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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

http://www.wider.unu.edu/publications/working-papers/discussionpapers/2008/en_GB/dp2008-01/_files/78805634425684379/default/dp2008-01.pdf
Narula, R. &amp; Marin, A. (2005). Exploring the relationship between direct and indirect
spillovers from FDI in Argentina, Research Memoranda 024, Maastricht : MERIT,
Maastricht
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and
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Parto, S. (2008).Innovation and Economic Activity: An Institutional Analysis of the Role of
Clusters in Industrializing Economies,Journal of Economic Issues, Available at
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Porter, M. E. (1990), The Competitive Advantages of Nations, Harvard Business Review,
March-April, No:2
Porter, M. (2000). Location, Competition and Economic Development: Local Clusters in a
Global Economy, Economic Development Quarterley, 14 (1), 15-34
Raco, Mike (1999). Competition, Collaboration and the New Industrial Districts: Examining
the Institutional Turn in Local Economic Development, Urban Studies, 36 (5-6): 951-968.

Comparison of linear regression and neural network models forecasting tourist arrivals
to Turkey
Selcuk Cankurt, Abdulhamit Subasi
International Burch University, Faculty of Engineering and Information Technologies,
Francuske Revolucije bb. Ilidza, Sarajevo, 71000, Bosnia and Herzegovina.
E-mail:asubasi@ibu.edu.ba
Abstract
This paper develops statistical and machine learning methods for estimating tourist arrivals
which is one of the donnée for planning the sustainable tourism development. Tourism is
arguably one of the world's largest and fastest growing industries. Sustainable tourism
304

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

development is one of the most promising generators of the sustainable economic
development. Realistic tourism projections based on accurate tourism forecasting contribute
much for the sustainable tourism development. The challenge of the planning and developing
sustainable tourism is to see as the complex paradigm but one of the starting points is the
accurate forecasting tourist arrivals. In this study, linear regression and neural network
multilayer perceptron (MLP) implementations are considered to make multivariate tourism
forecasting for Turkey. Comparison of forecasting performances in terms of correlation
coefficient (R), relative absolute error (RAE) and root relative squared error (RRSE)
measurements shows that MLP model for regression gives a better performance.
Keywords: Tourism forecasting; Tourism demand modelling; Time series; Linear regression;
Neural networks; Multilayer perceptron; Multivariate tourism forecasting.
1.INTRODUCTION
Tourism demand forecasts are of great economic value both for the public and private sector.
Tourism products, such as unfilled airline seats, unoccupied hotel rooms, and unused
facilities, cannot be stocked because of their perishable nature (Archer, 1987). Therefore,
accurately forecasting tourism demand has great importance to the sectors concerned with
tourism, in order to accurate and efficient plans (Petropoulos, Nikolopoulos, &amp; V., 2005; Pai
&amp; Hong, 2005).
According to the World Travel &amp; Tourism Council (WTTC), travel and tourism is the biggest
industry in the world. Since 1992 tourism sector is the largest industry and has the largest
employer in the world (Aslan, Alper, Kaplan, Muhittin, Kula, &amp; Ferit, 2008).
Turkey's economy grew an average of 6.0% per year in last decade. Currently Turkey is in
16th place on the list of the largest economies of the world and the fastest growing economy
among members of the Organization for Economic Cooperation and Development (OECD).
The new goals of Turkish tourism were to establish an efficient tourism sector with high
international competitiveness while preserving and enhancing of the country’s natural and
historical environment and cultural heritage in a sustainable manner (Ministry of Culture,
2007).
The statistical methods such as linear regression are suitable for data having seasonal or trend
patterns, while artificial neural techniques are also efficient for data which are influenced by
the special case, like promotion or extreme crisis (Efendigil, Önüt, &amp; Kahraman, 2009).
One major application area of ANNs is forecasting (Gooijer &amp; J., 2006); see (Zhang, Patuwo,
&amp; Hu, 1998) and (Hippert, Pedreira, &amp; Souza, 2001). Generally the ANNs are increasingly
used to forecast demands for tourism (Law &amp; Au, 1999; Law R. , 2000). (Pattie &amp; Snyder,
1996) used a back-propagation neural network model with two hidden layers to forecast
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monthly overnight stays in US national park systems. (Law &amp; Au, 1999) presented a feedforward neural network with six input and one output nodes to forecast arrivals in Hong
Kong. For more application area of ANN, see (Al-Saba &amp; El-Amin, 1999), (Beccali, Cellura,
Lo Brano, &amp; Marvuglia, 2004), (Hobbs, Helman, Jitprapaikulsarn, Konda, &amp; Maratukulam,
1998), (Sozen, Arcaklioglu, &amp; Ozkaymak, 2005), (Sabuncuoglu, 1998), (Vellido, Lisboa, &amp;
Vaughan, 1999), (Wong, Lai, &amp; Lam, 2000), (Ayata, Cam, &amp; Yıldız, 2007), (Efendigil, Önüt,
&amp; Kahraman, 2009).
According to the brief review of literature especially related to tourism demands approaches,
this study attempts to develop a multivariate linear regression model and a general regression
neural network model for forecasting the number of the tourists coming to Turkey.

2.THEORETICAL BACKGROUND
2.1.Linear regression
Multiple linear regression (MLR) attempts to model the linear relationship called the
regression function between a dependent variable and more than one independent variables as
different from simple linear models with one independent variable. The dependent variable is
sometimes also called the predictand, and the independent variables is called the predictors.
The model for multiple linear regression, given n observations, is

for i = 1,2, ... n.
value of

predictor,

coefficient on the

the intercept, also known as the bias in machine learning,

predictor,

total number of predictors,

predictand,

error.

2.2 MLP Approach
Artificial neural networks (ANNs) (also usually preferred Neural Networks NNs) are
computing structures inspired from the biological neural networks. A neural network is made
of the interconnected processing units (usually called neurons). They have the ability of
learning by adjusting the strength of the interconnections which can be achieved by altering
the values called weights through the input data (Haykin S. , 1999). Neuron sums the
weighted inputs and conveys the net input through an activation function in order to
normalize and produce a result (Jones, 2008).

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The multilayer network architecture consists of an input layer, two or more hidden layers, and
one output layer. Activation function is used for both the hidden and output nodes. While the
sigmoid function can be used to squash the output of the neuron to
in the hidden
layer in order to introduce the non-linearity to NN, linear activation function must use in
output layer to predict the numerical values in the regression problems. MLP is trained with
supervised learning include the Perceptron learning algorithm, Least-Mean-Squares learning,
and Backpropagation. Backpropagation is one of the most popular approximation approaches
for training the multilayer feedforward neural networks based on the Widrow–Hoff training
rule (Bishop, 1995; Haykin S. , 1999; Aslanargun, Mammadov, Yazici, &amp; Yolacan, 2007).
3.EXPERIMENTAL RESULTS
A total of 31 models were obtained on the basis of two regression models and their
corresponding parameter selection which are three of them belong to linear regression models
and remaining 28 ones belong to MLP models. Those models were evaluated with the
validation data through three forecasting accuracy measures: correlation coefficient (R),
relative absolute error (RAE), root relative squared error (RRSE).
Three linear regression models were examined on the basis of attribute selection parameter:
none, M5 and greedy methods. It has been shown that the linear regression model with
greedy attribute selection parameter has the best accuracy when you compare with the other
linear regression models but also the worst when you compare with MLP regression models.
According to result of our linear regression model: 25 attributes don’t affect the results —
WEKA builds the regression function by considering the attributes which only statistically
contribute to the accuracy of the model (measured in
). It will not consider the attributes
that don't contribute the regression equation. So this regression model is telling us that whole
sale price of Turkey, consumer prize index of Canada, Denmark, Spain, Russia, number of
German, France, Syrian, Poland, Romanian, Norwegian, Switzerlandian visitors, Exchange
rate of Russia, Canada, Switzerland don’t affect the arrivals to Turkey. Estimated positive
values (coefficients) tell us as value of those attributes increase number of the total visitors.
Estimated negative values (coefficients) reduce the result — linear regression model is telling
us that the bigger negative value is, the lower the total coming tourist. This can be seen by the
negative coefficient in front of the variables.
Table 1 Overall performance of linear regression and MLP methods
Model

Correlation
coefficient

Relative
Root
relative
absolute error squared error

Linear Regression

0.978

18.73%

307

20.70%

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

MLP Regression

0.9874

14.17%

15.86%

Figure 1 Comparison of MLP and linear regression methods
Among the MLP regression models presented, the best forecasting accuracy was the MLP
model composed of three hidden layers with the neuron numbers of 30, 15 and 10
(abbreviated as 30-15-10). In this model the learning rate 0.03, momentum 0.8, epoch 500
values are used and backpropagation training algorithm, sigmoid activation function for
hidden nodes and unthresholded linear activation function for output node are employed. It
showed R 0.9874, RAE 14.17% and RRSE 15.86% accuracy results.
Results obtained from the experiments in this study, support the discussions in the literature
reviews topic of this paper. As seen in the table (1) apparently, machine learning MLP
regression model have better performance than statistical linear regression model.
4.CONCLUSIONS
This study presents a multivariate time-series forecasting to predict the tourism demand to
Turkey by employing linear regression and multilayer perceptron methods. The real data sets
respect to Turkey and its top ranked 24 tourism clients of the countries are used to compare
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the performance of the those methods and to find out the achievement of them on forecasting
tourism demand to Turkey. Comparison of the experimental results among linear regression
and MLP demonstrated that the MLP method had better forecasting accuracy. Experimental
results showed that the MLP model can produce lower prediction error and higher prediction
accuracy and outperformed the linear regression model. According to the experiments, it can
be concluded that the tuned MLP method with the multivariate time series has enough
satisfactory to forecast the tourism demand to Turkey.
In this study, linear regression model with greedy attributes selection method and MLP
(30:15:10) models have shown better performance when compared with other corresponding
models in forecasting the number of monthly tourist arrivals to Turkey owing to the RAE and
the RRSE measures.
Unfortunately, there is no certain or systematic method to select the appropriate model. Our
studies showed that among the methods mentioned above MLP regression has better
performance but still we need numerous experiments to evaluate and find out the most
suitable MLP regression model which can be employed on the multivariate time series
forecasting.
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Choy, K. L., Lee, W. B., &amp; Lo, V. (2003). Design of an intelligent supplier relationship
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Informatisation of the Judiciary in BiH: Success Factors
Nedim Fisekovic, Meliha Handzic
International Burch University, Bosnia and Herzegovina

Abstract
Informatisation of the judicial system covers all aspects of information and communication
technology (ICT), including: equipping the courts with modern information technology
equipment (desktop computers, servers, and printers), setting up a local area network (LAN)
and wide area network (WAN), establishing a system of electronic mail for the judicial
institutions, developing a system for case management system (CMS and TCMS), developing
and establishing judicial web sites (web portal), computer education of all employees in the
courts and prosecution offices, internet access for all users in the judiciary and many more.
311

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                <text>This paper develops statistical and machine learning methods for estimating tourist arrivals  which is one of the donnée for planning the sustainable tourism development. Tourism is  arguably one of the world's largest and fastest growing industries. Sustainable tourism development is one of the most promising generators of the sustainable economic  development. Realistic tourism projections based on accurate tourism forecasting contribute  much for the sustainable tourism development. The challenge of the planning and developing  sustainable tourism is to see as the complex paradigm but one of the starting points is the  accurate forecasting tourist arrivals. In this study, linear regression and neural network  multilayer perceptron (MLP) implementations are considered to make multivariate tourism  forecasting for Turkey. Comparison of forecasting performances in terms of correlation  coefficient (R), relative absolute error (RAE) and root relative squared error (RRSE)  measurements shows that MLP model for regression gives a better performance.  Keywords: Tourism forecasting; Tourism demand modelling; Time series; Linear regression;  Neural networks; Multilayer perceptron; Multivariate tourism forecasting.</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

TERZIOVSI, M., SOHAL, A., MOSS, S.,(1999) “Longitudinal Analysis Of Quality
Management Practices in Australian Organizations”, Total Quality Management, Vol:10,
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Üniversitesi, İşletme Yüksek Lisans Tezi,

YÜKSEL, F., SADAKLIOĞLU, H. (2007). “Sağlık Hizmetlerinde Kalite ve Yerel
Yönetimler”,Uluslararası Sağlık ve Hastane Yönetimi Kongresi, 01-03 Haziran 2007 Yakın
Doğu Üniversitesi Lefkoşa Kıbrıs

ZERENLER, M., Öğüt, A., (2007). "Sağlık Sektöründe Algılanan Hizmet Kalitesi ve Hastane
Tercih Nedenleri Araştırması: Konya Örneği", Selçuk Üniversitesi Sosyal Bilimler Enstitüsü
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Sustainable Security: The Role of Promoting Democracy and Protecting Human Rights

Selim Kanat1, Bahadır Eser2
1Vise Chairman of Dept. of International Relations.
Suleyman Demirel University. I.I.B.F Oda no. 210
Isparta/Turkey
2Dept of Public Administration
Suleyman Demirel University. I.I.B.F Oda no. 209
Isparta/Turkey

Abstract

Today’s security threats are more complex than traditional ones, such as HIV, climate
change, human rights violations, anti-democratic laws and measures forced us to think about
the definition and the context of security again. With the effect of these new threats,
sustainable security concept emerged from a post- Cold War multi-disciplinary understanding
of security. Sustainable security redefines how we think about national security in today's
shifting, after Cold War era. Struggling with these new threats, especially struggling with
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terrorism requires new approaches to security. The traditional understanding which predicts
balancing human rights and security measures is not valid anymore. In today’s security
understanding promoting democracy and protecting human rights are not causes of insecurity,
contrarily terrorism, which considered as the greatest threat to world security after Sept 11,
wants to create a “police state” to find support their own ideology. Further more terrorism
aiming to demolish democracy and human rights in society; with this, life become insecure,
state become more totalitarian and terrorist acts become more reasonable. For this
characteristic, terrorism called the “disease of democracies”. For this reason promoting
democracy and protecting human rights are the key elements of sustainable security
especially in struggling terrorism

Keywords: Sustainable Security, Human Security, Terrorism, Sept. 11, Human Rights,
Democracy.

1.Traditional Approaches towards Security.
From traditional view, national security effectively can maintain only with military means.
Protecting boarder lines via strong and destructive armies is typical way of ensuring security.
Traditional approaches to national or international security are dominated by political realism
in practical level, but also traditional approaches to security find its philosophical basis in
Hobbes’ minds. For Hobbes maintaining security is the basic reason of formation of the state
(Hobbes, 1651, pp. 103-107). Because, state of nature is insecure and anarchical for
individuals. Every men gives up his some basic freedoms, and rights which he has naturally
in the state of nature, simultaneously and permanently to being secure under the rule of
commonwealth (Kanat, 2011, p. 124-125). So in traditional approaches if a one want being in
secure, he should give up some basic freedoms and rights which he already has. For this
understanding security and freedoms are two controversial concepts which have to be
balanced.
This philosophical opinions, found its modern application basis after the The Peace of
Westphalia. Under the logic of Westphalia system the security of the state is “being secure of
border, territory and the sovereignty of the state and for this holding the military capacity and
political power of the state in the possible highest level” (Bislev, 2004, p. 282). State has a
central position about security issues in traditional understanding. (Bilgin, 2002, 102).
Ensuring the security of the state is the primary goal of the government. For this, some rights
of the individuals can be sacrificed.
After the World War II traditional approaches toward security has adopted by political
realism, and security studies began as an independent field of study, but was absorbed as a
sub-field of international relations (Buzan &amp; Hansen, 2009, p. 1). Similarly ensuring the
security of the state should be the primary goal of a government. In international level,
security can be maintained by military force and “balance of power” politics. Also in realist
thought, balance of power is the key element of traditional approaches towards international
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security during the Cold War era. Kenneth Waltz, a major contributor to neorealism
underlines the importance of “balance of power” approach. He expressed in his book,
"Theory of International Politics" that "if there is any distinctively political theory of
international politics, balance-of-power theory is it."(Waltz, 1979, pp.13-16)
According to Morgenthau, who is regularly identified as the father of modern realism, and the
precursor of neoclassical realism, within a balance of power system, a state may choose to
engage in either balancing or bandwagoning behavior. (Morgenthau,1948, pp. 125-134). In a
time of war, also in an anarchical structure of the relations between states, the decision to
balance or to bandwagon may well determine the survival and the security of the state. For
traditional view every state should behave individually to maintain own security, because in
an anarchical nature, everyone is an enemy for everyone and a state or a man can’t trust to
another. This situation is a result of mercenary and selfish character of human nature.
(Neacsu, 2009, pp. 54-56) Morgenthau points to the limitless character of humans’ lust
for/will to power: while man’s vital needs ‘are capable of satisfaction’, the lust for power
‘would be satisfied only if the last man became an object of his domination, there being
nobody above or beside him, that is, if he became like God’ (Morgenthau, 1948, p. 165). As
Morgenthau maintains, ‘the selfishness of man has limits; his will to power has none’
(Morgenthau, 1948, p. 165)
For the anarchical structure of international relations, threats towards security are usually
generated by enemy states or enemy groups like terrorist organizations or criminals in
domestic level, from traditional view. Every state must be powerful and ready to being in a
possible war every time. Because everyone and every state has a “will to power” (Jütersonke,
2007, p. 101). We can see this understanding in maintaining security in Cold War era. States
generally maintain their security via strong armies, establishing or joining alliances and
conventional-nuclear weapons in international level.
Traditional security relied on the anarchistic balance of power, a military build-up between
the two superpowers, and on the absolute sovereignty of the nation state. (Owen, 2004, p.
16). Under the “balance of terror” and nuclear deterrence, states takes the security of the state
as a prior issue and push some freedoms and rights like right to live in a clean environment
which people have against state, in to the background. Because, during the Cold War, the
issues about national security have seen as “high politics” (Waltz, 1970, p.212) and the
politics which aims to improve welfare and wealth in cooperation have seen as “low politics”
(Gürkaynak &amp; Yalçıner, 2009, p. 78). But with the end of Cold War old type of security
threats lose their importance in ensuring national security. World have faced new threats
which endanger human life, like climate change, and this new threats can be solved in
cooperation. So, states forced to expand the scope of security. Ensuring welfare and wealth,
protecting human life and right became an element of national security, and also “high
politics”
2.Emerge of Sustainable Security Concept.
Sustainable security redefines how we think about national security in today's shifting, after
Cold War era. Also this post-Cold War debate about security has been the issue of
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broadening the concept from its Cold War norms. One harbinger of this, from within
neorealist International Relations, was Barry Buzan’s People, States and Fear, written in the
early 1980s (Booth, 1997, p. 86). Buzan emphasis that although the military-oriented
approaches to the security, during the 1970’s economic and environmental concerns started to
rising up (Buzan, 1991, p. 4). With the finish of the Cold War era, traditional security
understanding has been started to be questioned. The opportunity for a new global order,
based on protecting humans rather than states, presented new hope.( Bedeski, 2007, p. X).
With the collapse of Soviet Union and Eastern Block, the old type of enemies has been
collapsed simultaneously all over world. Rapid change of international system, the
globalization process, the reduced threat of nuclear war between superpowers and the emerge
of complex new threats such as HIV, climate change, human rights violations, antidemocratic laws and measures forced us to think about the definition and the context of
security again (Mcrae, 2001, p.22.). With the effect of these new threats, we can say that
sustainable security concept emerged from a post- Cold War multi-disciplinary understanding
of security.
Sustainable security focuses on the interconnected, long-term causes of insecurity around the
world. We can say climate change, competition over resources, marginalization of the
majority world, global militarization as threats for sustainable security. Sustainable security
promotes a comprehensive, systemic approach to maintain the safety of the entire world
people. It also places particular attention on how the current behaviour of international actors
and western governments is contributing to, rather than reducing, insecurity. The politics of
the states, which has described according to national interests, creates insecurity rather than
security. Sustainable security goes beyond analysis of threats to the development of a
framework for new security policies.
From this perspective, sustainable security concept also refers to human security
understanding as well. Because sustainability in security, can not be achieved with pushing
people and their minds into the background. States can not be secure notwithstanding
insecurity of its people. Also, if we think about origins of state, all we should agree that
human security is the primary purpose of organizing a state in the beginning as Hobbes,
Locke, Rousseau concluded (Owen, 2004, p. 16- 17). Human security offers much to this
vibrant field of sustainable development. Most notably, human security—like human
development—highlights the social dimension of sustainable development’s three pillars:
environment, economy, society (Khagram &amp;Clarck &amp;Raad, 2003, p. 290)
If we mention about sustainability in security we have follow the foresights of human
security understanding. Human security derives from the traditional concept of security from
military threats to the safety of people and communities.(Tadjbakhsh &amp; Chenoy, 2007, p. 81,
228). Because the nature of the conflicts has been changed. During the Cold War, in conflict
analyses, there was no room for people. But in recent decades, this trend has been changing.
Take for example the armed conflicts of Rwanda, Sierra Leone, Afghanistan, East Timor,
Macedonia, Kosovo, Bosnia, and the international terror organizations that target the western
world. (Gough, 2002, p. 145)
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For “Human Development Report” of United Nations human security is an extension of
mere existence (survival) to well-being and dignity of human beings. 1994 Human
Development Report of United Nations Development Programme can be considered
milestone publication about human security and also sustainable security. Report defines
security as “freedom from fear” and “freedom from want”( Human Development Report
1994). As a result of this almost everything which endangers human life and standards can be
consider a threat in this understanding. For this reason there is no single definition of human
security, and also there is no single and constant definition of threats to security. Today
global warming and climate change can be consider as a threat, but tomorrow the greatest
threat would be lack of clean water sources. But we can say that the definition varies from a
narrow term of prevention of violence to a broad comprehensive view that proposes
development, human rights and traditional security together. Human security argues that the
core target of national security should be individual rather than state. Human security is the
life-safety of individuals. In other words human security put the human in the center of
security debates (Thakur, 2003, p. 347). In this context it has a human-centered view of
security, that necessary for national, regional and global stability and peace in today’s world.
With a general discourse, human security offers a critique of and advocates an alternative to
the traditional state-based conception of security. Essentially, it argues that the proper
referent for security is the individual and that state practices should reflect this rather than
primarily focusing on securing borders through unilateral military action. Because the threats
to human well-being are undoubtedly greater in number and scope today than when the
United Nations system came into being in 1945. The scale of security challenges has ‘‘blown
out’’ as a consequence of rapid population growth and the increased sophistication of
communications and weapons technologies, which in turn has quickened the pace at which
security threats can be transmitted within and across national boundaries ( Battersby &amp;
Siracusa, 2009, p. 9)
Furthermore some threats which endanger individual security can and also should be solved
in cooperation. Because, sometimes the nature of the threat requires this. For instance climate
change, environmental pollution are global security problems, and all states should struggle
them in cooperation. For this reason, the human security approach is said to be that the
traditional conception of security is no longer appropriate or effective in the highly
interconnected and interdependent modern world in which global threats such as poverty,
environmental degradation, and especially terrorism supersede the traditional security threats
of interstate attack and warfare.

3.New Security Threats: Terrorism and Sustainable Security
With the end of Cold War, old types of treats have lost their importance in maintenance
national security. Because world was not divided any more and enemy states faced
simultaneously new same treats. For example climate change began to be seen as the mother
of all security problems (Brown &amp; Hammill &amp; McLemman, 2007, 1141). Like that;
environmental pollution, failed states, international piracy become more important than
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before. But as an international threat, terrorism has the biggest effect on security after the
Cold War. Especially after Sept. 11 terrorism became the major threat to international
security.
But actually terrorism isn’t a new type of treat. This type of violence has been used for ages.
We can see first samples of modern terrorism in first-century Palestine. The history of
terrorism back almost 2000 years ago when the Jewish resistance group known as SicariiZealots (AD 66–72) “carried out terrorist campaigns to force insurrection against the Romans
in Judea.(Garrison, 2003, p. 44) The Zealot sect was one of the very first groups to practice
systematic terror of which we possess a written account (Chaliand &amp; Blin, 2007, p.55). The
Zealot sect, also known in Latin as Sicarii, use terrorism to create terror in their enemies’
minds. They murdered their enemies and even innocent victims to achieve their own political
aims with creating terror and fear. Their acts were symbolic to give messages to public.
Sicarii’s can be accepted first group which use terrorism toward authority.
After Zealots, we can mention Assasins, which use violence as a weapon for their political
aims too. The Assassins were an order of Nizari Ismailis, particularly those of Persia and
Syria that formed around 1092. Posing a strong military threat to Sunni Saljuq authority
within the Persian territories, the Nizari Ismailis captured and inhabited many mountain
fortresses under the leadership of Hassan-i Sabbah (Combs &amp; Slann, 2007, pp 47-48).
We can increase the number of pre-examples but all these are in the same side of violence:
towards to authority. However the first case study of “state terror” have seen after the French
Revolution, with Robespierre administration. Robespierre use terror to maintain
administrative stability after the revolution. He used terror to defeat probable opposite
revolution. The historical study of terrorism largely focused on the French Revolution and the
reaction to it. The “Reign of Terror” and the activities of the Committee of Public Safety
provided the foundation for the study of modern terrorism with the emphasis on how states
engaged in “terrorism from above,” “regime terrorism” and “state terrorism”(Sloan, 2008,
pp.4-5). But at that time Robespierre sees terrorism as a rational and virtuous policy, and as
necessity to protect revolution and state. He said that “virtue without which terror is fatal,
terror without which virtue is impotent” (Herbst, 2003, p. 164).
Before the next evolution of the concept, we mention World War II and Cold War period,
world have testified Nazis’ and Fascists’ state terrorism. Mussolini and Hitler use terrorism to
suppress opposition and strengthen their authority (Kanat, 2011, p.87). Historians estimated
that five- six million Jews were tortured and killed during the Hitler’s administration, also
named Third Reich (Laqueur &amp; Baumel, 2001, p.xiv). After the World War II, states gathered
around two super power and world dived as West and East. During the Cold War, with the
effect of nuclear deterrence, super powers both fear from engaged to a possible hot war.
Especially after the Cuban Missile and U2 Crisis super powers realize that a possible nuclear
war could be the end of the humanity and world.
During this period, terrorism becomes a tool in struggling with enemy states which were in
the opposite block. Eastern states gave support to terrorist groups which were harmful for
western states. We can say that during the 1960s, opposition to the Vietnam War produced a
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wave of "New Left" terrorism, as radical groups in Europe, Latin America and the United
States, undertook campaigns of political kidnappings, assassinations and bombings in
furtherance of vague Marxist-Leninist-Maoist political agendas and woolly headed demands
for "social justice" (Shughart, 2006, p. 21). Also Hoffman agreed that at the height of the cold
war, the majority of terrorist groups were left-wing revolutionary Marxist Leninist
ideological organizations. (Hoffman, 2006, p.85) At the same time Western states condoned
anti-democratic measures of their own allies in struggling with terrorist groups. Worldwide,
74% of countries that used torture on an administrative basis were U.S. client states,
receiving military and other support to retain power. They concluded that the global rise in
state terror was a result of U.S. foreign policy (Sluka, 1999, p.8).
With the end of Cold War, terrorism began to have seen the primary threat to international
security. The last and most significant change in terrorism concept happened with the end of
Cold War. This significant change creates a “new” terrorism. 1993 World Trade Center
attack, Tokyo subway attacks, Oklahoma city bombing and so many incidents showed to us
and also states, terrorism became a very important threat for security than ever (Weinberg&amp;
Eubank, 2006, p. 1-3).If we look the motivations behind the attacks we can easily say that
ideological motivation in terrorism has mostly ended by the end of Cold War. As a result of
this, terrorism became more independent and more imponderable. We can easily say that
terrorism today is a worldwide phenomenon (Garrison, 2003, p. 39).
The logic of terrorist attacks have changed in the new terrorism. Formerly terrorist not aimed
to kill so many people in their attacks. The symbolic characteristic of the attacks in terrorism
is primary. Terrorist organizations didn’t aim to kill so many innocents in their attacks. But in
new terrorism, besides the symbolic characteristic, killing so many people is becoming an
aim of the attacks. For example IRA (Irish Republican Army) have killed 2618 people in its
attacks between the years 1969-1987, but only the Sept 11 attack there are 2823 people have
died ( Eriş, p. 361-362). In the new terrorism the success of the attack began to describe with
the number of people who died in the attack. Besides this fact, terrorism start to use high
technology in explosives, weapons and communication, information technologies. This
reality makes terrorism a global, unpredictable, very close and important threat.
It’s important because, it has “double effect” on sustainability of security. First, terrorism
aims to take people life to achieve its own political goals. Yes it’s true that the main aim of
attacks is not killing people, the real aim is create terror in people’ mind. But it’s obvious and
clear that terrorism endangers security in individual and public level both. This is the direct
effect of terrorism on security. Second, terrorism has an indirect effect on security. When a
terrorist campaign launched in one state, that state usually strengthened its security measures.
For this states occasionally suspend and even scarify some basic rights and freedoms of
citizens in struggling with terrorism. But this tendency of states generally doesn’t maintain
the security in public. Ironically precautions which have taken to maintain the security
become the one of the source of terrorism in time. Because while the state behaving to
innocent civilians as a terrorist, no one feels himself secure. This situation endangers the
security in life. Because of this, one can easily liken terrorism to a double edges sword
(Friedland &amp; Merari, 1985, p. 592-595). A life bereft of democracy and filled with human
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right violations can not be secure. Sustainability in security requires promoting democracy
and protecting human rights.

4.The Role of Promoting Democracy and Protecting Human Rights.
After Sept. 11 attacks terrorism became the prior threat to world security. Almost every state
and international organization start dealing with the question of how international terrorism
can be stopped? For instance, United States adopt the PATRIOT Act (PATRIOT Act
http://www.gpo.gov/fdsys/pkg/PLAW-107publ56/pdf/PLAW-107publ56.pdf) immediately,
so was Canada hastily enacted the Anti- Terrorism Act (ATA) and as an international
organization NATO invoked Article 5 of the Washington Treaty for the first time in its
history following the Sept.11 terrorist attacks against the United States (Brown, 2006, pp. 2732) and almost every state around the world started to review its own domestic anti-terrorist
laws and measures. But in reviewing the general tendency is reducing human rights standards
for ensuring security in struggling with terrorism.
For instance the PATRIOT Act gives federal officials greater authority to track and intercept
communications, both for law enforcement and foreign intelligence gathering purposes. It
seeks to further close United States borders to foreign terrorists and to detain and remove
those within our borders by behaving especially Middle Eastern or Muslim foreigners like
potential terrorist. It creates new crimes, new penalties, and new procedural short-cuts for
use against domestic and international terrorists (Doyle, 2002, p. 1) In the wake of numerous
changes made in U.S. law and that of many other countries following the September 11
terrorist attack, civil libertarians, libertarians, and many others have raised concerns that the
nations involved are sacrificing their liberty to enhance their safety.
Likewise Canadian Anti- Terrorism Act (ATA), deeply impacts human rights and civil
liberties. After the Sept. 11 Canada choose scarifying civil liberties in the name of protecting
the nation from terrorism threat. With the changes to the Canadian Evidence Act; the
establishment of INSET (Integrated National Security Enforcement Teams), cross-border anti
terrorism police force; the draconian provisions within the ATA, and also changes to Security
of Information Act, Canada has systematically and secretively undermined core democratic
national values such as human rights, civil liberties and national sovereignty (Lott, 2006, p.
2).
Examples can be increased, England, Spain even Australia and Thailand (Kocher, 2007, p.
25-42) , but the common matter is almost every state have a tendency that reducing human
rights and democracy in struggling terrorism. In another words in the presence of political,
ethnic, or religious strife, governments appear to be more likely to adopt broad
counterterrorism policies and commit human rights abuses. (Omelicheva, 2007, p. 188)
Especially Muslim communities around the world have been victims of violence and
discriminately denied their rights: and governmenet have been able to justify the suppression
of groups and organizations that oppose them (Kocher, p. 43). In addition to spurring a global
proliferation of aggres.sive counter terrorism measures, the United States has at times
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actively undermined judicial authority in nations whose court systems are just beginning to
mature. In one such instance, Bosnian authorities transferred six Algerian men into U.S.
custody at the request of U.S. officials, in violation of that nation’s domestic law. The
Bosnian police bad arrested the men, five of whom also had Bosnian citizenship, in October
2001 on suspicion that they bad links with al Qaeda. In January 2002, the Bosnian Supreme
Court ordered them released for lack of evidence. But instead of releasing them, Bosnian
authorities banded them over to U.S. troops serving with NATO [North Atlantic Treaty
Organization]-led peacekeepers. Despite an injunction from the Human Rights Chamber of
Bosnia and Herzegovina expressly ordering that four of the men remain in the country for
further proceedings, the men were shortly thereafter transported to the detention camp at
Guantanamo. (Posner, 2005, p. 222)
But it is obvious that this method of ensuring security is not sustainable. Actually this way is
what terrorism wants. But one want sustainability in security, especially in struggling with
terrorism, should behave in respect to human rights. We shouldn’t forget that in the post-Cold
War 1990s, human rights values and institutions played greater role in establishing stability in
the global order and ensuring more democratic forms of political and economic participation
at the local level. We can easily say those years global security have maintained through
human rights. (Wilson, 2005, p. 3-6).

For sustainability in ensuring the security of individuals "fighting the symptoms" will not
work, you must instead "cure the disease". Granting fundamental rights and promoting
democratic principles makes society more secure. We should not forget that extremist
movements always fed from corrupted democratic structures. Totalitarian and antidemocratic policies in democracies create extremist also terrorist structuring. This is why
terrorism named as “the disease of the democracies”. In this way security and human rightsdemocratic principles are not two controversial concepts which have to be balanced.
Contrarily they are complementary concepts. With respecting fundamental rights and
freedoms one source of nutrition would be eradicated. Terrorist organizations couldn’t be
found supporters to their ideas or actions any more, and with promoting democracy extremist
ideas can be found a discharge area, and this aggressions be solved in peaceful manner.

REFERENCES
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Weinberg, L. Eubank, W. L. (2006), The Roots of Terrorism, What is Terrorism, Reno,
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Business Diplomacy Management As A Key Role In The Sustainable Development And
Stakeholder Management In The Multinational Corporations: Daimlerchrysler Case

Dinç, Mehmet,Kaygisiz, Ümmühan
Suleyman Demirel University
Vocational School of Isparta
Isparta Turkey
E-mails: mehmetdinc@sdu.edu.tr, ummuhankaygisiz@sdu.edu.tr

Abstract
In the last two decades a dramatic shifts within the business community have been occurred.
Globalization has offered business opportunities to companies around the world and has led
to the development of a multitude of standards that govern business behavior. It is no longer
sufficient to know the business and legal conditions of a multinational companies’
headquarters country and some of the countries where it operates foreign subsidiaries.
Multilateral and intergovernmental organizations are increasingly defining industry standards
that become mandatory for multinational companies. Non-Governmental Organisations
(NGOs), operate at multiple levels ranging from national civil society issues like
environmental protection to observation and investigation of possible human rights violations
of multinational companies or foreign states. They often operate at national, regional and
transnational levels focusing on economic, social and political issues. In addition, growing
internationalization has became increasingly complex, civil society organizations have
exerted increasing pressure on MNCs, especially the concept of sustainable development has
expanded to include the simultaneous consideration of economic growth, environmental
protection and social equity. Thus, in response to these kind of shifts, many have made a
commitment to apply the principles of sustainable development to their activities. To meet
and to handle these commitments, MNCs have required a multitude of policies and new
business competencies. One important factor contributing to the sustained success of MNCs’
operations in foreign markets in the competent use of business diplomacy. Business
Diplomacy Management (BDM) refers to the ability of MNCs to effectively interact with
non-business stakeholders wherever the MNCs have business interests, be they in the form of
local production, distribution channels or sales offices.
63

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                <text>Today’s security threats are more complex than traditional ones, such as HIV, climate  change, human rights violations, anti-democratic laws and measures forced us to think about  the definition and the context of security again. With the effect of these new threats,  sustainable security concept emerged from a post- Cold War multi-disciplinary understanding  of security. Sustainable security redefines how we think about national security in today's  shifting, after Cold War era. Struggling with these new threats, especially struggling with terrorism requires new approaches to security. The traditional understanding which predicts  balancing human rights and security measures is not valid anymore. In today’s security  understanding promoting democracy and protecting human rights are not causes of insecurity,  contrarily terrorism, which considered as the greatest threat to world security after Sept 11,  wants to create a “police state” to find support their own ideology. Further more terrorism  aiming to demolish democracy and human rights in society; with this, life become insecure,  state become more totalitarian and terrorist acts become more reasonable. For this  characteristic, terrorism called the “disease of democracies”. For this reason promoting  democracy and protecting human rights are the key elements of sustainable security  especially in struggling terrorism  Keywords: Sustainable Security, Human Security, Terrorism, Sept. 11, Human Rights,  Democracy.</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012,
Sarajevo

Ackerman T., Söder, L., An Overvief of Wind Energy - Rewiews Status 2002,
Renewable and Sustainable Energy Rewiews, Vol. 6, 67-128 p.,2002.
AWS Scientific Inc., Wind resource assessment handbook, National Renewable
Energy Laboratory, 1997.
Aydın, İ., Yılmaz, S.S., The determination of dominant wind speed to increase
efficiency of wind energy in Manisa province, 1st International Conference on
Architecture and Urban Design, 19-21 April., Tirana-Albania, 2012.

Environmental Welding: The Friction Stir Welding
Selim Sarper Yilmaz1, Bekir Sadık Ünlü2, İbrahim Aydin2
1Celal Bayar University, Vocational High School, Department of Machinery,
45020, Manisa, Turkey
2Celal Bayar University, Faculty of Engineering, Mechanical Engineering,
45040, Manisa, Turkey
E-mails: selim.yilmaz@cbu.edu.tr, bekir.unlu@cbu.edu.tr,
ibrahim.aydin@cbu.edu.tr
Abstract
In this study, microstructural and mechanical properties of pure aluminum joined
by friction stir weldingusing different parameters were investigated.
Hardness, tensile, bending and impact mechanics tests were applied to the
welded samples.In addition, optical and SEM tests were carried out. The effects of
the welding progress rate on the microstructure and mechanical properties were
investigated in these materials.Then, the optimal conditions for friction stir
welding were determined for pure aluminum.
Keywords:Friction stir
welding, aluminum alloy, microstructure, mechanical properties.
1. INTRODUCTION
Aluminum metal and its alloys are economical and attractive material due to their
superior mechanical properties. These features include the appearance,
lightness, ease
of production, physical and
mechanical properties and corrosion strength.
Aluminum is
known
for two mechanical properties; namely, lightness and corrosion resistance. The
weight of aluminium is approximately a third of the same volume
steel, aluminum, copper or brass and its specific gravity is 2.7 g/cm3.
Aluminum
has
an
excellent
atmosphere, water, salt water, oil
6

corrosion
resistance
against
and many chemicals.

the
In

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

addition, electrical and thermal conductivity of aluminum is superior. In addition,
the strengths of some aluminum alloys are higher than strength of structural steels
(ASM Metals Handbook, 1979).
Friction stir welding (CCT) is a solid-state welding technique developed
bythe Welding Institute (Cambridge, United Kingdom) in 1991 and is used for the
combination of the non-ferrous metals and alloys. Although friction stir welding
can be used to combine a large number of materials, the first studies and the
industrial interest have focused on the combination of aluminum alloys.
Friction stir welding has become an important and rapidly developing welding
technique in combining these alloys (Boz and Kurt, 2004; Fonda, Bingert and
Colligan, 2004; Somasekharan and Murr, 2004; Meran, 2006)
In friction stir welding, tools which are cylindrical, rotating, inexhaustible, and
hard, has got a tip in thecenter and is composed of a shoulder. The tip of the
tools is firmly immersed in between the two workpieces to be welded and brought
forehead to forehead firmly. During the welding, while the tip is going forward in
a rotational movement, the shoulder moves towards the welding in contact with
the upper surface (Meran, 2006; Ericsson, 2005; Smith, Hinrichs; Crusan and
Leverett 2003; Butlerworth-Heinemann,2001; Staron,Koçak, Williams and
Wescott, 2004).
Friction stir welding of welding connections found in the welding region is a
typical form
of onion
rings and weld
metal, as the
format consists
of many variables. This format depends on the type of alloy being welded and the
parameters of welding process (Özsoy and Kaluç, 2002).
The
position
of
the half-circles on
the
surface of
the
tool during rotation and forward movement provides necessary heat for the
welding and pushes hot metal on the surface and appears to stay on the surface.
The continuous nature of welding provides the consistency of semi-circular rings
and the distance between the rings is equal to the distance the tool travels during
one rotation. The material is pushed towards the sides and back in a semicircular ring during each rotation of the tool. There is more mixing near the upper
surface. All these results lead the researchers to the idea that the process
mentioned is an extrusion process (Mert and Kaluç2003). Although the
main material or the material resistant to heat is far from the welding point, they
are affected by the thermal cycle of the process. But this does not affect the
microstructural or mechanical properties(http://tech.plymouth.ac.uk/sme/UoA30/
Weld_Microstructure.PDF).
The objectives of this study are to investigate mechanical properties of pure Al, to
study the hardenability of welding region and the region under the heat effect, to
further investigate internal structures of these regions and the resistance value of
welded parts.
2. EXPERIMENTAL STUDIES
Plates of 5 mm x 110 mm x 300 mm size were processed using an universal
milling machine. Afterwards, 8 mm thick base material was placed on the milling
table. After clamping the plates to be joined on the metal sheet base, the material
7

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

was ready for welding process. The mechanical characteristics of the materials
used in the experiments are summarized in Table 1.
Table 1. Mechanical properties of materials used in the experiments
Material

Pure

Tensile
Strength
(MPa)

Break
Elongation
(%)

R0.2 Yield
Strength

105

40

25

Hardness
(HV)

(MPa)
20

In the experiments, tip geometry of the material and revolution per minute
was kept constant, but, travelling speed of the tip was varied (Table 2).
Table 2. Friction stir welding parameters
Material

Pure

Spindle Speed
(rpm)

1250

Traveling Speed
(mm/min)
20
40
63

After cleaning the surface ofthe plates to be joined with the help of bind mold
head to head, friction stir welding was successfully realized. There was neither
distortion nor deformation ofwelded plates after joining process.
Tensile tests were applied to determine the maximum stress values of plates of
welded joints. The tensile samples prepared in accordance with DIN 50109 as
shown in Figure 1 were processed perpendicularly to the welding direction of the
sheets in a CNC milling machine. The tensile tests were carried out at across head
speed of 2 mm/min using an Universal Testing Machine (AG- 50kNG Shimadzu
Autograph, Japan). True stress and strain curves were determined by computer
connected to the device. Threepoint bend tests at 180° were conducted at a
bending speed of 10 mm/min.

8

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

Fig.1. Samples prepared for tensile test and subsequent measurements
For optical microscope examinations, samples from the base material and welding
region were taken out, before and after welding process. Samples measuring 10 x
20 x 5 mm were cut. The surfaces of the samples were polished by means of
abrasives having a 220, 400, 600, 800 and 1200 grid, respectively. After the
process ofthe last polishing the materials with 10 micron alumina polish, the
sample surfaces were etched in Keller solution with 2 ml hydrofluoric acid (HF),
10 ml nitric acid (HN03) and 88 ml water immersion for 12 seconds. Henceforth,
the structural changes occurring in the junction area were determined. In the
analysis of samples, an optical microscope (Nikon Eclipse U50, Japan) was used.
3. RESULTS AND DISCUSSION
3. 1. Mechanical Properties
Figure 2 shows the microhardness results of pure aluminum groups.
70
60
50
40

1-I

30

1-II

20

1-III

10
0
-9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9

Fig.2. Microhardness distribution of pure aluminum
When hardness of all samples was examined, four different regions of hardness
distribution were found to change significantly. Hardness values of the samples
joined by friction stir welding were higher than those of the base material.

9

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

The samples broke in the HAZ (heat affected zone) region adjacent to the weld
seam, as the tensile tests were applied to the welds. This region was identified as
the thermo-mechanically formed region under the influence of the welding heat.

Maximum Tensile Strength
(N/mm2)

The results of the tensile tests are given in Figure 3.

120
100
80
60
40
20
0
1

2

3

Traveling Speed (mm/min)

Fig.3. Maximum tensile strength distributions for pure aluminum
The tensile strength of pure aluminumdecreased with an increase in welding
speed. The reason was that low heat input of HAZ due to increasing travelling
speed caused largedecreases in the HAZ width, the samples experienced fewer
necks which could cause decreases in tensile strength. This was not the case for
pure aluminum. The highest tensile strength for pure aluminum was observed at
the 20 mm/min travelling speed.

Maximum Bending
Strength (N/mm2)

As a result of bending tests, no failure occurred in the weld region. The results of
bending test are given in Figure 4.

195
190
185
180
175
170
165
160

20
63
40

1

2

3

Traveling Speed (mm/min)

Fig.4. Aluminum bending test results for pure aluminum
Charpy test results of pure aluminum welds are given in Figure 5.

10

�Notch Impact
Strength (Joule)

3rd International Symposium on Sustainable Development, May 31 - June 01 2012,
Sarajevo
50
40
30
20
10
0
1-I

1-II

1-III

Traveling Speed (mm/min)

Figure 5. Charpy test results for pure aluminium
For the Charpy notch impact test, a standard test device with a capacity of 300
Joule was used. A 2 mm deep notch with a 450 angle was opened in the middle of
the specimens which measured 55 x 10 x 5 mm due to the dimensions of the
friction stir welded plates.
3. 2. Microstructure Properties
The schematic cross-section of a typical friction stir weld shows four distinct
zones which are illustrated in Figure 6, as reproduced from another study. Friction
stir welding is a solid state welding method which produces joints below the
melting temperature. Friction stir welding produces a very narrow he at affected
zone compared to other welding methods, because not very high temperatures are
involved in this process.

RCR
HAZ
BM

TMAZ

Fig. 6Macrostructure of the friction stir welding
These areas are the dynamical recrystallized region (RCR), the thermomechanical affected zone (TMAZ), the heat affected zone (HAZ) and the base
material (BM). The following four different regions were thus determined
throughout the experiments:
A: base material
B: he at affected zone (HAZ)
C: thermo-mechanical affected zone (TMAZ)
D: dynamically recrystallized zone (DXZ)
11

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

In the DXZ, the grains become smailer as a result of severe deformation and
extrusion, whereas in thermo-mechanical affected zone (TMAZ), the grains were
observed to grow gradually. The fine-grained structure of the dynamical
recrystallized zone (DXZ) contributed to strength and hardness improvement after
welding. The cause of changes in the structures of grain is associated with the heat
of friction.
When the number of revolutions was kept constant and the traveling speed was
increased, in the buffer zone, the widths of the mix of bands gradually increased.
This case can be related to the amount of material transported per unit time and
increasing travelling speed.
This region of intense plastic deformation and high friction temperature is called
as "dynamical recrystallized zone" or "welding center". Dislocation density is
lower and thinner in this region and it is composed of oriented grains. In the
friction stir welding applications of similar types of alloys, this region resembles a
pool of onion rings. The TMAZ zones are shown in the Figures 7, 8.

Fig.7. The microstructural zones of pure aluminium after welding

Fig. 10. Fracture surfaces pure aluminium

12

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

4. CONCLUSIONS
The following conclusions can be drawn from the present investigations ofpure
aluminiumtypes:
Micro-structural analysis indicated an expansion in the size of the heat affected
zone with reduced travelling speed.
In the dynamical recrystallized zone, the grains became smaller as a result of
severe deformation and extrusion while in the thermo-mechanical affected zone,
the grains were observed to grow gradually.
The travelling speed of 40 mm/min produced the best microhardness, bending,
tensile and Charpy test results for all the samples studied, and thus, has to be regarded as the optimum travelling speed.
After complete bending, no microcracks were observed in the weld zones
REFERENCES
ASM Metals Handbook(1979). Properties and Selection: Nonferrous Alloys and
Pure Metals, American Society for Metals, Metals park, Ohio.
BozA.,KurtA.(2004). The influence of stirrer geometry on bonding and
mechanical properties in friction stir welding process.Materials and Design(25),
343–347.
FondaR. W.,BingertJ. F., ColliganK. J.(2004). Development of grain structure
during friction stir welding. Scripta Materialia(51), 243–248.
SomasekharanA. C.,MurrL. E.(2004). Microstructures in friction-stir welded
dissimilar magnesium alloys and magnesium alloys to 606l-T6 aluminum
alloy.Materials Characterization(52)49–64.
MeranC.(2006). The joint properties of brass plates by friction stir
welding.Materials and Design(27)719–726.
Ericsson M.(2005). Fatigue strength of friction stir welded joints in
aluminum.Ph.D Thesis, Royal Institute of Technology. Sweden.
SmithC. B.,HinrichsJ. F., CrusanW. Leverett(2003). FSW stirs up welding
process competition.Forming &amp; Fabricating(2)25–31.
David J. E.,(2001). Ship Construction, 5th Edition, Butlerworth-Heinemann, India
StaronP.,KoçakM., WilliamsS., WescottA(2004).Residual stress in friction stirwelded Al sheets, Physica B(350) 491-493.
ÖzsoyM.,KaluçE.(2002). Sürtünen eleman ile birleştirme kaynağının esasları,
Mühendis ve Makine Dergisi (513)21-35 (in Turkish).

13

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

MertS.,KaluçE. (2003). Sürtünme karıştırma kaynağında kullanılan takımlardaki
gelişmeler.TMMOB Makine Mühendisleri Odası Kaynak Teknolojisi IV.Ulusal
Kongresi Bildiriler Kitabı, 103-ll5 (in Turkish)
http://tech.plymouth.ac.uk/sme/UoA30/ Weld_Microstructure.PDF

Investigation Of Fracture Toughness Of Calcium Phosphate Coating
Treated Onto Ti6A14V Substrate
İbrahim Aydın1, Hakan Cetinel2, Ahmet Pasinli3
1Celal Bayar University, Vocational Collage, Machine Programme
Manisa, Turkey
2Celal Bayar University, Faculty of Engineering, Mechanical Engineering
Manisa, Turkey
3Ege University, Vocational Collage, Machine Programme
İzmir, Turkey
E-mails: ibrahim.aydin@bayar.edu.tr, hakan.cetinel@bayar.edu.tr,
ahmet.pasinli@ege.edu.tr
Abstract
In this study, we aimed to investigate the fracture toughness of the calcium
phosphate (CaP) coating, that was formed with Vickers indentation method, by
the new method with the new patent. The activation process was done with NaOH
+ H2O2 on the Ti6Al4V material surface. Elasticity module, hardness values and
coating thickness of the CaP coating that is formed by activation process was
calculated. SEM micrographs and EDS analysis were gathered of the coating.
Fracture toughness was determined by Vickers indentation. At the end of this
study, fracture toughness (K1C) value for the CaP coating on Ti6A14V that was
activated by NaOH+ H2O2 was found to be 0.43 MPa m1/2.
Keywords: Calcium phosphate, coating, vickers indentation, fracture toughness
Ti6Al4V.
1. INTRODUCTION
Titanium alloy (Ti6Al4V) hip prosthesis is a material used in orthopedic implant
production just as widely as bone plates and bone screws (Hench, 1991).
Hydroxiapatite (HA) coatings are used in Ti6Al4V alloys in implant materials in
14

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                <text>In this study, microstructural and mechanical properties of pure aluminum joined  by friction stir weldingusing different parameters were investigated.  Hardness, tensile, bending and impact mechanics tests were applied to the  welded samples.In addition, optical and SEM tests were carried out. The effects of  the welding progress rate on the microstructure and mechanical properties were  investigated in these materials.Then, the optimal conditions for friction stir  welding were determined for pure aluminum.  Keywords:Friction stir  welding, aluminum alloy, microstructure, mechanical properties.</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Gropp, Reint, Jukka Vesela, (2004), “Deposit Insurance, Moral Hazard and Market
Monitoring”, European Central Bank, Working Paper Series, No. 302.
Ioannidou, Vasso, P., M.F. Penas (2010), “Deposit Insurance and Bank Risk Taking:
Evidence from Internal Loan Ratings”, Journal of Financial Intermediation, Vol. 19, 95-115.
Keeley, M.C., (1990), “Deposit Insurance, Risk and Market Power in Banking”, The
American Economic Review, Vol. 80, No. 5, 1183-1200.
Leaven, L., R. Levine, (2008), “Bank Governance, Regulation and Risk Taking”, NBER
Working Paper Series, No: 14113.
Ng, Tuan Hock, Lim, Y.S., Tan N. L., (2010), “Deposit Insurance and Bank Risks: The Case
of Malaysia”, European Journal of Economics, Finance and Administrative Sciences, Issue
18, 19-27.
Ninimaki, J-P., (2000), “The Effects of Competition on Banks’ Risk Taking with and without
Deposit Insurance”, Bank of Finland Discussion Papers, No. 21.
Şıklar, İ, (2004), Finansal Ekonomi, Anadolu Üniversitesi Ya., No. 1588, Eskişehir.
Silva, Nancy (2008), “Deposit Insurance, Moral Hazard and The Risk of Runs”, Central Bank
of Chile Working Papers No. 478.
Wu, R-J, C-P, Chi, (2006), “Competition, Deposit Insurance and Bank Risk Taking”,
http://centerforpbbefr.rutgers.edu/2006/Paper%202006/16AS02-056-Chien-Ping%20Chi.pdf.
www.dpt.gov.tr
www.tbb.org.tr
Control of a chaotic finance system with passive control
Selçuk Emiroğlu, Yılmaz Uyaroğlu, Etem Köklükaya
Sakarya University, Electrical Electronics Engineering Department, Turkey
E-mails: selcukemiroglu@sakaryaedu.tr, uyaroglu@sakarya.edu.tr, ekaya@sakarya.edu.tr
Abstract
In this paper, complicated dynamical behavior of a finance system is investigated. The change
in behavior of finance system from stable behavior to chaotic behavior is shown with varying
some system parameters. In addition, chaotic finance system with passive control is
considered and the stability of the controlled system is investigated. In order to control the
chaos in finance system, the controller is designed based on passive control technique.
Designed controller is applied to the chaotic finance system for stabilization of system. After
controller is added to the system, the change in behavior of finance system from chaotic
behavior to stable behavior is shown with passive control.
Keywords: Chaotic finance system, chaos control, passive control

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1. INTRODUCTION
In 1963, Lorenz found the first chaotic attractor, which is named as Lorenz chaotic system, in
a three dimensional autonomous system when he studied atmospheric convection (Lorenz,
1963). After Lorenz, many different chaotic systems are proposed in the past few decades
such as Rössler system (OE, 1976), Chen system (G. Chen, 1999), Lü system (C.X. Liu,
2004) and finance chaotic system (Guoliang Cai, 2007). However, when chaotic behavior is
sometimes undesirable, the chaotic behavior of system should be controlled. So, many
methods and techniques have been developed to control the chaotic systems such as OGY
method (E. Ott, 1990), sliding mode control (K. Konishi, 1998), adaptive control (Y.Zeng,
1997), and passive control (Yu, 1999; X. Chen, 2010; S. Emiroğlu, 2010).
In this paper, we study the complicated dynamic behavior and control of chaos in a nonlinear
finance chaotic system which was investigated by reference (Guoliang Cai, 2007). The state
equations of chaotic finance system are written below Eq 1. (Guoliang Cai, 2007)

x  z  ( y  a) x
y  1  by  x 2

(1)

z   x  cz
where variable x represents the interest rate in the model; variable y represents the investment
demand and variable z is the price exponent. The parameter a is the saving. b is the perinvestment cost. c is the elasticity of demands of commercials. And they are positive
constants.
Mathematical model of a finance system is constructed by using Matlab-Simulink program as
shown in Figure 1.
u

2

x

z

y
1

1
s

1
s

x
z
1
s

a
b

c
y

Figure 13 Matlab-Simulink model of finance system
By using Matlab - Simulink model of finance system, chaotic time series and phase portraits
of the system is shown in Figure 2.

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Figure 14 Phase portraits of the system
2. THE THEORY OF PASSIVE CONTROL
Consider a nonlinear system (2) modelled by ordinary differential equation with input vector
u(t) and output vector y(t) (Yu, 1999),

 x  f ( x)  g ( x)u,

 y  h( x),

(2)

m
n
m
where the state variable x   , the input u   and the output y   . f(x) and g(x) are
smooth vector fields. h(x) is a smooth mapping. We suppose that the vector field f has at least
one equilibrium point and without loss of the generality, we assume the equilibrium point
x=0.

Definition 1. System (2) is a minimum phase system if Lgh(0) is nonsingular and x=0 is one
of the asymptotically stabilized equilibrium points of f(x).
Definition 2. System (2) is passive if the following two conditions are satisfied:
(1) f(x) and g(x) exist and are smooth vector fields, h(x) is also a smooth mapping.
(2) For any

, there is a real value β that satisfies the inequality

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

t

u

T

( ) y( )d   ,

(3)

0

or there are real values β and
t

t

0

0

that satisfy the inequality

T
T
 u ( ) y( )d     y ( ) y( )d ,

(4)

When we let z  (x) system (2) can be changed into the following generalized form

 z  f 0 ( z )  p( z, y) y,

 y  b( z, y)  a( z, y )u,

(5)

where a( z, y) is nonsingular for any (z, y).
If system (2) has relative degree [1,1, ...] at x = 0 and system (1) is a minimum phase system,
then system (5) will be equivalent to a passive system and will be asymptotically stable at
equilibrium points through the local feedback control as follows:

u  a( z, y) 1[b T ( z, y) 

W ( z )
p( z, y)  y  v]
z

f ( z)
where W (z ) is the Lyapunov function of 0 ,
signal which is connected to the reference input.

(6)

is a positive real value, and

is an external

3. CHAOS CONTROL OF CHAOTIC FINANCE SYSTEM
In this section, the control of chaotic system (7) is achieved using passive control theory. The
controlled model given by

x  z  ( y  a) x
y  1  by  x 2  u

(7)

z   x  cz
The controller is designed based on passive control theory (Yu, 1999). The controller is
shown in Eq. 8 and also controlled system is written in Eq. 7.

u  1  y(b   )  v

(8)

Time series of system and controlled system are shown in Fig. 3. After the controller is
activated at t=300s, the system converges to zero equilibrium point as shown in Fig. 3.

128

�4

4

2

2

0

0

x

x

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

-2

-2

-4

-4
0

100

200

300

400

500

0

100

200

4

4

2

2

0

0

400

500

300

400

500

300

400

500

-2

-2

-4

-4
0

100

200

300

400

0

500

100

200
t(s)

t(s)
2

2

1

1

0

0

z

z

300
t(s)

y

y

t(s)

-1

-1
-2

-2
0

100

200

300

400

0

500

100

200
t(s)

t(s)

(a)

(b)

Figure 15 x, y and z time series of (a) system, (b) controlled system
Figure 16 x, y and z time series of (a) system, (b) controlled system
4. CONCLUSION
We investigate chaos control of a 3D chaotic finance system via passive control method in
this paper. Based on the passive system theory, passive controller is proposed to realize the
global asymptotical stability of the 3D chaotic finance system. Finally, numerical simulations
are provided to verify the theoretical analysis and also show that the proposed method works
effectively.
REFERENCES
C.X. Liu, e. a. (2004). A new chaotic attractor. Chaos, Solitons &amp;Fractals, Vol.22, No.5 ,
1031–1038.
E. Ott, C. G. (1990). Controlling chaos. Phys.Rev.Lett.,vol.64 , pp.1196-1199.
G. Chen, T. U. (1999). Yet another chaotic attractor. Int. J. Bifurcation and Chaos, Vol.9,
No.7 , 1465-1466.
Guoliang Cai, J. H. (2007). A New Finance Chaotic Attractor. International Journal of
Nonlinear Science Vol. 3 (2007) No. 3 , pp. 213-220.
129

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

K. Konishi, M. H. (1998). Sliding mode control for a class of chaotic systems. Phys. Lett. A,
vo1.245 , pp.511-517.
Lorenz, E. ( 1963). Deterministic non-periodic flows. J. Atmos.Sci., Vol.20, No.1 , 130–141.
OE, R. (1976). An equation for continuous chaos. Phys. Lett. A,;57 , 397–398.
S. Emiroğlu, Y. U. (2010). Passivity based Chaos Control of the T System,. IMS 2010 (s.
118-125). Sarajevo, Bosnia Herzegovina: International University of Sarajevo.
X. Chen, C. L. (2010). Passive control on a unified chaotic system. Nonlinear Analysis: Real
World Applications 11 , 683-687.
Y.Zeng, S. N. (1997). Adaptive control of chaos in Lorenz system. Dynamic Contr., vol. 7 ,
pp 143 - 154.
Yu, W. (1999). Passive equivalence of chaos in Lorenz system. IEEE Trans.Circuits Syst. I,
vo1.46, no.7 , pp.876-878.

Synchronization of a chaotic finance system via active control
Zekeriya Özdemir, Selçuk Emiroğlu, Yılmaz Uyaroğlu
Sakarya University, Electrical Electronics Engineering Department, Turkey
E-mails: zozdemir@sakarya.edu.tr, selcukemiroglu@sakarya.edu.tr,
uyaroglu@sakarya.edu.tr
Abstract
This paper discusses chaos synchronization of the three dimensional finance system based on
active control technique. Using active control theory, chaos synchronization of three
dimensional chaotic finance system is realized with three input. The designed controllers
ensure the stability of error dynamical system between two identical chaotic finance systems.
Also, the controllers provide that the error dynamical system converges to zero equilibrium.
Numerical simulations show that the proposed method is effective for chaotic finance system.
Keywords: Chaotic finance system, chaos synchronization, active control
1. INTRODUCTION
Since the control of chaotic systems is firstly proposed by Ott, Grebogi and Yorke, chaos
control has become one of the much interesting research subject. Also, chaos synchronization
has received a huge increasing interest and has been studied in the past two decades, after
Pecora and Carroll introduced the synchronization method. Recently, many control methods
are proposed to the control and the synchronization of the chaotic systems. The control
strategies applied to control and synchronization of chaos such as OGY method (E. Ott, C. G.
1990), linear feedback control (A.E. Matouk, 2008), passive control (S. Emiroğlu and Y.
Uyaroğlu, 2010; X. Chen, C. L. 2010), active control (S. Emiroğlu, Y. Uyaroğlu, 2011) etc..

130

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                <text>In this paper, complicated dynamical behavior of a finance system is investigated. The change  in behavior of finance system from stable behavior to chaotic behavior is shown with varying  some system parameters. In addition, chaotic finance system with passive control is  considered and the stability of the controlled system is investigated. In order to control the  chaos in finance system, the controller is designed based on passive control technique.  Designed controller is applied to the chaotic finance system for stabilization of system. After  controller is added to the system, the change in behavior of finance system from chaotic  behavior to stable behavior is shown with passive control.  Keywords: Chaotic finance system, chaos control, passive control</text>
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                    <text>Using Microphyte-Macrophyte Species As Bioindicators For The Determination And
Phytoremediation Of Heavy Metal Accumulation In The Aquatic Ecosystems
Serkan Doğan1 Sulejman Redzic2 Şenol Doğan3
1 Bosna Sema Educational Institutions
2 Faculty of Science, University of Sarajevo
3 Faculty of Information Technology, International Burch University
Abstract
Heavy metal accumulation and contamination have become a serious problem in recent years.
Therefore, it is crucial to take a closer look at the microphytes and macrophytes species.
These two elements are recommended for the determination and phytoremediation of the
heavy metals in the contaminated aquatic ecosystems. It is clear that, the excess amount of
heavy metals can have negative impacts on the environment and these influents can be weak,
strong, long lasting and short lasting, and they can also be present in different levels such as
global, regional or local. Moreover, heavy metal contamination in aquatic environments is a
serious environmental problem, which threatens aquatic ecosystems, agriculture, and human
health. The goal of this study is to understand the importance of microphytes and macrophytes
in accumulation of toxic metals and suggest some effective measurements for the preservation
and restoration of the aquatic ecosystems. Thus, in order to protect our living ecosystems, it is
necessary to study the sources, level and quantity of contamination of heavy metals. Different
treatment methods have been developed for the elimination of these metals from water
including coagulation, adsorption, ion exchange and other chemical and biological processes.
However, these methods are expensive and require major investments in equipment and
facilities and they also introduce various chemicals which can have a harmful impact on our
environment. In contrast, this study verifies that phytoremediation is an efficient and cheap
technology for the treatment of water polluted by heavy metals. Furthermore, it is suggested a
new model called wetland construction, which is an expansion on a river bed and it serves as
a water purification system as well, in order to enable easy collection and replacement. After
the collection, the biomass obtained would be processed to obtain biogas, biofertilizers,
animal food and recycled heavy metals. As a result, the macrophyte and microphyte
communities of the Miljacka River area need to be protected and restored on a priority basis.
To demonstrate a model for ecological determination and phytoremediation of heavy metal
accumulation by using microphytes-macrophytes as bioindicators, structure and dynamics of
aquatic ecosystems were studied at more sites and sides of the Miljacka River (central Bosnia
and Herzegovina). All in all, this study shows that the aquatic microphytes and macrophytes
play a very significant role in removing the different metals from the aquatic environments
and they can both be used as bioindicators of heavy metals and other toxic substances in a
given area.
Keywords: Microphytes; Macrophytes; Toxic metals; Accumulation; Phytoremediation;
Miljacka River;

349

�1.INTRODUCTION
Water is one of the essentials that support
all forms of plant and animal life (Vanloon
and Duffy, 2005) and it is generally
obtained from two principal natural
sources. Surface water such as fresh water
lakes, rivers, streams, etc. and ground
water such as borehole water and well
water (McMurry and Fay, 2004; Mendie,
2005).

that observing of residues of these metals
and their chemical compounds in different
systems is crucial, first of all from the
aspect of human health protection, as well
as from the aspect of protection of entire
flora and fauna and human environment.
For a successful implementation of
protection of humans, animals and plants
from any harmful heavy metals, it is
necessary to study the source, degree and
extent of the pollution.
2.MATERIALS &amp; METHODS

The Human Development Report (2006) of
UNDP has focused on the global water
crisis as one of the most serious problems
facing by the humanity today. In many
Asian countries and elsewhere the demand
for potable water doubles every 10–15
years, not only because of the rising
domestic consumption but also due to the
increasing needs of industry. The usable
portion of water convenient for human use
is less than 1% of all freshwater and only
0.01% of all water on Earth. Water quality
problems can often be as severe as those of
water availability but less attention has
been paid to them, particularly in
developing countries. Many countries do
not have sufficient water supplies to meet
demand, as a result of which, aquifer
depletion due to over exploitation is
common. Moreover, the scarcity of water
is accompanied by deterioration in the
quality of available water due to heavy
pollution
load
and
environmental
degradation (Srivastava, Gupta and
Chandra 2008).
Nowadays, at the beginning of the third
millennium, everyone should be aware of
the fact that we have reached the
ecological limit of endangering the life and
survival beyond which we cannot go
anymore. Lately, great importance has
been given to studying of the concentration
and impact of heavy metal effects to flora
and fauna. The researches in this area show
350

As a first step in the field investigation part
we had to determine the investigation
areas. These are as follows: Kozija Cuprija
locality, Bentbasa locality, Otoka locality
and Vrelo Bosne locality. All these are
found in the area of Sarajevo which is the
capital of Bosnia and Herzegovina. First
three investigated rivers are located on the
Miljacka River and the last one ids located
on the Bosnia river. From these areas we
have observed microphytes such as
Cladophora glomerata, and macrophytes
such as Rumex sp., Ranunculus sp.,
Veronica sp., Willow Salix, Equisetum
palustre and Mentha sp.After the collection
process these plants went through various
treatments in which we have used: hand
mortar and pestle , nitric acid, perchloric
acid,flasks ,electrical plates,filters and,
Ultra-pure water. The research was
conducted in order to obtain the
concentrations of Fe, Zn, Cu and Pb which
are all heavy metals found in observed
microphytes and macrophytes.

3.STUDY AREAS
Bosnia and Herzegovina, often referred to
in the West as simply Bosnia, is
a country in Southern
Europe,
on

�the Balkan
Peninsula.
Bordered
by Croatia to the north, west and
south, Serbia to
the
east,
and Montenegro to the southeast, Bosnia
and Herzegovina is almost landlocked,
except for 26 kilometres (16 miles)
of Adriatic Sea coastline, centered on the
town of Neum. According to its
geographical position if is found on the
intersection of various biogeographical
influents and roads. The interior of the
country is mountainous centrally and to the
south, hilly in the northwest, and flatland
in the northeast. Out of its total area 5%
makes up valleys, 24% hills, 42%
mountains and 29% makes up karsts.
Medium altitude is about 500 m and the
highest peak is Maglic, 2386m. Around

41% of area is covered by woods. Inland is
the larger geographic region with a
moderate continental climate, marked by
hot summers and cold, snowy winters.
4.RESULTS
4.1.Macrophyte Analysis
Results show the concetrations of Lead,
Copper, Iron and Zinc in the localities
where the investigation was conducted on
the macrophyte species which are Mentha
sp., Equisetum palustre, Veronica sp.,
Ranunculus sp., Rumex sp. and Willow
salix. The obtained valuesshow that heavy
metal contamination is present in a very
high level. The results are given below;

Table 3.1: Results obtained from macrophyte analysis

Graph 3.1: Pb absorption by macrophyte species

351

�Graph 3.2: Cu absorption by macrophyte species

Graph 3.3: Fe absorption by macrophyte species

Graph 3.4: Zn absorption by macrophyte species
352

�According to the measurements, the
highest concentration of Zn, 430.61mg/kg,
is detected in Ranunculus sp. in locality 4
(Vrelo
Bosne)
and
the
lowest
concentration of Zn was obtained from the
locality 1 (Kozija Cuprija), by Equisetum
palustre, where the value was 24.96 mg/kg.
The medium value is 98.709 mg/kg.Rumex
sp. shows the highest Fe concentration,
6,477.27 mg/kg, in locality 3 (Otoka) and
Equisetum palustre shows the lowest value
of 324.38 mg/kg in locality 1 (Kozija
Cuprija) if we don‘t take in consideration
Willow salix found in the same locality
where iron wasn‘t detected at all. The
medium absorption level is 3790.58
mg/kg.The highest result for Cu,
22.37mg/kg, is detected in Menta sp. in
locality 2 (Bentbaša) and the lowest, 2.49
mg/kg, in Equisetum palustre in locality 1
(Kozija Cuprija). The average value
obtained for copper is 10.795 mg/kg.Menta
sp. also shows the highest concentration of
Pb, 32.18 mg/kg, in locality 1 (Kozija
šuprija). The lowest value detected is
29.79 mg/kg in the locality 2 (Bentbasa) by
Mentha sp. The values of Pb that could be
detected had very heterogeneous values on
353

each locality and the average of those
values is 31.49 mg/kg. In most of the
samples Pb couldn‘t be detected probably
because the measurements were done in
mg/kg but not µg/g and lead is supposed to
be detected as trace element.The higest Pb
concentration measured by Chlorophyta
sp., 52.72 mg/kg, is detected in locality 3
(Otoka) and the lowest one, 24.72 mg/kg,
in locality 1 (Kozija Cuprija). The average
value is 40.73 mg/kg.The higest value of
Cu, 45.70 mg/kg, was obtained in locality
3 (Otoka) and the lowest value,
11.94mg/kg, in the locality 1 (Kozija
Cuprija). Cu average value is 24.18 mg/kg.
Fe is the element with highest detection,
9,001.42 mg/kg,by Chlorophyta sp. in
locality 3 (Otoka). On the other hand the
lowest detection of iron, 3078.68 mg/kg,
was obtained from locality 4 (Vrelo
Bosne). The average value obtained for Fe
is 6310.04 mg/kg. As our last listed metal,
Zn highest concentration, 256.21 mg/kg, in
Chlorophyta sp. was detected in locality 4
(Vrelo Bosne). Zn lowest concentration
was obtained from locality 1 (Kozija
Cuprija) which is 53.40 mg/kg. Zn average
concentration level was 126.74mg/kg.

�Table 4.1: Results obtained from microphyte analysis

Localities

1

Kozija
L.1.1.1.

Šuprija

2

Kozija
L.1.1.2.

Šuprija

3

Kozija
L.1.1.3.

Šuprija

4

Kozija
L.1.1.4.

Šuprija

5

6

7

8

9

10

11

12

13
354

Bentbaša
L.2.1.1.
Bentbaša
L.2.1.2.
Bentbaša
L.2.1.3.
Bentbaša
L.2.1.4.
Otoka
L.3.1.1.
Otoka
L.3.1.2.
Otoka
L.3.1.3.
Otoka
L.3.1.4.
Vrelo Bosne
L.4.1.1.

Pb

Cu

Fe

Zn

(mg/kg)

(mg/kg)

(mg/kg)

(mg/kg)

27.27

13.02

7,588.28

50.67

30.56

13.38

4,499.53

39.29

18.29

12.09

2,922.73

48.26

25.30

10.11

5,715.24

40.22

25.40

20.13

7,736.33

106.42

31.84

17.15

9,487.16

71.51

49.76

20.11

3,900.61

60.97

26.59

7.14

4,745.73

132.8

50.33

44.37

8,920.73

105.31

35.56

38.97

7,619.46

78.81

43.23

42.96

7,490.07

112.04

81.74

56.48

11,975.41

121.68

40.20

30.88

286.12

74.18

�14

15

16

Vrelo Bosne
L.4.1.2.
Vrelo Bosne
L.4.1.3.
Vrelo Bosne
L.4.1.4.

101.74

25.96

9,406.15

638.45

27.8

15.10

1,689.63

179.62

38.51

19.81

932.8

132.60

4.2.Descriptive analysis
In the first step, descriptive analysis was performed and the results are reported in Graphs
1,2,3,4.
Graph 4.1:Empirical analysis of Cu

Graph 4.2:Empirical analysis of Fe

355

�Graph 4.3:Empirical analysis of Pb

Graph

356

4.4:Empirical

analysis

of

Zn

�5. CONCLUSION
Results indicate significant variation of element concentrations in different macrophyte and
microphyte species. Since concentration of a substance in a plant is the result of the physical
and chemical properties of the compound, environmental characteristics and plant
characteristics these results are reasonable. Some species turned to be more successful
bioaccumulators for certain elements therefore showing high potential in possible use as
environment phytoremediators. As the most successful from the macrophytes Ranunculus sp.,
Menta sp., and Rumex sp. had promising potential for heavy metal removal according to our
studies. Also, the high bioaccumulation abilities of Chlorophyta species for selected metals
were confirmed by obtained results. They turned to be very successful in iron absorption
which is very useful since too high values are rather lethal. Cladophora glomerata turned to be
a microphyte with enormous potential for heavy metal absorption and in this way a
phytoremediator. This plant could be grown in river, stream, and mining drainage or grown
in clean water systems initially and then can be transferred to the polluted water to remove
metals from aquatic systems.The goal of this study was to prove that macrophytes and
microphytes can have a great impact in heavy metals accumulation in aquatic ecosystems.
Results show that the hypothesis was correct because both macrophytes and microphytes
turned to be very efficient as heavy metals accumulators and bioindicators. In this way
microphytes and macrophytes work as an excellent team in the maintenance of natural
homeostasis. Considering the scientific articles we can also say that they are very cheap
phytoremediators with high efficiency. At the same time this research offers a complete
solution for heavy metal removal from aquatic ecosystems by introducing wetlands that
enable easy handling and replacement of macrophytes and microphytes.While
phytoremediation can occur naturally, it is more effective when good design, planting, and
site management processes are carried out properly. Successful phytoremediation requires and
integrated approach for each specific site, which must consider plant selection, genetic
engineering, and soil and water management. Also, the empirical analysis has showed that
there is no significant relationship between Fe and other metals. Moreover, no significant
relationship is seen between Fe and Cu and a significant positive relationship between Pb and
Zn are found; however, there exists a significant negative relationship between Zn and Cu as
well. Taking these results into consideration, one can obviously see that these metals affect
each other in a way. Therefore, phytoremediation types need to be identified and applied, and
from time to time the microphytes and macrophytes used for phytoremediation should be
change. Another way for increasing the efficiency of heavy metal absorption is genetic
modification. Genetic engineering in macrophytes and microphytes for enhanced heavy metal
accumulation is still in embryonic stage and needs more attention in this area. A
multidisciplinary research effort that integrates the work of plant biologists, soil chemists,
microbiologists, and environmental engineers is essential for greater success of
phytoremediation as a viable water cleanup technique. Therefore, it is clear that the utilization
of the remarkable potential of green plants to accumulate environmental pollutants and to
perform biochemical transformation is becoming a new frontier in environmental science and
technology. In view of the increasing aquatic pollution, the initial survey should be
undertaken to acquire an estimation of the range of variability in accumulation of heavy
metals in the aquatic plants from the Miljacka River. By interpreting these data, it could be a
better way to figure out which species seem to be the best for which heavy metal remediation.
To determine and evaluate the occurrence, the distribution and the effects of heavy metals,
and to prevent them to pass into rivers, lakes and ground water bodies represents an urgent
357

�task for applied environmental issues. From the observations and investigations, macrophytes
of river systems need protection and municipalities should stimulate researchers to improve
the phytoremediation techniques and to demonstrate their reliability to the public. Obviously,
macrophytes and microphytes could be a remedial solution for heavy metal reduction in
aquatic systems. However, together with all heavy metals that they had absorbed,
macrophytes and microphytes, could be periodically eliminated by municipalities. Restoration
and elimination of macrophytes and microphytes should be achieved within a proper and good
harmony and in accordance because nature is very subtle and sensitive to any external
manipulation. As mentioned before, wetlands are an excellent solution that enables easy
replacement and further processing and metal recycling.
REFERENCES
McMurry, J. and R.C. Fay, 2004.Hydrogen, Oxygen andWater. In: McMurry Fay Chemistry.
K.P. Hamann,(Ed.). 4th Edn. New Jersey: Pearson Education,pp: 575-599.
Memon A R, Schroder P (2009) Implications of metal accumulation mechanism to
phytoremediation. Environ Sci Pollut Res (2009) 16:162-175
Srivastav, R.K, Gupta, S.K., Nigam, K.D.P., Vasudevan, P., 1994. Treatment of chromium
and nichel in waste-water by using aquatic plants. Water Research 28, 1631-1638.
Vanloon, G.W. and S.J. Duffy, 2005.The Hydrosphere.In: Environmental Chemistry: A
Global Perspective.2nd Edn. New York: Oxford University Press, pp: 197-211.

Seed Micromorphological Investigations On 7 New Taxa Of Crocus Chrysanthus
(Herbert) Herbert From Turkey
Feyza Candan
Biology Dept, Botany Section, Faculty of Arts and Science, Celal Bayar University, Manisa,
Turkey
Abstract
This Investigation is made to determine seed micromorphological properties of four
subspecies and tree varieties of Crocus chrysanthus have been distinguished:Crocus
chrysanthus (Herbert) Herbert subsp. chrysanthus with 3 varieties (var. chrysanthus, var.
bicoloroceus F. Candan &amp; N. Özhatay, and var. atrovioloceus F. Candan &amp; N. Özhatay),
Crocus chrysanthus (Herbert) Herbert subsp. punctatus F. Candan &amp; N. Özhatay, Crocus
chrysanthus (Herbert) Herbert subsp. kesercioglui F. Candan &amp; N. Özhatay and Crocus
chrysanthus (Herbert) Herbert subsp. sipyleus F. Candan &amp; N. Özhatay. Scanning electron
microscope was used to determine micromorphological features as regards mature seeds of all
taxa.

358

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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Frazelle E. (2002) Supply Chain Strategy: The Logistics of Supply Chain Management,
McGraw-Hill, New York.
Kleindorfer, P.R., Singhal, K. and Van Wassenhove, L.N. (2005) Sustainable operations
management, Production and Operations Management, 14(4), 482–492.
Li, G., Yamaguchi D. and Nagai M. (2007) A grey-based decision-making approach to the
supplier selection problem, Mathematical and Computer Modeling, 46, 573-571.
Linton, J.D., Klassen, R. and Jayaraman, V. (2007) Sustainable supply chains: an
introduction, Journal of Operations Management, 25 (6), 1075-1082.
Sharma, R.R.K., and Sharma, K. D. (2000) A new dual based procedure for the transportation
problem, European Journal of Operational Research, 122 (3), 611-624.
Sharma, R.R.K., and Berry, V. (2007) Developing new formulations and relaxations of single
stage capacitated warehouse location problem: Empirical investigation for assessing
relative strengths and computational effort, European Journal of Operational Research, 177
(2), 803-812.
Tan, K.S., Ahmed, M.D. and Sundaram, D. (2010) Sustainable enterprise modeling and
simulation in a warehousing context, Business Process Management Journal, 16 (5), 871-886.
Vlachopoulou, M., Silleos, G., and Manthou, V. (2001) Geographic information systems in
warehouse site selection decisions, International Journal of Production Economics, 71 (1),
205-212.

The Role Of Internal Auditing In Sustainable Development And Corporate Social
Reporting

Serpil Senal, Gaye Atilla, Burcu Aslantaş Ateş
Süleyman Demirel University, Isparta, Turkey
E-mails:serduz@mynet.com, burcuatesaslantas@msn.com, gaisan@hotmail.com

Abstract
Sustainability means a lot more than just the economic, environmental, and social challenges
an organization faces in its everyday and future operations: it means the ethics in these
operations, touching on all the lives of those in the organization, its stakeholders, and the
planet. The objectives of all sustainable development programs must be measured, and the
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results are to be reported in and outside the organization. Stakeholders and society need to be
assured independently in that such measures are recorded accurately and in timely fashion
before being reported. There are opportunities for internal auditing to contribute to its
independent and objective assurance services as an auditor as well as a consultant and
teacher. Such a contribution can take best-practice internal auditing to a high level of added
value. The internal auditor is a vital conduit to the creation of trust.
The internal auditor contributes to a number of corporate social reporting (CSR) and
sustainability issues by keeping management updated on the aspects of operational and
compliance issues, which is part of their core function, as well as brand management audits
and through participation in the stakeholder dialogue process. Furthermore, the increasing
importance of CSR and sustainability and its impact on risk management bring additional
challenges involving the control environment, including the provision and installation of
effective management and reporting systems, which will provide clarity and transparency,
and therefore trust. The internal auditor has an integral role in determining the materiality of
the content of the CSR and sustainability report. This is a responsibility that can only increase
with the burgeoning of CSR and sustainability reports, both in volume and size of content.
Today, internal audit function that is the most important factor in creating sustainable value
to improve the value of the company and firm performance is important to correct
implementation and to be sustainable. Therefore, enterprises should assign enough
importance to internal auditing and should pay attention to create a sustainable audit system.
The aim of this study is to investigate the system of sustainable internal audit which is the
essential element for sustainable development and corporate social reporting.

Keywords: Corporate Social Reporting, Internal Auditing, Sustainable Development,
Corporate Social Responsibility, Sustainable Management Systems.

1.INTRODUCTION
Sustainable development process drawing attention of both public sector and private sector
for decades have brought forward the concept of corporate sustainability. Particularly the
belief that the sustainable development process cannot be achieved without the support of the
entities has necessitated the consideration of sustainability process in the entities. In this
regard, sustainable policy and strategies have been developed via sustainable management
systems.

Variation of management policies and strategies has led to variation in the risk areas that the
entity will come across during its activities. Relevant variation have also created differences
in the roles and responsibilities of internal auditing that supports (COSO, 2006) the
designation of policies, procedures and strategies by the management and gives assistance to
the management, board of directors and audit committee responsible for the operation of this
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process with respect to review, assessment, reporting and increasing the effectiveness and
adequacy of corporate risk management processes.

In this study, the role and responsibilities of internal audit in corporate sustainability have
been reviewed. In this perspective, particularly internal auditing and current structure of
internal auditing has been reviewed and then new roles and responsibilities of internal
auditing in the corporate sustainability have been searched.

2.Internal Auditing
Internal auditing is an independent and objective activity of assurance and consulting aimed
to develop the activities of an entity and add value to these activities (D. Pehlivanlı, 2010, 7).
The purpose of internal auditing is to remedy each process to mitigate risks in the entity and
increase operating income (M.A. Yousuf, 2010). Internal auditing is aimed to give assistance
to the management, board of directors and audit committee in reviewing, assessing, reporting
and increasing the effectiveness and adequacy of corporate risk management processes
(COSO, 2006).

A fair internal auditing process must be relevant to both management and application
performance of the entity and auditing financial and operational risks of the entity. For this
reason, internal auditing is an important instrument of the firm in maintaining its operations
in a successful fashion. What is important is to use this instrument as required and in an
efficient manner so that the results are reflected on the activities of the entity
(G.Aras,2012,2).
According to the Standard 2130 of the Institute of Internal Auditors (IIA), internal audit
contributes to the progress of the entities in following dimensions (The Standard 2130 of
IIA):
_

Designation of organizational values and objectives and communication of these
objectives and values to staff,

_

Supervision of whether the objectives are achieved,

_

Maintenance of accountability,

_

Protection of organizational values.

Reasons necessitating the existence of internal auditing can be enumerated as follows
(D. Pehlivanlı, 2010, 19).
_

Responsibility and accountability: Obligatory transfer of authority and responsibility
due to the growth of enterprise; the need to search the effectiveness of the staff and the
compliance of senior management with policies,
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

_

Agency theory: The need to employ salaried executives as a result of professionalism
and growth of the entities and to determine to what extent these executives fulfill their
responsibilities,

_

Consulting and assistance to the management: The objective of internal auditing is not
only to discover the errors and deceits but also to provide consulting in areas where the entity
management needs advice.

_

Savings need: Today, since costs are minimized in every field in order to survive
intensive competition conditions, internal auditing units also help in finding areas to maintain
savings for entities.

_

Need to oppose fraudulent transactions: Internal audit is responsible for discovering
fraudulent acts of entity owners, executives or staff.

Internal audit also has roles and responsibilities for the corporate management which is the
assurance of sustainability and a process assisting the entity in working efficiently, drawing
human capital and financial capital and earning profits for all shareholders by balancing their
interests (M. Ertuğrul, M. Sarıkaya, A.A. Özdemir, M. Kılıç, S. Yılmaz, 2009, 9) to operate
efficiently. Within this framework, risk management, control and corporate management
processes as well as independent and unbiased assurance and consulting activities of the
entities and corporations are also under the responsibility of internal auditing. Making
significant contributions to the establishment of administrative accountability process in
entities, internal auditing creates added value for the entities with its opinions and
recommendations about appropriate performance of the activities as well as the performance
of appropriate activities (A.K. Uzun, 2012).

3. Corporate Sustainability
Sustainable development is the process of preventing waste of resources and directing
investments, technological innovations and industrial improvements in order to meet the
needs and requests of persons today and in future (Brundland Commission, 1987). Everincreasing roles of the entities in society have resulted in the consideration of sustainable
development concept more in business environment. As companies represent the productive
sources of the economy today, it is accepted that the society cannot achieve sustainable
development without the support of the companies. Therefore, private sector companies must
work actively to create economic values and to mitigate environmental and social problems
emerging from their activities as well as producing goods and services increasing living
standards (M. Sarıkaya, F.Z. Kara, 2007, 225). This situation introduced the concept of
corporate sustainability. Corporate sustainability is to satisfy the needs of direct and indirect
shareholders of an entity without making concessions from the facilities in order to meet the
requirements of future shareholders (M. Ertuğrul, M. Sarıkaya, A.A. Özdemir, M. Kılıç, S.
Yılmaz, 2009, 9).

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4. Role of Internal Audit in Corporate Sustainability
Sustainability with environmental, social an economical dimensions necessitated the
formation of consumer behaviors and other market dynamics within the framework of
sustainability and designation of a sustainable management system by the companies. For this
reason, risks and opportunities to emerge with respect to this process have also been inserted
among the priorities that the companies must take into consideration (IMKB, 2011, 4-6). New
function of the internal auditing is to define and understand the risks and opportunities
created by the sustainability process as well as to determine how these opportunities and risks
will affect the entity; to assess and report sustainability indicators and results of climate
changes.( www.deloitte.com/.../Role%20of%20Int%2). Sustainable development has a very
strong link with ethics. Companies must gain the trust of others not only for the financial
resources, but also for all resources used in the organization in order to create value. Trust
can be established only with transparency. In order to render the risks of company founders
or management consistent and balanced, to supervise that the company comprehends the
business field and competition conditions well and takes balanced decisions and to ensure
sustainability of the company, internal audit assessments must be made in a prudential, fair
and
value
increasing
manner
in
line
with
ethical
principles
(http://www.deloitte.com/assets/Dcom-Turkey/Local%20Assets/Documents/turkeytr_fbs_kurumsallasma_051110.pdf).
Corporate sustainability necessitated the designation of sustainable management systems. The
advantage of the relevant management system is that the system is an auditable structure
covering economic, environmental and social assumptions with a systematic, transparent,
consistent and reliable understanding manner (H.Niveuwlands, 2006, 37). Internal audit is
responsible for providing advisory services in this field with the senior management and must
follow up the entire process related to sustainability in the organization (H.Niveuwlands,
2006, 49-66).

Sustainable management process is consisted of (H.Niveuwlands, 2006, 37):
_

Determination of sustainable policies and strategies,

_

Information risk management and planning,

_

Improvement and application,

_

Control and correction,

_

Management review and continuous improvement.

Objective

Traditional Management
Understanding

Sustainable Management
Understanding

Economic Growth and profitability

Sustainability and standard of
living

Welfare of the shareholders

Welfare of the stakeholders
Products

394

Design based on function, style and
price

Design appropriate to the
environment

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

Environment

Operating
Functions

Single use package product

Packaging friendly to the
environment

Dominance on the environment

In harmony with nature

Air pollution and wastes are
accepted as exteriority.

Elimination and management of air
pollution and wastes

Financing for profit maximization
in short term

Financing for sustainable growth in
long term

Accounting for traditional costs

Accounting focused on
environmental costs

Human resources management for
labor force effectiveness

Performance
Measure

Financial results

Human resources management
aimed to make the business
meaningful and protect security
and health in the work place
Financial, economic, social and
environmental results

Figure 1: Differences in Management Understanding (N. Tökgöz, S. Önce, 2009, 253).

As it is obvious from Figure 1, first step of sustainable management system is to issue
sustainable policies. Internal auditing must review sustainable policies determined and
determination process of these policies on a periodical basis. On the other hand, it is also
responsible for reviewing whether sustainable policies are in compliance with strategic plans
and other organizational policies. Furthermore, internal auditing must monitor and search all
relevant laws, regulations, protocols and industrial standards (H.Niveuwlands, 2006, 49-66).
For the sustainable management process to reach its objectives and targets, job descriptions
of the staff should be made appropriately. Duties, roles and responsibilities of the staff must
be clearly defined and it must be ensured that the staff has access to necessary sources in
order to fulfill their duties and responsibilities. The role of internal auditing at this stage is to
determine whether the staff appointed to the relevant duty is appropriate to the related job
description. In this regard, internal audit may resort to personnel files as well as survey
application. Another step of sustainable management process is risk management. Internal
auditing assumes a key role in this field. Internal auditor must develop a risk management
system covering sustainable perspective. In this process, internal auditor must give assistance
to the management for improvement, consideration and identification of risk management
methodologies by taking over a consultant’s role and collect evidence substantiating whether
risk management process has achieved its objectives (H.Niveuwlands, 2006, 49-66).
Corporate scandals unveiled in recent years, higher levels of information and awareness of
investors, environmental, ethical and social performances of the enterprises which have
become more important and sustainable development process have created differentiations in
the role of internal auditing. Particularly the fact that traditional internal auditing does not
represent risks related to sustainability process has been one of the essential factors affecting
the role of internal auditing in the enterprise. ( http://www.cipfa.org.).

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The risks which sustainable management system shall be exposed to may refer to
environmental, health and security risks in addition to the risks which each enterprise may be
exposed to. Nevertheless (H.Niveuwlands, 2006, 49-66),
_

Organizational reporting structure,

_

The possibility of causing environmental losses or fines,

_

The possibility of causing injuries and deaths,

_

The possibility of encountering adverse propaganda,

_

Loss of reputation or image can also be described as the risk areas that the enterprises
may come across in this process.
From this perspective, International Professional Practices Framework (IPPF) Issued by
International Institute of Auditors (IIA) enlists the risks related to the sustainability process
(http://www.theia.org).

1.

Strategic risk: Enterprises may go through changes in areas such as market placement,
consumer preferences, strategic investments (such as renewable energy) and stakeholder
communications along with sustainability and climate change. Therefore, senior management
or board of directors of the enterprise must determine how they can make use of these
changes in order to derive competition advantages. For example, manufacturing environment
sensitive products (green products).

2.

Compliance risk: Together with climate changes and sustainable development,
regulations in many areas such as national, international and regional areas have become a
current issue. The biggest risk in this field is related to the measurement of the results
concerning regulations. The fact that the applications are in different fields which are health,
security, human rights, labor acts, anti-bribery and environmental; and both their results and
measurements of these results show variance are among the key risks that the enterprises
experience. For instance, while environmental risks have direct impacts such as emission
costs, they have also indirect impacts such as the increase in energy prices.

3.

Financial risk: Climate changes and changes related to sustainable development may
directly or indirectly affect share certificate values of the enterprises. For example,
compliance to this process not only leads to new costs, but also new market losses.
Furthermore, corporate ratings given at the end of sustainability performance may cause the
enterprises to lose value in the eyes of the investors. All these developments may also be end
up with customer losses in addition to market losses.

4.

Reputation risk: Corporate reputation is a collective concept covering the opinions of
all stakeholders about corporate reputation, internal identity and particularly the opinions of
the customers about the corporation as well as external image. A strong reputation ensures
sustainable competition advantage. Reputation risk is described as potential negative
reputation about the business practices of corporations. It increases social and environmental
roles of the sustainable enterprises. For this reason, failure in fulfilling these responsibilities
increases reputation risk of the enterprise (E.Uzunoğlu,B.Öksüz,2008,114-116).

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Due to this process, most of the enterprises prepare and issue sustainability reports, in
other words, corporate social responsibility reports today for the following purposes (A.B.
Başar, M. Başar, 2006, 216):
_

To increase the possibility of monitoring process towards certain targets and facilitate
the application of environmental strategies,

_

To increase more awareness about environmental issues within the enterprise,

_

To express enterprise message explicitly within and outside the enterprise,

_

To increase credit rating due to transparency, to ensure increase in cost savings and
efficiency,

_

To increase the spirits of the staff, reputation of the enterprise and business
development opportunities.

Social responsibility or sustainability reporting is reporting of the activities and results of the
activities that an enterprise conducts within the framework of the obligations emerging from
its social responsibility (U. Kaya, A. Karakaya, 2008, 154). Together with this process,
internal audit has assumed the obligation of creating opportunities to ripen sustainability
program of the enterprise, maintaining reliability and appropriateness of integrated reporting
process and control reports of this process in addition to giving assurance for operation
activities.

The biggest expectation of the enterprises from sustainable development and social reporting
is satisfaction of their basic requirements. Internal auditing is responsible for transferring the
objective, yield and risks of sustainability program causing an additional cost for the
enterprises to the business management or board of directors. Enterprises generally think that
this process brings nothing, but additional costs and show a proactive approach against the
risks imposed by the process. In this respect, internal audit must state the importance of these
risks to the enterprises and create certain plans in order to remove the risks. On the other
hand, it must be ensured that senior management or board of directors also participate in the
sustainability process (www.deloitte.com/.../Role%20of%20Int%2).

Internal audit must be informed about the risks of corporate social responsibility process
discussed together with sustainability process. Nevertheless, internal auditors must have
sufficient information and capabilities in order to fully understand this process (J. Ridley, K.
D’Silva, M. Szombathelyi, 2011, 482). Internal auditors must answer the following questions
in order to turn the corporate social responsibility and sustainability process into an
opportunity (J. Ridley, K. D’Silva, M. Szombathelyi, 2011, 483):
_

Why should we pay attention to corporate social responsibility as an enterprise?

_

What is corporate social responsibility and where are we in this corporate social
responsibility?
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

_

Who are the interest groups of the enterprise and what are the needs of these groups?

_

What are the enablers?

_

What is triple bottom line?

_

Which enterprises are close to sustainable development?

_

Which managers report the results in the enterprise and give assurance to the report
results?

_

What is the role of internal audit in this process?
The reporting system of the sustainable management system must issue the report related to
environmental audit. However, the report must be issued in time and cover all results related
to the enterprise. Internal audit must be held responsible for the control of this process.
5.CONCLUSION
Internal auditing covering various audit activities such as compliance audit, activity audit and
information systems audit has been one of the indispensable activities of the enterprises
particularly with its function and scope for the reliability of financial reporting system in
companies and institutions, compliance with laws and regulations, protection of operating
assets, maintenance of economic, effective and efficient conditions of the activities, security
and reliability of information systems (S. Selimoğlu, 2011). The differences emerging in the
role of internal audit together with the corporate sustainability process defined (M. Ertuğrul,
M. Sarıkaya, A.A. Özdemir, M. Kılıç, S. Yılmaz, 2009, 9) as the sustainability of an
enterprise as a whole in terms of economic, ecological and social perspectives can be
summarized as follows (The IIARF- Sustainability and Internal Audit):

_
_

To design and improve sustainable management system,
To raise awareness about the sustainability with the help of training programs
organized for the staff,

_

To coordinate audit activities of external auditors,

_

To make suggestions related to the determination of external evaluators.

_

To assure that the objectives of the enterprise are fulfilled on condition that all
negative impacts related to all interest groups are minimized and the conditions to affect
interest groups positively are maximized,

_

To ensure compliance with rules and regulations related to the values with a sense of
responsibility,

_

To ensure that the resources are used at maximum level with a sense of responsibility
and reliable records are kept for all interest groups including shareholders and staff of the
enterprise,

_

To preserve both internal assets of the enterprise and external assets (air, energy,
nature etc.).

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Muammer SARIKAYA, F.Zişan KARA, “Sürdürülebilir Gelişmede İşletmenin Rolü:
Kurumsal Vatandaşlık”, Celal Bayar Üniversitesi İ.İB.F Yönetim ve Ekonomi Dergisi,
Cilt: 14, Sayı: 2, 2007.
Murat ERTUĞRUL, Muammer SARIKAYA, Aytül Ayşe ÖZDEMİR, Metin KILIÇ, Sinan
YILMAZ, Kurumsal Sürdürülebilirlik, Beta Yayınları, 2009.
Nuray TÖKGÖZ, Saime ÖNCE, “Şirket Sürdürülebilirliği: Geleneksel Yönetim Anlayışına
Alternatif”, Afyon Kocatepe Üniversitesi İİBF Dergisi, C.XI, S.I, 2009.
Seval SELİMOĞLU, Yeni Türk Ticaret Kanununda İç Kontrol ve İç Denetim,
www.ankara.ymmo.org.tr/.../17.12.2011%20Seval%20SELİMOGLU.
Institute of Internal Auditors (IIA),Performance, Standard (2130), Control.
Sürdürülebilir Gelişme İçin Kurumsallaşma, http://www.deloitte.com/assets/DcomTurkey/Local%20Assets/Documents/turkey-tr_fbs_kurumsallasma_051110.pdf
The
Role
Internal
Audit
www.deloitte.com/.../Role%20of%20Int%2

İn

Integrated

Reporting

,

Türkiye İş Dünyasında Sürdürülebilirlik Uygulamaları Değerlendirme Raporu, İstanbul
Menkul Kıymetler Borsası, Eylül 2011.
Uğur KAYA, Aykut KARAKAYA, “Sosyal Raporlama Anlayışının Muhasebe Meslek
Mensupları Tarafından Algılanması Üzerine Ampirik Bir Çalışma”, Muhasebe Denetime
Bakış, Yıl: 7, Sayı:24, Ocak,2008.
World Commission on Environment and Development (Brundland Commission), 1987.

400

�</text>
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                <text>Sustainability means a lot more than just the economic, environmental, and social challenges  an organization faces in its everyday and future operations: it means the ethics in these  operations, touching on all the lives of those in the organization, its stakeholders, and the  planet. The objectives of all sustainable development programs must be measured, and the results are to be reported in and outside the organization. Stakeholders and society need to be  assured independently in that such measures are recorded accurately and in timely fashion  before being reported. There are opportunities for internal auditing to contribute to its  independent and objective assurance services as an auditor as well as a consultant and  teacher. Such a contribution can take best-practice internal auditing to a high level of added  value. The internal auditor is a vital conduit to the creation of trust.  The internal auditor contributes to a number of corporate social reporting (CSR) and  sustainability issues by keeping management updated on the aspects of operational and  compliance issues, which is part of their core function, as well as brand management audits  and through participation in the stakeholder dialogue process. Furthermore, the increasing  importance of CSR and sustainability and its impact on risk management bring additional  challenges involving the control environment, including the provision and installation of  effective management and reporting systems, which will provide clarity and transparency,  and therefore trust. The internal auditor has an integral role in determining the materiality of  the content of the CSR and sustainability report. This is a responsibility that can only increase  with the burgeoning of CSR and sustainability reports, both in volume and size of content.  Today, internal audit function that is the most important factor in creating sustainable value  to improve the value of the company and firm performance is important to correct  implementation and to be sustainable. Therefore, enterprises should assign enough  importance to internal auditing and should pay attention to create a sustainable audit system.  The aim of this study is to investigate the system of sustainable internal audit which is the  essential element for sustainable development and corporate social reporting.  Keywords: Corporate Social Reporting, Internal Auditing, Sustainable Development,  Corporate Social Responsibility, Sustainable Management Systems.</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

The Export Exceptional Application In Means Of Value Added Tax: The Example Of
Antalya
Serpil Ağcakaya1, Hidayet Şal2
1 Public Accountants and Financial Advisers for Antalya Room
1 In order to save space, the results from the panel unit root tests are not reported here, but
available upon request.
Abstract
Purpose of this study is constituted by the exceptional VAT applied in export activities and
the lineal and rudiments related to the rejection mechanism process. The exception included
into this study, the one concerned with the exception are initially those real and legal persons
involved in export activities in domestic borders and abroad, secondly the accountants of
these persons, Public Accountant Members and finally the public closely related to the
subject. Therefore; Value Added.
Tax (VAT) is of great importance in means of tax collection in the Turkish Tax Structure. The
11th and 12th articles within the relative Law subjecting to the “export exceptions” and the
32nd article subjecting the discount applied to the process related to the exceptions are of
great importance within the scope of the VAT.
In the final division of the study there is a survey applied to the companies that realize export
in Antalya in order to gain general information about the companies and the issues faced
related to the reject mechanism of VAT that rise from the export realized by these companies.
In general; it is noticed that most of the exporting companies in Antalya constitute of Small
and Medium Size Enterprises and that they are generally complaining about the mass of
official procedures and about the processes realized very slow.
Keywords: Export Realized in Antalya, The Application of Exceptions in Export, Value
Added Tax, Export Survey
1.INTRODUCTION
Limitations in the commercial exchange of goods and services are disappeared with
commerce agreements between countries created commerce and economic system that
associations, and labor, customer, and capital are circulated in worldwide were settled.
Dynamics such as the political changes all over the world, raising gap between rich countries
and poor countries triggered international commerce. Being the world market such a large and
its accessibility directed countries and companies to sell products that are not consumed in
internal market to foreign market. The reason of that the new world pattern countries drag
competition based on export is to expand bracket per country as an element of international
development level.
The purpose of this research is to examine export exemption and refund implementations
since 1985 about refunding VAT to the exporter for goods and services that will export.
VAT export exceptions, analysis of our country and the world export will be discussed, then,
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

a survey about refunding, implemented to exporters in Antalya, arising from the general
export status and exceptions in export VAT will be involved.
2.IMPORTANCE OF VAT IN TURKISH TAX SYSTEM
There have been many definitions of the tax until today. Tax, as a word, means “Impot” in
France, and mainly is a Turkish term. It means generally gifted, disinterested given value.
However, they are values as participation shares to public spending given by taxpayers to the
government (SAYAR; Nihad Public Finance - Public Expenditure and Income Principles I-II,
Sermet Printing House, Istanbul, 1970, pg.77) in financial meaning. Taxis defined with
money today although, in financial meaning, it is actually the meaning of material values paid
with money and goods.
VAT, known as sales tax in tax system, is an impersonal, multi-stage, general turnover tax
that grasps of every phase by the time that every stage of the production-consumption and
import chain reach the final customer, received from the sale of the goods, and based on the
increase in value by allow tax cuts. According to first item of TAX legislation numbered
3065, delivery of goods and services fulfillments in the framework of commercial, industrial,
agricultural activities and independent business activities in Turkey are subjected to be
implemented under all kinds of imports of goods and services, and other proceedings.
As follows, the sum of VAT shown in documents are deducted from the sum of VAT shown
in documents like bill etc. that are issued by that firm due to good sales or service fulfillment
during the same period, because of goods and services bought by a firm with documents like
bill etc. from another firms during the taxation period. Affirmative spread between these will
be paid until the evening of 26th of the following month by declared to relevant tax authority
until the evening of 24th of the following month. Negative spread between these will be
transferred to the next period and the sum of VAT shown in documents like bill etc. that are
issued by that firm due to goods or services during the taxation period will be added on the
memorandum in this period.
The essence of VAT is implemented in every stages from production or importation to
consumption of goods and services, that tax value added in each stage. (YILDIRIM; Muhsin,
BAĞRIAÇIK; Atila, Implemented VAT in Foreign Commerce Operations and Accounting ,
Science and Technology Publishing House, İstanbul 2000, page:1).
In our country, principle adopted for international circulation of goods and services is “arrival
country” principle. In other words, it is essential that Turkey is taxed by the countries where
international movement of goods and services originating from Turkey arrived (consumed),
is not taxed by countries where they emanate (produced).
The two main methods, mainly taxation, are implemented in the Turkish Tax System. First of
them is direct taxation group subjected under the name of income during the investigation
of income. Second is indirect taxation group subjected under the name of tax conditions
during spending income. (Essentials of refunding and VAT in import, İGEME – İSO, Joint
Publication, İstanbul 2010, page:1).
The biggest factor crowning The VAT, as an indirect tax, is the mechanism
of reduction feature. The final customer, not the taxpayers who law is not mentioned as,
undertake tax burden of goods or services by means of this reduction system. The
cumulative tax receipt and the additional tax burden on goods and service will be prevented.

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3.EXPORT EXCEPTION IN VAT
It is necessary requirement that goods and services relating to export don’t burden VAT. On
the other hand, competitive chance in international markets of these goods and services will
be reduced. (MAÇ; Mehmet, VAT Implementation Electronic Book, 11th item, page: 3).
Countries tent to sell goods and service to the abroad. In order to ease and increase doing this,
they prepare essential substructure. Exportation are exempted in our country like all the
countries where VAT is implemented.
About exception of exportation, with the 11th item of VAT, exportation transactions will be
subjected to a full exemption; in following 12th item, transactions which would meet the
conditions will be exported. In the following 32th item, it is provisioned that taxpayers will
offsetting VAT that they paid in used certificates from VAT counted (payable), but if this
counted VAT is less than deductible VAT, VAT that we couldn’t deduct will be refunded to
taxpayer within the framework conditions determined by the Ministry of Finance. Therefore,
goods and services subjected to the exportation will disburden of VAT and be vested in the
final customer.
Exportation is exempted in countries where VAT is implemented. In our country, parallel
with EU mandates, some principles are adopted during the harmonization process of common
tax system in the unity. One of them is a destination principle (taxation in the country of
destination), adopted by every country where VAT is implemented, goods and services are
subjected to VAT in the countries where they are consumed and used. Importation of every
goods and service is taxed in Turkey when exportation of every goods and services that will
consumed in the abroad is extended. Therefore, competitiveness in international markets for
goods and services can be increased and it is prevented that taxpayers and administration do
the same thing twice by solving the double taxing problem. VAT refund system, refunding of
burdens in goods production and procuration, was an important to international competitive
and finance of exporters. Reason of this is that VAT rates differ between countries so that
exportation are extended for VAT is based on this principle. According to destination
principle, VAT burden on goods that were bought by tourists from Turkey to their countries
and will be consumed in their countries should be vanished. Because, goods that are bought in
such a way in Turkey, and received to abroad should be appraised as exportations, and this
way
in
literature
as
a
term
is
named
as
“retail
exportation”(ÜNALAN;Sedat,http://www.yaklasim.com/mevzuat/dergi/makaleler/199508588
.htm).
Parallel
with
the
international
implementation,
in
our
country,
(http://www.gib.gov.tr/index.php?id=1028);








Refunding of VAT that was paid to exported goods. (VAT , 32th )
Making arrangement to provide exporter buy goods without paying VAT(VAT,
11th/1)
Not computing VAT in refunding relating to exportation (VAT, 11th / 1-a)
With them, exempting exported goods from VAT completely, that means, provisions
providing exceptional implementation are involved in VAT. Therefore, goods and
services exempted from VAT will be subjected to VAT in arrival country. On the
other hand, according to 11th /11-c item of VAT,
It is provided in some conditions that exporter can get goods without paying VAT, and
get rid of having deal with tax refunding.
It is enabled that importer can get VAT that he couldn’t get from exporter from tax
office, and get rid of finance burden by means of billing with VAT and showing this
in his memorandum, and postponing VAT debts with interest free, in fact, offsetting to

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



the other tax debts or in cash this money if he does not pay the debt or the money is
less than probation.
(http://www.divandenetim.com.tr/Makaleler/Details.aspx?MakId=69f68255-0afb4ef4-9564-eb490b78aa1).

4.EXPORTATION ANALYSES IN OUR COUNTRY
Sectors of commodities that are subjected to foreign-trade; agriculture, industry, and mining.
In 2011, the sum of exportation in Turkey have reached 134.571.338 Thousands of USD , the
maximum exportation is in 111.537.870 Thousands of USD in industry sector, second is
17.887.224 Thousands of USD in agriculture sector, and the last is 3.876.383 Thousands of
USD in mining sector. (http://www.tim.org.tr/tr/ihracat-ihracat-rakamlari-tablolar.html).
The maximum contribution to being the maximum exportation sector of Industry is industry
products. In this subtitle, automotive industry has 15,16% of exportation in our country.
(http://www.tim.org.tr/tr/ihracat-ihracat-rakamlari-tablolar.html).
All sector figures that we get is comprised of 13 Exporter Associations General Secretaries
and 61 Exporter Associations in General Secretariats. Each General Secretariat has different
business segment; and it has total 24 different business segments. Exporter Associations
which its members are exporters service as institutions connected with Turkish Republic
Prime Ministry Undersecretariat of Foreign Trade.
According to information in 2011, association that has maximum exportation in Exporter
Unions is Istanbul Mine and Metal Exporters' Association with 37.711.868 Thousands of
USD that has 1/3 of the whole exportation, and association that has minimum exportation is
Antalya Exporters Association with 1.073.591 thousands of USD and 0.8% contribution and
it is the last of the list.(http://www.tim.org.tr/tr/ihracat-ihracat-rakamlari-tablolar.html).
According to information about geographic area in 2011, we exported mostly to Europe. This
found seems to be on the basis of the countries we export mostly. As follows, the first four
countries that we export mostly are the countries that have the largest economy of Europe. We
export mostly to Germany with 13.882.788 thousands of USD, 10.41%, and respectively UK,
Italy and France. At the sum, Turkish products are exported to 229 different countries, pieces
of land not declaring independence, or island communities.(http://www.tim.org.tr/tr/ihracatihracat-rakamlari-tablolar.html).
Any other numerical information that should not be overlooked is increase variety of sector
and country in exportation. This increase is very important to exhibit stable export
performance with decreasing problems that may be in external demands. When looking at
contribution of the first ten exported sectors, there is an increasing variety of products. In fact;
contribution of the first ten sectors of 66 sub sectors in the exportation is 73.8% in 1996, but it
is 65.6% in 2011. In addition, the another method is to look at equivalent sector number in
order to observe change in sectoral variety. Equivalent sector number gives the number of the
main sectors with equivalent contribution to the whole exportation by excluding unimportant
sectors with minor contribution to the exportation. Equivalent sector number is 11 in 2000,
but it is 18 in 2011. (http://www.tuik.gov.tr/Start.do).
After the 2001 crisis, there was reduction in equivalent sector number, and after 2008 global
crisis, there was increase in variety of our exportation. (ÖZLALE; Ümit, CUNEDİOĞLU; H.
Ekrem, Turket Exportation Performance 2: Variety of the basis of sector, Competitiveness
and Adaptation, Economic Policy Research Foundation of Turkey (TEPAV), Ankara 2011).

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5.SAMPLE OF ANTALYA CITY
It can be understood that Antalya is not only a tourism city when information in Table 1 is
examined. In addition to tourism, there are mainly fruit, vegetable and cut flower crops;
industry products mainly cement and iron; mining. To sum up, in addition to city center and
tourism, agriculture and industry was also developed.
TABLE-1: Exportation in Antalya City on the Basis of Sectors (2011)
SECTOR

EXPORTATION (USD)

Wood and Forest Products

77.264.878,18

Cement and Soil Products

15.461.467,49

Valuable Mine and Jewelry

9.311.771,28

Iron and Steel Products

18.225.319,94

Ferrous and Non-Ferrous Metals

19.671.854,44

Leather and Leather Products

23.887.470,28

Other Industrial Products

2.933.431,84

Electricity – Electronics

8.806.940,64

Hazelnut and Products

18.255,59

Ship and Yacht

2.808.782,75

Carpet

242.045,68

Clothing and Apparel

18.577.734,26

Cereals, Pulses, Oil Seeds and Products

21.697.295,84

Chemicals and Chemical Products

88.393.127,25

Dried Fruits and Products

312.435,76

Mining and Metals

154.697.026,55

Machinery and Parts

25.303.093,17

Fruit and Vegetable Products

22.475.160,48

Fisheries and Livestock Products

12.095.172,50

Ornamental Plants and Products

31.501.890,84

Automotive Parts and Supply Industry

7.254.041,52

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

Textile and Raw Materials

43.977.145,17

Fresh Fruits and Vegetables

403.389.262,78

Olive and Olive Oil

444.394,38

TOTAL EXPORTS IN ANTALYA

1.008.749.998,61

SOURCE: http://www.tim.org.tr/tr/ihracat-ihracat-rakamlari-tablolar.html
According to information in 2011, total exportation is 133.301.459.479,77 USD. Istanbul has
the maximum exportation with 59.048.557 thousands of USD in the basis of the cities, and
respectively Bursa and Kocaeli. Antalya, area where research was made at the end of the
survey, has 1.008.749 Thousands of USD and it is 16th city in exportation.
(http://www.aib.org.tr/html/).
5.1.SURVEY
The purpose of this survey is to evaluate exportations and problems in duration of exportation
in Antalya that contributed to exportation in our country by operating at the large area from
the mining products to service exportation; agricultural products to industry. During the study,
the main questions of sought answers are towards the intended targets.
• What are the qualifications who carry out export activities?
• What are the characteristics of firms that carry out export activities?
• What do firms care except the financial income when firms export cares what?
• What problems are seen frequently in the process of export?
• What obstacles firms encounter the collection of export exemption arising from the
VAT refund?
• What aspects of Antalya are the advantages and disadvantages for export?
In order to answer these questions, this survey was prepared and exportations in Antalya were
tried to examine. 34 questions were directed to the exporters. This survey was sent to the
2.083 subjects (universe) via electronic message and 115 of them turned back (sample).
Interpretation was prepared from these information to general. These participants were not
chosen random, and it was tried to reach all the exportation firms. (simple random sampling)
Here, it is wanted to help to get electronic mail of firms from professional chambers and
associations.
It should not be underestimated that attendance of exportation firms’ owners, their
shareholders or employees is 5.52%. Time period that survey was done is the period when
implementation of Some of the Restructuring of the Public Debt, and Social Insurance and the
other General Health Insurance Law on Amendments to Some Laws and Decree Law. When
this arrangement that a lot of companies benefit from is considered to make workload
difficult, it can be said that this rate is too much and it is enough to induct.
5.1.1.SURVEY RESULTS
Increase in exportation in our country since integrating European Customs Union in 1996
affected positively exportation in Antalya. Total exportation was increased 315% in the last
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�3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

10 years, and exportation in Antalya was increased 706% so it gained acceleration 2 times
higher than total exportation in the country.
TABLE-2: Last 10 Year Analysis of Antalya and Turkey Exportations (Million USD)
YEARS
2002

2
2003

2
2004

2
2005

2
2006

2
2007

6.059

3
7.252

4
3.167

6
3.476

7
5.534

8
1
1
1
1
1
07.271 32.027 02.135 13.682 30.769

60

1
22

2
56

2
89

3
39

4
48

TURKEY

ANTALYA

2
2008

6
90

2
2009

8
13

2
2010

8
.130

2
2011

1
.009

2

1

SOURCE: Turkey Exporters Assembly (www.tim.org.tr)

As the table suggests; hypothesis of “A couple of exportation enterprise in Antalya are the
special exporters in first Mediterranean Sea, then Turkey, and then World in the immediate
future by getting rid of structural problems; or with human capital, organizational capital,
external capital, and exportation performances.” is realistic. As the same, being 500 billions of
USD of our total exportation of TİM in 2023 is not a dream.
6.RESULT AND EVALUATION
These findings are gotten by comparing 34 questions in survey to exportation firms with each
other.Because 66% of attendants in survey says that 500 billions of USD goal is difficult
reach under these current conditions, entrepreneur to export the administrative authority
should be encouraged like free of charge in accommodation. In survey, being 54% of rate of
firm without gadgets in foreign language is because of that 54% of them is comprised from
enterprises that like KOBİ (Small and Medium Sized Enterprises) enterprises providing
interim good to large companies rather than exporting their own brand. Another consequential
result is 59% of real and legal persons dealing with exportations in Antalya are not interested
in the relating activities. In this case, firms can’t know developments relating to their fields
and Ar-Ge (R&amp;D), and if they are going to behave like that, unavoidable results will appear
day after day. However, attending enterprises with their own sectors and activities related to
exportation will affect positively in a city with Expo exhibition and convention area.
In the survey results, enterprises with exportation activities are mostly KOBİs. A lot of
KOBİs begin to export because they emulate the other KOBİs or the foreign customer wants
to goods from them. In this case, KOBİs are not completely related to scientifical facts of
exportation. Most of KOBİs don’t know their rivals, how much rivals they have, whether they
have any rival or not.
In the results of the survey, 60% of attendants complain about plenty of bureaucratic
processes and its loginess in refunding of VAT. In order to solve this problem, number of
physical controls should be decreased in the custom gates, information technologies should be
benefited more, number of qualified servant should be increased and recommended that they
should work more efficiently.
Encouragement implementations like encouragement models in developed countries should
be insurance, guarantee, Ar-Ge, quality control and credit instead of financial encouragements
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because directly given government supports make exporters lazy. However, encouragements
integrated to the various stages of exportation may direct them to new pursuits.
It is recommended that certificate system carried out by the authorities of EU countries is
going to be on the electronic system after 2017(TİM, December Europe Agenda, 2010,
page:18). Therefore, it is expected that decreasing bureaucracy that exporters always
complain and saving time and labor.
As a result, exportation enterprises in Antalya are enterprises that are not professional, and
can’t stand on its own legs; but have potential for the future.
BİBLİOGRAPHY
İGEME Essentials of refunding and VAT in import– İSO, Joint Publication, İstanbul 2010,
page:1
MAÇ; Mehmet, VAT Implementation Electronic Book, 11th item, page: 3
ÖZLALE; Ümit, CUNEDİOĞLU; H. Ekrem, Turket Exportation Performance 2: Variety of
the basis of sector, Competitiveness and Adaptation, Economic Policy Research Foundation
of Turkey (TEPAV), Ankara 2011
SAYAR; Nihad Public Finance - Public Expenditure and Income Principles I-II, Sermet
Printing House, Istanbul, 1970, pg.77
TİM, December Europe Agenda, 2010, page:18
ÜNALAN Sedat, http://www.yaklasim.com/mevzuat/dergi/makaleler/199508588.htm
YILDIRIM; Muhsin, BAĞRIAÇIK; Atila, Implemented VAT in Foreign
Commerce Operations and Accounting , Science and Technology Publishing House, İstanbul
2000, page:1
http://www.gib.gov.tr/index.php?id=1028
http://www.divandenetim.com.tr/Makaleler/Details.aspx?MakId=69f68255-0afb-4ef4-9564eb490b78aa1
http://www.tim.org.tr/tr/ihracat-ihracat-rakamlari-tablolar.html
http://www.tim.org.tr/tr/ihracat-ihracat-rakamlari-tablolar.html
http://www.tim.org.tr/tr/ihracat-ihracat-rakamlari-tablolar.html
http://www.tim.org.tr/tr/ihracat-ihracat-rakamlari-tablolar.html
http://www.tuik.gov.tr/Start.do
http://www.tim.org.tr/tr/ihracat-ihracat-rakamlari-tablolar.html
http://www.aib.org.tr/html/

208

�</text>
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                <text>The Export Exceptional Application In Means Of Value Added Tax: The Example Of  Antalya</text>
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                <text>Purpose of this study is constituted by the exceptional VAT applied in export activities and  the lineal and rudiments related to the rejection mechanism process. The exception included  into this study, the one concerned with the exception are initially those real and legal persons  involved in export activities in domestic borders and abroad, secondly the accountants of  these persons, Public Accountant Members and finally the public closely related to the  subject. Therefore; Value Added.  Tax (VAT) is of great importance in means of tax collection in the Turkish Tax Structure. The  11th and 12th articles within the relative Law subjecting to the “export exceptions” and the  32nd article subjecting the discount applied to the process related to the exceptions are of  great importance within the scope of the VAT.  In the final division of the study there is a survey applied to the companies that realize export  in Antalya in order to gain general information about the companies and the issues faced  related to the reject mechanism of VAT that rise from the export realized by these companies.  In general; it is noticed that most of the exporting companies in Antalya constitute of Small  and Medium Size Enterprises and that they are generally complaining about the mass of  official procedures and about the processes realized very slow.  Keywords: Export Realized in Antalya, The Application of Exceptions in Export, Value  Added Tax, Export Survey</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
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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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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).
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�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

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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.
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�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.

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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
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                <text>Measurement Of The Competitiveness Of Turkey : Eu Countries, 1980-2010 Period  Comparison</text>
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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>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

Investigating Patient-Doctor Communication And Perceived Health Service Quality

Sezgin Irmak1, Mehmet Özer Demir2
1Akdeniz University, Alanya Faculty of Business, Alanya/Antalya, Turkey
2Akdeniz University, Alanya Faculty of Engineering, Alanya/Antalya, Turkey
E-mails: sezgin@akdeniz.edu.tr, mozerdemir@akdeniz.edu.tr

Abstract
Despite medical technologies developed for diagnosis and treatment, medical care still
depends on effective communication between the patient and the doctor that the doctor and
the patient exchange information amongst. Effective patient–doctor communication is
recognized as essential by health care providers and the patients for high quality medical
care. Patient-doctor communication has been shown to be linked to improved patient
outcomes. This paper researches the differences between the perceptions of patients and
doctors about their communication and health care services. The research may determine the
communication needs both from patients and the doctors. Examining differences between the
perceptions of patients and doctors about their communication could lead to improve quality
of health care services. As the focus of today’s health system is the patient, patient-doctor
communication should be researched for improved health care outcomes. Communication in
the delivery of health care services occurs between health care service providers and the
patients, but this study is limited to patient-doctor communication.

Keywords: health care sector, communication, health service quality, patient, doctor

1.INTRODUCTION
Patient-doctor communication is an important subject for researchers because it is expected
that effective patient-doctor communication leads to desired patient outcomes and fewer
complaints from patients (Weiner et al., 2005). It is obvious that effective communication is
essential in health care services as communication provides the primary means for the
diagnosis and treatment of the disease, the treatment of the illness, and the prevention of
many health problems (Wasserman and Inui, 1983). The whole health care system revolves
around the communication between the patient and the doctor, without it, any health system
will not work. Communication is the start kick of all the health services. Moreover, patientdoctor communication ties both parties by building a relationship. Patient’s problems can be
identified more easily with clear and precise interaction between the doctor and the patient.
Patient-doctor communication is a two-way communication problem; doctor’s working under
time pressure and insufficient communication skills on the one hand, patients with low
77

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

awareness and education levels and status gap between the doctor and the patient on the other
hand may cause miscommunication practices. It may be the goal of any doctor to serve the
highest number of patient, however patients may demand favorable interpersonal relationship
with the doctor. That is another aspect of patient-doctor communication which makes it an
important element in health care. For the doctor, effective communication is necessary for
diagnoses and treatment; for the patient, effective communication provides understanding of
his/her health status which may reduce uncertainty, anxiety, and resulting in improvement in
health status (Weiner et al., 2005).
It is a common patient complaint that they do not understand the doctors. Doctors work under
time pressure meanwhile they have to meet expectations of patients such as explaining the
diagnosis and educating the patient about therapeutic procedures. The importance of patientdoctor communication is recognized by the doctors themselves; as it is shown to be linked to
improved patient outcomes, ranging from blood pressure control, medication adherence and
patients’ mental health scores, to diabetes management and lower rates of malpractice suits
(Davis, 2010). Good communication may be the best medicine, however patients still report
dissatisfaction with the patient-doctor communication quality.

2.PATIENT-DOCTOR COMMUNICATION
In many studies, doctors and patients are studied as if living in separate worlds (Kenny et al.,
2010). Previous studies researching patient-doctor communication mostly approached the
communication process from the doctors’ point of view, and have sought to discover patients’
views of doctor communication behaviors. Often, such examination has focused on four
major doctor behaviors (Leckie et al., 2006).
Technical behavior (for example, information giving),
Affective behaviors which may be related to personal attributes of particular doctors (for
example, non-verbal behavior and friendly verbal utterances),
High controlling doctor behavior (for example, biomedical talk only),
Low controlling doctor behavior (for example, where patients are encouraged to ask
questions).
Most of the studies only consider service givers’ (doctors, nurses, staff etc.) point of view
(Franz, 2000). However, many patients prefer encounters that their participation is involved
(Leckie et al., 2006). Researchers stated that doctor–patient relationships can be problematic,
with negative consequences for patients including higher levels of anxiety, distrust of medical
providers, dissatisfaction with healthcare and lower quality of life, meanwhile, effective
doctor–patient interaction has been shown to be related to patient satisfaction with medical
care, favorable attitudes towards doctors, recall and understanding of information,
compliance with recommendations, adherence to treatment, improved emotional state, and
overall health status (Allen et al. 2001).

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

Sanchez (2001) researched communication between doctors and patients and stated that
communication education should be given to the doctors to improve their communication
skills. Communication skills are an essential component of medical competence. Moreover,
good doctor–patient communication can lead to lower utilization of health care resources
(Veldhuijzen et al., 2007). Clever et al. (2008) studied the relationship between doctors’
communication behaviors and patients’ overall satisfaction with hospital care and found a
significant positive relationship between overall satisfaction and overall communication
quality. Other authors studied health literacy in doctor-patient communication (Koch-Weser
et al., 2010), communication processes in the primary care (Weiner et al., 2005) and culture’s
role on patient-doctor communication (Kim et al., 2000).
Effective doctor patient communication is shown to be highly correlated with patient
satisfaction. The key elements of patient satisfaction include doctors to be friendly,
concerned, and to spend time for questions and explanations. Patients tend to be more
satisfied with their medical care when they communicate with doctors (Bertakis et al., 1991).

3.METHODOLOGY AND RESEARCH
3.1. Research Instrument
Research data collection tool is developed using previous studies on patient-doctor
communication (Leckie et al., 2006; Street et al. 2007; Campbell, 2007; Kenny et al. 2010;
Davis, 2010), however because of cultural differences items are adopted. The items are asked
both to the patients and to the doctors in such a way that they reflect both parties viewpoint
on the same subject. The final questionnaire consists of 21 Likert Type items and 12
questions for demographics. The research took place in Antalya, in October 2011. A total of
89 questionnaires are collected; 48 doctors and 41 patients are involved in the study.
Analysis and the Results
This study aims to determine the differences between the perceptions of the patients and the
doctors about their communication and the quality of health care services. Thus, independent
samples t-test is considered to be the most appropriate statistical analysis method. Items
measuring the perceptions about patient-doctor communication are taken as test variables and
the doctor-patient status is taken as the grouping variable. Results of the independent samples
t-test are given in Table 1. Statically significant results are marked with one or two stars
according to their significance levels.
Patients are found to perceive more communication problems, complaining that doctors
regard patients as customers and feel need to consult another doctor. However, doctors claim
on the contrary.
Meanwhile, doctors claim that they spend enough time for the patients, support required
health care information, and claim themselves as sensitive to patients’ culture, religious
beliefs and traditional beliefs, patients viewpoint are quite the opposite.

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The common points both the doctors and the patients agree are the existence of
communication problem between the doctors and the patients, feeling uncomfortable using a
third person in doctor-patient communication, existence/absence of informative brochures,
health care systems disability to cover patients’ culture, religious beliefs and traditional
beliefs, trust towards overall health care system, trust towards doctors, and doctors do not
make discrimination among the patients.
Table 1: Independent Samples t-test Results
Questionnaire Items

Mean

S.d.

D1. I am having communication problem with the patient

2.11

1.165

P1. I am having communication problem with the doctor

2.73

1.517

D2. It is disturbing to communicate with the patient via third
person

3.13

1.196

P2. It is disturbing to communicate with the doctor via third
person

3.03

1.530

D3. I allocate enough time for diagnosis even if the patient
communicates via third person

3.65

1.062

P3. Doctor allocates enough time for diagnosis even if I
communicate via third person

3.07

1.439

D4. I allocate enough time to explain the diagnosis and tests
even if the patient has problems in understanding

3.77

.994

P4. Doctor allocates enough time to explain the diagnosis and
tests even if I have problems in understanding

2.78

1.250

D5. I am having problems in explaining about the patient’s
health status

2.69

1.345

P5. Doctor is having problems in explaining about my health
status

2.36

1.367

D6. I allocate enough time to explain treatment, medicines, and
potential risks

3.58

1.182

P6. Doctor allocates enough time to explain about my treatment,
medicines, and potential risks

2.70

1.344

D7. The patient has an easy access to written and visual
materials about their health in the hospital

3.40

1.245

P7. I have an easy access to written and visual materials about
their health in the hospital

2.80

1.244

D8. The patient can easily understand various brochures on
health

3.11

1.233

80

t

P

-2.183

.032*

.340

.735

2.156

.034*

4.055

.000**

1.113

.269

3.280

.001**

2.256

.027*

.484

.630

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

P8. I can easily understand various brochures on health

2.98

1.332

D9. Health system is designed in convenience to the patient’s
beliefs, culture, religion, and traditions

2.98

1.207

P9. Health system is designed in convenience to my beliefs,
culture, religion, and traditions

2.49

1.075

D10. Health system does not consider the patient’s beliefs

2.52

1.260

P10. Health system does not consider my beliefs

2.82

1.485

D11. I show respect that different patients may have different
cultures when providing health care services

2.83

1.310

P11. Doctors show respect that different patients may have
different cultures when providing health care services

2.54

.996

D12. I meet my patients’ expectations related to their culture
and traditions

3.54

1.129

P12. Doctors meet my expectations related to my culture and
traditions

2.21

.864

D13. I take my patients’ religious beliefs into consideration

3.56

1.165

P13. Doctors meet my religious beliefs into consideration

2.65

1.231

D14. I am worried that my patients may not consider the
scientific diagnosis and treatment

2.79

1.148

P14. I don’t consider the doctors’ diagnosis and treatment
advices at all

2.53

1.350

D15. I regard the patients as customers

2.06

1.295

P15. Doctors regard the patients as customers

3.61

1.001

D16. I don’t make any discrimination among my patients

3.45

1.501

P16. Doctors don’t make any discrimination among the patients

3.30

1.392

D17. Overall health care services in my town are satisfactory

3.35

1.101

P17. Overall health care services in my town are satisfactory

3.23

1.349

D18. In general, doctors in this town are qualified

3.21

.944

P18. In general, doctors in my town are qualified

81

3.27

1.323

2.002

.048*

-1.004

.318

3.588

.001**

6.084

.000**

3.565

.001**

.985

.328

-5.960

.000**

.468

.641

.495

.622

-.249

.804

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

D19. There is no need for the patients who consulted a doctor
in this town, to consult another doctor elsewhere

3.04

P19. There is no need for me to consult another doctor
elsewhere after I consulted a doctor in my town

3.63

1.157

D20. Overall health care services in Turkey is satisfactory

3.58

1.028

P20. Overall health care services in Turkey is satisfactory

3.61

1.202

D21. Doctors in Turkey are qualified in general

3.80

1.079

P21. Doctors in Turkey are qualified in general

3.59

1.360

1.202
-2.358

.021*

-.112

.911

.814

.418

* Statistically significant at P &lt; 0.05, ** statistically significant at P &lt; 0.01

4.CONCLUSION
Communication between the doctor and the patient which they exchange information is the
start of the health care services. Effective patient–doctor communication is recognized as
essential by healthcare providers and patients for high quality medical care. Patient-doctor
communication has been shown to be linked to improved patient outcomes (Davis, 2010).
Exploratory in nature, this paper researches patient-doctor communication and aims to
determine the differences between the perceptions of patients and doctors about their
communication and the quality of health care services, hoping that reduced communication
gap may lead to improve the overall quality of health care services.
This research exhibits that there are differences between the perceptions of patients and
doctors about their communication and the quality of health care services. The problematic
areas are highlighted in the study. Patients perceive more communication problem,
complaining that doctors regard patients as customers and feel that they need to consult
another doctor. Meanwhile, doctors claim that they spend enough time for the patients,
support required health care information, and claim themselves as sensitive to patients’
culture, religious beliefs and traditional beliefs.
In practice, the results of this research exhibit the need for improved communication skills for
doctors. Thus, communication skills should be considered as an important element in
medicine education. Although communication may be the medicine itself, doctor-patient
communication in education of medicine seems to be insufficient. Communication lectures
should be included in health education programs in order to improve the communication
skills of the health care service providers. Also, communication skills can be used as an
essential component in competition when providing health care services. As the
communication skills cannot be easily copied, doctors with communication skills can provide
sustainable competitive advantage in health care organizations.

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The study has several limitations. First, as the study took place in Antalya, the sample should
be broadened in the future studies in order to support generalization. Second, patient-doctor
communication requires mutual relationships between the patient and the doctor; however
there are other parties involved in health care services. Third, patient-doctor communication
and perceived overall health care quality may be effected by other variables not examined in
this study including the patient’s psychological and health status, doctors’ specialty, and
health care facility itself.

REFERENCES
Allen, S. M., Petrisek A. C., &amp; Laliberte, L. L. (2001). Problems in doctor–patient
communication: the case of younger women with breast cancer. Critical Public Health 11(1).
Bertakis, Roter, D. L. &amp; Putnam, S. (1991). Interview style and patient satisfaction. The
Journal of Family Practice, Vol 32(2), 175-181.
Campbell, C., Lockyer, J., Laidlaw, T. &amp; MacLeod, H. (2007). Assessment of a matched-pair
instrument to examine doctor)patient communication skills in practising doctors. Medical
Education 41: 123–129.
Clever, S.L., Jin, L., Levinson, W. &amp; Meltzer, D.O. (2008). Does Doctor–Patient
Communication Affect Patient Satisfaction with Hospital Care? Results of an Analysis with a
Novel Instrumental Variable. HSR: Health Services Research 43:5.
Davis, D.L. (2009). Simple but not always easy: Improving doctor–patient communication.
Journal of Communication in Healthcare Vol. 3, No: 3-4, 240-245.
Davis, D.L. (2010). Simple but not always easy: Improving doctor–patient communication.
Journal of Communication in Healthcare, Vol. 3, No: 3-4.
Franz, P., (2000). Language Barriers in Vienna Hospitals. Ethnicity &amp; Health Vol. 5, Issue 2,
113-119.
Kenny, D.A., Veldhuijzen, W., van der Weijden, T., LeBlanc, A., Lockyer, J., Le´gare´, F. &amp;
Campbell, C. (2010). Interpersonal perception in the context of doctor–patient relationships:
A dyadic analysis of doctor–patient communication. Social Science &amp; Medicine 70, 763–768.
Kenny, D.A., Veldhuijzen, W., van der Weijden, T., LeBlanc, A., Lockyer J., Le´gare, F. &amp;
Campbel, C., (2010). Interpersonal perception in the context of doctor–patient relationships:
A dyadic analysis of doctor–patient communication. Social Science &amp; Medicine, 70, 763–
768.
Kim, M., Klingle R.S., Sharkey W.F., Park, H.S., Smith, D.H. &amp; Cai, D. (2000). A test of a
cultural model of patients’ motivation for verbal communication in patient-doctor
interactions. Communication Monographs Vol. 67, No: 3, 262-283.
Koch-Weser, S,. Rima E., Rudd, R.E. &amp; Dejong, W. (2010). Quantifying Word Use to Study
Health Literacy in Doctor–Patient Communication, Journal of Health Communication,
15:590–602.
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Leckie , J. Bull, R. &amp; Vrij, A. (2006). The development of a scale to discover outpatients’
perceptions of the relative desirability of different elements of doctors’communication
behaviours. Patient Education and Counseling 64, 69–77.
Leckie, J., Bull, R. &amp; Vrij A., (2006). The development of a scale to discover outpatients’
perceptions of the relative desirability of different elements of doctors’ communication
behaviors. Patient Education and Counseling, 64, 69–77.
Sanchez, M.M. (2001). Effects of assertive communication between doctors and patients in
public health outpatient surgeries in the city of Seville (Spain). Social Behavior and
Personality 29 (1), 63-70.
Street, R.L. Jr., Gordon, H. &amp; Haidet, P. (2007). Physicians’ communication and perceptions
of patients: Is it how they look, how they talk, or is it just the doctor? Social Science &amp;
Medicine 65, 586–598.
Veldhuijzen, W., Ram, P.M., van der Weijden, T., Wassink, M.R. &amp; Van der Vleuten,
C.P.M. (2007). Much variety and little evidence: a description of guidelines for doctor-patient
communication. Medical Education 41, 138–145.
Weiner, S.J., Barnet, B., Cheng, T.L. &amp; Daaleman, T.P. (2005). Processes for Effective
Communication in Primary Care. Annals of Internal Medicine Vol. 142, No: 8.

Within The Concept Of Sustainable Tourism, Certification And Eco-Labelling Systems
In Accommodation Management: The Case Of Alanya/Manavgat

Özyurt Paşa Mustafa1, Üngüren Engin1, Kalipçi Mehmet Bahadır2, Guclü, Caner1
1Faculty of Business, Alanya, Turkey
2Manavgat Vocational School

Abstract
Tourism sector which has started to increase in size since the second half the 19th century has
become an important industry in the world due to its economic and social effects.Tourism’s
economic profits have caused to not only management support but also local and national
support in promoting tourism’s development and investments. However, this fast and
planless growth has caused to bad results. The attention has been drawn to the fact that
natural sources are being using up fast and that has brought new tourism terms and alternative
tourism types which are compatible with nature. Under the roof of sustainable tourism,
tourism which is sensitive to environment and local cultures has predicted that all tourism
types can be sustainable if the specific rules are followed. Sustainable tourism’s essential
84

�</text>
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                <text>Despite medical technologies developed for diagnosis and treatment, medical care still  depends on effective communication between the patient and the doctor that the doctor and  the patient exchange information amongst. Effective patient–doctor communication is  recognized as essential by health care providers and the patients for high quality medical  care. Patient-doctor communication has been shown to be linked to improved patient  outcomes. This paper researches the differences between the perceptions of patients and  doctors about their communication and health care services. The research may determine the  communication needs both from patients and the doctors. Examining differences between the  perceptions of patients and doctors about their communication could lead to improve quality  of health care services. As the focus of today’s health system is the patient, patient-doctor  communication should be researched for improved health care outcomes. Communication in  the delivery of health care services occurs between health care service providers and the  patients, but this study is limited to patient-doctor communication.  Keywords: health care sector, communication, health service quality, patient, doctor</text>
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                    <text>3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo

The Role Of Innovation In The Development Of South Korea
Sibel Yegül, Ayse Durgun, Dilek Memisoglu
Abstract
In recent years, innovation and innovative science have completely become a manufacturing
factor. Countries which comprehended the importance of innovation activities earlier than others
and which developed their policies accordingly are now among developed countries. And, South
Korea has become one of the most important ones of these countries.
The subject of this study covers the South Korean economy, the role of innovation in the
development of South Korea and development processes of innovation in South Korea.
Keywords: Innovation, South Korea, Development, Development Processes
1.INTRODUCTION
Economic growth can be achieved in long term mainly through information and innovation of
new technologies. Today, countries with high technology levels are on their way to gain total
control of all economic areas, starting with the industry. In brief, technology has become the
single and the most important determinant of competitive advantage among countries. Therefore,
countries with a technological superiority play a determining role on an international level not
only in the increase of social welfare and life standards but also in the distribution of World's
limited resources.
Innovation has a huge place in the economy and development of South Korea which took its
place among G20 countries. South Korea has understood the importance of innovation at a very
early stage and built its development exclusively on innovation and change processes.
1.1. SOUTH KOREA ECONOMY
After World War II, Paris Peace Treaties were signed as a result of Paris Peace Conference in
1945. Upon the recommendation of Truman, powerless countries were given the chance to
determine their own future. With this decision, South Korea gained its independence like tens of
others. Between the years 1945 and 1953, Korea had a very weak economy and an unsatisfactory
industrial structure. In the course of these years, the most apparent feature of the Korean
economy is the exportation of primary products and importation of manufacturing products. In
this period, almost the whole exportation activity of Korea consisted of agricultural products and
raw materials. (Sung, 1992:77).
Between 1953 and 1962, various economic policies were implemented in order to restructure the
Korean economy, initiate rapid development and eliminate economic stagnation. Despite political
instability and increasing inflation which appeared at that time, targeted economic policies were
453

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applied. Syngman Rhee left his mark on the period between 1945 and 1961 by carrying out ultranationalist policies throughout his mandate. (Koo and Kim, 1992:123)
South Korea led its economic development in accordance with five year-development plans. The
first of such plans came into effect in 1962. Initially, the State made common cause with private
sector and gave particular importance to big private sector companies. In the beginning,
development of big companies was facilitated in order to improve foreign trade and then, the
attention was redirected to the development of small and medium enterprises within the
framework of implemented policies. (Karabiber, 1997:2)
When Korea decided to prioritize exportation-oriented industrialization in 1960, companies
which were supposed to do it adapted their organization to these new strategies under the
conditions of that period. In addition to this, adequately trained, highly motivated and wellprepared workforce took its place in this rapid development, too. In 1960, the State tried to build
its economic policies and choices on five principals. These principals included development of
highly qualified workforce, stable and regular marcoeconomic policies, creation of efficient and
secure financial markets, minimization of price fluctuations, development of agricultural sector
and importation of foreign technologies. Intervening measures determined by the State for the
success of economic policies include export promotion, control of financial markets, causerelated direct credits, discriminative and different supporting stimulus measures. Furthermore, the
success of basic economic policies had depended on such different factors as protection of
technicians and bureaucrats from political abuse by selection and employment of well-trained
professionals, restructuring of the State organization, continuous follow-up of objectives
predefined within the State's basic economic policies and industrialization strategy as well as
timely and appropriate realization of corrections (TÜSİAD (Turkish Industrialists' and
Businessmen's Association), Görüş Dergisi (Görüş Magazine), 1996: 32-36).
Years

Billion Korean Wons

Billion $

Per Capita

Growth Rate

Income in $

454

1993

265,517

330

7,484

5.8

1994

303,772

378

8,467

8.6

1995

348,979

452

10,037

9.0

1996

386,640

480

10,548

6.9

1997

450,853

437

9,511

4.9

1998

443,127

316

6,823

-5.8

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

1999

483,800

406

8,581

10.7

Table 1: General Economic Conditions (1993-1999)
Source: Turkish Embassy of Seoul, Trade Consultancy Office,http://www.musavirlikler.gov.tr Access Date, January
25, 2012)

Table 1 displays general economic conditions of South Korea between the years 1993-1999.
While the growth rate in 1993 is 5.8%, it progressively increased and reached 9.0% in 1995.
Even though a certain decrease can be observed in 1995, this rate climbed to 10.7% in 1999.
2. THE ROLE OF INNOVATION IN THE DEVELOPMENT OF SOUTH KOREA
South Korea can be seen as the most striking example in the subject of "keeping up with the
state-of-the-art technology". Korea is one of the eight Asian countries which were indicated by
the World Bank (1993) to experience a "miraculous" growth between 1965 and 1990 and
particularly, the electronics industry had seen a major advancement within these 25 years.
R&amp;D activities have been highly privileged in South Korea. 'They have built research centres,
technology parks and zones where industry and technology come together since 1960' (Kozlu,
1995:29)
2.1. DEVELOPMENT PROCESS OF INNOVATION IN SOUTH KOREA
Innovation activities which have played an important role in the development of South Korea are
analysed under 2 main categories as follows;
R&amp;D Activities
Miraculous economic growth of South Korea and its superior ability in scientific and
technological fields require even more developed and dynamic research and development
activities because the rate of development and growth is very high since 1980. In 1980s, the
government shifted its focus from industrial policies to technological policies. This shift resulted
in a significant increase of R&amp;D expenditure, particularly in the private sector. The share of
private sector in total R&amp;D expenditure increased from 32% in 1971 to 80% in 1987 (Hassink,
2001:8).
South Korea's investments in the field of technology increased twenty times from $480 Million in
1980 to $10 Billion in 2000 while at the same time, the rate of technological investment per
domestic product increased from 0.84% to 2.68%. Even in the middle of foreign currency crises
occurred in 1997-98 and successive economic crises, South Korea had achieved to increase its
R&amp;D investments to USD3.85 billion in 2002, in other words, from 3.6% to 4.7% of total
government budget. The number of scientific and technological experts increased from 18,500 in
1980 to 160,000 in 2000 (South Korea Guide: 16)
455

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

Years

Research
and High-technology
Researchers
in Technicians in
development Expenditure exports (current billion R&amp;D (per million R&amp;D
(per
(% of GDP)
US$)
people)
million people)

1996

2.42

27,416.00

2,209.32

635.47

1997

2.48

31,182.00

2,262.26

581.43

1998

2.34

30,645.00

2,022.51

534.23

1999

2.25

41,080.00

2,173.24

567.33

2000

2.30

53,950.00

2,334.09

456.65

2001

2.47

40,042.00

2,919.01

456.34

2002

2.40

46,600.00

3,022.83

499.02

2003

2.49

57,160.00

3,206.99

570.90

2004

2.68

75,742.00

3,298.11

585.35

2005

2.79

83,526.00

3,780.23

552.31

2006

3.01

92,944.00

4,186.86

586.94

2007

3.21

110,633.00

4,627.16

719.93

Table 2: R&amp;D Indicators between 1996-2007
Source: The World Bank, http://www.worldbank.org/ , Access Date: January 25, 2012)

As can be seen from Table 2, R&amp;D expenditure/GDP rate of South Korea in 1996 was 2.42%
while this rate reaches 3.21% in 2007. High technology exportation amounts to 27 billion Dollars
in 1996 while this amount is 110 billion Dollars in 2007.
Private companies called "Chaebol" contributed to the South Korean economy at a large scale
since they dominate the economy. Especially, 5 big Chaebols possessed the majority of Korean
patents in 1990. Along with the positive influence of R&amp;D on yield, big enterprises planned out a
special management and tended to make expansions in this matter. In 2000, 4 big Chaebols,
Samsung, LG, Hyundai and SK, spent 4,731 billion Korean Wons for R&amp;D activities and this
trend continued in 2001, as well. While private companies made a R&amp;D expansion of 20% in
2000, this rate is only 9% in laboratories, institutes and universities controlled by the government
(Luthria and Maskus: 144)
In 1997, South Korean private sector made the 77% of R&amp;D expenditure of the country and this
trend has persisted afterwards. High-end technology was the main subject of increasingly popular
456

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

R&amp;D investments and a great deal of effort was put into attracting South Korean engineers
working in American companies. Engineers who agreed to return have played a key role in the
learning process and have had positive influences on the yield of research activities of Korean
companies. On the other hand, Korean government contributed to these activities, too, by
following an adequate policy (Luthria and Maskus: 145-146).
2.2.Scientific and Technological Activities:
South Korea is one of the OECD countries which allocate the largest share to R&amp;D from GNP.
But the role of government in the resources allocated to R&amp;D is rather low. Accordingly, finance
and performance are mostly under the control of private sector. It has been observed that
universities put a lot of effort into R&amp;D activities. The number of R&amp;D employees within
universities is at the same level as the European average. Korea takes the fifth position regarding
total patent numbers with a global percentage of 5%. This great number of patents is mostly the
contribution of Chaebols, notably Samsung. Patent percentages;
Samsung Electronics Co. Ltd. (40%)
Daewoo Electronics (9.7%)
LG Semiconductor Co. Ltd (7.2%)
LG Electronics Inc. (6.6%)
Hyundai Electronics Ind. Co. Ltd. (6.5%)
Patent numbers have the foregoing distribution within the country. (U.S. Patent and Trademark
Office Report, 1998: 75).
The government founded in April 1999 the National Science and Technology Council (NSTC) in
order to reinforce the coordination of national scientific and technological policies. The reasons
of foundation of the NSTC include the recent decrease in the number of young people who
choose to build a career on a science or technology-related subject in comparison with previous
years as well as the increase of concern for yield due to high amount of investments in science
and technology. Having the main objective to coordinate essential policies targeting scientific and
technological advancement, to broaden investments in science and technology and to define the
priorities of national R&amp;D programmes, the NSTC targets at the same time to increase the yield
of expansion-oriented R&amp;D activities related to information technology, bioengineering,
nanotechnology, environmental technology, cultural technology and space science. The NSTC is
composed of 19 cabinet members working in the field of science and technology. The president
chairs the council.
The government planned to establish a National Research Scholarship System in order to increase
the motivation of scientists and engineers. Thus, researchers who dedicate themselves to their
work will be rewarded with prizes of the president and will have access to the benefits of a
pension fund thanks to research funds. In addition, the government actively tries to
internationalize the R&amp;D activities of South Korea in terms of the competition among global
R&amp;D networks and currents. As a result of this, Korea incrementally opened its R&amp;D projects to
foreign institutes in order to form a quality research environment for leading foreign investors
and local scientists.
457

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

The government increased basic research investments budget from 19% in 2002 to 25% in 2006
and encouraged 400,000 experts in six nationally strategic fields in 2005 in order to support basic
research activities and highly capable, creative researchers and scientists. These nationally
strategic fields are information technology, bioengineering, nanotechnology and space science as
well as environmental and cultural technologies. This has also permitted to take numerous steps
towards the augmentation of women talents in technological development. Some measures taken
with regard to this subject include women employment, a quota system and positive
discrimination towards women concerning employment in scientific and technological fields.
(Foreign Information Service of Korea, South Korea Guide: 16).
3.CONCLUSION
Innovation stands for the implementation of new methods and practices within cultural, social
and administrative environments. Innovation can be achieved in all fields.
South Korea succeeded in accomplishing a striking development of innovation and attracting
high levels of attention thanks to its economic development.
In 1980s, South Korea saw a rapid technological development in addition to a significant growth
and advancement. Growth and advancement were attained as a result of innovative undertakings
as well as the importance given to education, skills development, human resources and
workforce. The secret to this success consists mostly of their R&amp;D activities, the importance
given to the technology, prioritization of innovation and acceleration of education and
advancement. They have taken important steps in the path of competing with developed countries
and experienced various change processes. The prominent factor of these change processes is the
development of innovation and making a government policy out of it.
South Korea's investments in the field of technology and innovation increased twenty times from
$480 Million in 1980 to $10 Billion in 2000 while at the same time, the rate of technological
investment per domestic product increased from 0.84% to 2.68%.
In 1997, private sector raised its R&amp;D expenditure and initiated investments in high-end
technology. When engineers working in American companies agreed to return, they played a key
role and contributed to the yield of Korean companies. Korean government contributed to this
development by implementing adequate policies, too.
In conclusion, South Korea has built its development strategy upon innovation. And to that end, it
followed other countries like the United States who achieved their development in a similar way.
They have accomplished the learning and development processes thanks to innovation. Big
private business enterprises called Chaebols have gained more and more importance in the
economy, and the State and the private sector have acted in concert with regard to the
development strategy. South Korea is now among those countries which have developed though
innovation.
REFERENCES
Amabile T.; Conti R., Coon H. (1996), et al, "Assessing the Workplace for Creativity", Academy
of Management.
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Cabral R., (1998)"Refining the Cabral-Dahab Science Park Management Paradigm", Int. J.
Technology Management, Vol.16.
Donald W. M. &amp; Bruckner C. (2003), The Ultimate Competitive Advantage: Secrets of
Continually Developing a More Profitable Business Model, Berrett-Koehler Publishers.
Foreign Information Service of Korea, "South Korea Guide".
Görüş Dergisi (Görüş Magazine), (September-October 1996)TÜSİAD (Turkish Industrialists' and
Businessmen's Association).
Hassink R., “Towards Regionally embedded Innovation Support Systems in South Korea?”,
Urban Studies, 00420980, Vol.38, Issue.8, Jul.2001.
Karabiber M. (1997), “Kore Kalkınmasının Temelleri ve Türk-Kore İlişkileri” (Foundations of
the Korean Development and Turkish-Korean Relations), Undersecretariat of Treasury of the
Turkish Prime Ministry, Directorate General of Economic Researches,
Koo H. and Kim E. M. (1992), “The Developmental State and Capital accumulation in South
Korea”, States and Development in the Asian Pacific Rim, London: Sage Publications.
Kozlu, C. (1995), Türkiye Mucizesi İçin Vizyon Arayışları ve Asya Modelleri (Seeking Vision
for Turkish Miracle and Asian Models), İş Bankası Yayınları (Eds.)
Luthria M., Maskus K., “Protecting Industrial Inventions, Authors’ Rights, and Traditional
Knowledge: Relevance, Lessons, and Unresolved Issues”, the World Bank and University of
Colorado at Bouldert.
Osterwalder A.( 2012), http://www.businessmodelalchemist.com/,
Sung M. P., “Korea Leading Developing Nations: Economy, Democracy, and Welfare",
University Press of America, 1992.
The World Bank, http://www.worldbank.org/ , (Access Date: January 25, 2012)
Turkish Embassy of Seoul, Trade Consultancy Office, "General Economic Conditions of the
Republic of Korea and its Economic and Commercial Relations with Turkey", June 2010, Seoul.
Turkish Undersecretariat of Foreign Trade, http://www.musavirlikler.gov.tr, (Access Date:
January 25, 2012).
U.S. Patent and Trademark Office Report, 1998.

459

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                <text>The Role Of Innovation In The Development Of South Korea</text>
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                <text>In recent years, innovation and innovative science have completely become a manufacturing  factor. Countries which comprehended the importance of innovation activities earlier than others  and which developed their policies accordingly are now among developed countries. And, South  Korea has become one of the most important ones of these countries.  The subject of this study covers the South Korean economy, the role of innovation in the  development of South Korea and development processes of innovation in South Korea.  Keywords: Innovation, South Korea, Development, Development Processes</text>
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