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                    <text>Mathematical Linguistics as a Postulate of Phenomenological Analysis of Literary
Works
Ana Stisovic Milovanovic &amp; Samina Dazdarevic &amp; Refik Sadikovic
International University of Novi Pazar / Novi Pazar, Serbia
Key words: mathematical linguistics, analysis, plurality method
ABSTRACT
Ingarden's view of layered structure of an artistic text has opened new possibilities for studiesof the constituents,
because each layer can be interpreted both as a representative of the whole meaning literary work of art. Sounding
layer, analyzed in terms of mathematical linguistics, opens the possibility of analytical and synthetic procedure in
the analysis of the work.
Pluralism of literary method is adequate access to the aesthetic, so the analysis of the layered structure, enriched
with the postulates of mathematical linguistics, will lead to a complete and authentic understanding of the work.

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                <text>MILOVANOVIĆ STISOVIĆ, Ana
Dazdarevic, Samina
SADIKOVIĆ, Refik</text>
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                <text>Key words: mathematical linguistics, analysis, plurality method  ABSTRACT  Ingarden's view of layered structure of an artistic text has opened new possibilities for studiesof the constituents, because each layer can be interpreted both as a representative of the whole meaning literary work of art. Sounding layer, analyzed in terms of mathematical linguistics, opens the possibility of analytical and synthetic procedure in the analysis of the work.  Pluralism of literary method is adequate access to the aesthetic, so the analysis of the layered structure, enriched with the postulates of mathematical linguistics, will lead to a complete and authentic understanding of the work.</text>
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                    <text>Measurement of Capital Adequacy for Operational Risk: A Case Study in a
Bank Operating in Turkey
Kemal Nalçın
Selçuk University
Turkey
kemalnalcin@selcuk.edu.tr
Mustafa İyibildiren
Selçuk University
Turkey
iyibildiren@selcuk.edu.tr
Abstract: During the recent years, restrictions and obstacles of the finance sector are declining;
on the other hand the volume of financial activity is increasing. Banking sector is also affected
from this alternation; day by day sector’s risks are changing and growing. Banks in competition
are increasing the variety of products and this variation results in that banks are subjected to the
risks of different products and activities. The purpose of the risk management is not only
preventing losses but also changing the risks and opportunities. Banks are developing different
studies and applications about the control and management of the risk. Although risk
measurement is known as a very old and important subject, with the growing importance after
multi-dimensional operational losses occurred in recent years, the measurement of operational
risks is still a new and developing field. The structure of the Operational Risk has a wide risk
area which brings about serious losses in the bank. The Basel Committee who makes different
arrangements and gives different advices about this area defines the Operational Risk as “the
risk of loss resulting from inadequate or failed internal processes, people and systems or from
external events”. The methods of observing Operational Risk differs according to the risk
sensibility. This difference affects the results of capital needs which are calculated by the banks.
Banking sector must take precautions and be ready for the situation with risk that can occur at
any moment.
This study deals with risks in banking sector, banking crises caused by operational risk, and the
methods that can be used for measuring capital adequacy and operational risk management. In
this context, risk measurement methods proposed by the Basel II committee are discussed. It has
been attempted to measure the operational risk of a bank that operates in the Turkish banking
sector with the methods of basic indicator approach, standard approach and alternative
standard approach by using data of the bank and also, it has been analyzed differences in capital
adequacy that calculates as a result of the different measurement approaches with tables.
Keywords: Risk Management, Operational Risk, Capital Adequacy, Basel II Committee, Basic
Indicator Approach, Standard Approach, Alternative Standard Approach.

121

�121

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IYIBILDIREN, Mustafa</text>
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                <text>During the recent years, restrictions and obstacles of the finance sector are declining; on the other hand the volume of financial activity is increasing. Banking sector is also affected from this alternation; day by day sector’s risks are changing and growing. Banks in competition are increasing the variety of products and this variation results in that banks are subjected to the risks of different products and activities. The purpose of the risk management is not only preventing losses but also changing the risks and opportunities. Banks are developing different studies and applications about the control and management of the risk. Although risk measurement is known as a very old and important subject, with the growing importance after multi-dimensional operational losses occurred in recent years, the measurement of operational risks is still a new and developing field. The structure of the Operational Risk has a wide risk area which brings about serious losses in the bank. The Basel Committee who makes different arrangements and gives different advices about this area defines the Operational Risk as “the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events”. The methods of observing Operational Risk differs according to the risk sensibility. This difference affects the results of capital needs which are calculated by the banks. Banking sector must take precautions and be ready for the situation with risk that can occur at any moment.    This study deals with risks in banking sector, banking crises caused by operational risk, and the methods that can be used for measuring capital adequacy and operational risk management. In this context, risk measurement methods proposed by the Basel II committee are discussed. It has been attempted to measure the operational risk of a bank that operates in the Turkish banking sector with the methods of basic indicator approach, standard approach and alternative standard approach by using data of the bank and also, it has been analyzed differences in capital adequacy that calculates as a result of the different measurement approaches with tables.    Keywords: Risk Management, Operational Risk, Capital Adequacy, Basel II Committee, Basic Indicator Approach, Standard Approach, Alternative Standard Approach.  </text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Ölmez, F.N. (2006) Isparta İlinde El Dokuması Halı Üretiminin Sektörel Analizi ve
Geleneksel Isparta Halısında Bazı Modifikasyonların Uygulanması, (SDÜ BAP) Projesi,
Isparta.
Sakarya, O.(1992) “Isparta Halıcılığının Dünü, Bugünü ve Geleceği”, Isparta’nın Dünü
Bugünü ve Yarını Sempozyumu, Isparta İli Kalkındırma Derneği, Ankara.539-551.
Ulusal Kümelenme Politikasının Geliştirilmesi Projesi Basın Bilgi Notu,
http://www.bodto.org.tr/images/other/kumelenme_kapanis_etkinligi_basin_%20bilgi_%20not
u.pdf.(21.04.2012)
Temurçin, K., (2004) “Isparta İlinde Sanayinin Gelişimi Ve Yapısı”, Cilt: 2 Sayı: 2 DOI:
10.1501/Cogbil_0000000044 ,s.79-95. http://dergiler.ankara.edu.tr/dergiler/33/825/10468.pdf
(12.04.2012)
Türeli, E., Özaltın, N.F., Yurteri, F.Y., Işık K., (2006), “Desenlerle Isparta Halıları”, 2. Türk
Bilim ve Teknoloji Tarihi Kongresi, Isparta.
Yumuk, G., İnan, H.İ. (2005) “Trakya Bölgesindeki İmalat Sanayi İşletmelerinin Kalite
Maliyetlerinin SWOT Analizi İle Değerlendirilmesi”, Tekirdağ Ziraat Fakültesi Dergisi,
2(2),177-188.

Measurement Of The Competitiveness Of Turkey : Eu Countries, 1980-2010 Period
Comparison
Sevgi Sezer1, Mehmet Mercan2
1Uludağ University, Faculty of Economic and Administrative Science
2Hakkari University, Faculty of Economic and Administrative Science
E –mails: sevgis700@hotmail.com,mmercan48@gmail.com; mehmetmercan@hakkari.edu.tr
Abstract
Today, in the new world order caused by economic glabalization, technologic and political
changes in world economy result in changes in the competitiveness of the countries.
Everyday, countries intensify their effort to gain, develop and protect their power to compete
with other countries. Today, even the most developed countries are trying to strengthen their
competitiveness in order to enlarge their share in the world economy. Turkey desires to
increase its competitiveness in all sectors in order to rise the welfare level of its people and to
speed up its economic growth. Turkey endeavors to increase its competitiveness against EU,
who is one of the most important economic partners of Turkey, in all sectors. In this study, the
period of 1970-2011 to measure the competitiveness of Turkey towards the EU countries and
aims to achieve predictions for the future, and the watermark.
Keywords : Competitiveness, Turkey, EU, International Trade,
JEL Classification: F12, F14, F15
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

1.INTRODUCTION
The common objective for all the countries in the changing world order is to provide
competition conditions and increase the prosperity.However,competition is a
multidimensional fact. Competitiveness of the countries and companies is depended on
various factors. The importance of competitiveness has increased after the rapid change and
development with the globalization in every sense. Studies about competition and
competitiveness in countries also have increased.
Since competition and competitiveness are handled by various discipline in various
aspects, there is no a common definition or measurement technique. However, if we want to
classify in general,there are two points of view in the measurement of compititiveness. The
first one is the studies carried out in micro (business and industry) level.The second one is the
macro (country) point of view. While the competition among businesses inside the country
and the effects of this competition on national and international market is emphasized in
micro level approach, the status of the country in international competition is emphasized in
macro approach. Competitiveness means that while countries try to increase the incomes of
their citizens under the conditions of free and established market, at the same time they can
present their products and services to the international markets and become successful. The
definition mostly attributed in macro approach is this one.
We can put in order the three basic characteristics of competitiveness according to the
study results like this:The first one is that the main objective of having competitiveness is to
provide an increase the living standards in the country and the prosperity of the citizens.This
prosperity increases can be provided by paying attention to the activities like investment and
production,increasing the cooperation between all institutions and paving the way for
specialization.The second one is that the country should focus on its specific features,abilities
and potentials in order to catch the opponent countries in producing the products and services
and distributing them.The third one is that numerous indicators are used to analyze the
competitiveness of the country. For instance, international market share,trade balance of the
country,production,employment,openness.i.e.
The competitiveness of Turkey with 15 basic countries of EU between 1980 and 2010
periods was tried to be measured by the globalization index measuring the competitiveness. It
was aimed to make predictions for the future according to the upcoming results.
This study consists of four sections. In the first section literature scaning was carried
out.In the second section data set and method was presented and explained. In the third
section there are analysis results.In the fourth section a general evaluation will be carried out
and recommendations will be made.
1.1.LITERATURE REVIEW
Theoretical foundations of international competitiveness date back to classical economics.
There are several numbers of approaches such as the Theory of Competitive Advantage
Approach,Double Diamond Approach, Nine Factors Model Approach for international
competitiveness.The issues such as the definition of international competitiveness concept,
assessment, explaining the determiners for this concept and stating the economic relations of
it ranges according to the chosen approach.So there is no generally accepted approach for
international competitiveness.(Kibritçioğlu, 1996:112). In theoritical context, there is no
130

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

certain consensus about international competitiveness and the factors affecting it and also it is
not possible to say that the explanations are complementory each other.
The concept of international competitiveness is one of the significant facts of the globalization
process. The concept of international competitiveness in literature is handled and tried to be
defined in three different ways as in firm,sector and international level. (Kesbiç ve Ürüt,
2004: 56-59).
Neither there is a generally accepted approach for the definition of the concept of
international competitiveness,nor there is an approach for assessment and determining the
factors affecting it. In international economy literature, macroeconomical,microeconomical
and commercial approaches are generally used in order to assess the competitiveness in
internatinal trade. Among these approaches, the commercial approach is based on the theory
of international foreign trade and it searches the foreign trade performance of
sector/country.As a part of commercial approach, international competitiveness can be
calculated via the Revealed Comparative Advantage Index which was built up by Balassa in
1965. (Wziatek-Kubiak, 2003: 2-4). In order to assess international competitiveness many
indices are also used in literature such as The Relative Export Advantage Index, The Relative
Import Influence Index, The Relative Trade Advantage Index, Intra-industry Trade
Index,Specialization in Export Index,Similarity in Export Index,Relative Competition
Advantage Index,i.e. (Altay ve Gürpınar, 2008: 262-267).
When we deal with the factors affecting the international competitiveness, many factors are
used such as micro and macro economical, price and out of price, within firm and nonfirm,structural,qualitative,social and political,i.e.In economy literature, many qualitative and
quantitative factor affecting the competitiveness are handled,but price- oriented factors are
usually emphasized for the ease of finding data and assessment. In other words, in the factors
affecting the international competitiveness and its assessment issues there are versatile studies
in economy literature.However, depending on the time, as a result that developing countries
began to compete more than with developed countries, studies on the efficiency of the factors
affecting the international competitiveness began to increase.In this sense, many economic
variables were handled and labor cost, foreign exchange rate, market volume(GDP) and
openness were mostly used variables.
So we can collect the studies in four main titles (Yapraklı, 2011: 377-379) : First group
studies searched the relationship between the labor costs and competitiveness. As a
determiner for competitiveness labor cost is the contraversial field.Studies about the effect of
the cost of labour on the international competitiveness was performed by Fagerberg (1988),
Jorgenson and Kuroda (1991), Guerrieri and Mecliciani (2005). As a result of these studies, it
was found out that the high price level in the labor costs meant high productivity and qualified
labour employment.This result is the indicator of the efficient source usage and productivitycost advantage and it affects the international competitiveness positively. On the other hand,
Agrawal (1995), Wang (2002), Omel and Varnik (2009) and Du Toit (2010) found out in their
studies that high labor costs had a negative effect on the competitiveness.As a conclusion, we
can not say that there is a certain consensus about the effect of labor cost on the international
competitiveness.
Another variable used to measure the factors affecting the international competitiveness was
intended for assessing the relationship between market volume and international
competitiveness. The common view about this issue is that: Expansion of market volume
increases the competitiveness. Studies about this issue was carried out by Fagerber (1988),
Kim and Mirion (1997), Esterhuizen (2006), Mu and Zhang (2010) and Feinberg and
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Weymouth (2011). As a conclusion of these studies it was identified that Gross Domestic
Products of the countries was a significant factor for international competitiveness. Also the
expansion of market volume increases the international competitiveness by benefiting from
scale economies and providing efficient source usage. However, it was found out that GDP
was not enough to explain the international competitiveness in the studies on developed and
developing countries by Cho, Moon and Kim (2008).
An another variable used to measure international competitiveness was foreign exchange rate.
In the studies measuring the effect of foreign exchange rate on international competitiveness
by Yoshitomi (1996), Zawalinska (2005) it was identified that the increase in the exchange
rate affected the international competitiveness positively. However, in the studies by Safin
and Rajtar (1997), Du Toit (2010) it was identified that the increase in the exchange rate
affected the international competitiveness negatively. As a result, it is necessary to present the
certain effect of the foreign exchange rates about
increasing or decreasing the
competitiveness.If the positive effect is bigger than the negative effect,the increase in foreign
exchange rates affects the competitiveness positively; if the nagative effect is bigger than the
positive effect,it affects the international competitiveness negatively.
Also in some studies measuring the international competitiveness openness was used.
Openness degreee of a country is usually measured by the proportion of its GDP to its foreign
trade volume(export+import) (Kazgan, 1988: 116). In the studies by Fagerberg (1988),
Feinberg and Weymouth (2011) and Egbetokun (2011), it was found out that there was a
positive effect between openness and international competitiveness. This result was obtained
by the country’s becoming more competitive due to the reasons such as efficient resource
distribution,production increase and technology transfer while the openness degree increased.
Globalization Index in our study is based on the method used in the build of Human
Development Index of United Nations Development Plan (UNDP). (Çoban ve Çoban, 2004:
167). In the study by Çoban and Çoban (2004), competitiveness of Turkey and European
Countries between 1970 and 2010 periods was analyzed by GI(Globalization Index)
developed by A.T.Kearney Consulting Company. Even when country experiences took into
consideration, it was found in
the study that competitiveness of Turkey increased remarkably and accession to the EU would
affect this process positively.
2. DATA SET AND METHOD
In this study a comperative competitiveness of Turkey with EU countries between 1980 and
2010 periods was to be expressed with the help of GI(export + import / GDP) , globalization
index in goods and services. The data set in the analyses which was consisted of total
export,total import, foreign direct investments,population, the number of incoming and
outgoing tourists to the country, domestic loan volume, the number of internet users and GDP
series in terms of countries was collected from the World Bank database.
(www.worldbank.org).
The issues such as economic integration, political links,technology and personal
communication which are considered to be an a factor for the globalization can be expressed
parametrically with the help of globalization index called shortly as KFP and used to measure
the international competitiveness of the countries. With the use of globalization index the
issues such as international affairs and policies, commercial and financial movements, human
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mobility, thougts and international data flow can also be embodied.So competitiveness can be
explained more significantly.(A.T. Kearney, 2001).
Globalization Index is originally based on the method used in the build of UNDP (United
Nations Development Programme) Human Development Index. At first step the variables to
be used in the index are identified and then quantitative measurements of the variables
involved are carried out. The obtained quantitative values after these two steps are normalized
to clear the problems which can be seen in various variables identifeid with different
modules.16. For example, before normalizing the two variables such as avarage life
span(year) and GDP in human development index, the second one approaches nearly one
hundred times of the first one.At last,the aggravated sum of normalized variables which gives
a numerical result for each country is checked out.
In the globalization index consisting of 11 variables17 the weights of variables used in index
calculations are drown up in Table-1 (Lockwood, 2001: 5).
Category

Tablo-1: The Variables in Globalization Index
Variable Name
Variable Definition

Weights

Globalization in Commerce
goods and
Convergence
services

(Export +Import) / GDP

1

GDP according to Nominal
GDP/PPP*

1

Financial
Globalization

Income

(Loans + Depths) / GDP

1

Foreign Direct Investments
(FDI)

(Incoming FDI + Outgoing FDI)/
GDP

2

Portfolio Invetments (PI)

(Incoming PI + Outgoing PI) / GDP 2

Globalization in Tourism
Personal
Communication
s
Telephone

Internet
Connections
(Personal
connections)

(Incoming Tourists Number +
Outgoing Tourist Number) / Total
Population

1

International phone call to and for
per individuals(Minute)

2

Transfer payments

(Loans + Depths) / GDP

1

İnternet Users

Internet Users/ Total Population

2/3

İnternet Sites

Number of servers for each one
million people

2/3

16 Normalization (standardization) is the operation of changing the scale of any varibales,in other
words,transforming the measurement units of the involved variable to standartd Z (Z variable with
zero avarage , one variant and normal range) units .(Koutsoyiannis, 1989: 548-549).
17 Vide infra for the involved variables: http://www.atkearney.com (03.09.2003).
133

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Security Servers

Number of security servers for each 2/3
one million people

*PPP: Perchasing Power Parity

When Table-1 is observed, we can see that globalization index was calculated by considering
four categories as globalization in goods and services,financial globalization, globalization in
personal communication and internet connection.The degree of economic integration is
calculated by combining the data about international trade, foreign direct investments and
capital flows, wages for foreign workers and workers exchange rates in globalization
index.Also the index embodies the international technological communication by regarding
the number of internet users,internet sites and security servers.
3. ANALYSIS RESULTS
Competativeness of Turkey with EU countries was comperatively analyzed via globalization
index developed by A.T.Kearney Consulting Company in this study.
Index values calculated by us and given in Appendix-1 were also displayed in Figure-1 and
Figure-2 with a summary like approach reflecting the globalization trend in terms of
competitiveness.
There are periodical avarages of globalization values of the countries between 1980-2000 and
2001-2010 periods in Figure-1 indicating the development of globalization index in terms of
periods.
When Figure-1 is observed, we can see that Denmark is in the first in both periods in EU
countries.Sweden is the second in both periods,too. Considering the periods of 1980 and 2000
Luxemburg,Holland and Belgium follow Denmark ve Sweden in turn.In the studies by Çoban
ve Çoban’ın (2004); Austria holds its fourth place in both of the periods between 1970-1985
and
1986-2001.
According
to
the
periods
of
1970
and
1985
Denmark,Sweden,Finland,Germany,England,Greece and Italy receded for a row in the period
of 1986 and 2001. The ninth country of the period between 1970 and 1986 and the full
member of EU in 1986 Portugal showed a significant development and it climbed up to the
fifth place. The twelfth country of the period of 1970 and 1985 France climbed up to tenth
place in the periods of 1986 and 2001.
Figure- 1: Development of Globalization Index in Terms of Periods

134

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

In the studies by Çoban and Çoban (2004) again, we can see that Denmark is again the first in
the periods of 1970 and 2001. Ireland,Holland,Austria and Denmark followed this country in
turn.In the periods involved the countries having important roles in EU such as
Germany,England,France and Italy were quitely in back rows. Also when the avarages are
taken into consideration, EU countries avarages are 3.55 in the periods of 1970 and 1985,4,23
in the periods of 1986 and 2001 and 3.89 in the periods of 1970 and 2001. Turkey,which is in
the developing countries category and the arguments about EU membership has increased
recently, was in the last place in all three periods.However,when the figure in Appendix-2 is
observed,we can an increase trend in globalization index of Turkey since 1996 when Customs
Union happened. This means that accession of Customs Union affected the competitiveness of
Turkey positively.
The changing of index values indicated on Figure-1 in terms of periods are as in Figure 2.
Figure 2: Change of Index Values In Terms of Periods (%)

According to Figure-2 the changing rate avarages of the periods of 1980 - 2000 and 2001 2010 is 0.99 in EU countries and this means that globalization index of EU countries
increased in the rate of %99 in the periods involved.
When the change in terms of periods in globalization index for Turkey is observed, it was
found remarkable increases.The involved change rate was 1.72 between 1980-2000 and
2001-2010 periods.This means that globalization index of Turkey has increased in the rate of
%172 form 1980 to 2010.These increase rates are above the avarages of both EU and EU
countries and they indicate that competitiveness of Turkey has remarkable increased in time.
4. GENERAL EVALUATION AND RECOMMENDATIONS
Competativeness of Turkey with EU countries was comperatively analyzed via globalization
index developed by A.T.Kearney Consulting Company in this study as the periods of 1980
and 2010 are considered.
135

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Periodical avarages of index values in the period of 1980-2000 and 2001-2010 are
taken by the globalization index. As a result, it is observed that Denmark is the first country in
both periods. Sweden is the second in both periods,too. Considering the periods of 1980 and
2000 Luxemburg,Holland and Belgium follow Denmark ve Sweden in turn.
Turkey,which is in the developing countries category and the arguments about EU
membership has increased recently, was in the last place in all three periods. However,when
the figure in Appendix-2 is observed,we can an increase trend in globalization index of
Turkey since 1996 when Customs Union happened. This means that accession of Customs
Union affected the competitiveness of Turkey positively.
When we observe the changing rate avarages of the periods of 1980 - 2000 and 2001 - 2010 is
0.99 in EU countries and this means that globalization index of EU countries increased in the
rate of %99 in the periods involved.
When the change in terms of periods in globalization index for Turkey is observed, it was
found remarkable increases.The involved change rate was 1.72 between 1980-2000 and
2001-2010 periods.This means that globalization index of Turkey has increased in the rate of
%172 form 1980 to 2010.These increase rates are above the avarages of both EU and EU
countries and they indicate that competitiveness of Turkey has remarkable increased in time.
Çoban and Çoban (2004)’s studies contains the periods of 1970 and 2000 and our study
contains the periods of 1980 and 2010.When Çoban and Çoban (2004)’s study and ours are
evaluated together, it can be said that competitiveness of Turkey has remarkably increased in
the periods used in the analysis and the accession in EU would affect this process positively
as the experiences of the countries considered.
Accoriding to the results of both studies, we can say that Turkey which has a young and
active population is in a good position in terms of international competitiveness and follow
right policies in its foreign trade and it increases its competitiveness every year The only
recommendation can be focusing on the production and export of the capital-intensive
products and products with high foreign trade incomes in the increasing competitiveness.
REFERENCES
Altay, B. and Gürpınar, K. (2008) “Revealed Comperative Advantages and Some
Competitiveness Indices: A Practice on Turkish Furniture Industry”, Afyon
Kocatepe University, İ.İ.B.F. Magazine, X(5), ss. 257-274.
Kesbiç, C.Y., Baldemir, E. and Doğan, S. (2005) “Measurement of Competitiveness and its
Importance:
An
Analysis
for
Turkish
Agricultural
Sector”,
1-20,
http://www.ekonometridernegi.org/bildiriler/o10s3.pdf, (09.04.2012).
Kibritçioğlu A. (1996) “A Conceptual Approach to International Competitiveness”, MPM,
Productivity Magazine , 96(3), ss. 109-122.

136

�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Wziatek-Kubiak, A. (2003) “Critical Synthesis, Review of the Main Findings, Methodologies
and Current Thought on Competitiveness of Accession Countries.Mapping of Competence”,
Center for Socail and Economic Research, http://www.case.com.pl, (30.03.2012).
Yapraklı, S. (2011) “Makroeconomic Factors Affecting International Competitiveness : A
Practice on Turkish Production Industry”, Selçuk University İİBF. Social ve Economic
Researces Magazine, Vol.16, Num..22., pages.-373-403.
Kazgan, G (1988), Openness Growth in Economy, 2. Press, Altın Kitaplar, İstanbul.
Çoban, O. and Çoban, S. (2004) “The Measurement of Competitiveness of Turkey by
Globalization İndex: A Comparison with EU Countries, 1970-2001”, Kırgızistan-Türkiye
Manas University Social Sciences Magazine, 10,163-174.

The Effect Of Financial Development On Economic Growth: Panel Data Analysis
Mehmet Mercan1, İsmet Göçer2, Osman Peker2, Şahin Bulut2
1Hakkari University, FEAS, Department of Economy,
2 Adnan Menderes University, FEAS, Department of Economy
E –mials: mercan48@gmail.com,ismetgocer@gmail.com, ottopeker@gmail.com,
sbulut@adu.edu.tr
Abstract
In this study, the effect of financial development on economic growth was searched for the
most rapidly developing countries(emerging markets)(Brazil,Russia,India,China and
Turkey,BRIC-T) via panel data analysis by using the annual data of the period from 1989 to
2010. Foreign direct investments and trade openness which were thought to have effects on
the growth were included in the analysis.According to empirical evidence derived from the
study made with panel data analysis it was found that the effect of financial development on
economic growth was positive and statistically significant in line with theoretical
expectations.The evidence thateven foreign direct investments and openness contributed to
the growth positively was also found.
Keywords:Financial Development, Economic Growth, BRIC-T, Foreign Direct Investment,
Trade Openness.
Jel Codes: E49, F19, G29
1.INTRODUCTION
An increase in financial instruments and becoming of these instruments more commonly
available in a country is defined as a financial development.In other words, financial growth
137

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                <text>Today, in the new world order caused by economic glabalization, technologic and political  changes in world economy result in changes in the competitiveness of the countries.  Everyday, countries intensify their effort to gain, develop and protect their power to compete  with other countries. Today, even the most developed countries are trying to strengthen their  competitiveness in order to enlarge their share in the world economy. Turkey desires to  increase its competitiveness in all sectors in order to rise the welfare level of its people and to  speed up its economic growth. Turkey endeavors to increase its competitiveness against EU,  who is one of the most important economic partners of Turkey, in all sectors. In this study, the  period of 1970-2011 to measure the competitiveness of Turkey towards the EU countries and  aims to achieve predictions for the future, and the watermark.  Keywords : Competitiveness, Turkey, EU, International Trade,  JEL Classification: F12, F14, F15</text>
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                    <text>Journal of Economic and Social Studies

Measurement of the Competitiveness of Turkey:
EU Countries, 1980-2010 Period Comparison
Mehmet Mercan
Faculty of Economics and Administrative Sciences
Hakkari University
Hakkari, Turkey
mercan48@gmail.com
Abstract: Nowadays, in the new world
order caused by economic globalization,
technological and political changes in
world economy result in changes in the
competitiveness of the countries. Everyday,
countries intensify their effort to gain,
develop and protect their power to compete
with other countries. Today, even the most
developed countries are trying to
strengthen their competitiveness in order
to enlarge their share in the world
economy. Turkey desires to increase its
competitiveness in all sectors in order to
raise the welfare level of its people and to
speed up its economic growth. Turkey
endeavors to increase its competitiveness
against EU, who is one of the most
important economic partners of Turkey, in
all sectors. In this study, the period of
1980-2010 is used to measure the
competitiveness of Turkey towards the EU
countries and aims to achieve predictions
for the future, and the watermark.

Keywords:
Globalization,
Competitiveness,
International Trade,
Turkey, EU.
JEL Classification: F12,
F14, F15
Article History
Submitted: 10 August 2012
Resubmitted: 19 July 2013
Resubmitted: 02 August
2013
Resubmitted: 11 August
2013
Accepted: 27 August 2013

39

�Mehmet Mercan

Introduction
The common objective for all the countries in the changing world order is
to provide competition conditions and increase the prosperity. However,
competition is a multidimensional fact. Competitiveness of the countries
and companies is depended on various factors. The importance of
competitiveness has increased after the rapid change and development
with the globalization in every sense. Studies about competition and
competitiveness in countries also have increased.
Since competition and competitiveness are handled by various discipline
in various aspects, there is no a common definition or measurement
technique. However, if we want to classify in general, there are two points
of view in the measurement of competitiveness. The first one is the studies
carried out in micro (business and industry) level. The second one is the
macro (country) point of view. While the competition among businesses
inside the country and the effects of this competition on national and
international market is emphasized in micro level approach, the status of
the country in international competition is emphasized in macro
approach. Competitiveness means that while countries try to increase the
incomes of their citizens under the conditions of free and established
market, at the same time they can present their products and services to
the international markets and become successful. The definition mostly
attributed in macro approach is this one (Çivi et al., 2008).
We can put in order the three basic characteristics of competitiveness
according to the study results like this: The first one is that the main
objective of having competitiveness is to provide an increase the living
standards in the country and the prosperity of the citizens. This prosperity
increases can be provided by paying attention to the activities like
investment and production, increasing the cooperation between all
institutions and paving the way for specialization. The second one is that
the country should focus on its specific features, abilities and potentials in
order to catch the opponent countries in producing the products and
services and distributing them. The third one is that numerous indicators
are used to analyze the competitiveness of the country. For instance,
international market share, trade balance of the country, production,
employment, openness i.e. (Çivi et al., 2008).
The competitiveness of Turkey with 15 basic countries of EU between
1980 and 2010 periods was tried to be measured by the globalization
index measuring the competitiveness. It was aimed to make predictions
for the future according to the upcoming results.
40

Journal of Economic and Social
Studies

�Measurement of the Competitiveness of Turkey: EU Countries, 1980-2010 Period
Comparison

This study consists of four sections. In the first section literature scanning
was carried out. In the second section data set and method was presented
and explained. In the third section there are analysis results. In the fourth
section a general evaluation will be carried out and recommendations will
be made.
Literature Review
Theoretical foundations of international competitiveness date back to the
period of classical economics. There are several numbers of approaches
such as the Theory of Competitive Advantage Approach, Double Diamond
Approach, and Nine Factors Model Approach for international
competitiveness. The issues such as the definition of international
competitiveness concept, assessment, explaining the determiners for this
concept and stating the economic relations of it ranges according to the
chosen approach. So there is no generally accepted approach for
international competitiveness (Kibritçioğlu, 1996:112). In theoretical
context, there is no certain consensus about international competitiveness
and the factors affecting it and also it is not possible to say that the
explanations are complementary each other (Yapraklı, 2011).
The concept of international competitiveness is one of the significant facts
of the globalization process. The concept of international competitiveness
in literature is handled and tried to be defined in three different ways as in
firm, sector and international level (Kesbiç and Ürüt, 2004: 56-59).
Neither there is a generally accepted approach for the definition of the
concept of international competitiveness, nor there is an approach for
assessment and determining the factors affecting it. In international
economy literature, macroeconomical, microeconomical and commercial
approaches are generally used in order to assess the competitiveness in
international trade. Among these approaches, the commercial approach is
based on the theory of international foreign trade and it searches the
foreign trade performance of sector/country. As a part of commercial
approach, international competitiveness can be calculated via the
Revealed Comparative Advantage Index which was built up by Balassa in
1965 (Wziatek-Kubiak, 2003: 2-4). In order to assess international
competitiveness many indices are also used in literature such as The
Relative Export Advantage Index, The Relative Import Influence Index,
The Relative Trade Advantage Index, Intra-industry Trade Index,
Specialization in Export Index, Similarity in Export Index, Relative
Competition Advantage Index, i.e. (Altay and Gürpınar, 2008: 262-267).
41

�Mehmet Mercan

When we deal with the factors affecting the international competitiveness,
many factors are used such as micro and macro economical, price and out
of price, within firm and non-firm, structural, qualitative, social and
political, i.e. In economy literature, many qualitative and quantitative
factor affecting the competitiveness are handled, but price- oriented
factors are usually emphasized for the ease of finding data and
assessment. In other words, in the factors affecting the international
competitiveness and its assessment issues there are versatile studies in
economy literature. However, depending on the time, as a result that
developing countries began to compete more than with developed
countries, studies on the efficiency of the factors affecting the
international competitiveness began to increase. In this sense, many
economic variables were handled and labor cost, foreign exchange rate,
market volume (GDP) and openness were mostly used variables.
So we can clasify the studies in four main titles (Yaprakli2011: 377-379):
First group studies searched the relationship between the labor costs and
competitiveness. As a determiner for competitiveness labor cost is the
contraversial field. Studies about the effect of the cost of labour on the
international competitiveness was performed by Fagerberg (1988),
Jorgenson and Kuroda (1991), Guerrieri and Meliciani (2005). As a result
of these studies, it was found out that the high price level in the labor costs
meant high productivity and qualified labour employment. This result is
the indicator of the efficient source usage and productivity-cost advantage
and it affects the international competitiveness positively. On the other
hand, Agrawal (1995), Wang (2002), Omel and Varnik (2009) and Du Toit
(2010) found out in their studies that high labor costs had a negative effect
on the competitiveness. As a conclusion, we can not say that there is a
certain consensus about the effect of labor cost on the international
competitiveness.
The other variable used to measure the factors affecting the international
competitiveness was intended for assessing the relationship between
market volume and international competitiveness. The common view
about this issue is that: Expansion of market volume increases the
competitiveness. Studies about this issue was carried out by Fagerberg
(1988), Kim and Marion (1997), Esterhuizen (2006), Mu and Zhang
(2010) and Feinberg and Weymouth (2011). As a conclusion of these
studies it was identified that Gross Domestic Products of the countries was
a significant factor for international competitiveness. Also the expansion
of market volume increases the international competitiveness by
benefiting from scale economies and providing efficient source usage.
However, it was found out that GDP was not enough to explain the
42

Journal of Economic and Social
Studies

�Measurement of the Competitiveness of Turkey: EU Countries, 1980-2010 Period
Comparison

international competitiveness in the studies on developed and developing
countries by Cho, Moon and Kim (2008).
Another variable used to measure international competitiveness was
foreign exchange rate. In the studies measuring the effect of foreign
exchange rate on international competitiveness by Yoshitomi (1996),
Zawalinska (2005) it was identified that the increase in the exchange rate
affected the international competitiveness positively. However, in the
studies by Safin and Rajtar (1997), Du Toit (2010) it was identified that
the increase in the exchange rate affected the international
competitiveness negatively. As a result, it is necessary to present the
certain effect of the foreign exchange rates about increasing or decreasing
the competitiveness. If the positive effect’s is bigger than the negative
effect, the increase in foreign exchange rates affects the competitiveness
positively; if the negative effect’s is bigger than the positive effect, it affects
the international competitiveness negatively.
Also in some studies measuring the international competitiveness
openness was used. Openness degree of a country is usually measured by
the proportion of its GDP to its foreign trade volume (export + import)
(Kazgan, 1988: 116). In the studies by Fagerberg (1988), Feinberg and
Weymouth (2011) and Egbetokun (2011), it was found out that there was a
positive effect between openness and international competitiveness. This
result was obtained by the country’s becoming more competitive due to
the reasons such as efficient resource distribution, production increase
and technology transfer while the openness degree increased.
Globalization Index in our study is based on Çoban and Çoban (2004:
167). The method used in the Çoban and Çoban’s (2004) study, based on
Human Development Index of United Nations Development Plan
(UNDP). In the study by Çoban and Çoban (2004), competitiveness of
Turkey and European Countries between 1970 and 2001 periods was
analyzed by GI (Globalization Index) developed by A.T. Kearney
Consulting Company. Even when country experiences took into
consideration, it was found in the study that competitiveness of Turkey
increased remarkably and accession to the EU would affect this process
positively.
Data Set and Methodology
In this study a comparative competitiveness of Turkey with EU countries
between 1980 and 2010 periods was to be expressed with the help of GI
(export + import / GDP), globalization index in goods and services. The
43

�Mehmet Mercan

data set in the analyses which was consisted of total export, total import,
foreign direct investments, population, the number of incoming and
outgoing tourists to the country, domestic loan volume, the number of
internet users and GDP series in terms of countries was collected from the
World Bank database (World Bank, 2012).
The issues such as economic integration, political links, technology and
personal communication which are considered to be a factor for the
globalization can be expressed parametrically with the help of
globalization index called shortly as KFP and used to measure the
international competitiveness of the countries (Çoban and Çoban, 2004).
With the use of globalization index the issues such as international affairs
and policies, commercial and financial movements, human mobility,
thoughts and international data flow can also be embodied. So
competitiveness can be explained more significantly (A.T. Kearney, 2001).
Globalization Index is originally based on the HDI (Human Development
Index) developed by UNDP (United Nations Development Programme).
At first step the variables to be used in the index are identified and then
quantitative measurements of the variables involved are carried out. The
obtained quantitative values after these two steps are normalized to clear
the problems which can be seen in various variables identified with
different modules. For example, before normalizing the two variables such
as average life span (year) and GDP in human development index, the
second one approaches nearly one hundred times of the first one. At last,
the aggravated sum of normalized variables which gives a numerical result
for each country is checked out.
In the globalization index consisting of 11 variablesi the weights of
variables used in index calculations are drown up in Table-1 (Lockwood,
2001: 5).

44

Journal of Economic and Social
Studies

�Measurement of the Competitiveness of Turkey: EU Countries, 1980-2010 Period
Comparison

Table 1. The Variables in Globalization Index
Category

Variable Name

Globalization in
Goods and
Services

Commerce

Financial
Globalization

Globalization
in Personal
Communications

Convergence
Income
Foreign Direct
Investments
(FDI)
Portfolio
Investments (PI)
Tourism

Telephone
Transfer
payments
Internet Users

Internet
Connections
(Personal
Connections)

Internet Sites
Security Servers

Variable Definition
(Export
+Import)/GDP
GDP according to
Nominal GDP/PPP*
(Loans + Depths)/GDP
(Incoming FDI +
Outgoing FDI)/GDP
(Incoming PI +
Outgoing PI) / GDP
(Incoming Tourists
Number + Outgoing
Tourist Number) /
Total Population
International Phone
Call to and for per
Individuals (Minute)
(Loans + Depths)/GDP
Internet Users/ Total
Population
Number of Servers for
Each One Million
People
Number of Security
Servers for each one
million people

Weights
1
1
1
2
2
1

2
1
2/3
2/3
2/3

*PPP: Purchasing Power Parity
When Table 1 is observed, we can see that globalization index was
calculated by considering four categories as globalization in goods and
services, financial globalization, globalization in personal communication
and internet connection. The degree of economic integration is calculated
by combining the data about international trade, foreign direct
investments and capital flows, wages for foreign workers and workers
exchange rates in globalization index. Also the index embodies the
international technological communication by regarding the number of
internet users, internet sites and security servers.
45

�Mehmet Mercan

46

Journal of Economic and Social
Studies

�Measurement of the Competitiveness of Turkey: EU Countries, 1980-2010 Period
Comparison

Analysis Results
Competitiveness of Turkey with EU countries was comparatively analyzed
by means of globalization index developed by A.T. Kearney Consulting
Company in this study.
Index values calculated by us and given in Appendix-1 were also displayed
in Table 2, Figure 1 and Figure 2 with a summary like approach reflecting
the globalization trend in terms of competitiveness.
There are periodical averages of globalization values of the countries
between 1980-2000 and 2001-2010 periods in Figure 1 indicating the
development of globalization index in terms of periods.
Table 2. Development of Globalization Index and Change in Terms of
Periods
Ran
k

Countries
1980-2000
Term

1

Denmark

2

Sweden

3

Luxembou
rg

4

EU

5

Belgium

6

Netherland
s

7

Austria

8

Ireland

9

Germany

10

France

11

Finland

12

United

6.79
9
6.21
8
4.63
9
3.92
9
3.46
7
3.46
2
3.45
8
3.45
2
2.87
0
2.77
2
2.67
0
2.44
9

Countries
2001-2010 Term

Change (%)

Denmark

16.59

Denmark

143.9

Sweden

14.18

Portugal

139.1

Ireland

7.566

Turkey

130.8

Austria

7.132

Sweden

128.1

Luxembourg

7.033

Ireland

119.1

EU

6.885

Austria

106.2

Netherlands

6.096

Greece

101.3

Belgium

5.381

Spain

98.54

Portugal

4.982

United
Kingdom

97.79

Finland

4.972

Finland

86.17

United
Kingdom

4.844

Netherlands

76.09

Germany

4.678

EU

75.21
47

�Mehmet Mercan

Kingdom
13

Spain

14

Italy

15

Portugal

16

Greece

17

Turkey

2.34
4
2.28
6
2.08
3
1.92
2
1.014

Spain

4.655

Italy

72.17

France

4.558

France

64.37

Italy

3.935

Germany

62.96

Greece

3.872

Belgium

55.21

Turkey

2.342

Luxembourg

51.59

As we can see Table 2 and Figure 1, Denmark is in the first in both periods
in EU countries. Sweden is the second in both periods, too. Considering
the periods of 1980 and 2000 Luxemburg, Belgium and Holland follow
Denmark and Sweden in turn. When considering the periods of 2001 and
2010 Ireland, Austria, Luxemburg and Holland follow Denmark and
Sweden in turn. Another remarkable point in Table 2, 12 countries in
1980-2000 terms and 10 countries in 2001-2010 term remained below the
EU average. In the studies by Çoban and Çoban (2004); Austria holds its
fourth place in both of the periods between 1970-1985 and 1986-2001.
According to the periods of 1970 and 1985 Denmark, Sweden, Finland,
Germany, England, Greece and Italy receded for a row in the period of
1986 and 2001. The ninth country of the period between 1970 and 1986
and the full member of EU in 1986 Portugal showed a significant
development and it climbed up to the fifth place. The twelfth country of
the period of 1970 and 1985 France climbed up to tenth place in the
periods of 1986 and 2001.
Figure 1. Development of Globalization Index in Terms of Periods

48

Journal of Economic and Social
Studies

�Measurement of the Competitiveness of Turkey: EU Countries, 1980-2010 Period
Comparison

In the studies by Çoban and Çoban (2004) again, we can see that
Denmark is again the first in the periods of 1970 and 2001. Ireland,
Holland, Austria and Denmark followed this country in turn. In the
periods involved the countries having important roles in EU such as
Germany, England, France and Italy were quitely in back rows. Also when
the averages are taken into consideration, EU countries averages are 3.55
in the periods of 1970 and 1985; 4.23 in the periods of 1986 and 2001 and
3.89 in the periods of 1970 and 2001.Turkey, which is in the developing
countries category and the arguments about EU membership has
increased recently, was in the last place in all three periods. However,
when the figure in Appendix-2 is observed, we can see an increase trend in
globalization index of Turkey since 1996 when Customs Union happened.
This means that accession of Customs Union affected the competitiveness
of Turkey positively.
The changing of index values indicated on Figure 1 in terms of periods are
as in Figure 2.
Figure 2. Change of Index Values In Terms of Periods (%)

49

�Mehmet Mercan

According to Figure 2 the changing rate averages of the periods of 19802000 and 2001-2010 is 0.75 in EU countries and this means that
globalization index of EU countries increased in the rate of 75 % in the
periods involved.
When the change in terms of periods in globalization index for Turkey is
observed, it was found remarkable increases. The involved change rate
was 1.31 between 1980-2000 and 2001-2010 periods. This means that
globalization index of Turkey has increased in the rate of 131% from 1980
to 2010.These increase rates are above the averages of both EU and EU
countries (exclude Denmark and Portugal) and they indicate that
competitiveness of Turkey has remarkable increased in time.
Results and Policy Implications
Competitiveness of Turkey with EU countries was comparatively analyzed
by means of globalization index developed by A.T. Kearney Consulting
Company in this study as the periods of 1980 and 2010 are considered.
Periodical avarages of index values in the period of 1980-2000 and 20012010 are taken by the globalization index. As a result, it is observed that
Denmark is the first country in both periods. Sweden is the second in both
periods, too. Considering the periods of 1980 and 2000 Luxemburg,
Holland and Belgium follow Denmark and Sweden in turn.
Turkey, which is in the developing countries category and the arguments
about EU membership has increased recently, was in the last place in all
50

Journal of Economic and Social
Studies

�Measurement of the Competitiveness of Turkey: EU Countries, 1980-2010 Period
Comparison

three periods. However, when the figure in Appendix-2 is observed, we
can see an increase trend in globalization index of Turkey since 1996 when
Customs Union happened. This means that accession of Customs Union
affected the competitiveness of Turkey positively.
When we observe the changing rate averages of the periods of 1980-2000
and 2001-2010 is 0.99 in EU countries and this means that globalization
index of EU countries increased in the rate of 99 % in the periods
involved.
When the change in terms of periods in globalization index for Turkey is
observed, it was found remarkable increases. The involved change rate
was 1.72 between 1980-2000 and 2001-2010 periods. This means that
globalization index of Turkey has increased in the rate of 172 % from 1980
to 2010. These increase rates are above the averages of both EU and EU
countries and they indicate that competitiveness of Turkey has remarkable
increased in time.
Çoban and Çoban’s (2004) studies contains the periods of 1970 and 2001
and our study contains the periods of 1980 and 2010. When Çoban and
Çoban’s (2004) study and ours are evaluated together, it can be said that
competitiveness of Turkey has remarkably increased in the periods used
in the analysis and the accession in EU would affect this process positively
as the experiences of the countries considered.
According to the results of both studies, we can say that Turkey which has
a young and active population is in a good position in terms of
international competitiveness and follow right policies in its foreign trade
and it increases its competitiveness every year. The only recommendation
can be focusing on the production and export of the capital-intensive
products and products with high foreign trade incomes in the increasing
competitiveness.
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i

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54

Journal of Economic and Social
Studies

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                <text>Nowadays, in the new world order caused by economic globalization, technological and political changes in world economy result in changes in the competitiveness of the countries. Everyday, countries intensify their effort to gain, develop and protect their power to compete with other countries. Today, even the most developed countries are trying to strengthen their competitiveness in order to enlarge their share in the world economy. Turkey desires to increase its competitiveness in all sectors in order to raise the welfare level of its people and to speed up its economic growth. Turkey endeavors to increase its competitiveness against EU, who is one of the most important economic partners of Turkey, in all sectors. In this study, the period of 1980-2010 is used to measure the competitiveness of Turkey towards the EU countries and aims to achieve predictions for the future, and the watermark. </text>
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Programs
İhsan Yıldıztekin
Atatürk University
Turkey
ihsan@atauni.edu.tr
Reşat Karcıoğlu
Atatürk University
Turkey
rkarci@atauni.edu.tr
Ersin Kurnaz
Atatürk University
Turkey
ekurnaz@atauni.edu.tr

Abstract: Businesses can obtain their operational results more accurate and faster with the
rapid changes and development in information technology. The Accounting Office Software
Programs which are used by the accounting department of corporations and private accounting
offices are also information technology products. Users’ access more accurate information more
easily by the help of these computer assisted programs. Thus, obtained financial reports and
other outputs will help business managers to take better decision.
The purpose of this study is to determine whether professional accountants are satisfied with the
accounting software they use in regular basis. For this purpose, a questionnaire was applied to
Accountants and Financial Advisors registered in Erzurum Chamber of Certified Public
Accountants in the province of Erzurum. The data obtained from the questionnaire was analyzed
using the Statistical Package for Social Science for Windows (SPSS 20.0) program. In
conclusion, professional accountants generally satisfied with the accounting software they use,
except a few issues.
Keywords: Information, Information Technology, Accounting Package Programs, Customer
Satisfaction, Accounting Information Systems.

113

�113

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YILDITEKIN, Ihsan
KARCIOGLU, Resat</text>
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Özgür Polat / Enes E. Uslu / Hüseyin Kalyoncu

Measuring and Reporting Cost of
Quality in a Turkish Manufacturing
Company: A Case Study in Electric
Industry

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conomics, 31(1), 109-118. doi: 10.1016/j.eneco.2008.09.004
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10.1016/j.enpol.2009.02.022
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evidence from crude oil and NGL production in 60 countries. nergy conomics, 30(3), 919-936.
doi: 10.1016/j.eneco.2007.07.005

Hilmi KIRLIOĞLU,
Sakarya University,
Faculty of Business Administration,
Department of Accounting and Finance, / 54187 Esentepe/Sakarya, Turkey.
hilmik@sakarya.edu.tr

Narayan, P. K., &amp; Smyth, R. (2007). Are shocks to energy consumption permanent or temporary?
Evidence from 182 countries. nergy Policy, 35(1), 333-341. doi: 10.1016/j.enpol.2005.11.027
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Procedia, 5(0), 1360-1364. doi: 10.1016/j.egypro.2011.03.235

86

Journal of Economic and Social Studies

Zülküf ÇEVİK,
Sakarya University,
Faculty of Business Administration,
Department of Accounting and Finance, / 54187 Esentepe/Sakarya, Turkey.
zcevik@sakarya.edu.tr
A

A
ontemporarily, the competition in the markets has thoroughly heated
up. Many companies try to decrease their costs in order to survive in
this cruel market. In this respects, the quality costs gain importance in
all over the world and in urkey, too.In this study, the implementation
of quality costs measuring and reporting system has been performed in
a company. Accordingly, the data has been collected from a urkish
manufacturing company. The data gathered from this company’s
accounting department has been used for studying on quality costs
measuring and reporting system. onsequently, it is found out that the
company cannot measure its quality costs adequately, for this reason
quality reporting system in the company is not efficient. The company
needs to give more significance to the quality costs measuring and
reporting.
JEL odes: 15, M41, M49,

Volume 3

Number 2

Fall 2013

KEYWO D
otal Quality Management,
Quality osts, Managerial
Accounting.
A I LE HI O Y
ubmitted:23 eptember 2012
esubmitted:16 ovember 2012
Accepted:25 ecember 2012

87

�Hilmi KIRLIOĞLU / Zülküf ÇEVİK

Measuring and Reporting Cost of Quality in a Turkish Manufacturing Company:
A Case Study in Electric Industry

Introduction

Literature review

In recent years, competitive environment of companies has been getting harder and
harder. In order to have sustainable competitive advantage, companies should produce their products to entirely supply customers’ needs, wants and demands. Subsequently, companies need to have more quality products to remain competitive with
other companies.
To gain a competitive advantage over rival companies, a company should produce
high quality products. While producing high quality product, the company should
also take into account its quality costs. Shortly, companies need to produce high
quality products in a low quality costs. As a result, quality and quality costs gain vital
importance for a company to survive in a highly competitive market.
The significance of this study is to comprehend the necessity of the quality system
for a company which operates in the global and local markets. Another gist of the
study is to provide recognition of quality costs system benefit to the profit and brand
name. The quality costs system causes decreasing in the production cost and increasing in the brand name which will be perceived as producing qualified products.
The aims of this study are to show the importance of the quality costs for a company
which competes in a highly competitive market, and also demonstrate the necessity
of quality costs system so as to have high qualified product with a low quality costs.
As it is well known, the quality cost is not the responsibility of a department or an
individual, on the contrary, every person in an organization should be responsible
for quality. Highly qualified products can be reached by the collaboration of all
departments in an organization. In this sense, the main aim of this study is to demonstrate the function of accounting department in quality costing activities. Those
activities can be summarized as; the measurement of quality costs, the classification
of this costs and the reporting techniques of the quality costs. In this respect, the
purpose of the current study is to show the importance of quality costs’ reporting.
The paper contributes to the literature by documenting the concepts of quality,
quality costs, and the classification of quality costs and quality costs measurement.
On the basis of literature review, a case study will be handled and lastly, the analysis
and results will be given in last section.

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To be able to analyze the measuring and reporting costs of quality, some concepts
should be clear first. The three basic concepts of this paper will be introduced. These
concepts are quality and quality costs, classification of quality costs and lastly, quality costs measurement.
The concept of quality has been defined for many quality gurus. So, there are many
definitions for quality. Quality is the features of products which meet customer
needs and thereby provide customer satisfaction. Quality means freedom from deficiencies (Juran &amp; Godfrey, 1998). According to D. C. Montgomery, Quality means
fitness for use, and also he defined quality as inversely proportional to variability
(Montgomery, 2005).
In addition to those definitions, some of other quality gurus defined quality as;
- Crosby (1979, p. 7)defines quality as “conformance to requirements”
- Feigenbaum’s(1983, p. 7) definition of quality is “the total composite product and service characteristics of marketing, engineering, manufacture and
maintenance through which the product and service in use will meet the expectations of the customer.”
- As Ishikawa (1985, p. 45) suggests, quality means “quality of work, quality of
service, quality of information, quality of process, quality of division, quality
of people, including workers, engineers, managers and executives, quality of
system, quality of company, quality of objectives, etc.”
- Pirsig’s definition (1984,p. 206) of quality is that “Quality is a characteristic
of thought and statement that is recognized by a nonthinking process. Because definitions are a product of rigid, formal thinking, quality cannot be
defined.”
To sum up those definitions, quality is the whole good and service characteristic
features of fulfillment power for stated and demanded needs. In other words, many
quality gurus defined quality in terms of the degree of the product’s conformance
to its requirements to maintain customer satisfaction and in terms of a product that
contains no defects (Ömürgönülşen, 2009).
Quality Cost is a cost for detection and anchoring of low quality about goods and
services. Simply, costs of quality are the costs which occur because poor quality
may or does exist (Hansen &amp; Mowen, 2006). Quality costs are a measurement of
the costs particularly related with the accomplishment or non-accomplishment of

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Measuring and Reporting Cost of Quality in a Turkish Manufacturing Company:
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product or service quality. To make those explanations more specific, Jack Campanella(1999, p. 4) defined cost of quality as;
“More specifically, quality costs are the sum of the cost incurred by (a)
investing in the prevention of non-conformances to requirements, (b)
appraising a product or service for conformance to requirements, and
(c) failing to meet requirements.”
In the definitions of Campanella, it is understood that the quality costs consist of
three main parts; Prevention Costs, Appraisal Costs, Failure Costs.
The required quality activities would incur costs and quality costs arecategorized
into three main parts – Prevention, Appraisal and Failure Costs – Those can be also
stated as PAF (Prevention-Appraisal-Failure) model (Jaju &amp; Lakhe, 2009). Failure
costs should be taken into consideration as two subtopics which are called internal
and external failure costs.
Figure 1. Classification of Quality Costs (Rodchua, 2006)
Cost of Quality
Prevention costs

AppraisalCosts

Failure Costs

Internal Failure

External Failure

In Figure 1, three main classifications of quality activities costs have been shown.
Those costs do not occur at the same period of the production process. So, it should
be also classified as time periods in which they occurred.

purchased materials, processes, intermediates, products and services to assure conformance with the specified requirements (Tsai, 1998).
Internal Failure Costs are the costs of low quality product which are realized before
sales of the product. In other words, these costs arise when the outcomes of production fail to meet stated quality specifications and are noticed before transfer of those
low quality products to the customers (Vahevanidis et al., 2009).
External Failure Costs are failure costs which come up after delivering the products to
the customers(Kaner, 1996).Those costs take place for the reason that the products
and services do not conform to specification or requirements and those products do
not satisfy customer needs after being delivered to customers (Hansen &amp; Mowen,
2006). It is also incurred by amending failures after transferring the finished goods
and products to the customers (Low &amp; Yeo, 1998).
Additionally, Quality cost classification can be grouped in time periods. For example, prevention costs encompass the stage of both pre-production and during
production and appraisal costs cover the three stages of production –preproduction,
production and after production stage. Failure costs are divided into two subtopics
which internal failure costs and external failure costs. Internal failure costs encompass the period of both production and after production stages. External failure
costs just related with the stage of after sale (Barfield et al., 2002).
Figure 2. Time-Phased Model for Quality Costs(Barfield et al., 2002)
Before Production

During Production

Prevention
Costs

Prevention Costs are the preliminary activities’ costs to reach quality goals for producing goods and services and avoid deviations of those goals (Kırlıoğlu, 1998).
Prevention costs are occurred to prevent low quality in the goods or services being produced (Hansen &amp; Mowen, 2006). Prevention costs are related with quality
planning, designing, implementing and managing the quality system, auditing the
system, supplier surveys, and process improvements (Rodchua, 2006).

After Production

After Sale

Appraisal Costs
Internal Failure
Costs

External Failure
Costs

Feedback Loop

Appraisal Costs are activity costs of measuring the suitability of the product to customers’ needs. It is incurred to identify non-conformance to requirements (Oliver &amp;
Qu, 1999). Those costs are related with the supplier’s and customer’s assessment of

The Quality Costs Measuring helps to find out where unnecessary quality costs are
occurred, thus management can take actions to eliminate that kind of costs and this

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Measuring and Reporting Cost of Quality in a Turkish Manufacturing Company:
A Case Study in Electric Industry

elimination will reduce the occurrence of poor quality costs. In other saying, the
quality costs measurement serves management to determine which area of operation
requires preventive measures (Low &amp; Yeo, 1998).
To measure quality costs, one should collect related data from quality activities of a
company. After the collection of data which are related with quality costs components, they should be analyzed before using in an action. This analysis consists of the
relationship between a costs component and other costs components and searches
the effect on total costs.
Quality costs are analyzed in weekly, monthly, quarterly, yearly, etc. periods. Company structure should be taken into account in determining the period of analysis
(Şimşek, 2001). In order to analyze quality costs, companies need to use some techniques. The analysis techniques for quality costs can be listed as;
I. Pareto Analysis,
II. Ratio Analysis,
III. Correlation Analysis,
IV. Trend Analysis,
V. Regression Analysis.
Pareto Analysis is one of the most used techniques in quality costs analysis. This technique was developed by Wilfredo Pareto who is a nineteenth century Italian social
scientist and economist. He gave his surname to the technique. Pareto principle is
universally known as the 80/20 rule. Pareto found out this principle by pinning
down that 80 percent of Italy’s national income is shared by 20 percent of the Italy’s
populations. With the help of Pareto diagrams, problems can be put in order of importance, problems of costs analysis can be easily performed and relative occurrence
numbers could be searched simply (Sarıkaya, 2003). In other words, Pareto analysis
can be utilized to recognize cost drivers which are accountable for the most of cost
occurred by ranking the cost drivers in order of value (Tsai, 1998).
The Technique of Ratio Analysis is aimed to identify the aspects of the quality costs’
performance to aid decision making.Ratio analysis consist of rationing quality costs
to revenue, production costs, direct labor costs and rationing total quality costs
within themselves (Özcan, 2012).
Correlation analysis represents the direction and the power of the relationship between variables. In correlation analysis, the results do not give cause-effect relation-

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ship, because there is no dependent and independent variable in this technique
(Altunışık et al., 2005).
Trend Analysisis a useful picture of how the quality improvement program has been
doing since its inception. It provides management with information concerning
the within-period progress measured relative to specific goals (Hansen &amp; Mowen,
2006).
Regression analysis examines the relationship between one dependent variable and
one or more than one independent variables. In other words, this technique tries to
explain the changes in dependent variable with the help of independent variables
(Altunışık et al., 2005).

Data and Methodology
The data of this study is gathered from X Electric Inc. Company which was founded
in 1990 in Adapazarı, Turkey. The company is a Low Voltage Circuit Breaker manufacturer company.
The data has been collected from this company’s accounting department. The company’s accounting director gave the raw data of the company quality costs. We have
analyzed these costs for reporting quality costs.
According to the data, we drew table 1, 2, and 3. With the help of these tables, we
made ratio and trend analysis of company’s quality costs. The data consists three
years which are 2008, 2009, 2010. In the study, trend and ratio analysis have been
performed for measuring and reporting the firm quality costs.

Analysis of Quality Costs in the Firm
The table below displays the company’s sales and production amount in Turkish Liras
(here after TL). The sales and production amount have been given for three years. Additionally, the table contains of total quality costs in the firm for three years.

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Measuring and Reporting Cost of Quality in a Turkish Manufacturing Company:
A Case Study in Electric Industry

Table 1. Some Ratios and Ratio Components in the Firm

Table 2. Total Quality Costs as Each Cost Items for the Components in the year of 2010

Years

Data
Total Sales (TL)

2008

2009

2010

629.053.415

695.866.750

786.859.486

Total Production Costs (TL)

515.326.274

563.708.245

643.590.468

Total Quality Costs (TL)

10.028.516

11.712.822

12.642.655

1,59%
1,95%

1,68%
2,08%

1,61%
1.96%

The Ratio of Quality Costs to Sales
The Ratio of QC to Production Costs

According to the firm information, the ratios of total quality costs to total sales have
been calculated for given three years. And the ratios of total quality costs to total
production costs have also been calculated. In the aspect of the information in the
previous section, these calculations have been performed as follows.
In 2008, the company’s total sales are 629.053.415 TL. In the same year, total quality costs are 10.028.516 TL. So the ratio of total quality costs to sales can be found
out as follows;
10.028.516
629.053.415

= 1,59%

It can be concluded that the amount of total quality costs is only 1.59% of the total
sales in 2008.
10.028.516
515.326.274

= 1,95%

The calculation above demonstrates that the ratio of total quality costs to total production costs is about 1.95%. For the years of 2009 and 2010, total quality costs
to sales and total quality costs to total production costs have been calculated by the
same way and written down in the figure above.
This ratio is not too much for an early stage of quality costs analysis applier’s company.
In other words, the firm analyses its quality costs not long ago, so the rates is in the acceptable limits. Besides this ratios can be reduced for more efficient quality costs system.
When analyzing quality costs data for year 2010 as quality costs components, it
will be useful for monitoring quality costs. Regarding this classification, quality
costs component will be given as costs items. With the help of this costs items, the
percentage amount of each costs item will be also calculated and given for the year.

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Components of Quality Costs
Prevention Costs
Quality Planning
Quality Circle
The Training of Quality
Inspection and Tests Instructions
Supplier Quality Planning
Preventive Maintenances
Other Prevention Costs
Appraisal Costs
Inspection and tests of purchased materials

Costs (TL)
1.782.614,36
518.348,86
75.855,93
202.282,48
113.783,90
214.925,14
480.420,89
176.997,17
5.031.776,69
1.036.697,71

Ratio (%)
14,1
4,1
0,6
1,6
0,9
1,7
3,8
1,4
39,8
8.2

Control, maintenance and calibration of measurement instruments

101.141,24

0,8

Process inspection and tests
Consumable materials for laboratory and tests
Products inspection and tests
Other appraisal costs
Internal Failure Costs
Salvage
Reproduction and Repairs
Re-inspection
Corrective actions
External Failure Costs
Products Returns
Transportation Damage
Warranty Costs

1.150.481,61
581.562,13
1.984.896,84
176.997,17
4.450.214,56
2.225.107,28
1.656.187,81
480.420,89
88.498,59
1.378.049,40
998.769,75
50.570,62
328.709,03

9,1
4,6
15,7
1,4
35,2
17,6
13,1
3,8
0,7
10,9
7,9
0,4
2,6

Total Quality Costs

12.642.655

100,0

In the figure 2010, the non-conformance costs are under the half of the total quality
costs. This demonstrates that the firm is going in the right way. The company gives
more importance for conformance costs day by day, so the non-conformance costs
decreases naturally. These changes will benefit the company in more ways than one.
The figures below should be reported to the managers for monitoring quality costs
activates by management. The importance of quality costs increases day by day.
The next table shows the total quality costs as categorization groups. As it is mentioned before, the quality costs have two components which are conformance and
non-conformance costs. And these components costs are given in the chart. Moreover, conformance costs are divided into two cost elements that are prevention costs
and appraisal costs. The amounts of these costs are also given yearly in the table. The

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Measuring and Reporting Cost of Quality in a Turkish Manufacturing Company:
A Case Study in Electric Industry

conformance costs are increasing for the given years. It rose up two times from the
amount of 2008 to 2010 amount. It is good for a company to increase its prevention activities in order not to confront defects after selling the products out. Besides,
the amount of prevention costs in conformance costs is too small. The firm should
concentrate more on prevention costs.
Table 3. The Amount of Quality Costs in Classification through the Years
Quality Costs
Conformance Costs
Prevention Costs
Appraisal Costs
Non-Conformance Costs
Internal Failure Costs
External Failure Costs
Total Quality Costs

2008
3.098.811,45
631.796,51
2.467.014,94
6.929.704,56
4.693.345,49
2.236.359,07
10.028.516

2009
5.177.067,33
1.147.856,56
4.029.210,77
6.535.754,67
4.767.118,55
1.768.636,12
11.712.822

2010
6.814.391,05
1.782.614,36
5.031.776,69
5.828.263,96
4.450.214,56
1.378.049,40
12.642.655

On the other hand, in the table above, the non-conformance costs have been shown
in two parts which are internal and external failure costs. The company has endured
too much internal failure costs. And, the company should increase its preventive
activities and decrease the internal failure costs. When it comes to external failure
costs, the firm is going in a right way, because the amounts of external failure costs
are going down for each given year.
With the help of Table 3, it can be seen that conformance costs – prevention and
appraisal costs – are increasing for each year. Additionally, non-conformance costs
– internal and external failure costs – are decreasing for each year. It also shows that
the huge amounts of total quality costs are occurred after production stage. The internal failure costs are the biggest costs in the total quality costs for every year. This
situation represents that the defects are realized after the stage of production.
Figure 3. The Trends of Quality Costs’ Categorization in percentage

In general, the movements of quality costs components are in a right way, even
though the non-conformance costs are more than conformance costs. In the chart,
it can also be seen that the amount of prevention costs is under the 15% of the total
quality costs which means the firm do not pay enough importance for the prevention activities. Although the trend of external failure costs is declining, the external
failure costs have too much portion of total quality costs. Having too much external
failure costs brings more costs than the firm can measure.
Figure 4. The Trends of Quality Costs’ Categorization in TL

In Chart 2, it is again shown the trend of quality costs components. Chart 1 shows
the trends as percentage value; Chart 2 shows these trends as Turkish Liras amounts.
The inferences of the Chart 2 are similar to Chart 1.

The Application esults
The quality costs activities in X Electric Inc. are concentrated in non-conformance
activities. In other words, the firm is highly interested in internal and external costs.
So, non-conformance costs are monthly reported to management. Besides, the firm
does not give required importance for prevention and appraisal costs’ measurement.
Therefore, conformance costs are just reported yearly period, even though the firm
is giving more importance to conformance costs than before.
On the other hand, while paying the non-conformance costs more importance than
the conformance costs in the firm, the company endures more costs than it can measure. That is to say, the firm can bear the quality costs more than in numbers; there
may be a non-visual negative effect on the firm. For instance, the firm may confront
the loss of customers, bad brand recognition and poor employee motivation and so

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Measuring and Reporting Cost of Quality in a Turkish Manufacturing Company:
A Case Study in Electric Industry

on. Furthermore, the efficient quality system causes to benefit the company in more
ways than one. It decreases the non-conformance costs and increases profitability of
the firm. The firm would have sustainable competitive advantage in the market.
It is found out that the company cannot measure its quality costs adequately, for this
reason quality reporting system in the company is not efficient. The company needs
to give more importance to the quality costs measuring and reporting activities.

Conclusion
Previously, the company thought that quality control was just a waste of time. But
this thought changed in course of time. With the help of effective quality control
system, company can reduce the salvage, loss of labor hours and so on, which increase the productivity level.
Yearly reporting of total quality costs is not efficient for making decisions on these
costs. The measurement of prevention and appraisal costs is not made appropriately.
The allocation key is generally labor costs which are not suitable for measurement of
every costs item in the quality costs.
The firm should establish an efficient quality costs system and determine this system
specification for effective measurement and reporting of quality costs. By having
reliable and sufficient data in quality costing, company can reduce its non-conformance costs. And it causes to reduce total quality costs and increase profitability of the
firm. The firm should prepare instructions and procedures for making measurement
more efficient especially in prevention and appraisal costs. Every person in the firm
should be informed about these instructions and procedures.
On the other hand, only the quality assurance department is responsible for quality costing in the firm. As it is mentioned in the previous parts, quality is not a
person or a department job; it should be responsibility of every person and every
department in the firm. The quality costs reports should be prepared and reported
monthly. The accounting department should determine more suitable allocation
keys for the measurement of quality costs and according to this measurement, the
accountants in the firm should make the necessary journal entries for these costs.

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By measuring and reporting quality costs, the managers can recognize that there is
a huge amount of costs which they do not take into consideration while making
managerial decisions. They can realize that the non-quality issues increase the evitable costs by too much.
In the short run, investing in preventing activities can increase total quality costs in
the firm, but in the long run, these investments will cause decreasing in failure costs.
So, the firm will reduce its evitable costs in the long run.
In the globalizing world, the firm should take the products quality into account. Also,
it needs to be noted here that a company cannot survive in a highly competitive market with its low quality products. Last, but not the least, it must be kept in mind that
the amounts of quality costs never excess the amount of poor quality costs.

References
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Quality press.
Crosby, P. B. (1979). Quality is Free. New York: McGraw-Hill Book Co.
Feigenbaum, A. V. (1983). Total Quality Control. New York: McGraw-Hill Book Co.
Hansen, D. R., &amp; Mowen, M. M. (2006). Cost Management: Accounting and Control. Thomson SouthWestern.
Hoyer, R. W., &amp; Hoyer, B. B. (2001, July). What Is Quality. Quality Progress, 53-62.
Ishikawa, K. (1985). What is Total Quality Control? The Japanese Way. Englewood Cliffs, New Jersey:
Prentice-Hall Inc.
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Juran, J. M., &amp; Godfrey, A. B. (1998). Juran’s Quality Handbook. New York: McGraw-Hill Professional.
Kaner, C. (1996). Quality cost analysis: Benefits and risks. Software QA, 23.

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Kırlıoğlu, H. (1998). Kalite Maliyetleri Muhasebesi. Değişim Yayınları.
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Oliver, J., &amp; Qu, W. (1999). Cost of quality reporting: Some Australian evidence. International Journal
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Social Anxiety and Usage of Online
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among Adolescents
Bilal Sisman
Economics and Administrative Science Faculty
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Sinan Yoruk
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Pirsig, R. M. (1974). en and the Art of Motorcycle Maintenance. New York: William Morrow &amp; Co.
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Sarıkaya, N. (2003) oplam Kalite önetimi. 1. Baskı. Sakarya: Sakarya Kitabevi.

Ali Eleren
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aeleren@hotmail.com

Şimşek, M. (2001). oplam Kalite önetimi. İstanbul: Alfa Yayınları.
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And Their Implementation In Manufacturing Firms. International Journal for Quality esearch, 27-36.

A
A
With the growing popularity of Internet communication among KEYWO D
adolescents, the Internet, social media, instant messaging and cell phones ocial Anxiety, ommunication
have become important social tools in their life. This study examines teens’
use of social interactive technologies and the role that social anxiety plays on ools, echnology, Adolescents
how adolescents communicate with others (technology or face-to-face). A
questionnaire was designed and distributed to selected sample in the cities A I LE HI O Y
of Afyonkarahisar, Manisa and şak in order to analyze the relationship ubmitted: 22. Jun 2012
between adolescents’ social anxiety and their preference of communication esubmitted: 25 eptember 2012
tool. The data were gathered from 544 respondents among High chool esubmitted: 9 ctober 2012
adolescents (ranged from 15-18; freshman, sophomore, junior and senior). Accepted: 22 ovember 2012
indings show that adolescents rarely use messenger sites and mail addresses.
They generally send instant messages with their cell phones. They spend
1-2 hours for listening music and averagely 30 minutes for acebook in
a day. More than half of teens have hi-tech cell phones that enable to call,
send message and access to Internet. The findings of the present study also
reveal that females use text messaging more than males. However, males
spend much more time than females to play games. In addition, females
feel themselves more uncomfortable than males for face-to-face talking with
others. And, on the contrary to males, females also prefer to some extent,
to communicate with other on internet instead of face-to-face talking.
imilarly, females prefer more than males to make new on internet.
JEL odes: 12, I12

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                    <text>1st International Conference on Foreign Language Teaching and Applied Linguistics
May 5-7 2011 Sarajevo

Measuring Authorship - A Tribute to Forensic Discourse Analysis
Nejla KalajdţisalihoviĤ
Faculty of Philosophy, Sarajevo
English Department
nejlak@gmail.com
Abstract: It is believed by many that our fingerprints are as unique as our
DNA. Owing to the advances in modern technology and the aid of
computers, it is possible to use software that is able to measure all the
probabilities of occurrence of identical fingerprints, DNA, written or
spoken discourse. In recent years, forensic discourse analysis experts and
linguists have been trying to measure the degree to which every individual
is unique. These findings are especially relevant for analysing the content
of suicide letters, testimonies, testaments, ransom demands, confessions,
SMS messages, diary entries etc. The quest of forensic discourse analysis
is to apply the linguistic knowledge to the legal context with the aim of
deciding on the authorship of the above-mentioned short notes. In
applying the linguistic knowledge to the analysis of suicide letters, for
instance, it is of great importance to determine whether there is a murder
behind such a letter, viz. whether the letter is a genuine suicide letter.
Another interesting phenomenon is related to testimonies, viz. the degree
to which the interrogators added written content to the oral confession, or
the degree to which the testimony, based on the linguistic evidence, is
false. In this process, experts apply various methods of measuring the
degree to which the testimonies are authentic. Some of these methods
involve measuring sentence length average, word length average,
collocations analysis, and forensic transcription.
The aim of this paper is to pay tribute to forensic discourse analysis of
English texts and focus on some of its methods that are particularly related
to the application of the linguistic knowledge. In doing so, we shall focus
on a brief analysis of two well-known cases, Derek Bentley and Susan
Smith.
Key words: forensic, transcription, word length average, sentence length
average, collocation

Introduction
In recent years, there has been a rapid growth of interest in forensic linguistics, or forensic
discourse analysis. The term ‗forensic English‘, however, was first used in 1949 by Philbrick in
Language and the Law: Semantics of Forensic English (Coulthard, 2007:5). In 1968, Jan Svartvik
analysed the statements given by Timothy Evans, who was accused of murdering his wife and child.
Svartvik, who used the term ‗forensic linguistics‘ first, concluded that Evans did not give all the
statements provided in the record written down by police. Namely, some of the statements were clearly
distinctive due to their more formal style.
Another important founding father of forensic linguistics is Roger Shuy, whose contribution
to the science is related to Miranda rights. Even today, a lot of research is being done on whether
immigrants understand their rights. Shuy made it clear that an individual cannot testify nonvoluntarily, especially if he/she does not understand his/her rights. Therefore, one of the major
contributions of forensic linguistics to police interrogations is making sure that an individual‘s words
are recorded correctly and not paraphrased.
Apart from police and courtroom-related issues, the main concerns of forensic linguistics are
related to detecting plagiarism and attributing authorship to pieces of different types of written
discourse. Especially popular is attributing authorship to SMS messages as it is sometimes found that a
criminal is sending messages from a victim‘s phone. A similar analysis is applied when it comes to
attributing authorship to e-mails.
Therefore, we can say that the focus of forensic linguistics is applying linguistic knowledge to
the context of legal documents, courtroom interaction, speaker identification (SMS, e-mail, phone
calls) and detecting plagiarism.
Methods applied in measuring authorship
A lot of emphasis has been placed on finding the best method for measuring and attributing
authorship. So far, numerous statistical methods have been applied on finding the most accurate and

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May 5-7 2011 Sarajevo
most reliable method for attributing authorship. One of the first scientists who attempted to compare
two texts using forensic linguistics methods was Augustus de Morgan, ‗who used the word length
average as a marker‘ (Olsson, 2004:11). As for the sentence length average, it was U. Yule who
considered it to be a ‗viable marker‘ for attributing authorship (Olsson, 2001: 12). It is quite clear why
word/ sentence length average cannot be considered the vital marker for attributing authorship unless
we take into consideration the differences between spoken and written discourse, and some other
factors.
A. Q. Morton claims that there is not much difference between the two if it is about the
speaking/writing habits of an individual. This author is famous for his ‗Qsum‘or ‗Cusum method‘.
Namely, in analysing shorter texts, Morton looks for vowel-initial words and two or three-letter words.
After finding these values, one has to measure their distribution in the text, as well as in the sentence.
These values should correspond to the values related to the average sentence length. If there is a
discrepancy, that should imply that a piece of text has been inserted by another author. This method is
purely statistical and, according to many experts, not considered to be reliable as it lacks the dimension
of intuition, which is often important for the analysis.
Perhaps the most interesting approach is that of forensic stylistics. Namely, forensic stylistics
compares texts in terms of (mis)spelling, the design of the pages, the space between the words,
handwriting, collocations, word frequency, capitalisation, indentation, etc. (See: G.R. McMenamin,
2002).
The scientific evidence or what is considered to be valid at courts is sometimes not clearly
defined. As Olsson points out, although there are thousands of references to the subject of forensic
linguistics, the question of whether or not we have the linguistic fingerprint is still unsolved. Namely,
in Studies and Authorship Recognition: A Corpus-based Approach (1998), Hänlein discusses the
possibility of recognizing the stylistic profile of an individual (Olsson, op.cit. p. 27). The recognition
of the stylistic profile depends on whose stylistic profile it is as more language aware individuals are
more able to switch codes or adapt their linguistic choices to the register or the context. In the lines
that follow, we shall focus on the approaches given by J. Olsson, as he is one of the experts who
thoroughly analyses most of the above-mentioned theories. We are, namely, going to focus on the
already solved cases of Derek Bentley and Susan Smith to show how it is possible to determine
whether some parts of a testimony have or have not been inserted.
Forensic transcription - calculating word and sentence length average
The piece of text that can be processed for forensic analysis may be a page from a diary, an email, a post-it note, a letter, etc. In case it is necessary to transcribe a text that was hand-written, one
has to observe certain regulations when transcribing icons (e.g. smiley), exclamation or question
marks, parts or words that were erased, etc. One of the most reliable methods of forensically
transcribing a piece of text is transcribing it manually to a Word document. In addition to that, there is
a number of software platforms that ease the transcription process as they are designed to find
collocations (viz. colorcations) or calculate probability (e.g. Copy Catch).
The word length average is calculated by counting the number of characters in a text from
which all the punctuation marks have been removed and dividing the number with the number of
words. The number is usually reduced to two decimals. As for the sentence-length average, it is
calculated by counting the number of words in a sentence and dividing it with the number of sentences
in the text.
Data analysis- Susan Smith confession and Derek Bentley statement
In 1994, Susan Smith, while trying to end both her life and the life of her two sons, admitted
to having killed her children by letting her car roll down into a lake. After being interrogated, Susan
Smith wrote a confession and confessed the crime.
The average sentence length of the whole text is 14 words, whereas the average word length
is 3.9 words. In total, the text contains 568 words, 2.173 characters and 39 sentences. Part one contains
25 sentences. The average word length for Part 1 is 13 words, whereas the average word length is 3.7.
Part 2 contains 14 sentences. The average sentence length is 17 words, whereas the average word
length is 3.9.
We know for sure that Susan Smith herself wrote the statement using some formal
phrases/collocations she may have heard (e.g. emotionally distraught) from police officers. The whole
text is an emotional rollercoaster ending in statements of justification and self-evaluation. The author
is also inconsistent spelling-wise ('he' vs. 'He'),

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which suggests that she is either distraught or unsure about correct spelling. The deleted parts occur at
very specific spots and seem to be deliberate at hiding something that is not supposed to be revealed.
Also, it is unusual that the words referring to religious imagery occur quite often. The second part has
word length longer by 0.2 and sentence average by 4 words. Although there are variations in sentence
and word length average, her idiolect is quite specific in terms of repetition and consistency in
grammar and spelling errors (See: Appendix A).
As for Derek Bentley, a British teenager who was sentenced to death for being in the
company of the juvenile Christopher Craig when Craig shot a police officer (1952), it has been
confirmed that Bentley‘s statement given to the police was not properly recorded (See: Appendix, B).
Analysing the text, and keeping in mind that Bentley suffered from epilepsy and had low intelligence
quotient, it is apparent that the confession is not genuine, viz. as given by Derek Bentley. It is apparent
that there are at least two authors of the statement as it is unlikely that Bentley could have remembered
the date, the time and other details related to the event at the time of interrogation.
In the part that we refer to as DB1 (the text that starts with ‗I have known Craig‘ and ends
with ‗I then ran after them‘), there are 8 sentences and 483 characters. The average word length is 4.0,
whereas the average sentence length is 15 words. In the part that we shall refer to as DB 2 (‗There was
a little iron gate‘ to ‗he was going to use the gun‘), there are 9 sentences and 346 characters. The
average word length is 3.9 and the average sentence length is 10 words.
DB1 is significantly different from DB2 for several reasons. First of all, in DB1, it seems that
the author had enough time to precisely remember the date and the time, as well as the order of events.
Secondly, since the author had enough time to think about the setting, he can use tense agreement
properly, viz. he is using Past Perfect Tense together with Past Simple Tense. Also, he is using
afterthoughts, separated with dashes. The use of indirect speech shows that this is not an immediate
reaction to interrogation. Also, in DB2, the personal pronoun ‗I‘ occurs nine times, whereas in DB 2, 'I'
occurs only three times (Coulthard points out that the ‗I then‘ string is found in police-written
statements). However, in DB2, the author is using shorter sentences, resembling spoken language.
The events are put in an order, and they seem more immediate to the reader. The author is using direct
speech and Past Simple Tense, a well-known pattern of economy in language when retelling recent
events in the past. He is also not as precise as the author of DB1 (''for about ten minutes'').
A comparison between DB1 and DB2 indicates that DB2 is the original statement given by
Derek Bentley, while DB1 was inserted afterwards, as DB1 has elements of precision found in police
statements. As for events and actions, DB1 is more focused on the events, where the narrator is a
patient (and not an agent). DB2, however, is more action-oriented, viz. both the narrator and his
colleague are active participants in the event. We propose that it is possible to analyse another part of
DB2, the part that we shall refer to as DB2.a (the string from ‗The policeman dragged him‘ to the end),
or the answers to police interrogation written down.

Conclusion
The above-given cases of Susan Smith and Derek Bentley are presented with the aim of
stressing the importance of forensic discourse analysis when analysing statements given to the police
or at court. In applying the linguistic knowledge to the analysis of corpora, it is of great importance to
determine the degree to which the interrogators added written content to the oral confession, or the
degree to which the testimony, based on the linguistic evidence, is false. In this process, experts apply
various methods of measuring the degree to which the testimonies are authentic. Some of these
methods involve measuring sentence length average, word length average, collocations analysis, and
forensic transcription. However, there is not a single method that can be used for all the textual or
phonetic evidence. Apart from linguistic and statistical evidence, profiling an individual's style and
analysing the context or purpose for which a particular piece of text (or audio material) was created
could be of great importance for discovering the vital cues. The two cases do not differ much in terms
of the variations of sentence and word length. However, in terms of orthography, idiolect and style, it
is evident why the authorship of the Bentley statement stirred so much debate. Further analysis of
these and other texts (such as authorship reports in percentages) is beyond the scope of this paper, but
it is important to point out that, for forensic discourse analysis, the roles of forensic stylistics and
statistics are equally important.
In studies that follow, our aim is to apply the forensic knowledge to the context of students‘
papers and to the analysis of authorship and instances of plagiarism. Our aim is to stress the
importance of proper language acquisition as it is a vital step towards increasing language awareness.
Note: Parts of the analysis presented above are taken from assignments the author of the article submitted to The
Forensic Linguistics Institute (Powys, UK) in March 2010.

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References:

Coulthard, M. (1994). ‗Forensic discourse analysis‘, in: Advances in Written Text Analysis, M.
Couthard (ed.). London: Routledge, pp. 242-258.
Coulthard, M. &amp; Johnson, A. (2007). An Introduction to Forensic Linguistics, Language in Evidence.
New York, New York, NY: Routledge
Coulthard, M. &amp; Johnson, A. (2010). The Routledge Handbook of Forensic Linguistics. New York,
NY: Routledge
Gibbons, J. &amp; Turell T. (2008). Dimensions of Forensic Linguistics. Amsterdam: John Benjamins.
Hänlein, H. (1998). Studies in Authorship Recognition- A Corpus-based Approach. Frankfurt: Peter
Lang.
McMenamin, G.R. (2002). Forensic Linguistics, Advances in Forensic Stylistics. Florida: CRC Press
Olsson, J. (2008). Forensic Linguistics - The Language Detective, Unit 1. Powys, UK: Forensic
Linguistics Institute.
Olsson, J. (2004). Forensic Linguistics - An Introduction to Language, Crime and the Law. London:
Continuum.
Radford, A. (1990). Syntactic Theory and the Acquisition of English Syntax. Oxford: Blackwell.
Svartvik. J. The Evans Statements. Gotheburg Studies in English No. 20.
Yule, G. Udney (1944). The Statistical Study of Literary Vocabulary. Cambridge: Cambridge
University Press
Web:
Coulthard,
M.
"Identifying
the
Author."
Web.
24
March
2011.
&lt;http://clf.unige.ch/display.php?idFichier=168&gt;.
"Analysis of Susan Smiths Confession." LSI Laboratory for Scientific Interrogation, Inc. Web. 14 Jan.
2011. &lt;http://www.lsiscan.com/susan_smith_s_confession.htm&gt;.
"Forensic Linguistics Institute." Forensic Linguistics Institute - The Home of Forensic Linguistics. Ed.
John
Olsson.
Web.
14
Jan.
2011.
&lt;http://www.thetext.co.uk/cgibin/view_texts.pl?dir=&amp;folder=Confessions&amp;text=Derek Bentley's Police Statement.txt&gt;.
"How Rare Is That Fingerprint? Computational Forensics Provides the First Clues - UB NewsCenter."
University at Buffalo. 7 Dec. 2010. Web. 14 Jan. 2011. &lt;http://www.buffalo.edu/news/12073&gt;.
Articles:
Dugandņija, M. (2011). Napisao je toĦku umjesto zareza. Po tome su otkrili ubojicu. GLOBUS, No.
1048, 68-7
Durrant P. &amp; A. Doherty (2010). Are high-frequency collocations psychologically real? Investigating
the thesis of collocational priming. Corpus Linguistics and Linguistic Theory, 6(2).
Guillen-Nieto, V. (et.al.) (2008). Exploring State-of-the-Art Software for Forensic Authorship
Identification. IJES, Vol. 8 (1), pp. 1-28.

Appendix:
A) Susan Smith confession
When I left my home on Tuesday, October 25, I was very emotionally distraught. I didn‘t
want to live anymore! I felt like things could never get any worse. When I left home, I was going to
ride around a little while and then go to my mom‘s. As I rode and rode and rode, I felt even more
anxiety coming upon me about not wanting to live. I felt I couldn‘t be a good mom anymore but I
didn‘t want my children to grow up without a mom. I felt I had to end our lives to protect us all from
any grief or harm (deletion). I had never felt so lonely and so sad in my entire life. I was in love
(underlined) with someone, very much, but he didn‘t love me and never would. I had a difficult time
accepting that. But I had hurt him very much and I could see why he could never love me. When I was
@ John D. Long Lake, (deletion) I had never felt so scared and unsure as I did then. I wanted to end
my life so bad and was in my car ready to go down that ramp into the water and I did go part way, but
I stopped. I went again and stopped.
I then got out of the car and (deletion) stood by the car (insertion&gt;a) nervous wreck. Why was
I feeling this way? Why was everything so bad in my life? I had no answers to these questions. I
dropped to the lowest when I allowed my children to go down that ramp into the water without me. I
took off running and screaming go back, but I knew it was too late. I was an absolute mental case! I

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May 5-7 2011 Sarajevo
couldn‘t believe what I had done. I love my children w/ all my (icon: heart). That will never change. I
have prayed to them for forgiveness and hope that they will find it in their (icon: heart) to forgive me. I
never meant to hurt them!! I am SORRY (underlined) for what has happened and I know that I need
some help. I dont think I will ever be able to forgive myself for what I have done. My children,
Michael and Alex, are with our Heavenly Father now and I know that they will never be hurt again. As
a mom, that means more than words could ever say.
I knew from day one, the truth would prevail, but I was so scared I didnt know what to do. It
was very tough emotionally to sit and watch my family hurt like they did. It was time to bring a piece
of mind to everyone, including myself. My children deserve to have the best and now they will. I
broke down on Thursday, November 3 and told Sheriff Howard Wells the truth. It wasn't easy, but
after the truth was out, I felt like world was lifted off my shoulders. I know now that it is going to be a
tough and long road ahead of me. At this very moment, I don't feel I will be able to handle what's
coming, but I have prayed to God that he give me the strength to survive each day and to face
(illegible) times and situations in my life that will be extremely painful. I have put my total faith in
God and He will take care of me.
Susan V. Smith
11/3/94
B) Derek Bentley statement
I have known Craig since I went to school. We were stopped by our parents going out
together, but we still continued going out with each other - I mean we have not gone out together until
tonight. I was watching television tonight (2nd November 1952) and between 8pm and 9pm Craig
called for me. My Mother answered the door and I heard her say I was out. I had been out earlier to the
pictures and got home just after 7pm. A little later Norman Parsley and Frank Fazey called. I did not
answer the door or speak to them.
My Mother told me that they had called and I then ran out after them. I walked up the road
with them to the paper shop where I saw Craig standing. We all talked together and then Norman
Parsley and Frank Fazey left. Chris Craig and I then caught a bus to Croydon. We got off at West
Croydon and then walked down the road where the toilets are - I think it is Tamworth Road. When we
came to the place where you found me, Chris looked in the window. There was a little iron gate at the
side. Chris then jumped over and I followed. Up to then Chris had not said anything. We both got out
on to the flat roof at the top. Then someone in a garden on the opposite side shone a torch up towards
us. Chris said: "It's a copper, hide behind here." We hid behind a shelter arrangement on the roof. We
were there waiting for about ten minutes. I did not know he was going to use the gun. A plain clothes
man climbed up the drainpipe and on to the roof. The man said: "I am a police officer - the place is
surrounded." He caught hold of me and as we walked away Chris fired. There was nobody else there at
the time. The policeman and I went round a corner by a door. A little later the door opened and a
policeman in uniform came out. Chris fired again then and this policeman fell down. I could see he
was hurt as a lot of blood came from his forehead just above his nose.
The policeman dragged him round the corner behind the brickwork entrance to the door. I
remember I shouted something but I forget what it was. I could not see Chris when I shouted to him he was behind a wall. I heard some more policemen behind the door and the policeman with me said,
"I don't think he has many more bullets left." Chris shouted "Oh yes I have" and he fired again. I think
I heard him fire three times altogether. The Policeman then pushed me down the stairs and I did not
see any more. I knew we were going to break into the place, I did not know what we were going to get
- just anything that was going. I did not have a gun and I did not know Chris had one until he shot. I
now know that the policeman in uniform is dead. I should have mentioned that after the plain clothes
policeman got up the drainpipe and arrested me, another policeman in uniform followed and I heard
someone call him 'Mac'. He was with us when the other policeman was killed.

998

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                <text>It is believed by many that our fingerprints are as unique as our  DNA. Owing to the advances in modern technology and the aid of  computers, it is possible to use software that is able to measure all the  probabilities of occurrence of identical fingerprints, DNA, written or  spoken discourse. In recent years, forensic discourse analysis experts and  linguists have been trying to measure the degree to which every individual  is unique. These findings are especially relevant for analysing the content  of suicide letters, testimonies, testaments, ransom demands, confessions,  SMS messages, diary entries etc. The quest of forensic discourse analysis  is to apply the linguistic knowledge to the legal context with the aim of  deciding on the authorship of the above-mentioned short notes. In  applying the linguistic knowledge to the analysis of suicide letters, for  instance, it is of great importance to determine whether there is a murder  behind such a letter, viz. whether the letter is a genuine suicide letter.  Another interesting phenomenon is related to testimonies, viz. the degree  to which the interrogators added written content to the oral confession, or  the degree to which the testimony, based on the linguistic evidence, is  false. In this process, experts apply various methods of measuring the  degree to which the testimonies are authentic. Some of these methods  involve measuring sentence length average, word length average,  collocations analysis, and forensic transcription.  The aim of this paper is to pay tribute to forensic discourse analysis of  English texts and focus on some of its methods that are particularly related  to the application of the linguistic knowledge. In doing so, we shall focus  on a brief analysis of two well-known cases, Derek Bentley and Susan  Smith.</text>
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                    <text>Measuring Financial Inclusion in Western Balkan Countries – A
Comparative Survey
Meldina Kokorović Jukan
Faculty of Economics, University of Tuzla
Univerzitetska 8, 75000 Tuzla, BiH
Phone: +387 35 320 820
Fax: +387 35 320 821
E-mail: meldina.kokorovic@untz.ba
Amra Babajić
Faculty of Economics, University of Tuzla
Univerzitetska 8, 75000 Tuzla, BiH
Phone: +387 35 320 820
Fax: +387 35 320 821
E-mail: amra.babajic@untz.ba
Amra Softić
Faculty of Economics, University of Tuzla/
Indirect Taxation Authority of BiH, BiH
E-mail: amrasoftic@outlook.com

Abstract: According to the World Bank, more than one quarter of worlds’ population is without a bank
account and is excluded from financial system. Improving financial inclusion and building inclusive
financial systems is in agenda of all policy makers in both developed and developing countries aiming to
include the poorest part of the population in to the financial system. Financial inclusion is becoming
more important topic in academic world, but also among regulators and policy makers. In order to
emphasize the importance of financial inclusion, this paper investigates the extent of financial inclusion
among Western Balkan countries and in comparison to other developing regions around the world.
Using data from the World Banks’ Global Findex data base, this paper provides comparison of the level
of financial inclusion in Western Balkans counties, focusing on the importance of government role in
increasing financial inclusion. Research shows similar level of financial inclusion within Western Balkan
countries measured by the following indicators of financial inclusion: percentage of population having
formal account at a financial institution, percentage of population saving at financial institution and
percentage of population borrowing at financial institution. Furthermore, the research shows that the
level of financial inclusion in Western Balkan countries is slightly above the levels in other developing
regions around the world, but still Western Balkan countries lack national financial inclusion strategies
which will help increase their levels of financial inclusion to the level of more developed countries.
Keywords: financial inclusion, Western Balkan countries, developing regions, national financial
inclusion strategies, policy makers

43

�Introductory Considerations
The Center for Financial Inclusion (CFI) defines full financial inclusion as a state in which
everyone who can use financial services/products has access to a wide range of quality financial
services at affordable prices, with convenience, dignity, and consumer protections, delivered by
a range of providers in a stable, competitive market to financially capable clients.
Furthermore, according to the World Bank, financial inclusion means that individuals and
businesses have access to useful and affordable financial products and services that meet their
needs – transactions, payments, savings, credit and insurance – delivered in a responsible and
sustainable way.3
The term financial inclusion needs to be interpreted in a relative dimension. Depending on the
stage of development, the degree of financial inclusion differs among countries. For example, in
a developed country non-payment of utility bills through banks may be considered as a case of
financial exclusion. However, the same may not (and need not) be considered as financial
exclusion in an underdeveloped nation as the financial system is not yet developed to provide
sophisticated services. Hence, while making any cross country comparisons due care needs to be
taken (Mehrotra et. al., 2009:14).
Improving access and building inclusive financial systems is a goal that is relevant to economies
at all levels of development (World Bank, 2008:21) aiming to include the poorest part of the
population in the financial streams. It is empirically proven that financial inclusion correlates
with high levels of economic development in that country and vice-versa (Swamy, 2014).
Furthermore, financial inclusion is becoming the main priority in developing countries since the
research shows that increase in financial inclusion of individuals plays an important role in
reduction of poverty and achieving inclusive economic growth. Greater access to financial
services for both individuals and firms may help reduce income inequality and accelerate
economic growth.
Contrary to inclusion there is financial exclusion, which is often defined in the context of a
larger issue – social exclusion. Financial exclusion is indeed a reflection of social exclusion, as
countries having low GDP per capita, relatively higher levels of income inequality, low rates of
literacy, low urbanisation and poor connectivity seem to be less financially inclusive (Sarma,
Pais, 2008:23). This relationship can also be viewed from the other side: The reduction of
financial exclusion is a priority for the government because it can lead to social exclusion
(Mitton, 2008).
As Western Balkan countries are developing part of the world, financial inclusion can be
perceived as on the important aspects and contributors to economic development. Therefore, this
3

http://www.worldbank.org/en/topic/financialinclusion/overview

44

�paper complements to existing literature on financial inclusion measurement, by providing a
comparative analysis of financial inclusion in the countries of this region, focusing on the level
of financial inclusion and on the government role in increasing financial inclusion.
The second part of the paper summarizes previous researches on financial inclusion globally. In
the third part of the paper the methodology of the research was introduced, while in the fourth
part of the paper the comparative analysis of financial inclusion in Western Balkan countries is
presented.
Previous Research
Financial literacy is a rather new topic among academics. Its’ importance increased in the last
decade as a result of the global financial crisis. Academic research is mainly focused on
measurements of financial inclusion, in other words, on creating integrative measures of
financial literacy that can be both internationally comparable and that can capture the specifics
of particular national economy that is the subject of the research.
There are two approaches to investigate financial inclusion based on the data collection method.
Different databases offer either supply side or demand side data. Supply-side studies and
databases (such as CGAP Financial Access, IMF Financial Access Survey or Microfinance
Information eXchange) compile data from various types of (formal and non-formal) financial
institutions aiming to calculate and understand their overall outreach and performance in
providing financial services to individuals in one country, region and globally.
Until recently, the measurement of financial inclusion around the world has focused on usage
and access to the formal financial services by using supply-side aggregate data, meaning that
data were collected directly from financial institutions. These are the so-called density
indicators, such as the number of bank branches or automatic teller machines (ATMs) per capita.
Data of this type have been compiled by surveying financial service providers (e.g. Beck,
Demirgüç-Kunt, and Martínez Pería 2007; Honohan 2008; Kendall, Mylenko, and Ponce 2010;
Chakravarty and Pal 2010; Sarma and Mandira (2012); Amidžić et. al. 2014, etc.). Demand-side
(provider side) information on financial inclusion is now collected as part of the IMF’s Financial
Access Survey, which has annual data for 187 jurisdictions from 2001 up to date.4
While these indicators have made it possible to obtain basic provider-side information on the use
of financial services, relatively little has been known until recently about the global reach of the
financial sector, that is, the extent of financial inclusion and the degree to which the poor,
women, and other population segments are excluded from formal financial systems (World Bank
2014:39).

4

More on IMFs Financial Access Survey data can be obtained from the following website:
http://data.imf.org/?sk=E5DCAB7E-A5CA-4892-A6EA-598B5463A34C

45

�World Banks' Global Findex database, released in 2011, helps to overcome the problem of better
understanding the underlying reasons of financial exclusion among different population groups.
According to Demirguc-Kunt and Klapper (2012), ”The Global Findex fills a major gap in the
financial inclusion data landscape and is the first public database on demand-side indicators that
consistently measures individuals’ usage of financial products across countries and over time.
Covering a range of topics, the Global Findex can be used to track global financial inclusion
policies and facilitate a deeper and more nuanced understanding of how adults around the world
save, borrow, and make payments.“
Most of recent research on financial inclusion levels around the world relies on the data from
Global Findex database. Most of the research provides analysis of several usage and barriers
related indicators on countries and regional levels (Demirguc-Kunt and Klapper, 2013,
Demirguc-Kunt et al., 2015). Some of the research addresses gender, age, and income
inequalities in financial inclusion (e.g. Aterido, Beck, and Iacovone 2011; Demirguc-Kunt,
Klapper and Singer 2013), but on the regional level. Still there is no more detailed research on
individual level.
Research Methodology
In this research, the status of financial inclusion among Western Balkan countries was assessed
using secondary data from World Bank Global Findex Database (2014) through descriptive
statistics.
The Global Findex indicators measure two dimension of financial inclusion: access to financial
services and the use of financial services.
As the Global Findex indicators cover very broad area of topics of individuals’ financial
behaviour, we focus on the following indicators that we believe are particularly important to
provide better insight into overall financial inclusion of individuals among Western Balkan
countries:
- formal account – holding an account (savings or checking) at a financial institution
- formal savings – savings at financial institution
- formal borrowing – loan at financial institution
Additionally, a chi-square test of independence was performed to examine whether there are
statistically significant differences in financial inclusion levels among individuals in respect to
gender, education level and income level.
Furthermore, we examine barriers to financial inclusion through understanding the reasons why
individuals do not have an account at financial institutions.
The indicators in the Global Financial Inclusion (Global Findex) database are drawn from
survey data covering almost 150,000 people in more than 140 economies—representing more
46

�than 97% of the world’s population. The survey was carried out over the 2014 calendar year by
Gallup, Inc. as part of its Gallup World Poll, which since 2005 has continually conducted
surveys of approximately 1,000 people in each of more than 160 economies and in over 140
languages, using randomly selected, nationally representative samples. The target population is
the entire civilian, non-institutionalized population aged 15 and above. 5
Empirical Evidences on Financial Inculusion in Western Balkans
Formal account penetration
The most common indicator of financial inclusion is formal account penetration which measures
the percentage of population having (owning) a formal account at financial institution.6
Having an account at formal financial sector serves as an entry point into the formal financial
sector and opening/having a bank account is considered as the starting point to have relationship
with a bank (Bapat, 2010; Demirguc-Kunt and Klapper, 2013).
According to the Global Findex database 2014, it can be clearly observed that there is a wide
difference in account penetration among Western Balkan countries (see Figure 1). The highest
levels of formal account penetration can be observed in Croatia (87,50%) and Serbia (83,70%),
while the lowest level of account penetration is in Albania (38,24%).
Figure 1 Formal Account Penetration across Western Balkan countries

Croatia

87.50%

Serbia

83.70%

Maceodnia

79.40%

Montenegro

64.90%

Bosnia and Herzegovina

54.05%

Kosovo

51.65%

Albania

38.24%

0%

20%

40%

5

60%

80%

100%

More on Global Findex methodology and questionnaire can be obtained from the following web-site:
http://www.worldbank.org/en/programs/globalfindex/methodology
6
Global Findex data set captures formal account penetration through a mobile money providers as well,
but as such service is not provided in Western Balkan countries, this data were ommited form analysis.

47

�Additionally, a chi-square test of independence shows that there are significant differences in
formal account penetration in respect to gender, education and household income. Results of a
chi-square test are reported in the following table.
Table 1: Results of chi-square test of independence for formal account penetration

Country

Gender

Education level

Income level

 (1, N=999) =10,829
p=0,001
2
 (1, N=1001) =16,055
p=0,000
2
 (1, N=1000) =1,317
p=0,251
2
 (1, N=1001) = 46,718
p=0,000
2
 (1, N=1000) = 1,735
p=0,188
2
 (1, N=1000) = 19,803
p=0,000
2
 (1, N=1000) = 0,134
p=0,714

 (2, N=999)=144,040
p=0,001
2
 (3, N=1001)=71,618
p=0,000 (*)
2
 (4, N=1000)=107,295
p=0,001 (*)
2
 (4, N=1001) = 89,823
p=0,000 (*)
2
 (3, N=1000) = 90,466
p=0,000 (*)
2
 (4, N=1000)= 62,186
p=0,000 (*)
2
 (3, N=1000)=18,385
p=0,000 (*)

 (4, N=999)=82,533
p=0,001
2
 (4, N=1001)=36,098
p=0,000
2
 (4, N=1000)=23,549
p=0,000
2
 (4, N=1001)= 34,801
p=0,000
2
 (4, N=1000)= 31,629
p=0,000
2
 (4, N=1000)= 43,030
p=0,000
2
 (4, N=1000)=11,239
p=0,024

2

Albania
Bosnia and Herzegovina
Croatia
Kosovo
Montenegro
Macedonia
Serbia

2

2

At significance level 0,05
*at least 2 cells have expected count less then 5

Based on chi-square test of independence, it can be concluded that there is a significant
association between having account at formal institution and gender in Albania, Bosnia and
Herzegovina, Kosovo and Macedonia, where is it is more likely that males will have an account
than females (see table 1).
Also, a significant association exists between having a bank account and income level (except in
Serbia).
Savings
The second indicator of financial inclusion we focus on is saving. Savings are an essential
ingredient for the financial inclusion of low-income populations, allowing households to manage
short-term liquidity safely and conveniently, as well as to accumulate assets for future needs.7
Savings help in consumption smoothening during the economic shocks, especially for
individuals with low-level income.

7

https://www.fomin.org/Portals/0/remesas/BROCHURE_Remesas_y_Ahorros_ingl%C3%A9s.pdf

48

�Survey data shows variation in savings among Western Balkan countries. The highest level of
savings can be observed in Croatia where more than 50% of population have savings, while the
lowest level of savings is observed in Bosnia and Herzegovina (26,97%).
Figure 2: Participation in Formal Saving across Western Balkan countries

Croatia

52.10%

Maceodnia

40.70%

Kosovo

37.96%

Albania

37.44%

Montenegro

30.70%

Serbia

30.30%

Bosnia and
Herzegovina

26.97%
0%

10%

20%

30%

40%

50%

60%

A chi-square test of independence shows that there are significant differences in savings in
respect to household income (see Table 2).
Table 2: Results of chi-square test of independence for savings
Country
Albania
Bosnia and Herzegovina
Croatia
Kosovo
Montenegro
Macedonia
Serbia

Gender

Education level

Income level

 (1, N=999) =3,910
p=0,048
2
 (1, N=1001) =1,096
p=0,295
2
 (1, N=1000) =6,043
p=0,014
2
 (1, N=1001) = 16,845
p=0,000
2
 (1, N=1000) = 0,193
p=0,660
2
 (1, N=1000) = 5,740
p=0,170
2
 (1, N=1000) = 1,099
p=0,295

 (2, N=999)=50,801
p=0,000
2
 (3, N=1001)=9,073
p=0,028 (*)
2
 (4, N=1000)=44,852
p=0,000 (*)
2
 (4, N=1001) = 67,588
p=0,000 (*)
2
 (3, N=1000) = 17,525
p=0,001 (*)
2
 (4, N=1000)= 39,385
p=0,000 (*)
2
 (3, N=1000)=18,385
p=0,000 (*)

 (4, N=999)=56,285
p=0,000
2
 (4, N=1001)=25,925
p=0,000
2
 (4, N=1000)=6,577
p=0,0160
2
 (4, N=1001)= 17,095
p=0,002
2
 (4, N=1000)= 63,245
p=0,000
2
 (4, N=1000)= 18,650
p=0,001
2
 (4, N=1000)=44,791
p=0,000

2

2

2

At significance level 0,05
*at least 2 cells have expected count less then 5

Based on chi-square test of independence, it can be concluded that there is a significant
association between participation in formal savings and income level (except in Croatia), where
49

�individuals with higher income level participate in formal savings more than individuals with
lower income level. Also, there is no significant association between participation in formal
savings and gender (except in Kosovo) and education level.
Borrowing
Analysis of participation in borrowing in Western Balkan countries showed that the highest level
of borrowings is in Croatia, where more than 58% of population have loan at financial
institution, while the lowest level of borrowing (25,37%) is observed in Bosnia and Herzegovina
(see Figure 3).
Figure3: Participation in Borrowing across Western Balkan countries

Croatia

58.20%

Albania

54.25%

Montenegro

50.80%

Maceodnia

39.30%

Kosovo

36.66%

Serbia

32.50%

Bosnia and Herzegovina

25.37%
0%

10% 20% 30% 40% 50% 60% 70%

A chi-square test of independence shows that there are no significant differences in borrowings
in respect to gender, education level and household income (see Table 3). The only exception is
Albania, where there is a significant association between participation in borrowing and income
level.
Table 3: Results of chi-square test of independence for borrowing
Country
Albania
Bosnia and Herzegovina
Croatia
Kosovo
Montenegro
Macedonia
Serbia

Gender

Education level

Income level

 (1, N=999) =1,874
p=0,171
2 (1, N=1001) =1,157
p=0,282
2 (1, N=1000) =1,538
p=0,215
2 (1, N=1001) = 5,695
p=0,017
2 (1, N=1000) = 1,512
p=0,219
2 (1, N=1000) = 19,803
p=0,192
2 (1, N=1000) = 0,270
p=0,604

 (2, N=999)=4,433
p=0,106
2(3, N=1001)=25,428
p=0,000 (*)
2(4, N=1000)=53,966
p=0,001 (*)
2(4, N=1001) = 15,786
p=0,003 (*)
2(3, N=1000) = 13,610
p=0,000 (*)
2(4, N=1000)= 62,186
p=0,003 (*)
2(3, N=1000)=3,735
p=0,292 (*)

 (4, N=999)=57,535
p=0,000
2(4, N=1001)=0,413
p=0,981
2(4, N=1000)=0,593
p=0,964
2(4, N=1001)= 12,651
p=0,013
2(4, N=1000)= 31,629
p=0,000
2(4, N=1000)= 4,891
p=0,299
2(4, N=1000)=1,942
p=0,746

2

2

At significance level 0,05
*at least 2 cells have expected count less then 5

50

2

�Differences in financial inclusion levels among income quintiles
We also analysed basic indicators of financial inclusion among poorest 40 percent and richest 60
percent within WB economies (see Figures 4 and 5).
Figure 4 Basic indicators on financial inclusion among poorest 40 percent within economies

28.55%
18.81%
30.16%
26.50%
16.61%
34.84%
27.58%
26.04%
31.05%
25.73%
29.21%
36.24%
34.17%
36.47%
36.77%
26.06%
21.11%
31.10%
21.73%
22.46%
43.36%

Serbia
Montenegro

Maceodnia
Kosovo
Croatia
Bosnia and Herzegovina
Albania
0%

20%

Formal Account Penetration

40%

60%

Savings

80%

100%

Borrowing

The poorest 40 percent have overall lower levels of financial inclusion in comparison to 60
richest. Among three indicators we analysed, the poorest mainly use borrowing, while savings is
the less used indicator (except in Kosovo, Croatia and Albania).
Figure 5 Basic indicators on financial inclusion among richest 60 percent within economies

72.81%
75.61%
65.21%

Average

71.44%
81.18%
69.84%

Serbia

73.50%
83.39%
65.16%

Montenegro
Maceodnia

72.42%
73.95%
68.95%

Kosovo

74.27%
70.79%
63.76%

Croatia

65.83%
63.53%
63.23%
73.94%
78.89%
68.89%

Bosnia and Herzegovina
Albania

56.64%

0%

20%

40%

Formal Account Penetration

51

Savings

60%

78.27%
77.53%

80%
Borrowing

100%

�The richest 60 percent mostly use savings and current account and they are less oriented to
lending at financial institution.
Overview of financial inclusion indicators in WB region in comparison to other developing
regions and developed countries is given in Table 4.
Table 4 Financial inclusion indicators by region

Region

Eastern
Asia

South
Asia

Central
Asia

Latin
America

SubSaharan
Africa

The
Western
Balkans*

High
income
countries

Formal account

69.00%

46.40%

51.40%

51.40%

34.20%

65.80%

94.00%

Formal savings

36.50%

12.80%

8.40%

13.50%

15.90%

11.31%

51.60%

Formal
borrowing

11.00%

6.40%

12.40%

11.30%

6.30%

14.04%

18.40%

Debit cards

42.90%

18.00%

36.90%

40.40%

17.90%

45.06%

79.70%

Mobile account
usage

0.40%

2.60%

0.30%

1.70%

11.50%

N/A

N/A

* Data for the Western Balkans calculated as an average of particular indicator for the Western Balkan
countries (Bosnia and Herzegovina, Serbia, Croatia, Montenegro, FYR Macedonia, Albania, Kosovo,
and Greece)
Source: Global Findex database and authors’ calculations

We can see that the Western Balkans, in average, are far behind developed countries when it
comes to financial inclusion measured by the possession of formal account, formal savings,
formal borrowing and holding a debit card. On the other side, the level of financial inclusion in
Western Balkan countries is mainly slightly above the levels in other developing regions around
the world.
Barriers to financial inclusion
We also conducted analysis of barriers to financial inclusion in Western Balkan countries (see
Figure 6).

52

�Figure 6 Reasons of poor financial inclusion in WB countries
60.00%
50.00%

53.21%
40.97%

40.00%
30.00%

26.26% 25.47%

20.00%

13.57% 13.23% 12.47% 12.12%

10.00%

3.84%

0.00%

Among the reasons why individuals do not have an account at financial institutions the most
important are the lack of money and no need for financial services.
Conclusions and Recommendations
For many governments the importance of financial inclusion is well known. Financial inclusion
is on the agenda of both developed and developing countries. Around 60 countries in the world
own and implement financial inclusion strategies. Great Britain is among the first countries to
make progress in this field by publishing a financial inclusion strategy, within the Report for the
Promotion of Financial Inclusion in 2004. When it comes to Western Balkan countries, none of
them has strategy for financial inclusion, nor is financial inclusion included as goal in any other
strategy. Bosnia and Herzegovina, for example, partly addresses this topic in the framework of
the 2010 social inclusion strategy proposal. Montenegro has strategies to improve the situation
of Roma and Egyptians in Montenegro 2012-2016, inclusive education strategy and national
employment strategy; Croatia has a strategy to combat poverty and social exclusion, education
strategy, employment strategy, etc. In Serbia a lot of research and studies on financial inclusion
is being conducted. However, no country has a national strategy for financial inclusion.
Improvement of financial inclusion requires national and regional strategies, whose success
requires government support as well as involvement of the private and financial sector that will
be interested only if the strategy corresponds to the market.
Government should create and put into effect active measures in the context of the development
of electronic and mobile banking. With that aim, close cooperation between the government and
commercial banks must exist, in terms of limiting overpricing of banking products and services.
53

�That way the number of ATMs and applicants for mobile and electronic banking could be
increased.
Beside with commercial banks, government must collaborate with private associations to
exchange expertise, knowledge and information. Also, there are a lot of possibilities for creating
new and improvement of the existing regulation which treat this issue. Financial literacy and
financial information must be actively promoted among individuals through formal and informal
financial education programs.

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April 2017]
Mehrotra N., Puhazhendhi V., Nair G. &amp;Sahoo, B.B. (2009).Financial Inclusion - An
Overview.Department of Economic Analysis and Research, National Bank for Agriculture
and Rural Development (NABARD), Occasional Paper 48, Mumbai, [Online]. Available
from:https://www.nabard.org/pdf/OccasionalPapersonFinancialInclusion_080509.pdf
,
[Accessed: 12 January 2017]
Mitton L. (2008). Financial inclusion in the UK: Review of policy and practice, Joseph
Rowntree
Foundation
[Online].
Available
from:
https://www.jrf.org.uk/sites/default/files/jrf/migrated/files/2234.pdf, [Accessed: 15 April
2017]
Sarma, Mandira, (2012). Index of Financial Inclusion A measure of financial sector
inclusiveness, Berlin Working Papers on Money, Finance, Trade and Development,
Working Paper no. 07=2012.
Swamy, V. (2014).Financial inclusion, gender dimension and economic impact on poor
households. World Development, 56, 1-15
World Bank. (2008). Finance for All? Policies and Pitfalls in Expanding Access. Washington
D.C.: World Bank
World Bank. (2014). Global Financial Development Report 2014: Financial Inclusion.
Washington,
DC:
World
Bank.
doi:10.1596/978-0-8213-9985-9.
License:
CreativeCommons Attribution CC BY 3.0
Other Internet sources:
http://www.worldbank.org/en/topic/financialinclusion/overview
http://www.worldbank.org/en/programs/globalfindex/methodology
http://www.centerforfinancialinclusion.org/about/who-we-are/our-definition-of-financialinclusion
http://data.imf.org/?sk=E5DCAB7E-A5CA-4892-A6EA-598B5463A34C

55

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                <text>Measuring Financial Inclusion in Western Balkan Countries – A  Comparative Survey (doi: 10.14706/icesos1715)</text>
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                <text>Kokorovic Jukan, Meldina
Babajic, Amra
Softic, Amra</text>
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                <text>Abstract: According to the World Bank, more than one quarter of worlds’ population is without a bank  account and is excluded from financial system. Improving financial inclusion and building inclusive   financial systems is in agenda of all policy makers in both developed and developing countries aiming to  include the poorest part of the population in to the financial system. Financial inclusion is becoming   more important topic in academic world, but also among regulators and policy makers. In order to  emphasize the importance of financial inclusion, this paper investigates the extent of financial inclusion   among Western Balkan countries and in comparison to other developing regions around the world.  Using data from the World Banks’ Global Findex data base, this paper provides comparison of the level   of financial inclusion in Western Balkans counties, focusing on the importance of government role in  increasing financial inclusion. Research shows similar level of financial inclusion within Western Balkan   countries measured by the following indicators of financial inclusion: percentage of population having  formal account at a financial institution, percentage of population saving at financial institution and   percentage of population borrowing at financial institution. Furthermore, the research shows that the  level of financial inclusion in Western Balkan countries is slightly above the levels in other developing   regions around the world, but still Western Balkan countries lack national financial inclusion strategies  which will help increase their levels of financial inclusion to the level of more developed countries.     Keywords: financial inclusion, Western Balkan countries, developing regions, national financial  inclusion strategies, policy makers</text>
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                    <text>Measuring Quality of Services at HEI: Case of Private University in BiH
Amina Kahriman
International Burch University
Bosnia and Herzegovina
amina-kahriman96@hotmail.com
Ajdin Mekić
International Burch University
Bosnia and Herzegovina
ajdin_mekic@hotmail.com
Kemal Đug
International Burch University
Bosnia and Herzegovina
k.djug9@gmail.com
Ensar Mekić
International Burch University
Bosnia and Herzegovina
ensar.mekic@ibu.edu.ba

Abstract: The main purpose of this study is to investigate quality level of higher education institution's
(HEI) services through students' perceptions, and to conduct cross years’ comparative analysis. Main
instrument for this study is a survey with several dimensions dealing with different aspects of higher
education: quality in general, quality of academic staff, quality of administrative staff, quality of campus,
quality of study programs, quality of services, personal development support, education facilities and
cafeteria. Software used in the study is Microsoft Excel. In total, 440 responses were collected which
represents almost 50% of population. Cross years comparative analysis indicated tremendous increase in
all indicators after institution has implemented HEA standards and went through successful accreditation
process. Recommendations for corrective/preventive measures will be given wherever necessary. Results
of the analysis show that students's rating of university services on the level of university have mean of
5,1 which indicates that students are slightly satisfied with the services of university overall.
Keywords: HEI, university, quality, comparative analysis

173

�1 Introduction
Research on students’ satisfaction with the service quality at higher education institutions in
Bosnia and Herzegovina (BiH) was not famous topic among researchers. However, there are few
studies dealing exactly with this issue. Mekić &amp; Goksu (2014) investigated how ISO 9001:2008
and standards for accreditation contribute to overall quality of private higher education
institutions in the country. Rastoder, Nurović, Smajić, &amp; Mekić (2015) provided insights into
perceptions of students towards quality of services at private higher education institution in BiH.
Considering very few studies dealing with this issue in BiH, there is a need to provide more
empirical evidence and more scientific research on quality management in higher education
institutions of Bosnia and Herzegovina. Accordingly, this study is important since it serves this
mission of filling gap in literature. On the other hand, considering great criticism in academic
community on account of quality standards in higher education, this type of studies contributes
to practitioners engaged in quality management processes in the country, because they represent
strong support to quality standards as best way to satisfy customers’ needs and demands.
Mainly, for purpose of statistical analysis, descriptive statistics will be used. Quality indicators
will be compared on the timeline basis, and significant conclusions will be provided, as well as
recommendations for improvement.
The contribution of this work is threefold. It provides theoretical contribution since it satisfies
gap in the literature. This study will enable practitioners having more confidence in quality
standards application in higher education, and it will provide practical recommendations for
improvement to higher education institution which is in case. Finally, as higher education
directly affects society, by improving theory and practice of higher education, social
development will come along.
2 Literature Review
Variety of sources including books, journal articles, conference proceedings, reports, official
web pages have been used while preparing this study.
Many different definitions of quality are best evidence that it really is a slippery concept as
Naomi Pfeffer and Anna Coote (1991) characterized it. Infact, they even provided several
reasons to prove this statement. First one is fact that quality serves different purposes and its
meaning changes according to interests that are driving it. Second reason provided by Pfeffer and
Coote (1991) is fact that people perceive and experience quality in different ways, and they have
different needs and expectations towards it. Third reason is related to outcome of the process of
quality assurance which can have infinite number of variables depending on the context.

174

�Accordingly, when it comes to definition of quality, authors concluded that it refers to something
we all unquestioningly favor (Pfeffer &amp; Coote, 1991).
Sallis (2005) mentioned that word quality comes from the Latin quails meaning what kind of.
While explaining quality, he stated that it is an ideal with which there can be no compromise.
Quality things are perfect, valuable, with no expense spared and convey prestige to their owners.
Author also stated that quality is synonymous with high quality or top quality (Sallis, 2005).
Definitions of quality from various perspectives have been provided by Koslowski (2006). His
definitions were reviewed and summarized into one comprehensive definition by Mekić &amp;
Goksu (2014) who concluded that quality in HEI is increase in learning as one of important
objectives of HEI based on satisfying costumers' requirements, realized as consequence of
academic and administrative staff's expertise which results in high ranking levels of HEI, gaining
reputation and becoming perceived as valuable institution.
The University which is subject of case study in this article is located in Bosnia and
Herzegovina. With aim to provide highest possible opportunities for its students, institution from
the very beginning showed its loyalty to following world standards, and it implemented ISO
9001:2008 and started with implementation of standards for accreditation required by HEA. In
year 2014, it went through accreditation process successfully. Students involvement in decision
making processes and all other processes is high in this higher education institution. There are
nine indicators in hands of students to follow:
1. Quality in general
2. Quality of Academic Staff
3. Quality of Administrative Staff
4. Quality of campus
5. Quality of Services
6. Study Programs
7. Personal Development
8. Education facilities
9. Cafeteria
This means that students are distributing a survey, collecting results, coding them, analyzing
them, preparing report and presenting report to Senate with recommendations.
It is important to have in mind that this higher education institution carefully implements both
ISO 9001 as well as European Standards and Guidelines (which are implemented through
adjusted version “Criteria for Institutional Accreditation published by Agency for Development
of Higher Education and Quality Assurance (HEA). It is important to have in mind that
institution in case had been accredited in 2014, and that all indicators of students’ satisfaction
will be compared before and after this point. However, speaking of two mentioned standards, it
is important to say that they are fully compatible standards. The best, and very fresh evidence of

175

�this statement is available in comparative analysis conducted by team of authors in 2017. In fact,
Bajramović, Mekić, &amp; Muhamedbegović (2017) concluded that implementation of these two
standards is realistic and recommended. In addition, they commented that appropriate
implementation of both standards can be good way to achieve excellence in higher education.
3 Methodology
The survey was the main instrument of data collection and it has been divided into ten major
sections. The first section contains questions about personal profiles of the respondents including
gender, department of studying, fees, current level of study, country from were a student is
coming. The second section contains questions about quality in general and the third section is
based on questions about quality of academic staff. The fourth section contains questions about
quality of administrative staff, while questions in fifth section are based on campus of university.
In sixth section, questions are regarded to services at university and in seventh section they are
about study programs that are offered at university. The eight section contains question about
personal development and the ninth section is based on questions about education facilities. The
tenth section contains questions regarding to cafeteria at university.
Survey has been distributed to students of all three cycles of study and all departmets of higher
education institution. In total 440 responses were collected which is enough to generalize data in
the level of higher education institution.
More accurately said, the instrument to collect data has been based on nine variables, and all
of them are mentioned as important aspects of quality in higher education in ESG (2005)
standards as well as HEA standards.
The measurement instrument used is a seven-point Likert scales is representing a range of
attitudes from 1 – strongly disagree to 7 – strongly agree used to measure service quality,
representing a range of attitudes from strongly disagree (1) to strongly agree (7) to
measure students’ satisfaction. The meaning of following numbers is as follows:
1 – Strongly Disagree;
2 – Disagree;
3 – Slightly Disagree;
4 – Neither Agree nor Disagree;
5 – Slightly Agree;
6 – Agree;
7 – Strongly Agree

176

�4. Results
4.1 Demographics
In this part of survey, respondents were asked about their faculty, department, current level of
study, year of study, highest qualification planned for future, yearly fees for education in BAM,
high school they graduated from, gender, age group, where they were from, circumstances in
financing their education, and whether they have scholarship. The survey was administered to
227 males and 212 females. When it comes to Faculty, 157 surveys were collected from Faculty
of Economics, 212 surveys from Faculty of Engineering, 71 surveys from Faculty of Education.
Respondents included those with Bachelor degree, Master degree, PhD, out of which most had a
Bachelor degree.
Table 1 – Number of respondents from Faculties
Faculty

# of respondents

Faculty of Economics

157

Faculty of Engineering

212

Faculty of Education

71

Total number

440

4.2 Quality of services on the level of University
In this section responses of students from all faculties and results were combined to evaluate the
satisfaction with services on the level of University.
Table 2 – Quality in General
Variables and Questions

5,01

Std.
Deviation
1,47

4,98

1,34

4,88

1,42

5,20

1,62

Mean

Quality in General (QG)
How do you rate the quality of the institution's services in general?
How do you describe your feelings towards the institution's services in general?
How likely are you to recommend the institution to others?

With this variable students' satisfaction with quality in general was evaluated. The mean value of
this variable is 5,01 which means that students slightly agree with offered statements, and they
are slightly satisfied with general quality of International Burh University. The lowest mean
value is 4,88 and it is related to question “How do you describe your feelings towards the
institution's services in general?“ but still it is within boundaries of „slightly agree“. The highest

177

�mean value is 5,20 which relates to the question “How likely are you to recommend the
institution to others?“. This tells us that students agree the most with the statement that they
would recommend International Burch University.
Table 3 – Quality of Academic Staff
Variables and Questions

Mean

Quality of Academic Staff (QAS)
Academic staff have the knowledge to answer my questions relating to the
course?
Academic staff deal with me in a caring and courteous manner?

5,22

Std.
Deviation
1,46

5,25

1,47

5,22

1,50

Academic staff are never too busy to respond to my request for assistance?

5,13

1,57

When I have a problem, academic staff show a sincere interest in solving it?

5,22

1,47

Academic staff show positive attitude towards students?
Academic staff communicate well in the classroom?

5,41
5,29

1,42
1,40

Academic staff allocate sufficient and convenient time for consultations?

5,23

1,31

Academic staff provide feedback about my progress?

4,89

1,53

Academic staff are highly educated and experienced in their respective field?

5,31

1,45

The purpose of this variable is to evaluate students' satisfaction with the academic staff at
International Burch University. The mean value of this variable is 5,22 which indicates that
students are slightly satisfied with the academic in this institution. The lowest mean value is 4,89
and it is related to the question “Academic staff provide feedback about my progress?“ but still it
belongs to the region of slight satisfaction. The highest mean value, which is 5,41, is related to
the question “Academic staff show positive attitude towards students?“ which tells us that
students are satisfied the most with academic staff attitude towards them.
Table 4 – Quality of Administrative Staff
Variables and Questions

Mean

Quality of Administrative Staff (QAS)

5,16

Std.
Deviation
1,69

When I have problem, administrative staff show a sincere interest in solving it?

5,00

1,58

Administrative staff provide caring and individual attention?

5,00

1,50

Administrative staff are never too busy to respond to a request for assistance?

4,94

1,51

Administrative offices keep accurate and retrievable records?

5,06

1,47

178

�When the staff promise to do something by a certain time, they do so?

5,05

1,57

The opening hours of administrative offices are personally convenient for me?

5,21

2,87

Administrative staff show positive work attitude towards the students?

5,31

1,43

Administrative staff communicate well with students?

5,37

1,46

Administrative staff have good knowledge pf the system/procedures?

5,33

1,45

Students are treated equally and with respect by the staff?

5,18

1,61

The staff respect my confidentiality when I disclosed information to them?

5,25

1,55

This variable represents the students' satisfaction with the administrative staff at International
Burch University. The mean value of this variable is 5,16 which indicates that students slightly
agree with given statements and they are slightly satisfied with administrative staff in this
institution. The lowest mean value relates to the question “Administrative staff are never too
busy to respond to a request for assistance?“ and it is 4,94, however it is in positive interval of
the scale indicating that students are satisfied with this aspect. The highest mean value is 5,37
and it relates to the question “Administrative staff communicate well with students?“ which
means that students are most satisfied with how administrative staff communicate with them.
Table 5 – Quality of campus
Variables and Questions

Mean

Campus (C)
The institution has a professional appearance/image?
The institution has an ideal location with excellent campus layout and
appearance?
The university has an easily accessible location?
The parking services at the university are adequate?
The university campus has a safe environment?

4,53
5,14

Std.
Deviation
2,06
1,59

4,34

1,73

4,41
3,51
5,25

1,86
2,01
5,25

With this variable students' satisfaction with professional appearance/image, location and
environment of university campus was evaluated. The mean value of this variable is 4,53 which
means that students slightly agree with given statements and they are slightly satisfied. The
lowest mean value is 3,51 and relates to the question “The parking services at the university are
adequate?“, which tells that students are slightly dissatisfied with parking services which
university offers. The highest mean value is 5,25 and relates to the question “The university
campus has a safe environment?“ which means that students are satisfied with the safety of the
environment of university campus the most.

179

�Table 6 – Quality of Services
Variables and Questions

Mean

Services
Inquires/complaints are dealt with efficiently and promptly?
I feel secure and confident in my dealings with this institution?

5,07
4,80
5,24

Std.
Deviation
1,82
1,53
1,45

The institution provides services within reasonable/expected time frame?

5,19

1,40

Students are given fair amount of freedom?
The institution operates excellent counseling services?
Health services are adequate?
Information services via web-site is adequate?

5,40
5,14
4,65
5,18

3,25
1,40
1,73
1,54

The institution values feedback from students to improve service performance?

5,07

1,55

The university provides services for students with special needs?

4,94

1,67

The purpose of this variable is to evaluate students' satisfaction about services offered from
university. The mean value for this variable is 5,07 which indicates that students slightly agree
with given statements and they are slightly satisfied. The lowest average, which is 4,65 was at
question “Health services are adequate?“ but still it is within boundaries of slightly agree, which
means students are slightly satisfied with this aspect. The highest mean value is 5,40 and relates
to the question “Students are given fair amount of freedom?“. This means that students are most
satisfied with amount of freedom they have.
Table 7 – Study Programs
Variables and Questions

Mean

Study Programs
The institution runs excellent quality programs?

4,95
5,03

Std.
Deviation
1,54
1,52

The institution offers a wide range of programs with various specialization?

4,93

1,53

The institution offers programs with flexible syllabus and structure?

4,87

1,52

The institution offers highly reputable programs?
The institution graduates are easily employable?

4,97
4,93

1,54
1,59

This variable represents the students' satisfaction with quality of study programs that university
offers to them. The mean value of this variable is 4,95 which belong to the region of slightly
agree with given statements. The lowest mean value is 4,87 and relates to the programs syllabus
and structure that university offers, this means that students are slightly satisfied with them. The

180

�highest mean value is 5,03 and relates to the question “The institution runs excellent quality
programs?” which tells us that students are most satisfied with programs that the university offer.
Table 8 – Personal Development
Variables and Questions

Mean

Personal Development
Recreation and sport facilities at the university are adequate?
Extracurricular activities (seminars, workshops etc.) at the university are
adequate?
Services and facilities of art at the university are adequate (music, painting,
photography etc.)

4,69
4,12

Std.
Deviation
1,74
1,85

5,01

1,65

4,40

1,68

The university supports students' personal development projects?

5,02

1,63

International cooperation programs at the university (student exchange, study
visits etc.) are adequate?

4,89

1,69

The purpose of this variable is to evaluate students' satisfaction with opportunities of personal
development. With mean value of 4,69 it is possible to conclude that students are slightly
satisfied about opportunities of personal development. The lowest mean value (4,12) goes to the
first question and it is about recreation and sport facilities at the university. The highest mean
value (5,02) goes to the question four and it is about supporting students' personal development
projects by faculty.

Table 9 – Education facilities
Variables and Questions

Mean

Education Facilities
Academic facilities are adequate for quality education?
Class sizes are adequate for quality education?
The library services at the university are adequate?
The institution has up to date equipment?
The labs at the university are adequate for quality education?

5,27
5,19
5,38
4,96
5,28
5,43

Std.
Deviation
1,50
1,45
1,43
1,60
1,47
1,48

The university provides up-to-date information technology for students?

5,39

1,51

With this variable students' satisfaction with education facilities at International Burch
University was evaluated. The mean value of this variable is 5,27 which indicates that students
are satisfied with education facilities. The lowest mean value is 4,96 and relates to the question
“The library services at the university are adequate?“, which means that students are slightly
satisfied with library services. The highest mean value is 5,43 and relates to the question “The

181

�labs at the university are adequate for quality education?“ means that students are most satisfied
with labs at the university.
Table 10 - Cafeteria
Variables and Questions

Mean

Std.
Deviation

Cafeteria

4,30

1,93

The university cafeteria provides high quality food and beverages?

3,85

1,89

Prices at the university cafeteria are reasonable?
The food variety is adequate?
The university cafeteria is clean?
Cafeteria staff provide good quality service to students?

3,80
3,78
4,91
5,14

1,91
1,87
1,73
1,77

This variable represents students' satisfaction about cafeteria at International Burch university.
With mean 4,30 it indicates that students are neutral regarding given statements. The lowest
mean value (3,78) relates to adequate food variety while the highest mean value (5,14) relates to
the quality of service that is provided by cafeteria staff to students which indicates that students
are slightly satisfied with the service.
Table 11 shows overall results indicating that “Education Facilities“ is the highest rated variable
with mean value of 5,26, and that variable “Cafeteria“ is the lowest rated variable with mean
value of 4,29. The overall mean value of 4,97 indicates that students are slightly satisfied with
university services.

Table 11 – Overall Results
Variables
Quality in general
Quality of academic staff
Quality of administrative staff
Campus (C)
Services
Study Programs
Personal Development
Education Facilities
Cafeteria
Overall Result

Mean
4,94
5,13
5,10
4,51
5,05
4,94
4,69
5,26
4,29
4,97

182

Std.
Deviation
1,46
1,47
1,72
2,09
1,85
1,55
1,74
1,51
1,94
1,72

�Figure 1 - Overall Results
6.00
5.00

4.94

5.13

5.10

5.26

5.05

4.94

4.97

4.69

4.51

4.29

4.00
3.00
2.09
2.00

1.46

1.47

1.85

1.72

1.74

1.55

1.94
1.51

1.72

1.00
0.00

Mean

4.3

Std. Deviation

Quality of Institution over Years

Figure below indicated that quality of academic staff significantly decreased for the period of
2012 to 2014. If we look at mean grade in academic year 2011/2012 (5,46) we can notice that
students negatively changed their opinion about academic staff in following two academic years
for value of 0,74. However average grade was increased in academic year 2015/2016 and it is
5,13. Trend line visible in figure below indicates increase in students’ satisfaction with academic
staff after 2012/13.

Table 12 - Quality of academic staff
Indicator of Quality

2011-2012

2012-2013

2013-2014

2015-2016

Scale

Quality of academic staff

5,46

4,85

4,72

5,13

1 to 7

183

�Figure 2 – Quality of Academic Staff

GRADE OF ACADEMIC STAFF (1 to
7)

5.60
5.40
5.20
5.00
4.80
4.60
4.40
4.20
2011-2012

2012-2013

2013-2014

2015-2016

YEARS

Following figure indicates slightly decrease in quality of administrative staff in the academic
year 2012/2013 for value of 0,37 compared to the academic year 2011/2012. From the period of
2013 to 2016 average grade was increased and in 2016 it was 5,10 which indicates great
improvement in this indicator of quality. Also, trend line presented in figure below shows
increase in average grade for period of 2011 to 2016.
Table 13 - Quality of administrative staff
Indicator of Quality

2011-2012

2012-2013

2013-2014

2015-2016

Scale

Quality of administrative staff

5,00

4,63

4,75

5,10

1 to 7

184

�Figure 3 – Quality of Administrative Staff

GRADE OF ADMINISTRATIVE
STAFF (1 to 7)

5.20
5.10
5.00
4.90
4.80
4.70
4.60
4.50
4.40
4.30
2011-2012

2012-2013

2013-2014

2015-2016

YEARS

Table and figure below presents satisfaction of students with campus. Results that are founded
shows us that average grade was decreased from 2011 and in last two academic years was 4,51.
Trend line however indicated increase after 2012/13 on.
Table 14 - Quality of Campus
Indicator of Quality

2011-2012

2012-2013

2013-2014

2015-2016

Scale

Campus (C)

5,02

4,42

4,51

4,51

1 to 7

GRADE OF CAMPUS (1 to 7)

Figure 4 – Quality Campus

5.10
5.00
4.90
4.80
4.70
4.60
4.50
4.40
4.30
4.20
4.10
4.00
2011-2012

2012-2013

2013-2014

YEARS

185

2015-2016

�Once again trend line on graph # shows slightly increase in average grade of services for the
academic years from 2011 to 2016. Average grade was increased for the values of 0,08 which
indicates that University is improving services.
Table 15 - Quality of Services
Indicator of Quality

2011-2012

2012-2013

2013-2014

2015-2016

Scale

Services

4,97

4,39

4,59

5,05

1 to 7

Figure 5 – Quality of Services

5.20

GRADE OF SERVICES (1 to 7)

5.00
4.80
4.60
4.40
4.20
4.00
2011-2012

2012-2013

2013-2014

2015-2016

YEARS

Figure and table below shows significant decrease in the way how student perceive study
programs provided by University, which can be visible in decrease of average for period of 2011
to 2014 in value of 0,73. Also we can see that University took certain actions and improved
study programs since results in academic year 2015/2016 indicated significant increase growth
up to value of 4,94.
Table 16 - Quality of Study Programs
Indicator of Quality

2011-2012

2012-2013

2013-2014

2015-2016

Scale

Study Programs

5,02

4,39

4,29

4,94

1 to 7

186

�Figure 6 – Quality of Study Programs

GRADE OF STUDY PROGRAMS (1 to
7)

5.20
5.00
4.80
4.60
4.40
4.20
4.00
3.80
2011-2012

2012-2013

2013-2014

2015-2016

YEARS

Following results represented in the table and figure below makes it clear that in four academic
years that are investigated students were not satisfied with possibilities of personal development
initially, but however, academic year 2015/2016 showed sustainable growth over the coming
period. Trend line indicated growth in satisfaction of students with personal development
possibilities.
Table 17 - Quality of Personal Development
Indicator of Quality

2011-2012

2012-2013

2013-2014

2015-2016

Scale

Personal Development

4,56

4,17

4,28

4,69

1 to 7

187

�Figure 7 – Quality of Personal Development
4.80

GRADE OF PERSONAL
DEVELOPMENT (1 to 7)

4.70
4.60
4.50
4.40
4.30
4.20
4.10
4.00
3.90
2011-2012

2012-2013

2013-2014

2015-2016

YEARS

Figure below indicates student satisfaction with education facilities at University. Results shows
small decrease in average grade in academic year 2012/2013. But, however after this point,
sustainable increase in student satisfaction with education facilities has been indicated.

Table 18 - Quality of Education Facilities
Indicator of Quality

2011-2012

2012-2013

2013-2014

2015-2016

Scale

Education Facilities

5,22

4,61

4,82

5,26

1 to 7

188

�Figure 8 – Quality of Education Facilities

GRADE OF EDUCATION FACILITIES
(1 to 7)

5.40
5.20
5.00
4.80
4.60
4.40
4.20
2011-2012

2012-2013

2013-2014

2015-2016

YEARS

Cafeteria is last variable studied in our research and results from this part are presented in the
figure and table below. According to research cafeteria is marked with lowest average grades in
four academic years, and this aspect should be on agenda for improvement.
Table 19 - Quality of Education Facilities
Indicator of Quality

2011-2012

2012-2013

2013-2014

2015-2016

Scale

Cafeteria

4,28

3,85

4,21

4,29

1 to 7

Figure 9 – Quality of Cafeteria
4.40

GRADE OF CAFETIRIA (1
to 7)

4.30
4.20
4.10
4.00
3.90
3.80
3.70
3.60
2011-2012

2012-2013

2013-2014

YEARS

189

2015-2016

�5

Recommendations

Out of all categories, Cafeteria had a lowest satisfaction level with mean of 4,29 which means
that students were neutral regarding the quality of cafeteria. Within the category, students were
the least satisfied with prices of the food and the quality of food and beverages, so working on
these issues would be a logical recommendation.
6

Conclusion

Results of the analysis show that students's rating of university services on the level of university
have mean of 5,1 which indicates that students are slightly satisfied with the services of
university overall.
When it comes to categories of services within the university, Cafeteria is the category with the
lowest mean – 4,29. The questions with lowest means were also in that category, and those are
questions pertaining to prices (3,80) and quality of food and beverages (3,85). If we consider fact
that in all indicators except quality of cafeteria, trend line increased after the accreditation
process which occurred in 2014, the one may conclude that successful implementation of HEA
criteria as well as implementing recommendations of the Committee for Accreditation resulted in
higher satisfaction of students with different aspects of University’s quality. The case study sent
strong message that dedication of higher education institution to quality standards (in this case
ISO 9001 and ESG adopted through HEA standards) will be recognized by students, and make
positive impact on their perceptions of institution’s quality.
Accordingly, this exploratory study could be good basis for explanatory study that will
investigate relationship between implementation of HEA criteria and students satisfaction, and
this is recommendation for future research.
References
Bajramović, E., Mekić, E., &amp; Muhamedbegović, B. (2017). Comparative Analysis of
Implementing ISO 9001:2015 Standard and ESG. Proceedings of 10th scientific professional
gathering with international participation. Neum: University of Zenica.
Koslowski, F. (2006). Quality and assessment in context: a brief review. Quality Assurance in
Education, 14(3), 277-288.
Mekić, E., &amp; Goksu, A. (2014). Implementation of ISO 9001:2008 &amp; Standards for
Accreditation at Private University in Bosnia And Herzegovina. European Researcher,
75(5-2), 947-961. Retrieved from http://www.erjournal.ru/journals_n/1401603287.pdf
Pfeffer, N., &amp; Coote, A. (1991). Is Quality Good for You?: A Critical Review of Quality
Assurance in Welfare services. London: Institute for Public Policy Research.

190

�Rastoder, A., Nurović, E., Smajić, E., &amp; Mekić, E. (2015). Perceptions of Students towards
Quality of Services at Private Higher Education Institution in Bosnia and Herzegovina.
European Researcher, 101(12), 783-790. Retrieved from
https://www.researchgate.net/publication/299485292_Perceptions_of_Students_towards_
Quality_of_Services_at_Private_Higher_Education_Institution_in_Bosnia_and_Herzego
vina
Sallis, E. (2005). Total Quality in Education. London: Taylor &amp; Francis e-Library.

191

�</text>
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                <text>Measuring Quality of Services at HEI: Case of Private University in BiH (doi: 10.14706/icesos173)</text>
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Mekic, Ajdin
Đug, Kemal
Mekić, Ensar</text>
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                <text>Abstract: The main purpose of this study is to investigate quality level of higher education institution's  (HEI) services through students' perceptions, and to conduct cross years’ comparative analysis. Main  instrument for this study is a survey with several dimensions dealing with different aspects of higher  education: quality in general, quality of academic staff, quality of administrative staff, quality of campus,  quality of study programs, quality of services, personal development support, education facilities and  cafeteria. Software used in the study is Microsoft Excel. In total, 440 responses were collected which  represents almost 50% of population. Cross years comparative analysis indicated tremendous increase in  all indicators after institution has implemented HEA standards and went through successful accreditation  process. Recommendations for corrective/preventive measures will be given wherever necessary. Results  of the analysis show that students's rating of university services on the level of university have mean of  5,1 which indicates that students are slightly satisfied with the services of university overall.      Keywords: HEI, university, quality, comparative analysis</text>
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                    <text>1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

Measuring the Effect of the Change in Climate Condition on Input Use in
Agriculture in Konya, Turkey
Onur Erkan
Cukurova University, Faculty of Agriculture
Department of Agriculture Economics, Adana, Turkey
oerkan@cu.edu.tr
Cennet Oğuz
Selcuk University, Faculty ofAgriculture
Department of Agriculture Economics, Konya, Turkey
coguz@selcuk.edu.tr
Arzu Kan
Selcuk University, Faculty ofAgriculture
Department of Agriculture Economics, Konya, Turkey
akan@selcuk.edu.tr
Ufuk Gültekin
Cukurova University, Faculty of Agriculture
Department of Agriculture Economics, Adana, Turkey
ugultek@cukurova.edu.tr

Abstract: This study was conducted to determine effect of climate change
(temperature and rainfall) on the amount of ınput uses such as fertilizer, pesticide,
animal manure, family labour, paid labour and machine by selected farmer’s.The
minumum usable sample of farm enterprises were determined as 124 based on
stratified sampling technique. The data were collected from six villages in Çumra and
Sarayönü districts in Konya. Input applications as farmer preference under the
increasing temperature and rainfall were compared with its under the decreasing
temperature and rainfall situations. The binary logistic regression was applied to
determine the influence of each selected agricultural practise on the probability that
the change of temperature and rainfall conditions.
The results showed that when the temperature rises, the percantage of farmers who
decrease the amount of chemicals (fertilizer and pesticide), the amount of paid labour
increase. When the rainfall rises, the percantage of farmers who increase the amount
of chemicals and the amount of family labour decrease. The other factors weren’t
significantly important at the level of probability or beter as 0.05.
Keywords: Climate change, Agriculture, Logit Model

Introduction
Itseems obviousthat any significant change in climate on a global scale shouldimpactlocal agriculture,
and consequently affect the world's food supply. Considerable the study has gone into questions of just how
farming might be affected by climate change in different regions, and by how much; and whether the net result
may be harmful or beneficial,and to whom. As a result of study several uncertainties contrats occur for current
projections. One relates to the degree of temperature increase and its geographic distribution,the other pertains
tothe concomitant changes likely to occur in the precipitation patterns that determine the water supply to crops,
and to the evaporative demand imposed on crops by the temperaturer climate (Rosenzweig and Hillel, 2005).
The economic and social implications of global climate change, due to increases in atmospheric trace gas
concentrations, are presently the subject of intense national and international political debate. In order to
formulate policies to address this issue, the costs and benefits of the impacts of potential climate change
recommended to be identified (Kane et al.1992).
The economic effects of climate change on agriculture are particularly important since agriculture is
among the more climate sensitive sectors. However,the assesments on economic impact of climate change on
26

�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

agriculture are few. Notable exceptions include Adams et al. (1988, 1990) and Arthur (1988). Adams
incorporates climate change into a spatial equilibrium modelto determine its effects on U.S. agricultural supply
and demand. Arthur uses a linear programming model to calculate the effect of climate change on net revenues
in Canadian agricultural sector. Also Arthur used an input/output model to estimate production effects in other
sectors ofthe Canadian provincial economy. For Turkey,the study which was conducted was aboutthe effect of
climate change on wheat production.It is prepared by Tsuji et al. (2006). The result of made econometric
analyses was showed thatthe farmers in Turkey responded to increase their wheat yield to the higherlast year’s
real farm gate wheat price. W heat yield in Turkey responded positively changes to the higher cumulative
temperature and rainfall. Especially this resultshowed that Turkey wheat yield declines when Apriltemperature
become higher than 15 degree centigrade. This reflected heat damage to wheat in Turkey. Hence, the climate
change decreases wheat yield.
Another study was conducted by Oguz et al.in Konya and Adana provinces in Turkey. The results of
the study showed that the farmers in Konya changed crops production pattern relatively concern on rainfall
quantity in March-May. At the same time the farmers in Adana changed crop production pattern by taking into
consideration climate change such as globaltemperature and rainfall decrease in Adana too. The climate change
impact on crop pattern was more significant in Konya than its in Adana since soil fertility is higher, ang
irrigation area islargerin Adana.
In this study binary logistic regression was used to determine the impact of climate change on the
farmers behaviours aboutınputuse. Therefore,the change ofthe farmers behaviour willshow that probability of
which climatic condition happen.

Materials and Methods
Population and Sample
Target population for this study was defined as Konya farm operators in the Cumra and Sarayonu
districts. From these two locations, six villages were selected based on agricultural potential, geographic
location, population intensity, and posibilities of representing socio-economic characteristics of rurallife in the
region. From each village a list of farm operators showing their farm sizes was obtained from the District
Agricultural Office. List of six selected villages for each district made the accessible population of the study.
Yamane’s(2001) stratified sample size determination formula was used toidentifythe sample size. The equation
forthis formula is:

n =
D=

∑ (N S )
D +∑ N S
2

N
N
e2
t2

2

h

h

2

h

2

(1)
h

(2)

W here
n = sample size,
N = accessible population,
Nh = number of farms in a stratum,
Sh = standard deviation within a stratum,
D2 = desired variance,
E = accepted error from the mean
t = t value corresponding the accepted confidence interval
Accepting 5 percent error from the mean (e) and 95 percentconfidence interval(t = 1.645),the sample size was
calculated as 124 (farm operators). This number was randomly selected.

Developing a Farm Level Sustainability Indicator
In order to compare farmers’ behaviour about input use in the two different climatic conditions-the
changing oftemperature and rainfall-and the effects of climate changes on agricultural production systems were
examined by the researches. These changes were the numbers of farmer who decreased or levelled-off the
27

�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

amount of fertilizers, pesticide, animal manure, family labour, paid labour rather than family labour and
machine.

Data Collection
The 6 farm level practices about input use indicators were properly worthed with two choices. If the
amount of each practices decreases,the answer is “decreasing” and “no” otherwise. These were the independent
variables ofthe study. Respondents were also asked whether or notthey change of behaviour aboutinput use and
this was treated asthe dependent variable ofthe study. Panelof experts established validity forthe data colection
instrument.It was also pre-tested and slight changes were made for establishing reliability. Data were collected
in March and April 2006. SPSS – Version 10.0 (Statistical Package for the social sciences) was used for data
analyses.

Analytical Procedures
The study used the chi-square contingency test for independence to determine whether significant
differences existed between decreasing of temperature and increasing of temperature;increasing of rainfall and
decreasing of rainfallin terms of the selected 6 factors which is about that farmers use the inputs in agriculture
like the amount of fertilizer, pesticide, animal manure,family labour, paid labour and machine.

X2 =∑

( ni − E i )
Ei

(3)

W here,
ni = are the observed frequencies in the k categories and
Ei = representthe expected frequencies (Freund and Wilson,1993)
For each factor (temperature and rainfall) 6 Chi-square tests were conducted to determine whether each of the
agricultural practices selected was independent of changing climate condition (temperature and rainfall).
“Although this test can describe relationships between or among variables, it cannot measure the combined
influence of a group of explanatory variables on a specific dependent variable” ( McLean – Meyinse 1997).
Therefore, to analyse the influence of each explanatory variable on the dependent variable, which is a
dichotomous variable, the binary logistic regression was used as a method (Maddala 1983; Grene 2000). Two
different binary logistic regressions were applied for dependent variables such as temperature increase (y=1), or
decrease (y=0). The dependent variable which was rainfall was coded ifthe rainfallincrease (y=1), or decrease
(y=0). The logit modelis written:

Pr ob( y = 1) =

e xβ
1&amp;

(4)

where;
Prob (y=1) isthe probability pof 1,
E isthe base of naturallogarithm,
F(xβ) isthe standartlogistic distribution function, and
X isthe explanatory variable vector, which include the selected agriculture practises
These were also collected as dichotomous variables with 1= the farmers decrease inthe amount ofinput, and 0=
otherwise. Six explanatory variables as showen below were used in this study (Table 1).

28

�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

Explanatory variables
Using chemical fertilizers (DU M CF)
Decreasing (1)
Leveling-off (0)
Using chemical pesticides (DU M CP)
Decreasing (1)
Leveling-off (0)
Using animal mannure (DUM A P)
Decreasing (1)
Leveling-off (0)
Using family labour(DU M F L)
Decreasing (1)
Leveling-off (0)
Using paid labour (DU MPL)
Decreasing (1)
Leveling-off (0)
Using farm machinery (DUM F M)
Decreasing (1)Leveling-off (0)
Table 1. Having used explanatory variables in the equations

Factors

Decreasing of
temparature
N

Increasing of
temparature
N

Increasing of
rainfall
N

Decreasing of
rainfall
N

Using Chemical Fertilizer
Levelling-off (0)
37
13
1
44
Decreasing (1)
21
39
11
17
Increasing (2)
4
10
50
1
Using chemical pesticides
Levelling-off (0)
30
13
1
35
Decreasing (1)
32
47
24
27
Increasing (2)
0
2
37
0
Using animal mannure
Levelling-off (0)
26
17
5
28
Decreasing (1)
35
44
45
34
Increasing (2)
1
1
12
0
Using family labour
Levelling-off (0)
8
19
2
9
Decreasing (1)
31
38
24
40
Increasing (2)
23
5
36
13
Using paid labour
Levelling-off (0)
8
20
0
7
Decreasing (1)
33
41
30
43
Increasing (2)
21
1
32
12
Using farm machinery
Levelling-off (0)
6
20
1
4
Decreasing (1)
29
37
23
31
Increasing (2)
27
5
38
27
Table 2. Descriptive Statistics of explanatory variables by the different climatic conditions (the number of
farmers)

29

�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

The odds ratios forthe explanatory variables were calculated considering the fallowing formula;

odds =

P
1− P

(5)

Itindicates for a single explanatory variable that when holding all other variable constants,farmers who decrease
the amount ofinput use is more orlesslikely to farmers who levell offthe amount ofinputuse regarding to the
sign oftheir coefficient.

Results and discussion
Results ofthe study are presented by the objectives. One ofthe study objective was to determine the
descriptive statistics by the different climatic conditions.Itwas showed in Table 2.
The second objective ofthe study was to determine ifthe using of each selected factors differs between
behaving farmers in the increasing and decreasing temperature situations. Chi-square test of independence
procedure was used to accomplish this objective and the results were showed in Table 3. From the table, 5 of
totalfactors were found significant atthe level of 0,01 probability or better. One factor wasn’tfound significant
atthe level of 0,05 probability.
W hilethirty-four percent ofthe farmers decrease in amount of using chemicalfertilizersin the situation
oftheincreasing oftemperature,about sixty percent offarmerslevel-offtheiramount of using chemicalfertilizer
in the situation of the increasing of temperature. These findings show that in the situation of the increasing of
temperature,farmers have moretendency oflevelling-offin amount of using chemical fertilizers.
About seventy-six percent ofthe farmers decrease in amount of using chemical pesticides in the situation of the
decreasing of temperature, and about fourty-eight percent of farmers level-off their amount of using chemical
fertilizer in the situation of the increasing of temperature. These findings show that in the situation of the
decreasing oftemperature,farmers have more tendency of decreasing in using of chemical pesticides.
W hen the relationship between temperature and using of animal manure examine, it wasn’t significant
inthelevel of 0,05 probability. Whilethe percentage offarmers who decreasein amount of using animal manure
inthe decreasing temperature situation is 70,97 %, the remended (20,97%) wasn’t change their behaviour.
The relationship between the temperature and using of family labour was found as significantly in the level of
0,01 probability by using Chi-square anlyses. However, when the temperature increases, the farmers have more
tendency of decreasing in using of family labour. The relationship between the temperature and paid labour was
found as significantly at the level of 0,01 probability with Chi-square analyses. So that when the temperature
increases,the farmers have more tendency of decreasing in using of paid labour.
The last significant factor was the using of machine. The result of Chi-square analyses was found as
significant atthelevel of 0,01 probability. The percentage offarmers who decreasein using of machine when the
temperature rises was 46,77%. It can be said that the percentage of decreasing in machine use was more
significantthan the other situations,the temperature rises.
Factors
Using Chemical Fertilizer
Levelling-off (0)
Decreasing (1)
Increasing (2)
Using chemical pesticides
Levelling-off (0)
Decreasing (1)
Increasing (2)
Using animal mannure
Levelling-off (0)
Decreasing (1)
Increasing (2)
Using family labour
Levelling-off (0)
30

Increasing of tempearture Decreasing of temperature 2
χ
N
%
N
%

P

37
21
4

59,68
33,87
6,45

13
39
10

20,97
62,90
16,13

19,491

0,000

30
32
0

48,39
51,61
0,00

13
47
2

20,97
75,81
3,23

11,569

0,003

26
35
1

41,94
56,45
1,61

17
44
1

27,42
70,97
1,61

2,909

0,234

8

12,90

19

30,65

�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

Decreasing (1)
31
50,00
38
61,29
Increasing (2)
23
37,10
5
8,06
16,763 0,000
Using paid labour
Levelling-off (0)
8
12,90
20
32,26
Decreasing (1)
33
53,23
41
66,13
Increasing (2)
21
33,87
1
1,61
24,190 0,000
Using farm machinery
Levelling-off (0)
6
9,68
20
32,26
Decreasing (1)
29
46,77
37
59,68
Increasing (2)
27
43,55
5
8,06
23,633 0,000
Table 3. Differences between the number of farmers decreasing the amount ofinput use and levelling offinthe
two differentrainfall condition
W hen we examine the relationship rainfalland the input use,it was found thatthe relationship among 5
factors with rainfall were significant at the level of 99% confidence interval. Only the factor of machine use
wasn’t significant atthe level of 95% confidence interval.But it was significant atthe level of 0.10 probability
level (Table 4). When both temperature increase and rainfall decrease,the amount of using fertilizer decreases.
Also planting time of wheat extended from first week of Septembertolast week of Octoberthrough first week of
November in the rainfall area. Harwested time changed from middle of July to first week of August in last
decade. When the amount of rainfall decreases,the percantage of farmers who use animal manure,familylabour
paid labour and farm machinery have more tendency to decrease in amount of them. But when the amount of
rainfall increase, it most of the farmers tend to increase the amount of using chemical fertilizer and chemical
pesticide.
Factors

Increasing of rainfall Decreasing of rainfall
N
%
N
%

χ2

P

Using Chemical Fertilizer
Levelling-off (0)
1
1,61
44
70,97
Decreasing (1)
11
17,74
17
27,42
Increasing (2)
50
80,65
1
1,61
89,453
0,000
Using chemical pesticides
Levelling-off (0)
1
1,61
35
56,45
Decreasing (1)
24
38,71
27
43,55
Increasing (2)
37
59,68
0
0,00
69,288
0,000
Using animal mannure
Levelling-off (0)
5
8,06
28
45,16
Decreasing (1)
45
72,58
34
54,84
Increasing (2)
12
19,35
0
0,00
29,562
0,000
Using family labour
Levelling-off (0)
2
3,23
9
14,52
Decreasing (1)
24
38,71
40
64,52
Increasing (2)
36
58,06
13
20,97
19,250
0,000
Using paid labour
Levelling-off (0)
0
0,00
7
11,29
Decreasing (1)
30
48,39
43
69,35
Increasing (2)
32
51,61
12
19,35
18,406
0,000
Using farm machinery
Levelling-off (0)
1
1,61
4
6,45
Decreasing (1)
23
37,10
31
50,00
Increasing (2)
38
61,29
27
43,55
4,847
0,089
Table 4. Differences between the number of farmers decreasing the amount ofinput use and levelling offinthe
two differentrainfall condition
Logistic regression analysis was used to estimate the probability of respondentsthe farmers’ behaviour
with the temperature and rain change. Because of that the effect of the temperature and the rain change on the
behaviour of farmer aboutinput use examined in two different equations.
First of all when we look at the effect of the temperature change on farmer behaviour,the full model
was significant, X2 =48,295, p&lt;0,01. The model had a -2Log Likelihood statistic of 123,605, a Cox and Snell R
Square of 0,32, and Nagelkere R Square of 0,43. It was able to correctly classify 93,5% of temperature
31

�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

decrease and 58,1% of temperature increase,for an overallsuccess rate of 75,8%. The logistic binomial model
estimation for whether or not change of temperature was presented in Table 5, which includes the explanatory
variables, coefficients, standart error, the Wald X2, p values and odd ratios. Of 6 explanatory variables 3 had
significant effects atthe level of 0.05 probability. These are the using of chemical fertilizers, chemical pesticide
and paid labour. All of the significant variables had the expected signs. The odds ratios for the significant
variables can be interpreted asthe fallowing. Holding all other variables constant,the percantage of farmers who
decreasing in the amount of using chemicalfertilizer was 10,01 times more likelythan the percantage of farmers
who levelling offthe amount of using chemicalfertilizerin the situation ofincreasing temperature. Farmers who
decreasing in the amount of using chemical pesticide was 20,84 times, farmers who increasing of using paid
labour are 0,05 times less likely to the percantage of farmers who levelling off using them in the situation of
increasing temperature.
Factors
Coefficient Standart Error W ald χ2 P Value Odds-ratio
D U M CF
2,304***
0,762
9,131
0,003
10,0142
D U M CP
3,037**
1,529
3,947
0,047
20,8426
DU M A M
-1,678
1,339
1,571
0,210
0,1867
D U M FL
-0,318
1,161
0,075
0,784
0,7276
D U M PL
-3,043*
1,283
5,622
0,018
0,0477
DU MF M
-0,399
1,179
0,114
0,735
0,671
Constant
-0,480
0,268
3,219
0,073
0,6188
Table 5. Logistic binomial model estimation forincreasing temperature and decreasing temperature
*** 0,01, **0,05, *0,10
First of all, when we look at the effect of the rainfall change on farmer behaviour,the full model was
significant, X2 =106,98, p&lt;0,01. The model had a -2Log Likelihood statistic of 64,92, a Cox and Snell R Square
of 0,58, and Nagelkere R Square of 0,77. It was able to classify correctly 77,40% of temperature decrease and
96,80% of temperature increase,for an overallsuccess rate of 87,108%.
The logistic binomial model estimation for whether or not change of rainfall is presented in Table 4,
which includes the explanatory variables, coefficients,standart error,the Wald X2, p values and odd ratios.
W hen we look atthe model about rainfall, we use same 6 factors again in this model.In this model the amount
of using chemical fertilizers,family labour and chemical pesticide were found thatthey were significant at 99%
and 95% significantlevel,respectively. So that,the decreasing ofthe number offarmer who decreasethe amount
of chemical fertilizer (dummy=1) closes p probability value to the number of zero “0” that means of decreasing
ofthe rainfall because the coefficient of chemicalfertilizeris negatif value. So that diminishing ofthe number of
farmer who decrease in using of chemical fertilizer means that the amount of rainfalllessen. This situation was
valid for chemical pesticide.However,the effect of using offamilylabour was differentfrom the others, because
its coefficient has positive value. So that decreasing of the farmers who diminish the amount of family labour
means that the amount of rainfallincreases. If the dummy is equal to 1 (decreasing of family labour) closes p
probability value to number of one “1”. It means that the amount of rainfallincreases. The odds ratios for the
significant variables can be interpreted as the fallowing. Holding all other variables constant, the percantage of
farmers who decreasing of proper use chemical fertilizer are 0,02 times less and farmers who decreasing of
proper use chemical pesticide are 0,05 times likely to the percantage of farmers who levelling offthe amount of
using chemicalfertilizer and pesticide respectivelyinthe situation of decreasing rainfall.Farmers who increasing
of proper use family labour are 62,16 times more likely to the percantage of farmers who levelling off using
them in the situation of decreasing rainfall.
Factors

Coefficient

Standart Error W ald χ2

P Value

Odds-ratio

D U M CF

-3,662***

1,187

9,52

0,002

0,026

D U M CP

-2,971**

1,399

4,511

0,034

0,051

DU M A M

-2,477

1,852

1,79

0,181

0,084

D U M FL

4,13***

1,601

6,65

0,010

62,159

D U M PL

-12,154

74,579

0,027

0,871

0,000

DU MF M

7,512

58,583

0,016

0,898

1829,595

Constant
0,629
0,338
3,467
0,063
Table 6. Logistic binomial model estimation forincreasing rainfall and decreasing rainfall
*** 0,01, **0,05, *0,10
32

1,875

�1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo

Conclusions
As a result of the study, most of the farmers in Adana and Konya stated thatthe production technique
(cultivation method, amount and variety of seed, amount and kind of fertilizer and pesticities, method and
number ofirrigation) had not changed due to climate change inthelast 20 years. Farmers are not very sure about
cropping pattern if temperature rises and precipitation decreases. The impact of the climate change on farmers
behaviours was found significant decreasing amount of chemicals(fertilizier and pesticide) and increasing the
amount of paid labour when the temperature rised.

References
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Jr., L.(1990). Global Climate Change and U.S. Agriculture,Nature 345(17), 219-223.
Arthur, L.(1988). The Greenhouse Effect and the Canadian Prairies,in Johnston,G., Freshwater, D.,and Favero,
P.,(eds.), Natural Resource and Environmental Policy Issues, Westview Press,Inc., Boulder.
Freund, R.J.,and Wilson W.J. (1993). Statistical Methods.Academic Pres, San Diego, CA.
Grene W.H. (2000). Econometric Analysis 4th edition. Prentice Hall.
Kane, S., Reilly,J.,and Tobey, J.(1992). An Empirical Study Of The Economic Effects Of Climate Change On
W orld Agriculture. Climatic Change 21: 17-35. (http://www.ciesin.org/docs/004-154/004-154.html).
McLean- Meyinse P.E. (1997). Factors influencing early adaption of new food products in louisiana and texas.
Journal of food distrubution research Volume 28.
Maddala G.S. (1983). Limited-Dependent and Qualitative Variables in Econometrics. Cambridge University
Pres.
Oguz, C., Peker, K., Gultekin, U.,and Erkan, O. (2006). The Impact of Rainfalland Temparature Increase in the
Change of Crop Pattern in Adana and Konya, The Advance Report of ICCAP Publication 9.
Rosenzweig, C., Hillel, D. (2005). PotentialImpacts of Climate Change on Agriculture and Food Supply.
Consequences Vol.1, No.2, Sum mer1995,http://www.gcrio.org/CONSEQUENCES/summer95/agriculture.html).
Tsuji, H., Kusadokoro, M., Maru, T., Gultekin, U.,and Tasdan, K. (2004). Current Research Status ofthe SocioTeam of the ICCAP and One Analyses of the Impacts of Weather to Wheat Production in Adana and Konya.
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Pazarlama, Sanayi ve TicaretLtd. Şti.

Acknowledgements
This study’s data was gathered from the Project “ An Economic and Institutional Analysis of the Impacts of
Climate Change on Agriculture and Farm Economy in Eastern Mediterranean and Central Anatolia Regions in
Turkey” which was supported by “Research Institute for Humanity and Nature” (RHIN), and “The Scientific
and Technical Research Council of Turkey”(Tübitak).

33

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                <text>Measuring the Effect of the Change in Climate Condition on Input Use in  Agriculture in Konya, Turkey</text>
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Oğuz, Cennet
Kan, Arzu
Gültekin, Ufuk</text>
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                <text>This study was conducted to determine effect of climate change  (temperature and rainfall) on the amount of ınput uses such as fertilizer, pesticide,  animal manure, family labour, paid labour and machine by selected farmer’s.The  minumum usable sample of farm enterprises were determined as 124 based on  stratified sampling technique. The data were collected from six villages in Çumra and  Sarayönü districts in Konya. Input applications as farmer preference under the  increasing temperature and rainfall were compared with its under the decreasing  temperature and rainfall situations. The binary logistic regression was applied to  determine the influence of each selected agricultural practise on the probability that  the change of temperature and rainfall conditions.  The results showed that when the temperature rises, the percantage of farmers who  decrease the amount of chemicals (fertilizer and pesticide), the amount of paid labour  increase. When the rainfall rises, the percantage of farmers who increase the amount  of chemicals and the amount of family labour decrease. The other factors weren’t  significantly important at the level of probability or beter as 0.05.</text>
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