequences of Basel II for
banking sector of a small open transition economy – a case of Slovenia. Banks and Bank
Systems, Volume 3, Issue 1 , 26-32.
Jakovcevic, D. (2003, November). Izazovi i iskusenja usvajanja i primjene “Bazela II.” za
hrvatski bankovni i gospodarski sustav. Racunovodstvo, Revizija i Financije , pp. 143-149.
Makwiramiti, A. (2008). The Implementation of the New Capital Accord (Basel II): A
Comparative Study of South Africa, Switzerland, Brazil and the United States. Grahamstown:
Rhodes University.
NBS. (2009). Summary of the Results of Questionnaire on the Implementation of Basel II.
Retrieved
March
16,
2012,
from
National
Bank
of
Serbia:
http://www.nbs.rs/export/sites/default/internet/english/55/55_2/55_2_2/55_2_2_1/summary_r
esults_2009.pdf
Ong, K. M. (2007). The Basel Handbook: A Guide for Financial Practitioners 2nd Edition.
London: Risk Books.
Plochan, P. (2007). Risk Management in Banking. Bratislava: University of Economics in
Bratislava.
80
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Sarlija, N., & Gerec Z, A. (2008). Kratak pregled Basela 2. Retrieved March 20, 2012, from
Economic
Faculty
of
Osijek:
http://oliver.efos.hr/nastavnici/nsarlija/projekti/doc/Kratak%20pregled%20Basela%202.pdf
The Importance of Environmental Accounting in the Context of Sustainable
Development and Within IFRS Evaluation
Hasan Şenol, Hakan Özçelik
Süleyman Demirel University, Isparta, Turkey
E-mails: hasansenol@sdu.edu.tr, hakanozcelik@sdu.edu.tr
Abstract
Nowadays, companies cause a lot of environmental problems because of profit maximization,
the endless needs, rapidly advancing technological developments, unconscious consumption
of natural resources, as they execute their operations. At first glance, these efforts in order to
remove environmental pollution means additional cost to companies in the short term
nevertheless they can have a chance of cost minimization in medium and long term and even
additional income in this process.
To meet the needs of business management and related people about the enviroment,
enviromental accounting has started up. The study of TAS/TFRS accounting in the context of
the enterprises is focused on enviromental accounting and its importance, reflecting the
financial progress on enviromental sensitivity reports and sharing those info with the
community. There is no relevant TAS/TFRS on the accounting for and the reporting of
environmental costs within the existing set of TAS/TFRS. Because, the accounting principles
set out in the existing set of TAS/TFRS are already adequate to deal with the accounting for
and the reporting of environmental costs. Also, in our study various suggestions were made
for he healthy functioning of enviromental accounting.
Keywords: Turkish Accounting Standards, Turkish Financial Reporting Standards,
Environmental Accounting,
1.INTRODUCTION
The main goal of economic development and welfare, environmental balance and sustainable
development model has led to awareness of nature should be protected. Optimum use of
resources being wasted, the effectiveness of natural resources, environmental protection and
economic growth and environmental quality of the flood to provide a working model of
integration. Sustainable development, social, ecological, economic, spatial and cultural
dimensions of a concept (Yıldıztekin, 2009:368).
When environmental problems that appeared together with industrialization process have
reached serious levels round the world, preventative or decremental solutions for these
problems have been sought by developed countries. These environmental problems
experienced with industrialization caused a better understanding of importance of sustainable
81
�
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Extent
The size or duration of the resource.
1281
Title
A name given to the resource
Evaluation of Financial Performance of Banking Sector: Evidence from Bosnia and Herzegovina, Croatia, Serbia and Slovenia
Author
Author
Aida , Bulbul
ERGÜN, Uğur
Abstract
A summary of the resource.
The financial sector and international banking environment in particular has changed dramatically over the past years. In order to reach and maintain stability and sustainability in the global banking system, decrease risk of insolvency, and to cover unexpected losses, countries (EU in particular) have started implementing the new capital adequacy rules (Basel II) following the worldwide consensus among G-10 central bank Governors by which banks’ capital levels should be regulated to enhance global financial stability. Since Bosnia and Herzegovina is still in the beginning of its path towards Basel II legislation and implementation, using detailed literature review and an in-depth analysis this study conducts a comparative analysis on the implementation of Basel II in Bosnia and Herzegovina, Slovenia, Croatia, and Serbia, with regard to both the qualitative and quantitative implementation details and issues which include the implementation stages, progress, and timetables and particular challenges faced by the countries. Moreover, study reveals Bosnia and Herzegovina’s unique situation, challenges and obstacles on the path towards full implementation of Basel II standards and puts an emphasis on how implementation and adoption will affect its banking and economic stability, future and conditions. Keywords: Basel II, banking supervision, capital adequacy, Bosnia and Herzegovina, central bank, banking agency, risk, risk weight, challenge, adoption, implementation.
Date
A point or period of time associated with an event in the lifecycle of the resource
2012-05-31
Keywords
Keywords.
Conference or Workshop Item
PeerReviewed
H Social Sciences (General),HB Economic Theory,HG Finance,HJ Public Finance
-
https://omeka.ibu.edu.ba/files/original/51d8416382b015babc5ec6406c074b96.pdf
4e1eacd23fb9f63ded36041aeb632d15
PDF Text
Text
3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Sustainability & Education - E-Learning Website
Aida Bulbul, Mela Hadrović, Emil Knezović, Adi Fišević
International Burch University, Faculty of Economics
71000, Sarajevo, Bosnia and Herzegovina
E-mails: bulbul.aida@gmail.com, mela_hadrovic@hotmail.com, kinez88@hotmail.com,
adifisevic@yahoo.com
Abstract
Taking into consideration that sustainability has become one of the crucial aspects of modern
development due to scarcity of resources and intense globalization processes; we recognized
a need to integrate it into education by development of an e-learning website. Throughout
analysis we explained the rational need for education on sustainability since it has a great
influence on every aspect of life. Prior, learning goals were introduced as guideline for
further explanations. In the next part of the analysis we have defined potential solution based
on Bersin’s six modes of learning which include: reading, seeing, hearing, watching, doing
and teaching. For the benefit of development of our online course it was necessary to clearly
set out and explain core tools divided into three groups: informational group, materials group
and examination group. Finally, this paper offers a ready-to-implement solution on e-learning
sustainability website applicable to any university.
Keywords: E-learning, Sustainability, Discussion, Interactivity, Internet, Planning Tools,
Software, Website, Organization, University.
1. INTRODUCTION
Today, in the era of technology, internet, and change, e-learning has become a constituent
part of university curriculums, a common tool for corporate training, and strategic change. On
the other side, sustainable development an issue and challenge of today has an overall aim of
meeting the needs of the present without compromising the ability of future generations to
meet their needs. Taking into consideration main characteristics of e-learning which can be
207
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
described as teaching service provided to an individual that is not physically present brings us
to the point where we combine these two issues into one.
In order to understand the issue it is important to primarily explain and define e-learning and
sustainable development as two important segments for development of e-learning website.
Modern era imposed new standards related to usage of internet and high-tech gadgets where
most of students need to adopt in order to engage more efficient processes of learning
practices.
Furthermore it is vital to determine how these two issues can be combined and brought into
everyday life throughout education. To motivate and engage students in active learning
processes calls for the use of student-centered concepts and the making of more interactive
virtual learning environments that supports knowledge creation (Uhomoibhi, 2006).
For the benefit of overall analysis we will present unique and simple solution (applicable to
any university) of an e-learning sustainability course that has aim to introduce students to
sustainability issues of today, give them opportunity to research, discuss and contribute to
their solving, and to make them capable of applying this solutions to their organizations in the
future.
According to the general definition sustainable development can be explained as “the ability
to make development sustainable and to ensure that it meets the needs of the present without
compromising the ability of future generations to meet their own needs” (WCED, 1987).
Taking into consideration scarcity of resources, intensity of development and global
economic position, sustainability has become one of the crucial factors for further successful
development of all planetary activities.
It is possible to segregate three major aims of sustainable development and e-learning
practices. First aim capitalizes on strength, prior academic, cultural and personal experiences
and modes of an increasingly diverse students group. Second one facilitates effective
engagement among sustainability practitioners with students in real and virtual earning
environments. Third aim is focused on informed groups and individuals which allows them
reflection on the strengths and limitations of sustainability and education (McEwen, 2006).
After presenting all relevant theoretical principles and facts about e-learning in general, we
will next focus on our own idea and product as the focal point of the analysis. Moreover, a
solution for an e-learning sustainability website that can be utilized by universities as part of
their education policy will be developed. This will be done by stressing out the learning goals
and levels and by suggesting appropriate solutions for reaching those goals. As a result, this
paper will give a comprehensive solution of a website ready for implementation.
208
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
2. E-LEARNING SUSTAINABILITY WABSITE
2.1. Rationale
We choose to propose an e-learning solution for course on sustainability. The rationale
behind this innovative program of study lies in the fact that education on sustainability is
becoming a global trend and development and sustainability challenges in general are of great
importance to every aspect of life. Moreover, Universities in BiH do not offer adequate
solutions for this particular issue which demands much more attention in terms of research
and proposing solutions.
Taking this into account, and having in mind that today’s students are computer and digitally
literate, the idea is to propose a solution for an e-learning sustainability website that would
combine relevant materials, technology and internet resources to teach what sustainability
and development really is, what are the current trends, and get students involved into case
studies and projects that could benefit to the university and society in general.
2.1. Learning Goals
The goal of any course should be to transfer knowledge to the students and provide a relevant
knowledge basis for the future. Having in mind that an e-learning course is strengthened and
supported by technology; the identified learning goals as follows:
Teach people about relevant sustainability topics and challenges facing today’s society;
Train them on how to apply SD solutions ad concepts in practice;
With help of technology and internet, make the website as place where they will be thought
about SD, be informed about current issues, and have appropriate database for research.
209
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
2.2. Solution
In order to accomplish the goals set in previous section, it is necessary to combine and
integrate different mediums and use appropriate instructional principles and techniques.
Moreover, the website needs to be designed in such a way to be appealing to students (in
terms of aesthetics and content), it needs to fulfill some basic requirements of a good website,
and it needs to make people learn and understand the topic. Design of an e-learning website is
highly dependent on the chosen learning strategy. Figure 1 (Bersin, 2004) displays six modes
of learning, or a hierarchy of
learning stages and ‘mastery’.
It can be noticed that achieving
the highest mastery level is a
multi-step process and multitechnique approach highly
dependent on technology and
internet support needs to be
used. Some examples of
learning strategies include:
storytelling,
sequences,
competency-basis,
criterionreferencing, evaluation, cooperation,
case
studies,
discovery or constructivism,
role
playing,
simulation,
games, experience, laboratory,
etc. Figure 1 – Six Modes of Learning
(McIntosh, 2008). In addition, it is necessary to keep in mind that the most effective learning
occurs when learners are actively engaged and when level of interaction is high. Taking all
this into consideration and in order to achieve learning goals and high level of mastery, the
web site design will be explained through six modes of learning (Bersin, op.cit.):
.Reading: In general, the easiest way to deliver a lesson is to give people things to read. In
web form, however reading is less valuable because people will not and cannot read long
texts on the web. Having in mind that sustainability should not be a theoretical subject, the
web site should provide well-structured materials, balance it with image content, and give
instructions in outline forms. Moreover, it should provide the download option for all of the
documents and books.
210
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
2.Seeing: As stated previously, heavy texts are not suitable for this type of websites. It is
necessary to enrich text by adding diagrams, photographs, and images. This is important in
the SD terms, because students need to conceptualize, visualize and be aware of the different
concepts and issues. For this purpose, website will offer assignments, presentations and case
studies enriched by photos on related topics.
4.Hearing & 4. Watching: Next set of techniques includes sound, motion, and
demonstrations. These techniques would include instructor lectures, demonstrations, videos
of real-world examples, and scenarios. Besides hearing lectures, students will be offered with
videos on sustainability issues and relevant case studies.
5.Doing: In everyday life, learning by doing or experiential learning creates the highest level
of understanding, context, and retention. That is why e-learning should strive to create
experiential activities. The biggest trend in experiential learning in web-based instruction is
simulation (Bersin, op.cit.). Simulations are a special form of web-based training that put the
learner in a real-world situation. For the purpose of learning sustainability, students will be
able to select modules and topics according to their interests, for example sustainable
development in relation with communities, climate change, politics, governance, etc. After
choosing the area of interest, students will get to use their knowledge of the SD framework to
apply it to an actual business, community or other project and produce a final project/work.
Moreover, website will offer simulation exercises, workshops, and will inform students about
occasional field trips.
6.Teaching: Certainly the most valuable way to master a subject is to teach it. With this idea
in mind, students would be required to present their area of interest and show others
what/how they approached a particular issue and what solutions they applied. Due to the
nature of the topic, students will be required to employ ABCD analysis as follows (NBIS,
2008):
A. Awareness - What they know about sustainability and why it matters for the chosen
topic?
B. Baseline Mapping - conduct sustainability ‘gap analysis’ related to the chosen
organization/issue.
C. Clear and Compelling Vision/ Creative Solutions - brainstorm potential solutions to
the issues highlighted in the baseline analysis.
D. Down to action - prioritize the measures that lead to offered solutions and
sustainability. Develop a plan for implementation.
211
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
2.3. Tools & Design
In order to develop online course we would use several core tools divided into three groups:
1. Informational group – our website would be the centre of the course. Information would be
available there and we would use HTML (hypertext mark-up language) in order to provide
quick, easy and concrete information.
2. Materials group – here, we refer to the section in which we would provide study material
to our students. In the beginning, two ways would be used:
Live – In order to connect with our students and to have “personal touch” there must
have live classes. So during the semester, there would be organized three to four live
conferences in order to have mutual exchange of information between students and
professors. On line lectures, discussions and advices from professors would be done
through Microsoft Office Live Meeting program.
Literature – In order to provide our student with material we would use following
tools:
o PowerPoint – Lectures would be delivered to students through e-mails or it
could be downloaded directly from website.
o PDF – Lectures that would support PowerPoint presentations, additional
reading, homework and all other course related material would be delivered to
students in PDF formats. As already said, we would use PDF in order to deliver
homework material. We would have option to deliver scanned bills or invoices
to our students, so they could feel what accounting is.
o Windows Media Player – Lectures could be recorded on DVDs, practical
things could be in video modes and all of this could be delivered to students.
Ordinary video player such as Windows Media Player could be used in order to
watch material
o Excel – Numerical data would be provided in excel form.
3. Research studies – Since sustainability is an ongoing issue, debated each day, online
research studies would be provided for students. The separate page would be consisted put of
three parts:
News – This section would provide latest news and actions on sustainability, summits,
meeting, conferences and all other important events that are recently all will be done in the
future. Additionally, it would provide articles on sustainability and several other reports done
by individuals from different parts of the world.
Library – Huge collection of online books and published papers has to be there in order for
students to be able to easily access information from different topics related to sustainability
(economical, environmental, social and other categories).
212
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Research programs – As main program there would be Microsoft Dynamics (Microsoft,
2009) that is customized for sustainable development process. This program could be used
online while two or more people could be connected in separate room. In that “room” they
would have communication ability and could do researches much efficiently. Another
advantage for this usage would be that mentor could also be “on the other side” and give
instructions and guidelines during the research process. Additionally, students could chat and
share knowledge and experience with other students and work on several other projects all
around the world.
4. Examination group – All types of examination (finals, midterms, quizzes and homework)
would be done online. To examine students we would use:
Microsoft Word – This tool would be used for theoretical part of examination.
Figure 2 – Course Matrix
STUDENT
Website (HTML)
SUSTAINABILITY COURSE
RESEARCH
News
Information, registration, announcements
Live & recorded lectures
Library
Literature
Research program
EXAMS
2.4. Technical Issues
In order to provide high quality education, we should be aware of several technical issues that
we could face while providing this type of service. Among these issues we identify three
most common:
Do our students have adequate equipment to follow our education?
Is our course, materials and information easily accessible?
Is our Technical Service good and how people with problems can contact them?
So, in order to develop e-learning, organization has to take into consideration many things
that could affect the process. From the questions we could see that organization should know
if students have compatible equipment in order to apply for the course. Then they examine
their self in order to see are they good enough to provide such service. Do they have enough
213
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
resource and capabilities? Even if they are strong, they should always try to find ways for
improvement.
3. CONCLUSION
After taking everything into consideration, it can be concluded that e-learning is surely
becoming the education tool of today. The benefits and opportunities this kind of learning
provides for the students/users are unquestionable. When it comes to the solution proposed in
this paper, if properly designed, e-learning sustainability website can not only bring this topic
closer to the students, but can also make them capable of proposing and creating solutions for
sustainability issues of today’s.
REFERENCES
Bersin, J. (2004). The Blended Learning Book: “Best Practices, Proven Methodologies, and
Lessons Learned”. Pfeiffer.
Microsoft, 2009. Driving environmental sustainability practices with Microsoft Dynamics.
[Online] Available at: http://www.microsoft.com/dynamics/en/gulf/environment.aspx
[Accessed 25 April 2012].
McEwen, L., (2006). Education for sustainable development for taught postgraduates:
Designing effective active co-learning environments for on-site and distance learning
students. Pp.21-31
McIntosh. D. (2008). E-learning course design. <http://www.trimeritus.com/design.pdf>
[accessed December 17, 2011]
NBIS – Network for Business Innovation and Sustainability (2008), Sustainability using the
Natural Step Framework,
<http://nbis.org/nbisresources/sustainability_frameworks/naturalstep_duke_castle_nbis_prese
ntation.pdf> [accessed March 15, 2012]
Uhomoibhi, J., O. (2006). E-learning and Engineering Education for Sustainable
Development. 9th International Conference on Engineering Education. University of Ulster,
Northern Ireland, pp. 2
(WCED), (1987). World Commission on Environment and Development Our Common
Future. New York: Oxford University Press
214
�
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Extent
The size or duration of the resource.
1170
Title
A name given to the resource
Sustainability & Education - E-Learning Website
Author
Author
Aida, Bulbul
Abstract
A summary of the resource.
Taking into consideration that sustainability has become one of the crucial aspects of modern development due to scarcity of resources and intense globalization processes; we recognized a need to integrate it into education by development of an e-learning website. Throughout analysis we explained the rational need for education on sustainability since it has a great influence on every aspect of life. Prior, learning goals were introduced as guideline for further explanations. In the next part of the analysis we have defined potential solution based on Bersin’s six modes of learning which include: reading, seeing, hearing, watching, doing and teaching. For the benefit of development of our online course it was necessary to clearly set out and explain core tools divided into three groups: informational group, materials group and examination group. Finally, this paper offers a ready-to-implement solution on e-learning sustainability website applicable to any university. Keywords: E-learning, Sustainability, Discussion, Interactivity, Internet, Planning Tools, Software, Website, Organization, University.
Date
A point or period of time associated with an event in the lifecycle of the resource
2012-05-31
Keywords
Keywords.
Conference or Workshop Item
PeerReviewed
H Social Sciences (General)
-
https://omeka.ibu.edu.ba/files/original/8d1ef363d7039cd5f406fd199b382bba.pdf
aeca84f0c8e1bcb67e0e841cd00474c4
PDF Text
Text
Olukunle, A.O and Falaye, A.E. (1998): Use of Sesame seed cake as replacement for fish
meal in diets of catfish (Clariasgariepinus (Burchell, 1822)). Appl. Trop. Agric. 3(2): 86-91
Omitoyin, B.O. (2007): Introduction to Fish Farming in Nigeria, Ibadan University Press. Pp.
1-9
Omitoyin, B.O.(1995): Utilization of poultry by products (Feather and offal) in the diets
ofAfrican catfish (Clariasgariepinus (Burchell, 1822)). Ph.D Thesis, University of Ibadan,
Nigeria
Raufu, M.O.; Adepoju, A.A.; Salau, A.S. and Adebiyi, O.A. (2009): Determinants of yield
performance in small scale fish farming in Alimosho Local Government Area of Lagos state.
Journal of Agricultural Economics and Rural Development -2(1):2009 Pp.10-14
Tidwell, J.H. and Allen, G.L. (2002): Fish as Food: Aquaculture‘s contribution, Ecological
and Economic impacts and contribution of fish farming and capture Fisheries
Tobor, J.G. (1990): The fishing industry in Nigeria. Status and potential for self sufficiency in
fish production. NIOMR Tech. Paper No.54
Sustainable City
Ahmetspahic Erna
International Burch University, Faculty of Engineering and Information Technologies
Architecture Department
71000, Sarajevo, Bosnia and Herzegovina
E- mail : eahmetspahic@ibu.edu.ba
Abstract
On the beginning of 20th century, cities become synonymous for progress, wealth and
increasing opportunities when compared with the rural regions. Based on some UN
information‘s, 30% of world population was urban in 1950, this percentage increase to 47% in
2000, and expectations are that in 2030 60% of population will live in cities. If changes in
space organization do not happen until 2030, total earth population will increase to 8,1 billion
and 5 billion people will live in urban regions with the 2,67 billion that will not have place to
live.
This change of the world, from rural to predominantly urban is continuous and cannot convert
again, so these changes affect using of water, energy, earth and other nature resources. In the
same time cities are primary victims of climate changes. Half of the population lives in urban
regions, but they consume 80% of global energy production.
272
�Urban theorists saying that city is dead. In the future we can talk about two models of the
cities that are totally different: ecological conscious city that becomes sustainable with the
own resources and „ slum city ― that is fighting for the healthier life.
How to deal with challenges of the global age that are barrier for progress and sustainability,
and in same time keep own identity and diversity?
The cities are kind‘s social - ecological systems that have a wider range of articulation with
ecology. How to produce positive results – results which enabling contribution of
sustainability of environment in cities?
Cities are complex systems of consumption and production and that complexity makes them
essential for finding solutions.
Differences of the cities come from different politics of the governments, basic economy, and
ordinary cultural life of the citizen‘s. One of those facts is that whole energy flow and
materials of the economy become pollution and waste of ecosphere just in different shape.
Are the global ecological conditions result of the urban agglomeration and density, or are they
result of specific urban system types?
Long time ago cities become places for innovations, development and starting of complex
physical and organization systems. It is important to find solution for the big number of
ecological damage and formula for reconfiguration of social – ecological systems that are
made because of urbanization.
Keywords: Sustainable Urbanism , Eco – City , Ideal City , Sustainability , Brownfield ,
Re – Use , Urban recycling , Open Arhitecture , Green Buildings .
1.INTRODUCTION
How we as architects and urban planners can contribute to sustainable
development? By following caprices of technique and investors , taking in consideration
economic profit all of projects , we all become main actors of global crisis.
This paper presents review of city sustainability problem , the same city that is the main tissue
of the physical existence of people. Framework of responsibility and spatial problems were
the basic causes of the introducing of brownfield area as a potential space sustainability.
Environment limits are decreasing every day.
The goal of the research is to find possible solutions for existing problems of humanity, which
will be starting point for sustainable development of city. Possible strategies, ways of acting
and implementations that can be applied by architects and urban planners, are summarized in
this work. The strategies are sequenced by the problems with a more than one sourced , and
way of acting depends on this.
273
�2. URBAN VISION
2.1.Implementation
The city can be viewed as an organism in which all parts must function properly. So the city
does
not exist independently
of all its
elements. The implementation should
be
defined by the zones, points that must be acted on. If we take into account the complexity of
cities, historical context
and contemporary spirit we
need to
know
different predictable effects
on each
of these units. Striving for sustainable
urban
structures involve and sustainable development of the existing structure. Renovation
is often associated with the term deportation. Renewal does not necessarily mean that it is
sustainable.
During the urban sprawling ,urban space becomes close to its resting partly on the
old industrial areas, military areas, storage areas or rusty communal areas. These zones
represent a break in physical functioning - black holes. Brownfield sites are then negative
phenomena in the cities, because they contribute in creating a poor environment, with
frequent pollution of
soil and groundwater, the
potential
sources of infection etc.
Brownfield locations
are general threats of development
and
environmental loads.
It is evident that because
of
their previous functions
these
places make huge
untapped areas. Physical barriers also
represent
a certain psychological
barrier.
World cities reached very high level of solving brownfield problems, well known and unified
methods and systems are established in there .
The goal of brownfield revitalization is to convert these locations to places of public purpose
of
general
interest.
The
increased risks
and costs
associated with
their reconstruction and re-using
discourage private
capital from direct
economic intervention.
Ecological experts in the world want to introduce a circular logic in the function of cities,
and the
maximize re-use of
waste, to
reduce it.
3.Sustainable strategy
One of the important questions for every strategy that must be asked , is where to start from?
Should it be implemented from local or global level ? Taken scale that effects the space could
have crucial significance.
Cities are incarnation of urban crisis. Within the urban crisis , also society, economical,
ecologic and politic cries are classified. Does it mean when we start to solve elements of other
crises , we are on the good way to solve the urban crisis ? The mission of the architecture
must be encouraging the society on changes , because architecture presents its values.
Ideal city doesn‘t exist. There are only variations of idealization of certain cities as world
powers , which brings us back to the political dimensions. Searching for sustainable planning
of cities is future mission.
274
�Eco – city should talk to the eco- revolution. New urban planners as a base to every project
should have a green line that will clearly accruable economic benefit or gain of the society.
To achieve a positive result acting should be in the broader spatial and temporal scales ,
observing the effects of local activities on the macro – level , such as global warming , acid
rain formation and global plunder of resource.
Sustainability of cities is not only reflected in the ecological resources and techniques that it
have , but also in saves and production of the energy. Buildings are responsible for around
40% of total energy consumption and 36% of CO2 emissions.
By designing in accordance with climatic conditions , the proper organization of existing and
open public spaces , we contribute to sustainability. Renewable energy, consumption
reduction and energy conservation, need to become the standard of each space.
The sustainability strategy must be based on NEEDS and FUTURE GENERATIONS.
3.1.Social dimension
Develop an social action plan (education , multidisciplinary approach at national , regional
and local level)
Cooperation and exchange of information within sectors
Remove vulnerability of space
Marketing
Carbon - neutral lifestyle
3.2. Ecological dimension
Support in construction of green areas, greenfield should be merged with the renewal of
zone brownfield
Through the elements of connective tissue, streets, squares and parks connections will be
established with other areas of brownfield zones
Green Corridors - environmental arteries
Design with Nature
3.3. Eco - political dimension
Define each of brownfield location in cities and areas with critical parameters
Create a law framework (government, parliament, the ministry)
275
�Set criteria for assessing the status and utilization of these zones
Get rid question of ownership. Public and Private
Develop a national policy for access to brownfield zones
Brownfield zones as a priority investments (public investment projects)
Each of these strategies can be presented through the urban recycling. Recycling is a
concept that is very often practice in the world. In architecture it runs through
all aspects, so we have a recycling of materials, recycling facilities and recycling
of
whole urban area. Recycling is closely associated with brownfield , or areas that have
become the industrial crisis delays in the area, the black spots, the termination of all activities.
Recycling of urban area is deeply into the core of the problem of addressing the issues of land
use , materials and man in this area. A well designed concept of brownfield zone
regeneration can change the image of the city and become a new catalyst within a space.
Urban recycling and sustainable design are mutually supportive. Urban recycling is
needed for visual quality.
4. CONCLUSION
With the expansion and growth of cities the processes of transformation and reconstruction
is occurring .
The question remains is how to proceed , what is the
purpose and by which methods and
models.
On the question of vision, in the not so distant future, 2050. years, many European cities will
try to find the answer, and to prepare the development strategy or provide some alternative
proposals.
Focusing on sustainability priorities and stimulating urbanism rather than urbanism of
obligations, new methods should be created and effective in the space of continuous change.
Urban transformation as a result of globalization give many negative products in the further
development of cities , as already noted in the social, economic and environmental direction
of urban development.
In this paper possible solutions are defined that lead to sustainability of the city. Proposed
strategy, method of urban recycling and regeneration of brownfield area can be applied to
any city.
If sustainable urbanism becomes new form, is it the only way to build the city?
How sustainability should be treated, and is sustainability in time of globalization becoming
part of our lives or is it just word for the public?
One thing is sure, urbanism and architecture of new age can be called by any name, but the
result that must be produced cannot have bad influence on the citizens and their lives.
REFERENCES
Acioly, C. (2000) ‗Can Urban Management Deliver the Sustainable City?‘ In Compact Cities
276
�M.Jenks and R.Burgess , Sustainable Urban Forms for Developing Countries, Spon Press,
London.
Cliff Moughtin , Peter Shirley ,(2005)Urban design: Green dimensions. 2nd edition,
Amsterdam
Simon Guy, Steven A. Moore,(2005) Sustainable Architectures. Cultures and Natures in
Europe and North America, New York
Polese, M. and Stren, R. (2000) The social sustainability of cities: diversity and management
of change, University of Toronto Press, Toronto
Mike Jenks , Colin Jones (2010), Dimensions of the Sustainable City (Future City) ,2nd
edition, New York
Matthew E. Kahn,( 2006) Green cities : Urban Growth and the Environment, Washington
Adam S. Weinberg, Allan Schnaiberg, David N. Pello , ( 2000 ) Urban Recycling and the
Search for Sustainable Community Development , Princeton University Press
Jon Lang, ( 2005 ) Urban design: a typology of procedures and products
John Eade ,Christopher Mele ( 2002 ) Understanding the city. Contemporary and future
perspectives
Sallie Westwood ,John Williams ( 1997 ) Imagining cities: scripts, signs, memory, London
Tio2 Reinforced Al2o3 Composites
Gunhan Bayrak1, Ferit Ilgar2, Ediz Ercenk3, Senol Yilmaz3, Uğur Sen3,
Volkan Gunay4
1Sakarya University, Arifiye Vocational School, 54580 Arifiye, Sakarya
2Alpha Foundry and Machine Industry Co., Organized Industrial Zone, Avar Street, No: 1
06935 Sincan / Ankara
3Sakarya University, Engineering Faculty, Department of Metallurgical and Materials
Engineering, Esentepe Campus, 54187 Sakarya, Turkey,
4TUBITAK-MAM, Material Institute, 41470 Gebze, Kocaeli, Turkey
Abstract
In this study, the effect of TiO2 addition on properties of alumina ceramics was investigated.
The prepared commercial Alcoa alumina reinforced 0-15 % TiO2 were ground in ball mill for
2 h by wet milling and then powders were shaped dry pressing. After shaping operations, the
277
�
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Extent
The size or duration of the resource.
1256
Title
A name given to the resource
Sustainable City
Author
Author
Ahmetspahic , Erna
Abstract
A summary of the resource.
On the beginning of 20th century, cities become synonymous for progress, wealth and increasing opportunities when compared with the rural regions. Based on some UN information‘s, 30% of world population was urban in 1950, this percentage increase to 47% in 2000, and expectations are that in 2030 60% of population will live in cities. If changes in space organization do not happen until 2030, total earth population will increase to 8,1 billion and 5 billion people will live in urban regions with the 2,67 billion that will not have place to live. This change of the world, from rural to predominantly urban is continuous and cannot convert again, so these changes affect using of water, energy, earth and other nature resources. In the same time cities are primary victims of climate changes. Half of the population lives in urban regions, but they consume 80% of global energy production. Urban theorists saying that city is dead. In the future we can talk about two models of the cities that are totally different: ecological conscious city that becomes sustainable with the own resources and „ slum city ― that is fighting for the healthier life. How to deal with challenges of the global age that are barrier for progress and sustainability, and in same time keep own identity and diversity? The cities are kind‘s social - ecological systems that have a wider range of articulation with ecology. How to produce positive results – results which enabling contribution of sustainability of environment in cities? Cities are complex systems of consumption and production and that complexity makes them essential for finding solutions. Differences of the cities come from different politics of the governments, basic economy, and ordinary cultural life of the citizen‘s. One of those facts is that whole energy flow and materials of the economy become pollution and waste of ecosphere just in different shape. Are the global ecological conditions result of the urban agglomeration and density, or are they result of specific urban system types? Long time ago cities become places for innovations, development and starting of complex physical and organization systems. It is important to find solution for the big number of ecological damage and formula for reconfiguration of social – ecological systems that are made because of urbanization. Keywords: Sustainable Urbanism , Eco – City , Ideal City , Sustainability , Brownfield , Re – Use , Urban recycling , Open Arhitecture , Green Buildings .
Date
A point or period of time associated with an event in the lifecycle of the resource
2012-05-31
Keywords
Keywords.
Conference or Workshop Item
PeerReviewed
H Social Sciences (General),Q Science (General)
-
https://omeka.ibu.edu.ba/files/original/aae43b259a264d285b5f5712466b6e9e.pdf
aa41aca642588975cc45247159810101
PDF Text
Text
3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Dincer, I. and Rosen M.A. (1998) A worldwide perspective on energy, environment and
sustainable development, International Journal of Energy Research, 15, 1305-1321.
Ewing, B.T., Sari, R. and Soytas U. (2007) Disaggregate energy consumption and industrial
output in the United States, Energy Policy, 35, 1274–1281.
Hacker, R.S. and Hatemi-J A. (2006) Tests for causality between integrated variables using
asymptotic and bootstrap distributions: theory and application, Applied Economics, 38, 1489500.
Hannan, E. J. and Quinn B.G. (1979) The determination of the order of an autoregressive,
Journal of the Royal Statistical Society, 41, 190-195.
Hatemi-J, A. (2003) A new method to choose optimal lag order in stable and unstable VAR
models, Applied Economics Letters, 10, 135-137.
Kwiatkowski D., Phillips P.C.B., Schmidt P. and Shin. Y. (1992) Testing for the null of
stationarity against the alternative of a unit root, Journal of Econometrics, 54, 159-178.
Ozturk, I. (2010) A literatüre survey on energy-growth nexus, Energy Policy, 38, 340-349.
Payne, J.E. (2009) On the dynamics of energy consumption and output in the US, Applied
Energy, 86, 575–577.
Phillips, P.C. and Perron P. (1988) Testing for a unit root in time series regression,
Biometrika, 75, 335-346.
Rosen, M.A. (1996) The role of energy efficiency in sustainable development, Technology
and Society, 15(4), 21-26.
Sadorsky, P. (2009) Renewable energy consumption and income in emerging economies,
Energy Policy, 37, 4021-4028.
Sarı, R. and Soytas U. (2004) Disaggregate energy consumption, employment, and income in
Turkey, Energy Economics, 26, 335–344.
Sarı, R., Ewing, B.T. and Soytas, U. (2008) The relationship between disaggregate energy
consumption and industrial production in the United States: an ARDL approach, Energy
Economics, 30, 2302–2313.
Schwarz, G. (1978), Estimating the dimension of a model, Annals of Statistics, 6, 461-464.
Toda, H.Y. and Yamamoto T. (1995), Statistical inference in vector autoregressions with
possibly integrated processes, Journal of Econometrics, 66, 225-250.
An Analysis of Theories on Stock Returns
Ahmet Sekreter
Abstract
Objective in writing this article is to provide an overview of the theories that has been
developed for stock returns which is an important area of financial markets’ researches. Since
the researches in this field are very active for the past quarter, it is not possible to describe all
works that has been done in this area. Most important researches will be discussed without
going deeper in mathematical tools and theories.
15
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Empirical works have been showing that stock returns are predictable cross-sectional and by
time. The discussions about prediction of stock price behavior started with Markowitz with
his article –Portfolio Selection-. Markowitz won Nobel Prize in 1990 for his research about
portfolio theory. However he criticized by many economists since implementation of the
theory requires lots of effort to evaluate data and since it uses historical data the prediction
will not be accurate. In addition the assumption that stock returns are normally distributed is
not true in reality. Sharpe, Lintner, and Mossin independently developed a model which has
come to be known CAPM (capital asset pricing model) in 1964, 1965, and 1966 respectively.
Beta coefficient is a key parameter in CAPM world. Beta measures risk of an asset in relation
to the market such as S&P500 or an alternative factor. Actually the CAPM is a simple model
which is based on sound reasoning and some of the assumptions -all investors have the same
information, information is costless, and there are no taxes transactions costs- are unrealistic
in market. APT (arbitrage pricing theory) presented for a better estimation for stock returns
than CAPM. CAPM is a modified theory while APT is a completely different model. APT’s
multiple factors provide a better indication of asset risk and a better estimate of expected
return. There are n-factors effecting stock returns in APT but the number of factors are
unknown. Furthermore CAPM and APT are single-period models. To get multi-period aspects
of market ICAPM was developed. After that CCAPM (consumption-oriented capital asset
pricing model) was introduced. It tried to explain behavior of stock returns by a logical
extension of APT. A long literature exist on prediction of stock market returns but especially
after the latest financial crisis these theories must be analyzed and suggested new ideas for
forecasting behavior of stock returns.
Keywords: Stock Returns, Markowitz, CAPM, APT, ICAPM, CCAPM, Fama-French 3-factor
model.
1.Theories
1.1.Markowitz Portfolio Selection
Empirical studies in finance show that forecasting stock returns is possible by developing
some models. Markowitz – as some people call Einstein of finance- developed an idea on
stock returns under some assumptions. Although some assumptions like ‘no taxes’,
‘information is available for everybody and it is costless’, ‘no transaction cost’ do not exist in
real world, the tools developed by him allow to measure the risk and return. An investor
wants to maximize returns for a given level of risk or wants to minimize risk for a given level
of return.
According to Markowitz Portfolio theory investors choose the optimum portfolios which lie
on this curve. An investor who can bear more risk choose portfolios that are on upper part of
the curve and investor who is a risk-averse choose portfolios that are lower part of the curve.
It was shown in Markowitz Portfolio selection that the variance of rate of returns is measure
of risk of return under some assumptions. The formula developed by Markowitz proved that
diversifying portfolio reduces the total risk.
Capital Asset Pricing Model
Capital Asset Pricing Model (CAPM) is based on Markowitz Portfolio Theory and it
describes the relationship between the risk and return of a portfolio. The formula in CAPM is
the equation of SML (Security Market Line).
Ri: rate of a stock return
16
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Rm: rate of market return
β: cov(Ri,Rm)/ var(Rm)
Rf: risk-free rate
When beta is equal to zero expected return is equal to risk-free rate (Rf) and when beta is
equal to 1 it means that the expected return is equal to market return (Rm). By using simple
math the equation of the line above is found as follow:
Ri=Rf + β(Rm-Rf)
So in CAPM the rate of a stock return is defined as risk-free rate plus product of beta and
market risk premium (Rm-Rf). CAPM can be used for all stock after estimating beta.
Estimation of beta and market risk premium is the critical point in CAPM. Beta can be
calculated as daily, monthly or yearly and all give different betas. Calculation of different
time intervals gives also different betas and market risk premium also changes over time. The
required estimations can be found after collecting lots of historical data. Predicting future by
calculating
some
past
data
is
sometime
not
reliable.
2.Arbitrage Pricing Theory
"The APT is derived from the premises that asset returns follow a linear return generating
process, and that in well-functioning financial markets, there will be no arbitrage
opportunities. On the basis of these assumptions, one can show that there is an equilibrium
linear relationship between the returns on risky assets and a small set of economy-wide
common factors. While several macroeconomic variables do have some relationship with
different risky assets, the APT postulates that the pricing of risky assets depends only on the
set of variables whose influence is felt significantly by all risky assets together. This set of
variables is known as the common factors of the APT."( Otuteye, Eben)
The basic assumption of APT is based on the absence of arbitrage in the market. The returns
can be calculated if there is no arbitrage opportunity. Capital markets are perfectly
competitive and trend of investors always prefers more wealth to less wealth. APT is less
restrictive than CAPM in its assumptions. There is only factor in CAPM but in APT there are
n factors which affect the expected rate of return. Expected rate of return is formulated as
follow
E[R]=Rf + b1f1+b2f2+…+bnfn
bk: the sensitivity of the stock to the factor bk
fk: the risk premium for factor k
It is stated in APT that there are n factors however these factors are not defined and even the
number of factors are unknown. However it is reasonable because every stock can have
specific effects that affect the return rate. APT does not rely on stock market and it does not
deal with measure of the performance of market, instead of market it focuses on factors that
affecting price of stock. The factors in APT can be adapted to changes that influence stock
price and from this aspect it brings advantages to the user but determining these factors is not
easy since it requires great research.
17
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
3.Intertemporal CAPM
CAPM was one of the most important developments in finance when it was introduced. It
became basis of many research papers. However it was started to criticize that it is a singleperiod model. The Intertemporal CAPM was an alternative for CAPM introduced by Robert
Merton which is a multi-period model. Merton claimed that since real interest rate, stock
market returns, inflation and therefore investment opportunity set can be changed after that
investors may want to hedge risks which they exposure. The demand on hedging causes a
change in the asset pricing equation. Merton stated in his model that since the model is based
on consumer-investor behavior it must be intertemporal, ICAPM is a linear model to state the
shifts of investments over time and predict investment opportunity set.
3.1.Consumption-Oriented the Capital Asset Pricing Model
Consumption-Oriented Capital Asset Pricing Model (CCAPM) is an extension of traditional
CAPM. CAPM is based on market portfolio’s return and it used it to understand behavior of
the return rate. In CAPM the prediction of future relies on market portfolio’s return. Beta in
CAPM measures sensitivity of stock return to the expected market return. CCAPM has the
same formula with CAPM only it differs from CAPM by explanation of beta. Beta in
CCAPM is defined as follow:
Consumption beta (βc)=
And formula for CCAPM is restated as follow:
Ri=Rf + βc(Rm-Rf)
Ri= expected return on risky asset i
Rf= implied risk-free rate
Rm= implied expected market return
βc= consumption beta of the risky asset i
The investors’ consumption growth and risk aversion determines the expected return of risky
asset and the risk premium. The consumption beta defined above provides the systematic risk
in CCAPM world. In CCAPM, an asset is more risky if consumption is low or savings are
high.
The consumption beta can be found by empirical works and statistical methods like finding
beta in CAPM.
The CCAPM, like CAPM, is based on only one parameter and it has been criticized because
of this issue. However the empirical works have shown that there are more than one affect
that influence the stock prices and return rates. The empirical works also have shown that the
CCAPM’s predictions are not supported by those results.
3.2.Fama and French Three Factor Model
The CAPM and CCAPM are trying to explain stock returns based on only one factor. The
APT and ICAPM are adding many factors that affecting stock returns but these factors are not
stated. Empirical works have shown that after testing CAPM, beta in CAPM can explain 70%
of the return in the market. Eugene Fama and Kenneth French tried to explain the rest of 30%
unexplained stock return by expanding capital asset pricing model. Fama and French expand
18
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
CAPM by adding two more factors in the formula of traditional CAPM. In the empirical
works Fama and French found that the two classes of stocks are better than the others. The
value stocks have provided much better return than growth stocks that is stocks which have
high book to market ratio and the small stocks have provided much better than large stocks in
the market as a whole. After adding these two factors in capital asset pricing model the new
formula is as follow:
Ri=Rf+ β(Rm-Rf)+bs*SMB+bv*HML
Ri= expected return rate on risky asset i
β: the beta measure the sensitivity of stock return to the expected market return but this beta is
not same as beta in capital asset pricing model since in Fama-French 3 factor model there are
two more factors added into the formula.
Rf=risk-free interest rate
Rm= expected market return rate
SMB= small market capitalization minus big market capitalization
HML= high book to market ratio minus low
bs and bv= the coefficients of SMB and HML respectively. These coefficients are determined
by linear regression after defining SMB and HML.
4.Conclusion: Estimation of the Parameter Beta in Models
Beta is the only explanatory power in the CAPM and CCAPM. Beta is the only factor that
affecting the stock prices and return rates in these models. There are many factors in the
models the APT and ICAMP. Fama and French 3-factor model contains three factors which
influence the behavior of the return rates however beta is the factor that has the most
explanatory power in this model. Estimation of the parameter beta in models is very important
to get accuracy in predicting the stock prices and return rates. The chosen time interval causes
getting a different beta, and since stock returns can be evaluated daily, weekly, monthly, or
annually the chosen frequency also affects the accuracy of beta. Some empirical tests have
shown that 3 years time interval and annually evaluated stock returns give better results. Most
CAPM tests and et all have focused on cross sectional aspects of data. However the recent
researches have shown that investigating the conditional relationship between beta and return
gives better estimations under the assumption of time series analysis since beta is not stable
over time.
BIBLIOGRAPHY
Anthony Kyereboah-Coleman, (2009), Portfolio Theory.
Douglas T. Breeden, (1979), An Intertemporal Asset Pricing Model with Stochastic
Consumption and Investment Opportunities.
Eugene Fama, Kenneth French, (1995), Size and Book-to-Market Factors in Earnings and
Returns.
Graeme West, (2006), An Introduction to Modern Portfolio Theory: Markowitz, CAP-M,
APT, and Black-Litterman.
19
�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo
Gregory Cannor, Robert A. Korajczyk, (1992), The Arbitrage Pricing Theory and
Multifactors Models of Asset Returns.
Gur Huberman, Zhenyu Wang, (2005), Arbitrage Pricing Theory.
Harry Markowitz, (1952), Portfolio Selection.
James L. Davis, (2001), Explaining Stock Returns: A Literature Survey.
John Y. Campbell, Motohiro Yogo, (2006), Efficient Tests of Stock Return Predictability.
Jonathan W. Lewellen, (2000), On the Predictability of Stock Returns: Theory and Evidence.
Robert C. Merton, (1973), An Intemporal Capital Asset Pricing Model.
Internet Sources
www.wkipedia.org
www.portfoliosolutions.com/f-11.html
http://www.investopedia.com
http://www.bionicturtle.com/forum/threads/p1-t1-64-arbitrage-pricing-model-apt-versuscapm.5328/
The causal relationship between energy consumption and GDP in Turkey
Huseyin Kalyoncu1, Ilhan Ozturk2, Muhittin Kaplan1
1Meliksah University, Faculty of Economics and Administrative Sciences, 38010, Kayseri,
Turkey.
2Cag University, Faculty of Economics and Business,33800, Mersin, Turkey.
Email: hkalyoncu@meliksah.edu.tr, ilhanozturk@cag.edu.tr, mkaplan@meliksah.edu.tr
Abstract
This paper attempts to investigate the short-run and long-run relationship and causality
between energy consumption and economic growth during 1960-2006 period for Turkey.
Johansen and Juselius cointegration method and vector error correction model (VECM) have
been employed to examine this issue. After finding cointegration among variables, a VECM is
estimated and the Granger causality tests were carried out based on a VECM. The results have
shown that there is no short-run causality in both energy consumption and GDP models. The
results also confirmed that there is unidirectional long-run causality among variables of
interest and the direction of long-run causality is running from per capita GDP to per capita
energy consumption. As a result, conservation hypothesis which postulates unidirectional
causality from economic growth to energy consumption is confirmed for Turkey. Taken
together, these empirical findings involve valuable information for policy makers.
Keywords: Energy consumption, Economic growth, Causality, Turkey
20
�
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Extent
The size or duration of the resource.
1308
Title
A name given to the resource
An Analysis of Theories on Stock Returns
Author
Author
Ahmet , Sekreter
Abstract
A summary of the resource.
Objective in writing this article is to provide an overview of the theories that has been developed for stock returns which is an important area of financial markets’ researches. Since the researches in this field are very active for the past quarter, it is not possible to describe all works that has been done in this area. Most important researches will be discussed without going deeper in mathematical tools and theories.Empirical works have been showing that stock returns are predictable cross-sectional and by time. The discussions about prediction of stock price behavior started with Markowitz with his article –Portfolio Selection-. Markowitz won Nobel Prize in 1990 for his research about portfolio theory. However he criticized by many economists since implementation of the theory requires lots of effort to evaluate data and since it uses historical data the prediction will not be accurate. In addition the assumption that stock returns are normally distributed is not true in reality. Sharpe, Lintner, and Mossin independently developed a model which has come to be known CAPM (capital asset pricing model) in 1964, 1965, and 1966 respectively. Beta coefficient is a key parameter in CAPM world. Beta measures risk of an asset in relation to the market such as S&P500 or an alternative factor. Actually the CAPM is a simple model which is based on sound reasoning and some of the assumptions -all investors have the same information, information is costless, and there are no taxes transactions costs- are unrealistic in market. APT (arbitrage pricing theory) presented for a better estimation for stock returns than CAPM. CAPM is a modified theory while APT is a completely different model. APT’s multiple factors provide a better indication of asset risk and a better estimate of expected return. There are n-factors effecting stock returns in APT but the number of factors are unknown. Furthermore CAPM and APT are single-period models. To get multi-period aspects of market ICAPM was developed. After that CCAPM (consumption-oriented capital asset pricing model) was introduced. It tried to explain behavior of stock returns by a logical extension of APT. A long literature exist on prediction of stock market returns but especially after the latest financial crisis these theories must be analyzed and suggested new ideas for forecasting behavior of stock returns. Keywords: Stock Returns, Markowitz, CAPM, APT, ICAPM, CCAPM, Fama-French 3-factor model.
Date
A point or period of time associated with an event in the lifecycle of the resource
2012-05-31
Keywords
Keywords.
Conference or Workshop Item
PeerReviewed
H Social Sciences (General),HB Economic Theory,HG Finance,HJ Public Finance