239 10 3494 https://omeka.ibu.edu.ba/files/original/3b4bfb2a7e1aa48e7d9e2fa42c76d68d.docx f3fe1455f2a116037178f31a640fe9e3 https://omeka.ibu.edu.ba/files/original/043ce3e6e5d295732da22e658a71df47.pdf ab82ee0627c74c3a17eca64f909fe153 PDF Text Text DETERMINANTS OF CRIME RATE IN EU: A SPATIAL ANALYSIS Gökçe Atlıhan İnce Yavuz İnce ABSTRACT It is essential to ensure peace and security for sustainable development. In recent years, economic and social factors are closely associated with the amount of increased crime, and economic crises increase the amount of crime has become a widespread notion. The purpose of this study is to determine how social and economic factors affect the occurrence of crime, and investigate the effects of the crisis on crime rate. Criminal investigations show that there is significant relation between crime and “place” of the crime. Crime rate shows different distribution characteristics, it decreases in some places, while increases in some places, hence; it is required a spatial perspective. Therefore, Techniques of Spatial Economic Analysis is used in this paper. The promise of using spatial data and analyses for crime control still remains to be demonstrated and depends on the nature of the relationship between crime and place. Theoretical concerns focus on how place might be a factor in crime, either by influencing or shaping the types and levels of criminal behavior by the people who frequent an area, or by attracting to an area people who already share similar criminal inclinations. While the crime rate in the model is the dependent variable, the net migration rate, unemployment rate, education level and per capita gross domestic product will be used as independent variables. Data covers the European Union countries and the year of data is 2010. The effect of these variables is observed to determine the amount of crime and whether or not it comes to a spatial effect is investigated. The relationship between migrations and crime is one of the problems on which for a long time now social research has been concentrating, mainly in countries characterized by important emigrational flows. This paper provides an empirical evaluation of whether one can uncover a link between crimes and, economic and social variables like unemployment rate, education level and per capita gross domestic product using a research methodology, additionally; impacts of last economic crisis on European Union countries are examined. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 2147 Title A name given to the resource DETERMINANTS OF CRIME RATE IN EU: A SPATIAL ANALYSIS Author Author ATLIHAN INCE, Gokce YAVUZ, Ince Abstract A summary of the resource. It is essential to ensure peace and security for sustainable development. In recent years, economic and social factors are closely associated with the amount of increased crime, and economic crises increase the amount of crime has become a widespread notion. The purpose of this study is to determine how social and economic factors affect the occurrence of crime, and investigate the effects of the crisis on crime rate. Criminal investigations show that there is significant relation between crime and “place” of the crime. Crime rate shows different distribution characteristics, it decreases in some places, while increases in some places, hence; it is required a spatial perspective. Therefore, Techniques of Spatial Economic Analysis is used in this paper. The promise of using spatial data and analyses for crime control still remains to be demonstrated and depends on the nature of the relationship between crime and place. Theoretical concerns focus on how place might be a factor in crime, either by influencing or shaping the types and levels of criminal behavior by the people who frequent an area, or by attracting to an area people who already share similar criminal inclinations. While the crime rate in the model is the dependent variable, the net migration rate, unemployment rate, education level and per capita gross domestic product will be used as independent variables. Data covers the European Union countries and the year of data is 2010. The effect of these variables is observed to determine the amount of crime and whether or not it comes to a spatial effect is investigated. The relationship between migrations and crime is one of the problems on which for a long time now social research has been concentrating, mainly in countries characterized by important emigrational flows. This paper provides an empirical evaluation of whether one can uncover a link between crimes and, economic and social variables like unemployment rate, education level and per capita gross domestic product using a research methodology, additionally; impacts of last economic crisis on European Union countries are examined. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-24 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2233-1565 https://omeka.ibu.edu.ba/files/original/fea0cae1404b5b16bcda4fbeda6005b0.docx e5d95b5adb2d626db377204700c7c1af https://omeka.ibu.edu.ba/files/original/e96114614c5c10c78a19c979cd43b67e.pdf 1d0104be3a44c83c0db832615fa42036 PDF Text Text CONCEPT OF ENVIRONMENT, HEALTH AND ENERGY SYSTEMS IN TURKEY Mustafa Alparslan Izmir Katip Çelebi University, Izmir, Turkey m_alparslan@hotmail.com Saniye Türk Çulha Izmir Katip Çelebi University, Izmir, Turkey saniye.turk.culha@ikc.edu.tr Fatih Aksoy Izmir Katip Çelebi University, Izmir, Turkey fatih.aksoy@ikc.edu.tr Hasan Barış Özalp Çanakkale Onsekiz Mart University, Çanakkale, Turkey jacenzo@yahoo.com Keywords: Environment, Renewable Energy, Chernobyl Disaster ABSTRACT Since the Chernobyl disaster in the Black Sea region, it has been understood that environmental problems are not restricted to the countries of their origin. Research has shown that international attention given to the Mediterranean Sea has generated a more positive impact on environmental protection, as com-pared to that of the Black Sea. Industrialization around the Black Sea during the Cold War, a lack of international attention for long decades, and the region’s position since the Second World War as a crucial hub for the transport of the energy produced by Caucasian and Black Sea littoral countries to the energy consuming countries in Europe aggravated the environmental situation in the region. Pollutants created by chemical industries and oil leaking from tankers have caused a decrease in biological diversity. Thus, increased pollution in the sea en-tered the agendas of governmental and non-governmental international/regional organizations and individual states in the last two decades. Unfortunately, after the end of the Cold War and the collapse of the Soviet Union, the main priorities of the newly independent states included neither an increase of biological diver-sity nor a decrease in pollution. As the regional states put their efforts into competing in the international liberal market, they focused on increasing industrialization, trade and economic ties with the energy demanding countries. There are ten wind farms mainly on land clustered together in the west of the country and in the Aegean region, including in Çanakkale, close to the site of ancient Troy, Çeşme, Akhisar and on the island of Bozcaada. Wind powe in Turkey is gradually expanding in capacity. In 2006, 19 MW of wind power was installed, and in 2007, installed wind capacity increased to almost 140 MW. Turkey is set to double the amount of its electricity supplied by wind power with the construction of a wind farm in southeast Turkey which will have an installed capacity of 135 megawatts (MW) when it is completed in 2009. This very important project will use 52 of the latest generation of turbines from GE Energy, each rated at 2.5 MW. Installed wind power is expected �to reach 808.81 MW by the end of 2008.Wind energy potential for Turkey is 58GW. The European Wind Energy Association stated that installed wind power capacity in Turkey at the end of 2009 was 801 MW. A total of 343 MW of capacity was installed in 2009. According to Official Transmission Reports, installed wind power capacity in Turkey at the end of 2010 has increased to 1265 MW. The installed capacity is specified as 1645,30 MW by October, 2011 by the same reports. At the end of 2012 there will be over 80 windfarms in Turkey. At the end of 2012 Turkey will have 2 GWs of installed capacity. The Turkish government has a target of a 20 times increase in wind capacity by 2020. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 2137 Title A name given to the resource CONCEPT OF ENVIRONMENT, HEALTH AND ENERGY SYSTEMS IN TURKEY Author Author ALPARSLAN, Mustafa TURK CULHA, Saniye AKSOY, Fatih BARIS OZALP, Hasan Abstract A summary of the resource. Keywords: Environment, Renewable Energy, Chernobyl Disaster ABSTRACT Since the Chernobyl disaster in the Black Sea region, it has been understood that environmental problems are not restricted to the countries of their origin. Research has shown that international attention given to the Mediterranean Sea has generated a more positive impact on environmental protection, as com-pared to that of the Black Sea. Industrialization around the Black Sea during the Cold War, a lack of international attention for long decades, and the region’s position since the Second World War as a crucial hub for the transport of the energy produced by Caucasian and Black Sea littoral countries to the energy consuming countries in Europe aggravated the environmental situation in the region. Pollutants created by chemical industries and oil leaking from tankers have caused a decrease in biological diversity. Thus, increased pollution in the sea en-tered the agendas of governmental and non-governmental international/regional organizations and individual states in the last two decades. Unfortunately, after the end of the Cold War and the collapse of the Soviet Union, the main priorities of the newly independent states included neither an increase of biological diver-sity nor a decrease in pollution. As the regional states put their efforts into competing in the international liberal market, they focused on increasing industrialization, trade and economic ties with the energy demanding countries. There are ten wind farms mainly on land clustered together in the west of the country and in the Aegean region, including in Çanakkale, close to the site of ancient Troy, Çeşme, Akhisar and on the island of Bozcaada. Wind powe in Turkey is gradually expanding in capacity. In 2006, 19 MW of wind power was installed, and in 2007, installed wind capacity increased to almost 140 MW. Turkey is set to double the amount of its electricity supplied by wind power with the construction of a wind farm in southeast Turkey which will have an installed capacity of 135 megawatts (MW) when it is completed in 2009. This very important project will use 52 of the latest generation of turbines from GE Energy, each rated at 2.5 MW. Installed wind power is expected to reach 808.81 MW by the end of 2008.Wind energy potential for Turkey is 58GW. The European Wind Energy Association stated that installed wind power capacity in Turkey at the end of 2009 was 801 MW. A total of 343 MW of capacity was installed in 2009. According to Official Transmission Reports, installed wind power capacity in Turkey at the end of 2010 has increased to 1265 MW. The installed capacity is specified as 1645,30 MW by October, 2011 by the same reports. At the end of 2012 there will be over 80 windfarms in Turkey. At the end of 2012 Turkey will have 2 GWs of installed capacity. The Turkish government has a target of a 20 times increase in wind capacity by 2020. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-24 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2233-1565 https://omeka.ibu.edu.ba/files/original/1c0ba72410de5017a833f00d38079b99.docx b3c6bd2bc098b819b6493c6f81c8465b https://omeka.ibu.edu.ba/files/original/7925516d61c82e461730c48e98981fd0.pdf 579f53b05a22828628eeae9dd76e4512 PDF Text Text MARINE LIFE AND OFFSHORE ENERGY Mustafa Alparslan Izmir Katip Çelebi University, Izmir, Turkey m_alparslan@hotmail.com Saniye Çulha Izmir Katip Çelebi University, Izmir, Turkey Fatih Aksoy Izmir Katip Çelebi University, Izmir, Turkey fatih.aksoy@ikc.edu.tr Kamil Emre Barış Izmir Katip Çelebi University, Izmir, Turkey k.emre_17@hotmail.com Keywords:Benthos, Offshore Energy, Biodiversity ABSTRACT In fact, there are two environmental processes of renewable energy, oil and gas companies must adhere to when trying to obtain permission for offshore exploration: a detailed assessment of the environmental area, called an Environmental Impact Assessment (EIA), which involves identifying potential threats and dangers to the natural nvironment and sea life, and a detailed plan of how to overcome any potential problems. As investment programme in marine energy increases in this time, there are challenges for new advanced technology to assess and protect the potential damage to marine wildlife.The energy system takes a look at a new passive acoustic monitor, designed to not only improve our understanding of the danger to sea life, but also provide offshore developers with the means to avert unnecessary damage. Development of research methods for studying benthos in tidal rapids: - routine characterisation of communities-biıdiversity - to measure productivity - input to ecosystem models - Determination of functional response of benthic organisms to energy changes through substratum modifications. - Habitat creation/modification/ enhancement potential - Biogeochemical researches of insitu nutrient dynamics/fluxes � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 2082 Title A name given to the resource MARINE LIFE AND OFFSHORE ENERGY Author Author ALPARSLAN, Mustafa CULHA, Saniye AKSOY, Fatih EMRE BARIS, Kamil Abstract A summary of the resource. Keywords:Benthos, Offshore Energy, Biodiversity ABSTRACT In fact, there are two environmental processes of renewable energy, oil and gas companies must adhere to when trying to obtain permission for offshore exploration: a detailed assessment of the environmental area, called an Environmental Impact Assessment (EIA), which involves identifying potential threats and dangers to the natural nvironment and sea life, and a detailed plan of how to overcome any potential problems. As investment programme in marine energy increases in this time, there are challenges for new advanced technology to assess and protect the potential damage to marine wildlife.The energy system takes a look at a new passive acoustic monitor, designed to not only improve our understanding of the danger to sea life, but also provide offshore developers with the means to avert unnecessary damage. Development of research methods for studying benthos in tidal rapids: - routine characterisation of communities-biıdiversity - to measure productivity - input to ecosystem models - Determination of functional response of benthic organisms to energy changes through substratum modifications. - Habitat creation/modification/ enhancement potential - Biogeochemical researches of insitu nutrient dynamics/fluxes Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-24 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2233-1565 https://omeka.ibu.edu.ba/files/original/915155296430507061aedbbd6a0f08e4.docx 32554588ae15b68afadfadf02214f747 https://omeka.ibu.edu.ba/files/original/a9c39a83bf0c13818aa0a5a28a86cb3a.pdf 98d828d45d26d909f177730ba96c1ab0 PDF Text Text DIATRYPELLA (CES. & DE NOT.) DE NOT., A NEW ASCOMYCETE GENUS RECORD FOR TURKISH MYCOTA Hakan Allı Muğla Sıtkı Koçman University, Muğla, Turkey hakanalli@gmail.com Bekir Çöl Muğla Sıtkı Koçman University, Muğla, Turkey bekircol@gmail.com İsmail Şen Muğla Sıtkı Koçman University, Muğla, Turkey frapesle@gmail.com Keywords:Diatrypella favacea, Ascomycetes, Kütahya, Turkey ABSTRACT Turkey has a large macrofungi potential with over 2600 species reported and proceeding studies about macrofungal biodiversity. After routine field studies in Kütahya province, some macrofungi specimens were collected and identified. Among these specimens, Diatrypella favacea (Fr.) Ces. & De Not. is found as a new record at the genus level for Turkish mycota. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 2093 Title A name given to the resource DIATRYPELLA (CES. & DE NOT.) DE NOT., A NEW ASCOMYCETE GENUS RECORD FOR TURKISH MYCOTA Author Author ALLI, Hakan COL, Bekir SEN, Ismail Abstract A summary of the resource. Keywords:Diatrypella favacea, Ascomycetes, Kütahya, Turkey ABSTRACT Turkey has a large macrofungi potential with over 2600 species reported and proceeding studies about macrofungal biodiversity. After routine field studies in Kütahya province, some macrofungi specimens were collected and identified. Among these specimens, Diatrypella favacea (Fr.) Ces. & De Not. is found as a new record at the genus level for Turkish mycota. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-24 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2233-1565 https://omeka.ibu.edu.ba/files/original/07a4a512ad008c67f668f72d1f0ab743.docx 7061b9ecd8c48d16426b8957e61af1a3 https://omeka.ibu.edu.ba/files/original/7bccdffc9dffc9931b7e3509145a856c.pdf 35c039b6515cffd696a03fd7e971e3f9 PDF Text Text SECURITY OF WI-FI NETWORKS Durmuş Ali Avcı International Burch University, Sarajevo, Bosnia and Herzegovina avcidurmusali@gmail.com Kemal Hajdarevic International Burch University, Sarajevo, Bosnia and Herzegovina khajdarevic@ibu.edu.ba Keywords: WLAN, Wi-Fi, Wireless, Security, Network, Wi-Fi Security, WPS ABSTRACT With the rapid increase in use of WLAN technology it is important to provide a secure communication over wireless network. This paper focuses on security issues in Wi-Fi networks, and recommends a set of security controls to help organizations secure their wireless LANs. The goal of this paper is to summarize existing means of securing Wi-Fi networks and to analyze the possible solutions for the Wi-Fi networks. Furthermore, the paper explains how the weakness can be exploited and provides some results from testing such an attack in different conditions. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 2154 Title A name given to the resource SECURITY OF WI-FI NETWORKS Author Author ALI AVCI, Durmus HAJDAREVIC, Kemal Abstract A summary of the resource. Keywords: WLAN, Wi-Fi, Wireless, Security, Network, Wi-Fi Security, WPS ABSTRACT With the rapid increase in use of WLAN technology it is important to provide a secure communication over wireless network. This paper focuses on security issues in Wi-Fi networks, and recommends a set of security controls to help organizations secure their wireless LANs. The goal of this paper is to summarize existing means of securing Wi-Fi networks and to analyze the possible solutions for the Wi-Fi networks. Furthermore, the paper explains how the weakness can be exploited and provides some results from testing such an attack in different conditions. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-24 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2233-1565 https://omeka.ibu.edu.ba/files/original/63e371bede24f720f7847e975c785ce8.docx 7690f4f37d71fee619f657d399600b65 https://omeka.ibu.edu.ba/files/original/393b9d927b24e44ec05ba5875f21630c.pdf 4a17446415d31659a78173b64fb5ee0e PDF Text Text MICROALGAE FOR RENEWABLE ENERGY: BIODIESEL PRODUCTION AND OTHER PRACTICES Fatih Aksoy Izmir Katip Çelebi University, Izmir,Turkey fatih.aksoy@ikc.edu.tr Edis Koru Ege University, Izmir, Turkey edis.koru@ege.edu.tr Mustafa Alparslan Izmir Katip Çelebi University, Izmir,Turkey m_alparslan@hotmail.com Keywords:Sustainable energy, biodiesel, algae, biomas. ABSTRACT Sustainable production of renewable energy is being frequently debated globally since it is increasingly understood that first generation biofuels, primarily produced from food crops and mostly oil seeds are limited in their ability to achieve targets for biofuel production, climate change mitigation and economic growth. Currently, biodiesel is made from a variety of feedstocks, including pure vegetable oils, waste cooking oils, and animal fat; however, the limited supply of these feedstocks impedes the further expansion of biodiesel production. Microalgae have been recognized as potentially good sources for biofuel production because of their high oil content and rapid biomass production. In recent years, use of microalgae as an alternative biodiesel feedstock has gained renewed interest from researchers, entrepreneurs, and the general public. Food sourced feedstocks biodiesel concerns have increased the interest in developing second generation biofuels produced from non-food feedstocks such as microalgae, which potentially offer greatest opportunities in the longer term. Using algae as a feedstock for biodiesel has been considered for a number of years, but it has always had limitations, due mainly to the production methods used to grow and harvest the algae. This paper reviews the current status of microalgae use for biodiesel production, including their cultivation, harvesting, and processing. The microalgae species most used for biodiesel production are presented and their main advantages described in comparison with other available biodiesel feedstocks. The various aspects associated with the design of microalgae production units are described, giving an overview of the current state of development of algae cultivation systems (photo-bioreactors and open ponds). Other potential applications and products from microalgae are also presented such as for biological sequestration of CO2, wastewater treatment, in human health, as food additive, and for aquaculture. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 2136 Title A name given to the resource MICROALGAE FOR RENEWABLE ENERGY: BIODIESEL PRODUCTION AND OTHER PRACTICES Author Author AKSOY, Fatih KORU, Edis ALPARSLAN, Mustafa Abstract A summary of the resource. Keywords:Sustainable energy, biodiesel, algae, biomas. ABSTRACT Sustainable production of renewable energy is being frequently debated globally since it is increasingly understood that first generation biofuels, primarily produced from food crops and mostly oil seeds are limited in their ability to achieve targets for biofuel production, climate change mitigation and economic growth. Currently, biodiesel is made from a variety of feedstocks, including pure vegetable oils, waste cooking oils, and animal fat; however, the limited supply of these feedstocks impedes the further expansion of biodiesel production. Microalgae have been recognized as potentially good sources for biofuel production because of their high oil content and rapid biomass production. In recent years, use of microalgae as an alternative biodiesel feedstock has gained renewed interest from researchers, entrepreneurs, and the general public. Food sourced feedstocks biodiesel concerns have increased the interest in developing second generation biofuels produced from non-food feedstocks such as microalgae, which potentially offer greatest opportunities in the longer term. Using algae as a feedstock for biodiesel has been considered for a number of years, but it has always had limitations, due mainly to the production methods used to grow and harvest the algae. This paper reviews the current status of microalgae use for biodiesel production, including their cultivation, harvesting, and processing. The microalgae species most used for biodiesel production are presented and their main advantages described in comparison with other available biodiesel feedstocks. The various aspects associated with the design of microalgae production units are described, giving an overview of the current state of development of algae cultivation systems (photo-bioreactors and open ponds). Other potential applications and products from microalgae are also presented such as for biological sequestration of CO2, wastewater treatment, in human health, as food additive, and for aquaculture. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-24 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2233-1565 https://omeka.ibu.edu.ba/files/original/033b62a17148c4cc7cf7994a07f88dde.docx 0c07de8b0611508798f725028320bb55 https://omeka.ibu.edu.ba/files/original/5b4ef500a6304cd83bbdd3cc461992ca.pdf ee7111b25c5dfa8fe386831a95904adc PDF Text Text EVALUATION ON SECURITY OF ENERGY SUPPLY FOR MACEDONIA Suat Abdurahman IstanbulTechnical University, Istanbul, Turkey sabdurahman@itu.edu.tr A. Beril Tuğrul IstanbulTechnical University, Istanbul, Turkey beril@itu.edu.tr Keywords: Energy supply, Energy demand, Macedonia, SWOT analysis. ABSTRACT In this study energy circumstance of Macedonia was analized in order to evaluation for security of energy supply. Firstly, energy resources and power plants were investigated.and tabulated. SWOT analysis applied with strengths, weaknesses, opportunities and threats (SWOT) concepts which were written for the country regarding geographical and strategical position, energy resources and economical situation of the country. As known that, SWOT analysis may be used in decision-making situation when a desired end-state (objective) has been defined. Internal and external analysis applied and some suggessions composed as the conclude evaluation of SWOT analysis for Macedonia energy analysis. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 2058 Title A name given to the resource EVALUATION ON SECURITY OF ENERGY SUPPLY FOR MACEDONIA Author Author ABDURAHMAN, Suat TUGRUL, A. Beril Abstract A summary of the resource. Keywords: Energy supply, Energy demand, Macedonia, SWOT analysis. ABSTRACT In this study energy circumstance of Macedonia was analized in order to evaluation for security of energy supply. Firstly, energy resources and power plants were investigated.and tabulated. SWOT analysis applied with strengths, weaknesses, opportunities and threats (SWOT) concepts which were written for the country regarding geographical and strategical position, energy resources and economical situation of the country. As known that, SWOT analysis may be used in decision-making situation when a desired end-state (objective) has been defined. Internal and external analysis applied and some suggessions composed as the conclude evaluation of SWOT analysis for Macedonia energy analysis. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-24 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2233-1565 https://omeka.ibu.edu.ba/files/original/3ca5d4e2ebe6679365a74b5498f8ef57.pdf bbdbf77b35216c7cc681e69556e70e42 PDF Text Text Journal of Economic and Social Studies State as the Source of Wealth: In Ottoman Economic Thought: A different approach to reflections in the aftermath of the global crisis Birol Çetin Gaziosmanpasa University Faculty of Economics and Administrative Sciences, Department of Economics / 60110 Tokat TURKEY birol.cetin@gop.edu.tr ABSTRACT This study aims to deal with the ways of creating wealth by economic activities, presenting experiences within Ottoman state tradition and a role of Ottoman state during this period. In this context, the economic power achieved by the state will be explained through examples of practices. The role of the state in the economy has been raised with the latest global crisis and despite the historical expriences, this role has been started to debate in the economics. In fact, the corrupted state concept should be re-evaluated and re-established. Otherwise, re-evaluation of fundamental issues such as market system or freedom of enterprise wouldn’t contribute much to the solution of the problem. KEYWORDS Ottoman, Global Crisis, Market Sistem ARTICLE HISTORY Submitted:21 Jun 2012 Resubmitted:08January 2013 Accepted:25 March 2013 JEL Codes: N00,N20,B10 Volume 3 Number 2 Fall 2013 115 �Birol Çetin State as the Source of Wealth: In Ottoman Economic Thought: A different approach to reflections in the aftermath of the global crisis Introduction Role of the State in the Economy In the traditional Islamic thinking, economy was subsistence and economic activities were mainly based on the supplement of daily requirements. Although there was no prohibition of becoming prosperous or accumulating wealth, owners of the wealth were advised to spend it for charity. According to Holy Quran and the Sunna, words and acts of the prophet Mohammad, basic sources of Islamic knowledge, and principles of justice were important in economical affairs, and legal way of earning were accepted equal to worshipping. However, after the establishment of sultanate tradition, the state transformed a source of income mechanism into a distrubition of wealth mechanism. It is not possible to state that trade was excluded in the powerful central administration of Ottoman Empire. In terms of the state intervention to the markets, the central administration was parallel with the system of administration apart from some applications.The purpose of the state was to suppress all kind of power and influence of local authority over the economic life and to obtain a great influence over all kind of goods as well as people by means of eliminating the intermediate agents between the subjects and the Sultan (Güçer, 1987). Ibn-i Haldun,a famous philosopher of Islamic world,addressed the both normative and positive sides of the issue and stated that the state got power in the area where it shouldn’t have had it. According to Ibn-i Haldun, there were three ways of subsistence and income: agriculture, industry (crafts) and trade. It seems that he considered agriculture and industry affirmative while trade was doubtful. He considered agriculture and crafts honorable, because they rely on one’s direct labor and effort. But they both did not make a person rich. In addition, Ibn-i Haldun mentioned public service as a means of getting rich, despite the fact that it was not a regular way of subsistence. He thought that people should get close to either the state or trade in order to be rich. Imaret, described as a state governing by Ibn-i Haldun Imaret, was the way of collecting taxes through confiscating someone’s wealth using political power and administrative office. Therefore, state work is not a natural way of make for a living. He described the civil cervants as feminine people who cannot do their own business. According to Ibn-i Haldun the ones who cannot come close to the state in order to protect his capital and to be rich, in his own words “the ones who do not indulge and lick someones’ boots” cannot have wealth because wealth is produced by public office. The ones who seize the power and who come close to the rulers became rich. Although, the main purpose seems beneficial for the citizens as it is frequently appears on the documents such as “public good”, “development and prosperity of the country” or “increasing the welfare of the citizens” (Tabakoğlu, 1994), it was actually decreasing the state’s reserves as it was frequently appears on documents such as “working to increase the state’s wealth without taking inadequate taxes”. Some interventions aimed to take taxes while others aimed to buy goods and services below the market price by the state. Dominant State Policy in Markets: Although,the prices were formed by a system determined by the state,the markets were not competitive in mant big towns,notably İstanbul had had a dynamic economic life.It can be claim that the narh system,the state intervention on the market prices,had negatively affected this dynamism. Aims of The Narh System: In addition to economic aims,there were political,moral and administrative aims at the narh system.A brief study of these aims will show the functions of the narh system.Although to separte these aims is diffucult,significant ones can be determined based on the classification of examples.These can be listed as follows: Therefore, this study aims to describe the ways of getting rich appropriate to Ibn-i Haldun and reveal the formation of them in Ottoman Empire. Trade, public services and companies were predominantly analized in this study. Administrative and Politicial Aims: Sultans and “sadrazam”s sometimes had attempted to lower the narh or to keep it low in order to reinforce their positions as well as to get the support of the general public. These attempts were embodied in expressions found in “hatt-ı humayun” (decree of sultans) issued by Selim III to “sadrazam” Musa Paşa (“make sure that the price checks are strict and satistaction of the citizens is ensured. Also affairs of citizens should be facilitated through your day-andnight efforts. Blackmarketing should be prevented in order to supply the needs of people 116 Volume 3 Journal of Economic and Social Studies Number 2 Fall 2013 117 �Birol Çetin State as the Source of Wealth: In Ottoman Economic Thought: A different approach to reflections in the aftermath of the global crisis in Istanbul. The behaviours against rules should be punished (Pakalın, 2004). According to Tevkii Abdurrahman Paşa, a regulator, the narh should not be haphazardly dertermined. According to Şehit Ali Paşa, the form of “putting into effect the prices by the state should not be controlled by the judges and municipal police, also it should be checked on a daily basis. Overcharging should be eliminated. You should be aware of the fact that the narh is the most crucial work of the state.” Therefore,the narh system was not only for regulating the price stability but also played a significant role in maintaining the order of the community. In his book entitled “Fusul-i Hall’ü Akd and Usul-i Harc-i Nakd”, Gelibolulu Mustafa Ali points the following justifications as the purpose of the book: “... with increasing population, narh system could not be effectively practised. Thus, order of the society deteriorated, judiciary corrupted, and the system got into the hands of the dishonest. The sultan cannot be thought of accepting this( Yücel, 2003). ‘’ In this concept, deterioration of the narh, judiciary and social order are accepted as the same. Since the price instabilities which had the same meaning with the weakness of the state authority were taken as an indicator of administers’ and public’s weakness. This issue was taken seriously. It was also taken serious because speculations were forbidden religiously for the public. The narh system was not only to protect the consumers but also was necessary for the protection of produces and traders.Thus, the aim was to prevent non-standard and fraudulent good’s trade. There were various restrictions for traders who acted against the narh. For example, in a decree issued to Judge of Istanbul and municipality police in 1676, the Sultan himself dealt with the packaging and selling procedures for pears brought to marketplace: “Order to the Judge of Istanbul and Municipality Police Chiefs: As “Pazarbaşı” Veli and his deputies complained, since pears come into the marketplace, they are put into small boxes and sold as boxes, the poor cannot buy these boxes. The sales should be like before, i.e. Pears should be brought to the marketplace in big boxes and sold by kilograms based on consumer’s need.”(Çağatay,1981).The administrative interest abaout conforming to the narh system also involved quality and standard of the goods. For example, when it was noticed that the quality of fabrics produced in Bursa deteriorated, an inspector was sent to Bursa in 1477. The inspector found out that a cheaper production method was adopted due to increased raw material prices. This reason was approved and new product was allowed (İnalcık, 1993). 118 Journal of Economic and Social Studies Financial reasons: Fixed prices due to the narh system provided major advantage for the state, because state was the major buyer. The state could buy for lower prices. For example, grain prices formed as free market and the state had had to buy on that price. Free market prices were usually monitored on heritage notebooks and the prices on “tereke” notebooks were always higher than official ones. The reason was the higher “resm-I kısmet” (a kind of heritage tax) taken by judges because of higher “tereke” price. Although, price of wheat per kg was 11 “guruş” and the price of barley per “kile” (a weight in unit) was 5 “guruş” in 1799 at Tokat, according to official purchases by the state, price of wheat flour was 4.0 “guruş” and barley was 2.25 “guruş” (Öztürk,1987). However, it would not be realistic to say that official prices were always kept low and the narh prices were continuously suppressed by the state. Considering the fact that vast amount of agricultural products were sold in the market, it would be true to assume that suppressed prices were only common in extraordinary situations. Direct Interventions To Trade: Other than mentioned above,there were another intervention methods in trade. These were “yedd-i vahid” (monopoly) practices, regulations about market places and trade regions, gedik method (a kind of quota imposed on the craftsman about the number and location of businesses) and various confiscation procedures applied to traders. The aim here was to prevent speculations, blackmarketing, deceptive sale practices, and to establish the order in the country. Food supply in big cities was an issue to which much significance was attached and attention was paid. Ottoman administrators were deeply taking into account that a well running economic life would make other state affairs smooth. Otherwise,there would be many social and administrative problems. “Gedik” and “yedd-i vahid” practices aimed to facilitate the work of the tradesman and to keep things well organized establishment content. Although, confiscation procedures mainly involved state afficials, it applied traders who were thought to have become unjustly rich. Even in financially difficult times, state did not covet traders’ wealth. There was a significant explanation about this subject in “hatt-ı humayun”s issued by Selim III.During 1787-1792 AustrianRussian Wars,the state was in financial difficulty and Sultan asked for financial solutions. This was explained by Selim III as follows: “Kaymakam Paşa” what I say to you is: “There can be no answer if the state has no money, then how can we live such a pretentious lives and what did we consume? We showed our enemies that we are weak. And looking at your situation,I am surprised. Just tell me how it could be possible. You have been in public service for so long, you are the one who knows where the extra five akçe(a currency unit) is, and you are asking me. You said that this is away from here, and Volume 3 Number 2 Fall 2013 119 �Birol Çetin State as the Source of Wealth: In Ottoman Economic Thought: A different approach to reflections in the aftermath of the global crisis didn’t I take it? (Karal, 1999) Although, upon this decree, Sadrazam wanted to confiscate heritage and merchandise of some traders, the Sultan strongly prohibited and saying: “Seizing the belongings of orphans is something contrary to my opinion. I can not allow to touch them.Whatever accumulated by someone should be left to his or her heirs after the death, whether it is accumulated through trade, farming or crafts, should be left to his heirs, after his death. Don’t ever touch them! Only the wealth of public servants belong to state treasury, neither to me or to his heirs. All of them should be spent for public. Our ascendants did so. If the accountant is afraid of God, he shouldn’t touch the heritage of craftsmen, otherwise he will be severely punished.” One of the clearest examples of direct interventions to market was obligatory migrations practiced upon traders in order to develop trade in some areas. However, these exchanges were provided some tax exemptions. After the conquest of Kefe, 300 traders, and their families, were deported to Istanbul. It is known that livestock traders and butchers worked under coercion in order to keep meat supply running in large towns, and free trade conditions were not applied in this area of work (Pamuk, 1994). Corporate Movements and Status of the State Being dominant in trade through the narh system, the state closely followed developments in the west regarding market economy and corporate movements, also tried to be involved in these activities.As a matter of fact,the first corporation “Şirket-I Hayriye” was established by the state. In this subtitle, the state’s effort to manage the process of capitalist development without losing power will discuss. Partnerships in Ottoman Trade Life: Although, tradesmen and craftsmen were confined with the strict laws which entrepreneurs had sufferd a lot,it seems that Ottoman State closely watched the corporate movements in the west.There is no doubt that partnership culture and practices always survived as an indicator of a deep rooted tradition. However, there were major differences between the corporate tradition of the west and Ottoman applications. There are three types of contract based on partnership in Islamic law consisting of capital, labour and credibility.These were in the form of “Şirket-i Inan” (a kind of 120 Journal of Economic and Social Studies labor-capital partnership) and “Mufavada Şirketi”, a kind of cooperation based on the equal rights of family members. Records about these partnerships were taken from “Mecelle” was common in “Şeriyye” Records. “Şirket-i Inan” practice was common among vegetable oil and honey markets, especially in far away trades. They had started from the supply of the product and ended when the product reached to Istanbul where it was shared. In some practices, it was seen that people became the joint-owner of ships through giving loans to ship owners as similar to the western practice (Farooqhi, 1993). Apart from this small scale partnerships which did not require much capital. Especially after beginning of the “Iltizam” practice, privatization of tax revenues, partnerships involved the merging of large companies had started to be common (Gedikli,1999). However, this kind of partnerships which require great amount of capital accumulation was formulated based on some privileges provided under certain circumstances and uncertain conditions (Cezar,1986). Private entrepreneurship and corporate culture had not developed adequately due to the fact that the capital accumulation was in the hands of high officials and profitable business was possible only between privilegers. As a result of “iltizam” practice, owner of “dirlik” (money obtained from the state land used for soldier training (similar with latifundia in Rome) were disappeared. Life-long “mültezim” concept appeared and provinces were left to “mültezim”s. Therefore, non-muslim traders gained power by means of the governor’s policy. Towards the end of the 18th century, some of this “sarraf ” s had fortunes more than a million pounds. These minority members were in close contact with foreign traders and they played significant role about providing loans to the state (Tezel, 1986). They acted like the treasury of the state during the hard times for financing military expences and like financial crisis. For example, in 1878 460,000 pounds were taken from banker Zarifi for military expences. Another document shows that “miri” farms in Yanya were given away for paying a previous loan of 25,000 Turkish liras. 1 Embassies and consulates of foreign countries started to market their own goods in modernization and especially in the later half of the 18th century. In this period, partnerships with minorities had become more and more common.These minority traders were also benefiting from various privileges given to foreign traders through merging. There were many minority members who changed their nationality. After securing minority rights through “Küçük Kaynarca” Treaty, this practice had become even more common and disguised traders became registered ones.Thus,the state could not stop this trend and gave the rights to its own minorities which were 1 - B.O.A. Yıldız Tasnifi, Sedaret Resmi Maruzat Evrakı no:1-40 Volume 3 Number 2 Fall 2013 121 �Birol Çetin State as the Source of Wealth: In Ottoman Economic Thought: A different approach to reflections in the aftermath of the global crisis previously given to foreign traders and “European Mechanthood” was established. In order to keep balance,these privileges were given to Muslim traders with some extras,thus “Hayriye Merchanthood” was established. Unlike the former traders, later ones were also given the privilege of trade to Persia and India (Tabakoğlu, 1994). Corporate Movements in Ottoman Empire: There were some opinions in “Tanzimat” period that the economic problems country experienced could be overcome through corporate development. Sultan Abdülmecid stated that he struggled a lot to take loans but he failed and and revenue-increasing measures, such as forming companies as in other countries, were necessary to overcome the financial problems (Koraltürk, 1999). Ministry of Trade was established in 1840 and “Kanunname-i Ticaret” act of 1850 decelerated some developments about corporate development.”Kanunname-I Ticaret” was a translation of French law titled “Code de Commercé” of 1807 with some minor modifications.This act was current until 1926 and provisions about companies were mentioned in its 11th,13th,14th,19th articles (Şekerci,1981). According to an expression in 13th article, constitution which was formed in 1876 “Ottoman subject has rights to establish all kind of companies for trade,crafts and agriculture provided that they obey the rules and order”. Cevdet and Fuat Paşa established the first Ottoman share company, “Şirket-i Hayriye”,in 1851. At first, operating ferries were between Bosphourus and Karaköy. “Şirket-i Hayriye” increased its activities year by year, and became a modern business after obtaining the privilege of Bosphourus transportation. As a consequence of these developments, many maritime businesses were formed using state protection and practices after 1910 (Eldem,1994). Board of Industrial Development operated between 1860 and 1873 focues on corporate development and worked on restoration of craftsmen unions.The purpose was to collect the craftsmen operating as scatterd under share company system with a common capital investment. However, when the board started to dominate every decision from appointment of company executives to profit margins and sale prices, desired benefits were not achieved. An example of these efforts was a share company run by leather craftsmen of Istanbul with a capital of 10.000 golden coins. number of share holding formed and involved in economic activities in Ottoman land was 86. However, a total of 236 companies were established in 1908-1918 period only (Toprak, 1997). In the process of corporate development and strengthening the capital structures Galata Bankers who had been operating since the time of Sultan Mehmed made significant contributions. During the reign of Abdülhamid,not only public debt securities but also shares of companies which had been operating in transportation business such as railways, tramway , tunnel, and in mining, water, natural gas, electricity and manufacturing areas were being traded in Galata Stock Maket. Galata Stock Market started to buy and sell state bonds and company shares.Sultan Abdülhamid,himself,was involved in these affairs by means of his private banker Zarifi and it took public attention to this area (Kazgan,1995). By the act of “Development of Industry” which had been put into effect after “Meşrutiyet”, corporate development was encouraged and domestic companies were started to be established. Most of these companies were included in the list of Shares and Bonds Stock Market. Companies quoted in the stock market were in different ındustries such as such as Thread and Linen Goods Share Company (with a capital of 10.000 Lira), Ottoman Anonymous Ittihat Company (with a capital of 100.000 Lira), Ottoman Anonymous Rubber Company (with a capital of 20.000 Lira), Ottoman Marble Company (with a capital of 25.000 Lira), Turkish Naphta Industry (with a capital of 250.000 Lira) and “Dersaadet Cheesemaker Teavün” Company Company (with a capital of 25.000 Lira)( Fertekligil, 2000). Figures about factories and manufacturing plants in a statistical record dated 1897 gives information about trade life. Under the title of “Memalik-i Mahrusa-ı Şahane’de mevcut fabrika ve değirmen vesairenin nev’i” (number and kinds of factories and mills in Istanbul) 23.837 business places were mentioned (Güran, 1997). Corporate development gained speed in the second half of the 19th century. Following Şirket-i Hayriye, Bank-ı Osmani and Şirket-i Osmaniyye that run Aydın-İzmir railway were established. A majority of companies formed in this period were privileged foreign companies and they conducted banking, insurance, railways, mining, utiliy gas aand tramway operations.These were foreign companies.Until 1908, the Corporate concept in Ottoman Empire appeared as privileges of share corporations. In the study of Mehmet Cavid Bey entitled “İlm-i İktisat” after explaining various corporate types, the following information regarding share corporations were given (Mehmet Cavid Bey,2001). “A majority of companies are share companies. They performed profitable activities and much of work especially in trade and industry is done by these companies.As other European countries establishment of these companies are subjected to Sultan’s approval.Besides the company has to follow some procedures in order to get privilege”.Therefore,the key condition for the company was to obtain a privilege. While the corporates in the west formed around the capital accumulation.They were quite different in Ottoman Empire in terms of their logic since they did not 122 Volume 3 Journal of Economic and Social Studies Number 2 Fall 2013 123 �Birol Çetin State as the Source of Wealth: In Ottoman Economic Thought: A different approach to reflections in the aftermath of the global crisis fit to partnership cooperation.Ottoman corporate development process completely relied upon privileges, and getting rich through trade which was possible only via the permission of the state. Public Service and Its Monetary Advantages Strong bureaucratic structure in Ottoman Empire was a result of an effort which was to keep permanently the government in the hand of centralized administration.Therefore, the public service officers were pleased financially to create a strong bureaucracy.The richest top ranking officers known as “devletlü” were remarkably in large numbers.The methods to obtain a fortune for high ranking officers will be clarify in this chapter. Monetary Awards: The issues such as great military achivements, excellent pursuance of assigned duties, and neutralization of oppositions taken place against the Sultan were the prominent awarding examples within the bureaucratic structure of Ottoman Empire. Since entering the public service had been a matter of good chance,young people were accepted to the palace after passing all tests.They had been hardly training. Entering to the palace was not easy and selected ones had to have certain qualifications (Ricaut,1686). According to Gökyay ‘’When Architect Mehmet Ağa, who built the Blue Mosque, entered the office in the Palace, he saw the attention paid towards the musicians and wanted to be a part of this profession. He convinced his master to give him lectures on music. However, after a dream he gave up this profesion and decided that it would conflict with his belief.After getting know the various artisans in the palace, he was interested in the art of “sedefkar”s, inlay workers using mother-of-pearl, and decided to perform this art.” Although the training given in the palace and criteria the young people were subjected to decide the occupations to be assigned were out of the present study’s scope.It is important to note that the trainees could select the occupation themselves. It seems that this practice had aimed high productivity from the very first day in public service (Gökyay,1988). In fact, there was no need for additional awards since Ottoman administration system. The upper office was quite awarding financially and the state officers had done their best to get upper offices. In order to understand the income of the high officers the following incidence reported by Mustafa Nuri Paşa is interesting “During the end of 124 Journal of Economic and Social Studies the reign of Sultan Mahmud II, Paris ambassador Ahmet Fethşi Paşa was appointed to “Sancak” of “Aydın” and then the commander of division and former chief commander Namık Paşa was appointed as a “müsellim” with 25,000 “guruş” monthly salary. After a while,Ahmet Fethi Paşa came to Istanbul and then went to Aydın. He offered Namık Paşa 25,000 “guruş” in addition to income of all “mukataa”s and under-door revenues and other income for his sustenance. Since Namık Pasha did not accept the offer, he appointed Ahmet Efendi, one of his relatives as his müsellim. After earning two million guruş of income that year, Sultan Mahmud II notified the Minister for Mukataas Nazif Pasha and allowed Ahmed Fethi Pasha to keep only the half of the income and returned the other half to treasury. The aim of this example is to show that governors and mutasarrıfs of sancaks with good incomes had very high incomes and they hadn’t needed extra money from taxes imposed on the people.Here, salary differences between administrator and deputy classes were significant. According to accountant records of Istanbul Palace in the period of 1555-1556,daily income of “Dar’ül Saadet Ağası” was 45 “guruş”,while 24 “ağa”s which had worked under his supervision was only 5 guruş (Barkan, 1979). In statuebooks, chapters had not only the job description but also had the salary aspects of the officers. For example, “and beğlerbeğilik is the path of four people: province chief accountants, approval officer on behalf of the Sultan, judges whose incomes were five hundred “akçe” and province “bey”s whose incomes reached four hundred thousand akçe (Akgündüz, 1990)”. Therefore, significance of officers were defined based on the income income obtained. Besides,statue changes were also remarkable.High officals called “devlet erkanı” such as Prime Minister, “Şeyh’ülislam”, Navy Commander, Ministers, Minister “Kethuda”s,accountants and lawyers had residences and as many as 200 service personnel such as kethuda, mühürdar (sealer), cook, stableman, boatman, residence keepers and tailors. These service personnel attended to wars and conducted their service during the war. Although this practice was criticized heavily, it was not changed (Aksan, 1997). Wealth of high officers were staggeringly high. When a messenger from India said to Halil Hamid Pasha that they could give five thousand sacks of golden coins to Ottoman Empire in return for helping them, the Pasha said “I and Kaptan Paşa present here alone could give that much”. The amount mentioned was about two hundred fifty thousand golden coins. It is seen that regular payments were done for the central officers until 18th century. However, along with the deteriorating financial structure, a “grant based service fee” system was adopted in place of regular salary payment. In this system, the grant received by bureucrats increased as he worked harder and did his job properly (Findley, 1996). Volume 3 Number 2 Fall 2013 125 �Birol Çetin State as the Source of Wealth: In Ottoman Economic Thought: A different approach to reflections in the aftermath of the global crisis Distinction should be made between two aspects of material award system: first, appointing one or more level above offices in return for the accomplishments and the second giving big bonuses. The former was common and effective in use. This practice continued after Tanzimat, although regulations regarding public officials were subjected to certain rules Ahmet Muhtar Pasha was promoted from colonel to Marshall after his extraordinary success in Yemen only in 9 months. He talks about this: “When the boat which was carring the document showing my promotion and accompanying officers came to Kunfuda and Şakik Edip Efendi and aide of the sultan set out to come near me. However,I had already a herald from Kunfuda,so I was higly affected and cried. I was closed up in my tent and did not accept anybody for an hour. The reason not having enough time to think about deserving this duty or not and having enough qualification for this duty. I was scared of being humiliated later. For I was a colonel nine months ago. My brigade and major general period are only nine months. Giving me these three big ranks meant that they expect a lot from me.” Another example of this was promotion of Topal Osman Nuri Paşa from colonel to marshall only in three years. In the practice, awards called the state awards and promotions were given collectively as well as privately. Collective awards called tip from the Sultan were given during ceremonies for the Sultan’s claim of throne and during another celebrations after big military triumphs.Examples of individual awards were decorations of historians appointed by the Sultan to “Divan-ı Humayun” and some other offices. Along with the formal start of the state historian statue in 1700, famous historian Naima was rewarded 500 “guruş-u attiye” and one “guruş” payment rise to his daily wage at customs (İlgürel, 1991). Sometimes there were payments for the officials relieved of the duty in order to prevent them to get offend and to make them feel good about the trust of his service. After Halil Paşa removed from the duty,Sultan Mehmed II (the Conqueror) gave him a village in Filibe Sancak as his own property in order to dispel his doubts and to decorate him (Çarşılı, 1988). The available documents show that sometimes there were extravagancies in rewarding. For example, after the Crimmean war, the British and French saw that saw that Ottoman gun powder was better than the ones produced in their countries. They offered big rewards to chief of gur powder manufacturing officer Ohannes Dadyan and wanted to bring him to their countries. He turned down their offers and said that “I was born in Ottoman Empire and raised here. I dedicate my life to this country”. After heard about it Sultan Abdülmecid donated him a land in Yeşilköy as far as his eyes could see (Pamukciyan, 1958). This land was in the area known Florya 126 Journal of Economic and Social Studies today and consisted of 210 pieces of plots, which is almost all of today’s Florya. Dadyan’s inheritors had disagreements over the land in 1950’s and their cases went on for years in courts (Dadyan, 1954). Warrenties and Eliminating the Concerns for the Future: Incentive and awarding practices applied during the public service continues after termination of the service. Thus, officials conducted their lives without concerns. Besides a pension, the officials could retain all the wealth they accumulated during their service in their retirement. Although in Ottoman Empire only the Sultan could own property.”Paşa”s and “Vezir”s also could have properties such as large farms, palaces, residencies, whose incomes completely belong to them.In order to understand the practices on this issue, it is necessary to study Has (big Timars such as latifundia in Rome) concept. Although, “has” term is used for Sultan’s property in Great Seljuks,it has a meaning of private property land and “dirlik” which had returns at least 100,000 “akçe” in a year was belonged to servants of Sultan and palace officials such as “Bostaniyan-ı hassa”, “Doğanciyan-ı hassa”, “Mehteran-ı hassa”, as well as dynasty members, ministers, beylerbeyis, sancak beyis and accountants. For example, there was a rule regarding the sell of grain from “has”es and farms dated H.945 in Bursa (Gökbilgin,1988). “Has”es appropriated to “Vezir”s and high officals were abolished year by year and added to “Mir-i Mukataa”.After “Tanzimat” the principle of making all expenses through the state treasure was put in practice and this system was cancelled totally after starting regular salary payments. Divan-I Malikane” (life-long mültezim), a significant type of private property, was also an example of this privileged land property practice. “Malikane” owners had right to sell,donate,establish foundations and leave them to their children when they die (Barkan,1939).Giving to own a property right ,which exclusively belong to Sultan,to the state officals means that officers could demand nothing from the state since they had some privileges of sultan. As a result of having all financial needs that they could dream of the state officials could only focus on their duties.In addition belongings could have been passed to their heirs, so they did not have any concern for the future. Against the danger of confiscation or contraversions among family members, some officials disregarded inheritance rules of Islamic law and established Foundations special their children, so taking guarantee even the future of their children.In practice, in some cases children of some officials were paid salary.There was no doubt that confiscation was the main concern of state officials who had considerable amount of wealth accumulation. Volume 3 Number 2 Fall 2013 127 �Birol Çetin State as the Source of Wealth: In Ottoman Economic Thought: A different approach to reflections in the aftermath of the global crisis “Müsadere” (confiscation) system took its legitimacy since “devşirme”s were in the same statue of slavery, the state had right to take their share of heritage according to Islamic law.Besides, hey had not pay any tax.they had to help the state in hard times just as the Sultans had paid from their own wealth.If all the wealth were confiscated, the state had to pay for the livelihood of statesman’s household. There were not any age limitations for statesman. Service was unlimited except for dismissal, dementia and impairment. There was an amount given in cash or dismissed officers called “arpalık”.This could be an annual income of a given land or a given sum appropriated from the treasury (Tabakoğlu, 1994). will result in drying of tax sources as well as the losses in production strength in long term. The most pressing question to be faced and to be answered is whether it is the state’s or the bank’s future that is important. References Akgündüz, A. (1990). “Osmanlı Kanunnameleri ve Hukuki Tahlilleri”, Fatih Devri Kanunnameleri Kanunname-i Al-i Osman Bab-ı evvel madde 14, Fey Vakfı Yay. İstanbul Aksan, V. (1997). “Savaşta ve Barışta Bir Osmanlı Devlet Adamı Ahmet Resmi Efendi 1700-1783”, Tarih vakfı Yurt Yayınları, İstanbul. Conclusion Barkan, Ö. L. (1939). “Türk-İslam Toprak Hukuku Tatbikatının Osmanlı İmparatorluğunda Aldığı Şekiller Malikane Divani Sistemi”, Türk Hukuk ve İktisat Tarihi Mecmuası Ottoman Empire represents a strong central state tradition and this subject is the source of its economic power.These facts literally show that the state is the source of wealth.The fact that the state was the sole owner of the land restricted the ways of getting rich by trading and working in public service.Strict state control and getting low profit margins made it difficult to be rich through the trade. However, “sahaf ”s operating in financial markets and especially later period’s non-muslims dealing with trade were exceptions. Barkan, Ö. L. (1979). “İstanbul Saraylarına Ait Muhasebe Defterleri”, Türk Tarih Belgeleri Dergisi, T.T.K. Basımevi, c.9, sayı 13, Ankara. On the other hand civil service semms to be the only way of getting rich in Ottoman Empire.Confiscation establishment was one which could eliminate all concerns.The state was not complaining about high officials who were getting rich because it was thought that this wealth belonged to the state.The main reason for a conviction was the fact that statesmans could not leave this wealth to their inheritors. According to Ottoman political system took its power from economic strength.The state had to be as strong as possible within national borders.The state administration under control of financial system debilitated the state and thus hurt the citizen whose protector is the state. This became apparent with the financial depression happened in the 17th century. Bey M. C. (2001). “İktisat İlmi”, Çev.Sema Alpun Çakmak, Liberte Yayınları, Ankara. B.O.A. Yıldız Tasnifi, Sedaret Resmi Maruzat Evrakı no:1-1 B.O.A. Yıldız Tasnifi, Sedaret Resmi Maruzat Evrakı no:1-40 Cezar, Y. (1986). “Osmanlı Maliyesinde Bunalım ve Değişim Dönemi, 18. yüzyıldan Tanzimata Mali Tarih”, Alan Yayıncılık, İstanbul. Çağatay, N. (1981), “Bir Türk Kurumu Olan Ahilik”, Selçuk Üniversitesi Basımevi, Konya. Çarşılı İsmail Hakkı Uzun, “Çandarlı Vezir Ailesi”, T.T.K. yayınları, Ankara,1988. Çetin. B, (2001). “Osmanlı İmparatorluğu’nda Barut Sanayi 1700-1900”, Kültür Bakanlığı Yay. Ankara. Eldem, V. (1994). “Osmanlı İmparatorluğu’nun İktisadi Şartları Hakkında Bir Tetkik”, T.T.K. Yayınları, Ankara, 1994. Farooqhi, S. (1993) “Osmanlı’da Kentler ve Kentliler”, Tarih Vakfı Yurt Yayınları, İstanbul. Fertekligil, A. (2000). “Türkiye’de Borsanın Tarihçesi”, İ.M.K.B. Yayınları, İstanbul. Findley, C. V. (1996). “Kalemiyeden Mülkiyeye Osmanlı Memurlarının Toplumsal Tarihi”, Tarih Vakfı Yurt Yayınları, İstanbul. Gazi Ahmet Muhtar Paşa, “Sergüzeşt-i Hayatım’ın Cild-i Evveli”, Tarih Vakfı Yurt Yayınları, İstanbul, 1996. Present day situation is no different. In the recent recession, states must reconsider their relationships with financial system and make some reorganizations. It should not be forgotten that 90% of the public revenues come from taxes. Although cooperation with financial quarters can be conceived to the benfit of the states at first, it Gedikli, F. (1999). “Osmanlı Şirketleri”, Osmanlı, C.3, Yeni Türkiye Yayınları, Ankara. 128 Volume 3 Journal of Economic and Social Studies Gökbilgin, T. (1988). “Kanuni Sultan Süleyman Devri Müesseseler ve Teşkilatına Işık Tutan Bursa Şer’iye Sicillerinden Örnekler”, T.T.K. yayınları, İsmail Hakkı Uzunçarşılı’ya Armağan Sayısı, Ankara. Number 2 Fall 2013 129 �Journal of Economic and Social Studies Birol Çetin Gökyay, O. Ş. (1988). “Risale-i Mimariyye-Mimar Mehmet Ağa Eserleri”, T.T.K. yayınları, İsmail Hakkı Uzunçarşılı’ya Armağan Sayısı, Ankara. Güçer, L. (1987). “16. ve 18. Asırlarda Osmanlı İmparatorluğu’nun Ticaret Politikası”, Türk İktisat Tarihi Yıllığı, İ.Ü. İktisat Fakültesi Türk İktisat ve İctimaiyat Tarihi Araştırmaları Merkezi , S.1, İstanbul. Güran, T. (1997). “Osmanlı devleti’nin İlk İstatistik Yıllığı 1897”, Tarihi İstatistikler Dizisi C.5, D.İ.E Yayınları Ankara. Süleyman, U. (2009). Ibn-i Haldun “Mukaddime” Cilt II. Dergah Yayınları İstanbul. Hülagü, M. M. (1994). “Topal Osman Nuri Paşa Hayatı ve Faaliyetleri 1840-1898”, Ankara Üniversitesi Osmanlı Tarihi Araştırma ve Uygulama Merkezi Dergisi OTAM. Ankara. İlgürel, M. (1991)., “Vakanüvislerin Taltiflerine Dair”, İ.Ü. Edebiyat Fakültesi Tarih Araştırma Merkezi Prof. Dr. Bekir Kütükoğlu’na Armağan Sayısı, İstanbul. İnalcık, H. (1993). “15. Asır Sanayi ve Ticaret Tarihine Dair Vesikalar, Osmanlı İmparatorluğu içinde”, Eren Yayıncılık, İstanbul. Karal, E. Z. (1999). “Selim III’ün Hatt-ı Hümayunları”, T.T.K. Basımevi, Ankara. Kazgan, H. (1995). “Tarih Boyunca İstanbul Borsası”, İ.M.K.B. yayınları, İstanbul. Koraltürk, M. (1999). “Osmanlı Devleti’nde Şirketleşme, İlk Anonim Şirket ve Borsanın Kuruluşu”, Osmanlı, C.3, Yeni Türkiye Yayınları, Ankara. Mustafa, N. P. (1987). “Netayic ül-Vukuat Kurumları ve Örgütleriyle Osmanlı Tarihi”, (sadeleştiren Neşet Çağatay), Türk Tarih Kurumu Basımevi, Ankara, 1987. Öztürk, M. (1987). “Tokat’ta Fiyatlar 1772-1823, Türk Kültüründe ve Tarihinde Tokat Sempozyumu 1986”,Tokat Valiliği Şeyhülislam İbn Kemal Araştırma Merkezi, Ankara . Impact of Military Expenditure and Economic Growth on External Debt: New Evidence from a Panel of SAARC Countries Khalid Zaman, Department of Management Sciences, COMSATS Institute of Information Technology / Abbottabad, Pakistan khalidzaman@ciit.net.pk Iqtidar Ali Shah Department of Management Sciences, COMSATS Institute of Information Technology / Abbottabad, Pakistan iqtidar@ciit.net.pk Muhammad Mushtaq Khan Department of Humanities, COMSATS Institute of Information Technology / Abbottabad, Pakistan Mehboob Ahmad Department of Management Sciences, Bahria University / Islamabad, Pakistan Pakalın. M. Z. (2004). “Osmanlı Tarih Deyimleri ve Terimleri Sözlüğü”, MEB yayınları, İstanbul. Pamukciyan, K. (1958) “İstanbul Ansiklopedisi”, Tan Matbaası, İstanbul. Pamuk, Ş. (1994). “Osmanlı Ekonomisinde Bağımlılık ve Büyüme (1820-1913)”,Tarih Vakfı Yurt Yayınları.İstanbul. Ricaut, (1686). “Türklerin Siyasi Düsturları”, Tercüman 1001 temel eser serisi, (This book was written by Ricaut, Secretary of English Embassy, and its originally published in Amsterdam in 1686). Şekerci, O. (1981). “İslam Şirketler Hukuku Emek Sermaye Şirketi”, Marifet Yayınları, İstanbul. Tabakoğlu, A. (1994), “Türk İktisat Tarihi”, Dergah Yay. İstanbul. Tezel, Y. S. (1986). “Cumhuriyet Döneminin İktisadi Tarihi”, Yurt Yayınları, Ankara. Toprak, Z. (1997). “İktisat Tarihi, Osmanlı Devleti 1600-1908( Türkiye Tarihi C.3)”, Cem Yayınevi, İstanbul. Yücel A. S. www.cumhuriyet.edu.tr/akademik/fak_ilahiyat/makaleler/fusul.htm, (23.4.2003). A A This paper examines the impact of military expenditure and economic growth on external debt for a panel of five selected AA countries including Bangladesh, India, epal, Pakistan and rilanka, over the period of 1988-2008. sing Pedroni’s (2004) test for panel cointegration, it was found that there is a long-run relationship between external debt, economic growth and military expenditure. The study finds that external debt is elastic with respect to military expenditure in the long run and inelastic in the short run. In the long run, 1% increase in military expenditure increase external debt between 1.18 % and 1.24%, while 1% increases in economic growth reduce external debt between 0.64% and 0.79%, by employed and M estimator respectively. In the short run, 1% increase in military expenditure increases external debt by 0.15%, while 1% increase in economic growth reduces external debt by 0.47 %. KEYWO D xternal ebt, conomic Growth, Military xpenditure, Panel ointegration, AA ountries. A I LE HI O Y ubmitted: 2 April 2012 esubmitted: 28. ebruary2013 Accepted: 25. March 2013 JEL odes: 1, 4, 5 and H5 130 Journal of Economic and Social Studies Volume 3 Number 2 Fall 2013 131 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 2390 Title A name given to the resource State as the Source of Wealth: In Ottoman Economic Thought: A different approach to reflections in the aftermath of the global crisis Author Author ÇETİN, Birol Abstract A summary of the resource. This study aims to deal with the ways of creating wealth by economic activities, presenting experiences within Ottoman state tradition and a role of Ottoman state during this period. In this context, the economic power achieved by the state will be explained through examples of practices. The role of the state in the economy has been raised with the latest global crisis and despite the historical expriences, this role has been started to debate in the economics. In fact, the corrupted state concept should be re-evaluated and re-established. Otherwise, re-evaluation of fundamental issues such as market system or freedom of enterprise wouldn’t contribute much to the solution of the problem Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-12-19 Keywords Keywords. Article PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/e97aff6321d29b9b07a725a2252d1cb1.pdf 53339481f6d666d021bfd6f00526bb46 PDF Text Text Journal of Economic and Social Studies Birol Çetin Gökyay, O. Ş. (1988). “Risale-i Mimariyye-Mimar Mehmet Ağa Eserleri”, T.T.K. yayınları, İsmail Hakkı Uzunçarşılı’ya Armağan Sayısı, Ankara. Güçer, L. (1987). “16. ve 18. Asırlarda Osmanlı İmparatorluğu’nun Ticaret Politikası”, Türk İktisat Tarihi Yıllığı, İ.Ü. İktisat Fakültesi Türk İktisat ve İctimaiyat Tarihi Araştırmaları Merkezi , S.1, İstanbul. Güran, T. (1997). “Osmanlı devleti’nin İlk İstatistik Yıllığı 1897”, Tarihi İstatistikler Dizisi C.5, D.İ.E Yayınları Ankara. Süleyman, U. (2009). Ibn-i Haldun “Mukaddime” Cilt II. Dergah Yayınları İstanbul. Hülagü, M. M. (1994). “Topal Osman Nuri Paşa Hayatı ve Faaliyetleri 1840-1898”, Ankara Üniversitesi Osmanlı Tarihi Araştırma ve Uygulama Merkezi Dergisi OTAM. Ankara. İlgürel, M. (1991)., “Vakanüvislerin Taltiflerine Dair”, İ.Ü. Edebiyat Fakültesi Tarih Araştırma Merkezi Prof. Dr. Bekir Kütükoğlu’na Armağan Sayısı, İstanbul. İnalcık, H. (1993). “15. Asır Sanayi ve Ticaret Tarihine Dair Vesikalar, Osmanlı İmparatorluğu içinde”, Eren Yayıncılık, İstanbul. Karal, E. Z. (1999). “Selim III’ün Hatt-ı Hümayunları”, T.T.K. Basımevi, Ankara. Kazgan, H. (1995). “Tarih Boyunca İstanbul Borsası”, İ.M.K.B. yayınları, İstanbul. Koraltürk, M. (1999). “Osmanlı Devleti’nde Şirketleşme, İlk Anonim Şirket ve Borsanın Kuruluşu”, Osmanlı, C.3, Yeni Türkiye Yayınları, Ankara. Mustafa, N. P. (1987). “Netayic ül-Vukuat Kurumları ve Örgütleriyle Osmanlı Tarihi”, (sadeleştiren Neşet Çağatay), Türk Tarih Kurumu Basımevi, Ankara, 1987. Öztürk, M. (1987). “Tokat’ta Fiyatlar 1772-1823, Türk Kültüründe ve Tarihinde Tokat Sempozyumu 1986”,Tokat Valiliği Şeyhülislam İbn Kemal Araştırma Merkezi, Ankara . Impact of Military Expenditure and Economic Growth on External Debt: New Evidence from a Panel of SAARC Countries Khalid Zaman, Department of Management Sciences, COMSATS Institute of Information Technology / Abbottabad, Pakistan khalidzaman@ciit.net.pk Iqtidar Ali Shah Department of Management Sciences, COMSATS Institute of Information Technology / Abbottabad, Pakistan iqtidar@ciit.net.pk Muhammad Mushtaq Khan Department of Humanities, COMSATS Institute of Information Technology / Abbottabad, Pakistan Mehboob Ahmad Department of Management Sciences, Bahria University / Islamabad, Pakistan Pakalın. M. Z. (2004). “Osmanlı Tarih Deyimleri ve Terimleri Sözlüğü”, MEB yayınları, İstanbul. Pamukciyan, K. (1958) “İstanbul Ansiklopedisi”, Tan Matbaası, İstanbul. Pamuk, Ş. (1994). “Osmanlı Ekonomisinde Bağımlılık ve Büyüme (1820-1913)”,Tarih Vakfı Yurt Yayınları.İstanbul. Ricaut, (1686). “Türklerin Siyasi Düsturları”, Tercüman 1001 temel eser serisi, (This book was written by Ricaut, Secretary of English Embassy, and its originally published in Amsterdam in 1686). Şekerci, O. (1981). “İslam Şirketler Hukuku Emek Sermaye Şirketi”, Marifet Yayınları, İstanbul. Tabakoğlu, A. (1994), “Türk İktisat Tarihi”, Dergah Yay. İstanbul. Tezel, Y. S. (1986). “Cumhuriyet Döneminin İktisadi Tarihi”, Yurt Yayınları, Ankara. Toprak, Z. (1997). “İktisat Tarihi, Osmanlı Devleti 1600-1908( Türkiye Tarihi C.3)”, Cem Yayınevi, İstanbul. Yücel A. S. www.cumhuriyet.edu.tr/akademik/fak_ilahiyat/makaleler/fusul.htm, (23.4.2003). A A This paper examines the impact of military expenditure and economic growth on external debt for a panel of five selected AA countries including Bangladesh, India, epal, Pakistan and rilanka, over the period of 1988-2008. sing Pedroni’s (2004) test for panel cointegration, it was found that there is a long-run relationship between external debt, economic growth and military expenditure. The study finds that external debt is elastic with respect to military expenditure in the long run and inelastic in the short run. In the long run, 1% increase in military expenditure increase external debt between 1.18 % and 1.24%, while 1% increases in economic growth reduce external debt between 0.64% and 0.79%, by employed and M estimator respectively. In the short run, 1% increase in military expenditure increases external debt by 0.15%, while 1% increase in economic growth reduces external debt by 0.47 %. KEYWO D xternal ebt, conomic Growth, Military xpenditure, Panel ointegration, AA ountries. A I LE HI O Y ubmitted: 2 April 2012 esubmitted: 28. ebruary2013 Accepted: 25. March 2013 JEL odes: 1, 4, 5 and H5 130 Journal of Economic and Social Studies Volume 3 Number 2 Fall 2013 131 �Impact of Military Expenditure and Economic Growth on External Debt: New Evidence from a Panel of SAARC Countries Khalid Zaman / Iqtidar Ali Shah / Muhammad Mushtaq Khan / Mehboob Ahmad Introduction and Literature Review The relationship between military expenditure and economic growth has been examined extensively in the literature. However, the effect of military expenditure on external debt has received less attention. In countries with large military expenditure, the role of military spending in contributing to external debt is important because of the potential adverse economic effects of external debt as excessive foreign debt accumulation can cause deterioration in the terms of trade, an overvaluation of the domestic currency and slower economic growth. Benoit (1973, 1978) in his pioneered study examined the relationship between military expenditure and economic growth in 44 less developed countries and found that there is a positive correlation between military expenditure and economic growth. Dakurah et al. (2000) studied 62 LDCs and found 13 countries showing unidirectional causality from military expenditure to growth; 10 countries from economic growth to military expenditure; 7 countries suggest bidirectional causality and the rest 18 countries displaying no meaningful relationship. Yildirim, Sezgin & Ocal (2005) examined the effect of military expenditure on economic growth for 12 Middle Eastern countries and Turkey using cross-sectional and dynamic panel data estimation techniques from 1989 to 1999 and found that military expenditure enhances economic growth in the Middle Eastern countries and Turkey as a whole. So for as the South Asian Regional Cooperation Council (SAARC) countries are concerned, a study was carried out by Hassan et al. (2003) to show the relationship between military expenditure and economic growth. They examined the impact of the military expenditure on economic growth and FDI covering five out of seven SAARC nations using panel data over the 1980-1999 periods. Interestingly the result suggests positive relationship between military expenditure and economic growth, and thus supporting the view that military expenditure can bring positive impact on growth. Other studies which have also found a positive relationship between military expenditure and economic growth include Mueller and Atesoglu (1993); MacNair et al. (1995), Chlestos and Kollias (1995), Sezgin (1999b, 2000) and Yildirim and Sezgin (2002). countries citing that defense expenditure takes resources away from productive investments and fails to mobilize and create additional savings. Other empirical studies that found significant adverse effect of defense spending on the economy include studies by Deger and Smith (1983), Deger and Sen (1983) and Faini et al. (1984), Antonakis (1997), Heo (1998), Linden (1992), Dunne and Mohammed (1995), Sezgin (1999a) and Dunne, Nikolaidou & Smith (2002). Aizenman and Glick (2006) studied the long-run impact of military expenditure on growth and suggested that military expenditure induced by external threats should increase growth, while military expenditure induced by rent seeking and corruption should reduce growth. Abu- Bader et al. (2003) found that military expenditure had a negative effect on economic growth in Egypt, Israel and Syria over the period 1972 to 2001 within a Granger causality framework. DeRouen (2000) reaches the same findings in a single country study of Israel. Smyth and Narayan (2009) have examined the relationship between external debt and military expenditure nexus in the six Middle Eastern countries and found that external debt is elastic with respect to military expenditure in the long-run while inelastic in the short-run. In this paper an analysis has been carried out to find a panel cointegration between external debt and military expenditure along with economic growth in SAARC countries, using secondary data from 1988 to 2008. This paper does not include all dimensions and factors of the external debt and military expenditure problem from an econometric perspective, the small panel (T=19, N=5) is only sufficient to accommodate two explanatory variables without a substantial loss in power. The objectives of this paper are: 1. To empirically investigate the relationship between external debt, economic growth and military expenditure using a panel unit root and panel cointegration framework in selected SAARC countries. 2. To empirically investigate, whether there is a long-run or short-term relationship between the external debt, economic growth, and military expenditure. Equally military spending may have a negative effect on economic growth through reducing the availability of public funds for spending in the supposedly more productive civilian sector and creating inflationary pressures. Deger (1986) found negative relationship between military expenditure and growth in the less developed This paper is organized as: after introduction and literature review above, a brief overview of external debt, economic growth and military expenditure of the selected SAARC countries is given followed by data source and methodological framework. Next results and discussion has been carried out and conclusion of the study is given at the end. 132 Volume 3 Journal of Economic and Social Studies Number 2 Fall 2013 133 �Impact of Military Expenditure and Economic Growth on External Debt: New Evidence from a Panel of SAARC Countries Khalid Zaman / Iqtidar Ali Shah / Muhammad Mushtaq Khan / Mehboob Ahmad Overview of External Debt, Economic Growth, and Military Expenditure in the Selected SAARC Countries External Debt: Debt service liability as percentage of export of goods and services has decreased considerably in all the Member States of SAARC countries. In Bangladesh and India debt service liability has been reduced from 25.8 percent and 31.9 percent in 1990 to 3.7 percent and 7.7 percent in 2006 respectively. Pakistan and Sri Lanka have witnessed decline from 22.9 percent and 13.8 percent in 1990 to 8.6 percent and 12.7 percent in 2006 respectively. Figure 1 below shows the trend. Figure 1. External Debt in SAARC Region (1988-2008) EDBAN Economic Growth: SAARC member states have maintained GDP growth rate in 2006 at 8.9%. GDP growth in South Asia is significantly higher compared with other developing regions. However, trickle down effects of growth would take time to effect the population of the region. Real GDP growth rate has increased in almost all the countries. Country-wise analysis shows that Bangladesh’s real GDP growth at 6.2 percent in 1990 increased to 6.6 percent in 2006. Bhutan during the period 1990-2006 witnessed sharp increase from 5.6 percent to 7.8 percent. India maintained its growth momentum from 5.6 percent in 1990 to 9.6 percent in 2006. Nepal economy has witnessed low and high GDP growth from 2.3 percent in 2005 to 2.8 percent in 2006. Pakistan was maintaining its growth but has witnessed a low growth rate of 5.8 percent in 2006. Sri Lankan economy has showed an increase 7.7 percent in 2006 (see, SHRDC, 2008). Figure 2 below shows the trend. EDIND 320 Figure 2. Economic Growth of SAARC Countries (1988-2008) 150000 140000 280 130000 240 120000 200 GDPBAN 110000 160 120 80 40 0 1000000 100000 22000 900000 90000 20000 80000 18000 70000 16000 60000 88 90 92 94 96 98 00 02 04 06 GDPIND 24000 88 08 90 92 94 96 98 00 02 04 06 08 800000 700000 600000 500000 14000 400000 12000 300000 10000 EDPAK EDNEP 4000 40000 3500 36000 2500 2000 92 94 96 98 00 02 04 06 08 98 00 02 04 06 08 88 90 92 94 96 98 00 02 04 06 08 02 04 06 08 GDPPAK 160000 9000 28000 8000 24000 6000 120000 7000 80000 5000 4000 40000 3000 0 88 12000 90 96 200000 2000 88 94 GDPNEP 16000 1000 92 10000 20000 1500 90 11000 32000 3000 200000 88 88 90 92 94 96 98 00 02 04 06 90 92 94 96 98 00 02 04 06 08 02 04 06 08 88 90 92 94 96 98 00 08 GDPSRI 40000 EDSRI 35000 16000 30000 14000 25000 12000 20000 15000 10000 10000 8000 5000 88 6000 90 92 94 96 98 00 4000 Source: Human Development Report 2007-08; UNDP, 2008. 2000 88 90 92 94 96 98 00 02 04 06 08 Sources: Asian Development Bank, 2008; World Banks, 2008. 134 Journal of Economic and Social Studies Volume 3 Number 2 Fall 2013 135 �Impact of Military Expenditure and Economic Growth on External Debt: New Evidence from a Panel of SAARC Countries Khalid Zaman / Iqtidar Ali Shah / Muhammad Mushtaq Khan / Mehboob Ahmad Military Expenditure: An increasing trend has been noticed in military expenditures over the time period. Pakistan and India are in the competitive zone, therefore, both have increased their military expenditure. In terms of military expenditure as percentage of GDP, Sri Lanka spent 4.1%, Pakistan 3.5%, India and Nepal 2.5%, Bangladesh 1.5%. Figure 3 shows individual country assessment of military expenditures over a time period. Figure 3. Military Expenditure in SAARC Region (1988-2008) MEIND MEBAN The data set for five SAARC countries is collected from International Financial Statistics (IFS, 2008), World Bank (2008), SHRDC report, (SHRDC, 2008); Stockholm International Peace Research Institute (SIPRI, 2008) and Economic Survey of Pakistan (2008-09). The dependent and independent variables used in this study are listed in Table 1. External Debt is used as a dependent variable for the study. Independent variables are Economic Growth (GDP) and Military Expenditures (ME). Table 1. Variables used for the External debt-Military expenditure Model 26000 70000 Data Source and Methodological Framework 24000 60000 22000 Variables 50000 20000 40000 16000 Dependent Variable: External Debt Independent Variable: Economic Growth Military Expenditure 18000 14000 30000 12000 10000 20000 88 90 92 94 96 98 00 02 04 06 88 08 90 92 94 MENEP 96 98 00 02 04 06 08 4800 140 4400 120 4000 100 80 3600 60 20 ED GDP ME Negative Positive ln(ED) = f ln(GDP, ME) 3200 40 Expected Sign Panel Econometric Model: There is lack of panel cointegration to explain the relationship between external debt and military expenditure in the SAARC context. This paper uses panel cointegration analysis to test this relationship in Bangladesh, India, Nepal, Pakistan and Sri Lanka during 1988-2008. The model used to test the relationship between external debt and military expenditure is as follows: MEPAK 160 Symbol 2800 88 90 92 94 96 98 00 02 04 06 08 88 90 92 94 96 98 00 02 04 06 08 The general representation of the equation mentioned above is as follows: Log (Yt ) = C + β 1t log( X 1t ) + β 2t log( X 2t ) + ε t MESRI 1000 (1) 900 Where: 800 700 Yt 600 C 500 400 βt 300 Xt 200 100 88 90 92 94 96 98 00 02 04 06 T i 08 εt β1 β2 Source: UNDP, 2008 and Human Development Report 2007-08. 136 Journal of Economic and Social Studies Volume 3 = = = = = = = = = dependent variable; intercept; slope of the independent variables; independent variables (GDP and ME) 1, 2…21 periods; 1, 2…5 countries; error term; coefficient of economic growth; coefficient of military expenditure; Number 2 Fall 2013 137 �Impact of Military Expenditure and Economic Growth on External Debt: New Evidence from a Panel of SAARC Countries Khalid Zaman / Iqtidar Ali Shah / Muhammad Mushtaq Khan / Mehboob Ahmad In the above model, the sign of β1 is expected to be negative as it is argued that SAARC countries might have a capacity to repay external debt. Similarly, β 2 is hypothesized to be positive as it is argued that large military expenditure can result in large external debt. This paper uses a panel cointegration method to examine the long-run relationship between external debt and military expenditure in the selected SAARC countries. Thus, three different panel unit roots tests [(i.e. Levin-Lin- Chu (LLC) test, ImPesaran-Shin (IPS) test and Maddala-Wu (MW) test)] have been used in this study. Panel Unit oot ests: Panel unit root tests could be considered as an extension of the univariate unit root test. The LLC test is based on the pooled panel data as follows (Levin & Lin, 1992); Dy it = ρy it −1 + α 0 + σ t + σ i + θ t + ε it (2) Where ρ , α 0 , σ are coefficients, α i is individual specific effect, θ t is time specific effect. According to Levin & Lin (1992), the LLC test could be conducted by the following steps. In step1, subtract the cross-section average from data; Levin & Lin (1992) suggest the following normalization to control the Heteroskedasticity in error. σˆ 2 ei = eˆi ,t ~ e= σˆ ei v~i ,t −1 v~i ,t −1 = σˆ ei In the next step, the LLC test statistic could be obtained from the following regression; ~ ei ,t = ρv~i ,t −1 + ε~i ,t ~ = 0 is given by The t-statistic for testing o tδ = δˆ STD (δˆ ) Where N y = 1 / N ∑ y it (3) N i =1 In step 2, an ADF test is applied to each individual series and normalizes the disturbance. The ADF model could be expressed as; Pi Dy it = ρ i y it −1 + ∑ δ ij Dy i ,t − j + α i + ε it j =1 eˆi ,t = ρ iVˆi ,t −1 + ε it δˆ = T ∑ ∑ vˆ i =1 t = 2 + p (4) eˆ t −1 it N ∑ ∑ vˆ i =1 t = 2 + p Maddala and Wu (1999) argued that this is equivalent to perform two auxiliary regressions of Dy it and y i ,t −1 on the remaining variable n equation (3). Let the residuals from these two regression be eˆi ,t and Vˆi ,t −1 respectively. The, regress eˆi ,t on Vˆi ,t −1 . 138 1 (eˆi ,t − ρˆ i − Vˆi ,t −1 ) 2 ∑ T − Pi − 1 t = p + 2 2 it −1 Next, the paper also employs the IPS test which is based on the mean value of individual ADF statistics or t-bar (Im, Pesaran and Shin, 2003). The IPS test provides separate estimation for each i section, allowing different specifications of the parametric values, the residual variance and the lag lengths. Their model is given by: n DYi ,t = α i + ρ i Yi ,t −1 + ∑ φ k DYi ,t − k + δ i t + u it (6) k =1 (5) Journal of Economic and Social Studies Volume 3 Number 2 Fall 2013 139 �Impact of Military Expenditure and Economic Growth on External Debt: New Evidence from a Panel of SAARC Countries Khalid Zaman / Iqtidar Ali Shah / Muhammad Mushtaq Khan / Mehboob Ahmad The null hypothesis and the alternative hypothesis are formulated as: s NT is the contempoWhere eˆi ,t represents the residuals from the ADF estimation, ~ raneous panel variance estimator, and ŝ i is the standard contemporaneous variance of the residuals from the ADF regression. The asymptotic distribution of panel and group mean statistics can be expressed in: H 0 : ρi = 0 H A : ρi < 0 K N ,T − µ N for at least one i Thus, the null hypothesis of this test is that all series are non-stationary process under the alternative that fraction of the series in the panel are assumed to be stationary. IPS also suggested a group mean Lagrange multiplier test for testing panel unit roots. Maddala & Wu (1999) attempted to improve to the same degree the drawbacks of all previous tests by proposing a model that could also be estimates with unbalanced panels. Basically, Maddala and Wu are in line with the assumptions that a heterogeneous alternative is preferable, but they disagree with the use of the average ADF statistics by arguing that it is not the most effective way of evaluating stationary. Panel ointegration ests: Finally, this paper employs Pedroni’s (1999, 2004) panel-co integration method in order to examine the long-run relationship between external debt and military expenditure. If the independent and dependent variables are co-integrated or have a long-run relationship, the residual eit will be integrated of order zero, denoted I(0). Pedroni used two types of panel cointegration tests. The first is the “panel statistic” that is equivalent to a unit root statistic against the homogenous alternative; the second is the “group mean statistic” that is analogous to the panel unit root test against the heterogeneous alternative. Pedroni (2004) argued that the “panel statistic” can be constructed by taking the ratio of the sum of the numerators and the sum of the denominators of the analogous conventional time series statistics. The “group mean statistic” can be constructed by first computing the ratio corresponding to the conventional time series statistics, and then computing the standardized sum of the entire ratio over the N dimension of the panel. This paper uses two panel co-integration tests as suggested by Pedroni (1999, 2004), namely the “panel ADF statistic” and “group mean ADF statistic”. The two versions of the ADF statistics could be defined as: Panel (7) Group Mean (8) 140 Journal of Economic and Social Studies ⇒ N (0,1) v Where K N ,T is the appropriately standardized form for each of statistics, µ m ADF regression is the mean term and v is the variance adjustment term. Pedroni provides Monte Carlo estimates of µ and v (Pedroni, 1999). These statistics are based on the estimated residuals from the following regression: Where ξ it = η i ξ i ( t −1) + µ it are the estimated residuals from the panel regression. The null hypothesis tested is whether η i unity is. The finite sample distribution for the test statistics have been tabulated in Pedroni (2004) using Monte Carlo simulations, if the test statistic exceeds the critical values in Pedroni (2004), the null hypothesis of no cointegration is rejected, implying the variables are cointegrated. Panel Long-run elationship: If long-run relationship among the variables were found then the long-run and short-run coefficients of economic growth and military expenditure on external debt will be estimated. To estimate the long-run effect of economic growth and military expenditure, the panel FMOLS, proposed by Pedroni (2000) and DOLS developed by Stock and Watson (1993) have been used. Results and Discussion To test whether each of ED, GDP and ME contain a panel unit root, the panel unit root tests proposed by Levin, Lin and Chu Test (2002), Im, Pesaran & Shin (2003) and Maddala & Wu (1999) have been applied. The results are reported in Table 2 where they are divided into three panels. Panel A consists of results from the Levin, Lin and Chu (2002); panel B consists of the results from the Im, Pesaran & Shin (2003) test and panel C consists of results from the Maddala and Wu (1999) test. For each of these tests, *, ** and *** indicates the statistical significance at 1 Volume 3 Number 2 Fall 2013 141 �Impact of Military Expenditure and Economic Growth on External Debt: New Evidence from a Panel of SAARC Countries Khalid Zaman / Iqtidar Ali Shah / Muhammad Mushtaq Khan / Mehboob Ahmad percent; 5 percent and 10 percent respectively. The results from all three tests, with or without linear trends; suggest that ED, GDP and ME contain a panel unit root as mentioned in Table 2. Table 3. Panel Long-run Elasticity Panel Methods ln(ME) 1.182 (8.337)* 1.243 (3.210)* DOLS Table 2. Panel Unit Root Test FMOLS Levels Individual Effects Panel A: Levin, Lin, Chu Test (2002) Variables (in logs) ln(ED) 2.807 ln(GDP) 2.448 ln(ME) -0.432 Panel B: Im, Pesaran, Shin Test (2003) Variables (in logs) ln(ED) 3.664 ln(GDP) -0.846 ln(ME) -0.071 Panel C: Maddala and Wu (1999) Variables (in logs) ln(ED) 0.015 ln(GDP) 12.285 ln(ME) 10.234 First Differences Individual Effects Individual Effects and Linear Trends Individual Effects and Linear Trends 2.118 1.725 0.022 -1.400*** -1.621** -4.294* -1.580*** -1.812** -3.827* 2.712 0.356 0.352 -1.815** -3.586* -3.256* -2.495* -3.201* -2.665* 1.985 8.253 6.213 20.712** 38.361* 29.665* 21.321** 32.170* 27.424* * indicates significance at the 0.01 level. ** Indicates significance at the 0.05 level. To examine whether there is a long run relationship between the three variables for the panel of five selected SAARC countries, Pedroni’s (2004) panel Phillips-Perron (1988) type rho-statistic and group Phillips-Perron (1988) type rho-statistic have been employed. The panel rho-statistic and group rho-statistic are 2.2 and 2.7, respectively and the associated one-sided p-value is less than 0.01. Thus, both test statistics suggest that there is panel cointegration between ED, GDP and ME at the 1% level of significance. After finding that a long-run relationship exists between ED, GDP and ME, the long-run effect of GDP and ME on ED have been estimated using the panel FMOLS estimator suggested by Pedroni (2000) and panel DOLS estimator proposed by Kao & Chiang (2000). The results are reported in Table 3. 142 Journal of Economic and Social Studies ln(GDP) -0.638 (-11.783)* -0.796 (-3.974)* Note: Figures in parenthesis are t-statistics. * denote statistical significance at the 1 % level. For the DOLS estimator, 1% increase in economic growth decreases external debt by 0.638 %, while a 1% increase in military expenditure increases external debt by 1.18%. Both results are statistically significant at the 1% level. On the other hand, for the FMOLS estimator the coefficient on GDP is 0.796, suggesting that a 1% increase in growth (GDP) decreases external debt by 0.80%. The coefficient of military expenditure (ME) is 1.243, which implies that a 1% increase in military expenditure increases external debt by almost 1.24%. The results for the short-run impact of economic growth and military expenditure on external debt for the panel of five selected SAARC countries are reported in Table 4. Table 4. Panel Short-run Elasticities Variables Constant Coefficient 9.452 t-statistics 19.528* D ln(ME) 0.149 6.102* D ln(GDP) -0.471 -3.761* ECTt −1 -0.092 -2.183** Goodness of fit: R2 = 0.84; R 2 = 0.81 Note: *, ** and *** denotes statistical significance at 1, 5 and 10 % level. Table 4 indicates that economic growth has a negative impact on external debt while military expenditure has a statistically significant positive impact on external debt in the short-run. The coefficient of the military expenditure is 0.149, suggesting that a 1% increase in military expenditure increases external debt by 0.15% respectively. On the other hand, GDP decreases external debt by almost 0.47%. The one period lagged error correction term, which measures the speed of adjustment to equilibri- Volume 3 Number 2 Fall 2013 143 �Impact of Military Expenditure and Economic Growth on External Debt: New Evidence from a Panel of SAARC Countries Khalid Zaman / Iqtidar Ali Shah / Muhammad Mushtaq Khan / Mehboob Ahmad um following a shock to the system, has a negative sign and is statistically significant at the 5% level. Its sign and significance level suggests that external debt is able to revert to its equilibrium following a shock to growth and military expenditure. But, the magnitude of the coefficient, because it is very small, suggests that the speed of adjustment to equilibrium is very slow. Overall military expenditure has a positive and significant impact on SAARC external debt in the short and long-run. The relationship is elastic in the long-run, but inelastic in the short-run. Conclusion In this paper a short term and long term impact of military expenditure and economic growth the external debt for five selected SAARC countries; namely, Bangladesh, India, Nepal, Pakistan and Sri Lanka has been examined using data for the period 1988-2008 by applying panel unit root and panel cointegration framework. It was found that the external debt, economic growth and military expenditure were cointegrated for the panel of five SAARC countries. In the long-run, both estimators (DOLS and FMOLS) suggest that economics growth has a statistically significant negative effect on external debt, while military expenditure has a statistically significant positive effect on external debt. Using DOLS estimator, it was found that 1% increase in economic growth decreases external debt by 0.638 %, while a 1% increase in military expenditure increases external debt by 1.18%. Both results are statistically significant at the 1% level. On the other hand, using FMOLS estimator, it was found that 1% increase in growth (GDP) decreases external debt by 0.796%. While 1% increase in military expenditure increases external debt by almost 1.24%. In the short-run it was found that economic growth and military expenditures have a statistically significant negative and positive effect on external debt. In short run it was found that 1% increase in military expenditure increases external debt by 0.15% while 1% increases growth (GDP) decreases external debt by almost 0.47%. One important limitation on our finding is that, from an econometric perspective, the small panel (T=21, N=5) is only sufficient to accommodate two explanatory variables without a substantial loss in power. Future studies for the South Asia as well as other regions in the world could include more potential determinants of external debt within a panel cointegration framework subject to an increase in data availability. 144 Journal of Economic and Social Studies References Asian Development Bank (2008). Asian Development Outlook, Asian Development Bank. Available Online at: http://www.adb.org/Documents/Books/ADO/2008/ Update/default.asp accessed on May 2, 2010 Abu-Badar, S. & Aamer S. Abu-Qarn, (2003). 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Journal of Economic and Social Studies Government Expenditure on Nomadic Education in Nigeria: Implications for Achieving the Millennium Development Goals AKIGHIR David Terfa Department of Economics, Benue State University, Makurdi, Nigeria. akighirdavidterfa@ yahoo.com OKPE. I Department of Economics, Benue State University, Makurdi, Nigeria. A A The paper examines government expenditure on nomadic education in KEYWO D igeria and the implications for achieving the M Gs. econdary data ducation, Government were used and the data were analyzed with the aid of descriptive statistics. xpenditure, Millennium The study revealed that government expenditure on nomadic education evelopment Goals, omads, in igeria over time has been on the increase which has necessitated the igeria. increase in the number of nomadic schools and teachers in the country. The study further found out that there is a wide gap between male and A I LE HI O Y female enrolments in nomadic schools in igeria; factors such as early ubmitted: 20 ctober 2011 marriages and teenage pregnancies, cultural and religious biases as well esubmitted: 10 ebruary 2012 as economic issues were believed to be responsible for the gap. Also, it esubmitted: 12 March 2012 was discovered that the total increase in nomads’ enrolments in nomadic esubmitted: 24 April 2012 schools in the country is not proportionate with the increase in government Accepted: 21 May 2012 expenditure on nomadic education. The study attributed this low school attendance by the nomads to the problems of under-funding, dearth of teachers, constant migration of nomads, the involvement of the children of nomads in the productive system, corruption, among others. The study concluded that the present form of implementation of the nomadic education would make it difficult for it to be a panacea for achieving the M Gs in the country. ecommendations were made on how to improve on the nomadic education system in the country. JEL odes: H5, 015 146 Journal of Economic and Social Studies Volume 3 Number 2 Fall 2013 147 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 2391 Title A name given to the resource Impact of Military Expenditure and Economic Growth on External Debt: New Evidence from a Panel of SAARC Countries Author Author Zaman, Khalid Iqtidar, Ali Shah Khan, Muhammad Mushtaq Ahmad, Mehboob Abstract A summary of the resource. This paper examines the impact of military expenditure and economic growth on external debt for a panel of five selected AA countries including Bangladesh, India, epal, Pakistan and rilanka, over the period of 1988-2008. sing Pedroni’s (2004) test for panel cointegration, it was found that there is a long-run relationship between external debt, economic growth and military expenditure. The study finds that external debt is elastic with respect to military expenditure in the long run and inelastic in the short run. In the long run, 1% increase in military expenditure increase external debt between 1.18 % and 1.24%, while 1% increases in economic growth reduce external debt between 0.64% and 0.79%, by employed and M estimator respectively. In the short run, 1% increase in military expenditure increases external debt by 0.15%, while 1% increase in economic growth reduces external debt by 0.47 %. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-12-19 Keywords Keywords. Article PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/035999ebee7049e9f1285a7ed8fe75ec.pdf f71183dd01c2062eccb9ced249b8047b PDF Text Text Journal of Economic and Social Studies Hasan GÖCEN / Hüseyin KALYONCU / Muhittin KAPLAN Seater, J. (1993), Ricardian Equivalence, Journal of conomic iterature, 31, 142-90. Seater, J.&Mariano,R. S. (1985), New tests of the life cycleandtaxdiscountinghypotheses, Journal of Monetary conomics, 15, 195-215. Stock, J. H. & Watson,M. W. (1993),A simple estimator of cointegrating vectors in higher order integrated systems, conometrica, 6, 783-820. Store Personality: Perceptions Towards Consumer Electronics Chain Stores in Turkey A Case of University Students Keti VENTURA Ege University, Faculty of Economics and Administrative Sciences, Business Administration keti.ventura@ege.edu.tr Ipek KAZANCOGLU Ege University, Faculty of Economics and Administrative Sciences, Business Administration ipek.kazanoglu@ege.edu.tr Elif USTUNDAGLI Ege University, Faculty of Economics and Administrative Sciences, Business Administration elif.ustundagli@ege.edu.tr Rezan TATLIDIL Ege University, Faculty of Economics and Administrative Sciences, Business Administration rezan.tatlidil@ege.edu.tr Abstr ct The purpose of this study is to identify, develop and compare the deter- KEYWO D minants of store personality of the most preferred consumer electronics tore personality, onsumer chain stores, as perceived by young consumers in urkey. A question- lectronic hain tores, onfirmatory actor Analysis, naire survey including a 22-item store personality scale was conducted urkey among 855 students using a convenience sampling method. xploratory factor analysis ( A) and confirmatory factor analysis ( A) A I LE HI O Y was performed. indings suggest that greater accuracy of information is ubmitted: 31 July 2012 needed in the purchasing decision related to high involvement products esubmitted: 05 ovember 2012 such as consumer electronics. Also it was found that younger consumers esubmitted: 18 ecember 2012 prefer reliable stores that give accurate information, value for money, Accepted: 21 ecember 2012 and provides price-quality fit. This study addresses the neglected area of store personality development and validation for consumer electronics relates through an understanding of young consumers perceptions towards store personality determinants. JEL odes: M31, M39 14 Journal of Economic and Social Studies Volume 3 Number 2 Fall 2013 15 �Keti VENTURA / Ipek KAZANCOGLU / Elif USTUNDAGLI / Rezan TATLIDIL Introduction In recent years, the growing importance of technology in our daily life has increased enthusiasm for consumer electronics consumption. In particular, young consumers, who are leading the adoption of new technologies, have become more ambitious in their purchases (Accenture, 2012, p. 6). In Turkey, consumer electronics is one of the fastest growing markets, with sales of 3,648 million TL in 2011 (GfK, 2011), with several new entrants establishing themselves the market. However, many of the products and brands sold in consumer electronics retail stores are perceived as being very similar (Yozgat and Deniz, 2008, p. 121). Pursuing sustainable competitive advantage in the current market environment necessitates some degree of differentiation in the products offered by consumer electronics retailers. Therefore, as individual customers tend to attribute humanized characteristics to brands or products, building a particular store personality with appropriate characteristics (Blankson and Crawford, 2012, pp. 311315) can be an effective way to differentiate a particular store from competitors, and position itself through these characteristics, which include product availability, service quality, value for money, and store atmosphere. The concept of “brand as a person”, or in other words “brand personality”, as the set of human characteristics associated with a brand (Aaker, 1997, p. 347) is an important concern for consumers, and in turn, for marketers and academicians (Grohmann, 2003, p. 224; Aaker and Fournier, 1995, p. 392; Wang and Yang, 2008, p. 460; Ambroise, et al., 2005, p. 32). Customers interaction with brands is often similar to their interaction with other people, especially when the brands are attached to such meaningful objects as clothes or cars (Aaker, 1996, p. 142). As individuals tend to associate the brand with their life situations and roles (Ligas and Cotte, 1999, p. 611), interaction with brands as if they were people necessitates defining personality traits that affect the relationship between attributes of people and their behavior in various situations (Hurley, 1998, p. 116), such as purchasing. Furthermore, in order to be useful in a social context, a brand’s meaning should be formed based on three components: its physical make up, functional characteristics, and characterizationi.e., personality (Ligas and Cotte, 1999, p. 612). As human or brand personalities are related in the context of retail stores (Brengman and Willems, 2008, p. 27), consumers are able to identify a particular personality related to a store based on both its tangible (design, environment, etc.) and intangible (attitude of sales personnel, service quality, etc.) components. Despite approximate similarity in price, service, merchandising and marketing activities, some stores are overwhelmingly preferred to others (Martineau, 1958, p. 47). Thus, it could be concluded that there should be other factors that 16 Journal of Economic and Social Studies Store Personality: Perceptions Towards Consumer Electronics Chain Stores in Turkey A Case of University Students directly or indirectly affect consumers, and in turn, their preferences. Store personality is considered to be one factor responsible for differentiating and positioning a store, because when a store is humanized, it relates to self-meaning that has congruent personalities to oneself (Chan, et al., 2003, p. 302), this being consistent with the “self-congruity” theory (Sirgy and Samli, 1985; Sirgy, et al., 2000). As Turkish consumer electronics chain stores are all highly competitive and implement similar marketing strategies, some degree of differentiation is necessary within their positioning strategies, especially in regard to younger consumers. In this respect, the purpose of this study is to identify and compare the determinants of store personality of the most preferred consumer electronics chain stores, as perceived by young consumers in Turkey. Additionally, it aims to explore specific store personality determinants, and also to develop a scale in a consumer electronics chain store context. Accordingly, exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) were applied to the most preferred consumer electronics chain stores, in order to validate the scale. The conceptual framework for the empirical research was based on store personality in retailing services. In the first section of the study, the concept of store personality is discussed. Following this, the research design and the results of the study are presented. The study is concluded by outlining the implications and recommendations for the practitioners, the limitations of the study, and opportunities for further research. Store personality has been investigated by relatively few researchers including Martineau (1958), d’Astous and Levesque (2003), Brengman and Willems (2008). As the scales developed in these studies are too general, and based on a specific context, they cannot be appropriately applied to consumer electronics chain stores. Accordingly, the studies of these authors are utilized to develop a new scale to increase understanding of the perceptions of university students’ towards consumer electronics chain stores. The findings of the present study have the potential to contribute to store personality literature by developing and validating a store personality scale for the use of consumer electronics retailers to position themselves in young consumer markets. Literature Review The concept of store personality was introduced by Martineau (1958, p. 47), who defined it as “the way in which the store is defined in the shopper’s mind, partly Volume 3 Number 2 Fall 2013 17 �Keti VENTURA / Ipek KAZANCOGLU / Elif USTUNDAGLI / Rezan TATLIDIL Store Personality: Perceptions Towards Consumer Electronics Chain Stores in Turkey A Case of University Students by its functional qualities and partly by an aura of psychological attributes”. Store personality is commonly related to store image, but there are important differences in meaning. Although store image is associated with all the dimensions related to the store, store personality is restricted to those dimensions that correspond to human traits (d’Astous and Levesque, 2003, pp. 455-456). As the concept of human and brand personality are both directly transferable within the context of retail stores (Brengman and Willems, 2008, p. 27; Khan, 2010, pp. 9-10) these traits are relevant to the concept of “brand personality”. (annoyance, irritation, loudness and superficiality). These dimensions were those which had been most commonly accepted and used in previous studies (Brengman and Willems, 2009). In Brengman and Willems’ (2008) study, in which a fashion store was evaluated in the terms of store personality, 5 major classifications were proposed. These were “store atmosphere” related with design, ambience and social factors; “merchandise” related with price, quality, style and assortment; “retailer’s reputation” related with “word-of-mouth”, advertising, communication and social responsibility; “service” related with direct interactivity along with “format and location”. Aaker (1997) proposed the commonly accepted brand personality dimensions (sincerity, excitement, competence, sophistication, and ruggedness), and defined the concept, mainly by focusing on its positive attributes. The brand personality concept can help brand strategists enrich their understanding of people’s perceptions and attitudes toward the brand. It contributes to a differentiated brand identity, guiding the communication effort and creating brand equity (Aaker, 1996, p. 150). Customers often interact with brands in the same way they interact with other people (Aaker, 1996, p. 142). When consumers view it as having human characteristics, the brand is said to have a personality. Examples of brands found to have strong personalities include Harley Davidson (ruggedness) and Nike (excitement). Madrigal and Boush (2008) stated that trait inferences can also be made about store personality from the combination of marketing mix elements in which the retailers engage. For the stores themselves, other attributes, such as ambience, design and social components are also of concern (d’Astous and Levesque, 2003, p. 457) as these could directly affect the perception of store personality. Other aspects that affect store personality are store name, store environment, service quality, store personnel, merchandise quality, and carried brand names (Brengman and Willems, 2009, p. 347). In a store environment, factors as such as attachment, experience and structure are also important. These formations are evaluated through defining mechanisms, triggering memories linked to affect, which is either positive (Orth, Limon and Rose, 2010, p. 1207) or negative. Thus consumers develop a perception about a particular store that will affect shopping decisions. For this reasons, the design and structure of the store, and the qualities of the sales personnel represent important indicators of perceived store personality. Where the environment is formal, expressive, symbolic and has a professionally planned setting that interacts with the product, (Fiore and Ogle, 2000, p. 34) it influences the customer’s perception of store personality (Harrell and Hurt, 1976). As consumers repeatedly see, touch, hear and smell the commodities, as well as experience the environment, they derive value from formal, expressive and symbolic qualities, and this process influences their beliefs about the store (Fiore and Ogle, 2000, p. 34; Darden and Babin, 1994, p. 101). Subsequently, they associate the brand with their lifestyles and roles, thus there is a strong connection with their view of “self ” (Ligas and Cotte, 1999, p. 613). Thus, they use brand personality to define their sense of “self ” and tend to seek brands or stores with congruent personalities (Chan, et al., 2003, p. 304), consistent with the “selfcongruity” theory (Sirgy and Samli, 1985; Sirgy, et al., 2000). However, the way a store is perceived depends on the personality of each customer (Wesley, et al., 2006, pp. 167–168). The impressions in consumers’ minds will result in particular store preferences (Martineau, 1958:55; Brengman and Willems, 2009, p. 352). A good impression can be achieved by building a store personality and finding a suitable “location” in the minds of a group of consumers or a market segment (Keller, 2003, p. 119), a strategy known as “positioning”. A number of studies on store personality were conducted by Martineau (1958), who proposed the main influencing factors could be classified into three main areas: layout and architecture, symbols and colors, and advertising and sales personnel. However, d’Astous and Levesque (2003) stressed that the dimensions used by Martineau (1958) were related with image rather than personality, and they developed a 5 dimensional scale, consisting of “sophistication”, “enthusiasm”, “genuineness”, “solidity” and “pleasantness”, which included a total of 34 sub items. In the same study, they also prepared a reduced scale with the highest factor loadings: “enthusiasm” (welcomeness, enthusiasm, liveliness and dynamism); “sophistication” (chicness, being high class, elegance and style); “genuineness” (honesty, sincerity, reliability and honesty/truth); “solidity” (hardiness, solidity, reputation and prosperity) and “unpleasantness” Most importantly, brands’ objective personality traits do not exist independent of consumer perception (Zentes, Morschett and Schramm-Klein, 2008, p. 169). The process by which consumers use a product category and attribute information from memory has implications for selecting the appropriate positioning strategy to achieve 18 Volume 3 Journal of Economic and Social Studies Number 2 Fall 2013 19 �Keti VENTURA / Ipek KAZANCOGLU / Elif USTUNDAGLI / Rezan TATLIDIL brand association (Punja and Moon, 2002, p. 276). The brand, with its symbolic and human attributes, customizes its marketing mix according to store personality. However the personality that managers aim to implement may be different to that perceived by consumers. If there is a major gap between managers’ implementations and consumers’ perceptions of these, then it will be impossible for managers to communicate with consumers in a satisfactory manner. As store personality is directly related with “the perceptions of consumers”, it becomes important to evaluate store personality in the context of store positioning. Perceptions are mostly formed according to the factors representing the store’s “intangible assets”, which, according to Hooley, et al. (2001), are most difficult for competitors to imitate. Therefore, if a firm can succeed in positioning itself through personality characteristics, it will make an important contribution to its performance in terms of competition and long-term survival. While, the literature contains a number of studies on the determinants of brand personality, there is a need for further studies on store personality and its determinants, as these have received less attention. In this field, Martineau (1958) mostly focused on store image attributes to define store personality, d’Astous and Levesque (2003) utilized Aaker’s (1997) brand personality dimensions to develop a general store personality scale; however, this does not fit all retail stores. One example of the development of a new scale is Brengman and Willems’ (2008), which used qualitative methods to develop a scale for fashion stores based on d’Astous and Levesque (2003). In this study, we draw on this previous research (Martineau, 1958; d’Astous and Levesque, 2003; Brengman and Willems’, 2008) to understand the perceptions of young consumers towards the determinants of store personality. Using survey methodology, a new store personality scale is developed for consumer electronics chain stores. Store Personality: Perceptions Towards Consumer Electronics Chain Stores in Turkey A Case of University Students Darty, MediaMarket, BestBuy, Electroworld and Gold. These highly competitive market players need to be differentiated through their positioning strategies. A consumer electronics product is not only a tool with which the user performs a task, but also a decorative item for the home, or means to express one’s personality and lifestyle (Han, et al., 2001, p. 145). For this reason, the purchase of electronics products entails high involvement, in which consumers seek specific qualities in the products themselves. This very personalized approach makes the consumer electronics sector particularly suitable for store personality research. In this competitive environment, building store personality can be a significant factor in positioning a store. Within this context, the aim of this study is to explore and compare the determinants of store personality, as perceived by young consumers, of the most preferred consumer electronics chain stores in the Turkish market. In March 2011 a questionnaire survey was conducted among 855 students from the Faculty of Economics and Administrative Sciences, Ege University in Izmir, using a convenience sampling method. The questionnaires, which took 10-15 minutes to complete, were distributed in the classes and campus area by three research assistants, who had been informed of the content. This sample was chosen due to the fact that young consumers are more familiar with consumer electronics and often influence family purchasing decisions (Hafstrom, et al., 1992). In addition, the enthusiasm of young people for consumer electronics makes them a potentially highly profitable segment of the market (Accenture, 2012, p. 15). According to the GfK Retail and Technology 2011 Report, consumer electronics is one of the fastest growing sub-sectors in Turkey, with sales of 3,648 million TL. The consumer electronics sub-sector includes of color televisions, audio appliances, video players, cash registers, audio-video cassettes, television satellite receivers and antennas, electronic scales and electronic calculators. There are various domestic and foreign actors in the Turkish market, notably Teknosa, Vatan Computer, Bimeks, The questionnaire consisted of three sections. The respondents were asked to state their preferred consumer electronics store in the first section. The second section gave 22 statements relating to the determinants of store personality for the consumer electronics context. These statements, generated by the author, were based on the following: Martineau’s (1958) store personality determinants (architecture, colour schemes, advertising, salespeople and others), d’Astous and Levesque’s (2003) determinants for store personality dimensions; and Brengman and Willems, (2008, 2009)’s five major fashion store personality determinants (store atmosphere, merchandise, reputation, service and format). Brengman and Willems, (2009) determined four categories containing different items as follows : (i) “store atmosphere”: interior design, music, layout, window display (Berman and Evans, 2010, pp. 508-509); (ii) “merchandise”: price, quality, product range (Berry, 1969); (iii) “service”: sales people’s attitudes (O’Cass, A. and Grace, D., 2008); (iv) “format”: premium branded products, highincome level target (Brengman and Willems, 2009). A 5-point ‘Likert’ scale ranging from “strongly disagree (1)” to “strongly agree (5)” was utilized. Finally, in the last section, there were some demographic questions related to the respondent’s gender, 20 Volume 3 Field Study Journal of Economic and Social Studies Number 2 Fall 2013 21 �Keti VENTURA / Ipek KAZANCOGLU / Elif USTUNDAGLI / Rezan TATLIDIL age, income level. The questionnaire was originally prepared in Turkish, and the statements were translated into English for the tables. The findings of the study are presented in two parts. In the first part, EFA was conducted to the determinants (Martineau, 1958; d’Astous and Levesque, 2003; Brengman and Willems, 2008) of store personality in order to identify specific factors of store personality and obtain important insights about the data structure. In the second part of the study, ANOVA is performed to compare the perceptions of respondents to the specific determinants of store personality. Following this, first and second-order CFA was performed for each most preferred store in order to test the validity of scale, that is to assess its fit to the proposed theoretical basis. Findings The sample comprised 53.1 % female and 46.9 % male students. TeknoSa (52.4 %), MediaMarkt (27.9 %) and Vatan Computer (21.1 %) were chosen as the most preferred consumer electronics chain stores, comprising 87.9 % of the sample. The profile of the sample appears in Table 1. Table 1. Profile of the sample Variables Sex Female Male Missing Total N Valid Percent 379 335 38 53.1 46.9 -- 752 100 Variables Monthly Income 650-1379 TL 1380-2109 TL 2210-2839 TL 2840-3569 TL 3570-4299 TL 4300-5029 TL 5030-5759 TL 5760-6489 TL 6490 TL + Missing Total N Valid Percent 236 174 113 49 44 18 12 9 28 69 752 34.6 25.5 16.5 7.2 6.4 2.6 1.8 1.3 4.1 100 Mostly Preferred Electronic Store Age TeknoSA Mediamarkt Vatan Total 18-24 25-31 607 145 80.7 19.3 Total 752 100 22 384 210 158 752 51.0 27.9 21.1 100 Journal of Economic and Social Studies Store Personality: Perceptions Towards Consumer Electronics Chain Stores in Turkey A Case of University Students In order to establish the evaluations related to the statements determining store personality, one sample t-test was conducted. As shown Table 2, the findings of one sample t-test about the respondents’ perceptions of store personality determinants revealed that young respondents (a) can easily find the products they are looking for in these stores (t=31.622 df:739 p=0.000), (b) visit these stores for its premium branded products (t=23.362 df:736 p=0.000), (c) get accurate information (t=28.401 df:747 p=0.000) and (d) receive value for their money (t=20.535 df:743 p=0.000). Table 2. One Sample T-Test of the Respondents’ Evaluations Statements Mean I visit this store for the premium branded products. 3.88 I think stores like this sell high-priced products. 3.09 I appreciate the interior design of this store. 3.60 I think this store serves high-income customers. 2.81 I appreciate the window display of this store. 3.32 The music played in this store enables me to take pleasure from 3.31 shopping I appreciate the young and dynamic sales staff of this store 3.15 I find more suitable consumer electronics products for young 3.54 people in this store compared to other stores Only the latest technology products are sold in this store 3.65 The low turnover of salespeople in this store gives me confidence. 3.21 The salespeople in this store are very knowledgeable. 3.56 I can easily find what I am looking for in this store. 3.96 This store determines a price which is appropriate for the quality 3.71 of the product. Information given related to the products is correct in this store. 3.86 I think the advertisements of this store give accurate information. 3.66 I think this store always gives me value for money. 3.70 I do not think that this store makes false claims to increase sales.* 2.36 I do not like the aggressive attitude of the salespeople towards 3.52 customers.* Whenever I want to buy a product from this store, they tell me 3.69 that the product is out of stock * The confusing layout of this store makes it difficult to find what I 3.74 am looking for.* This store’s interior colour irritates me. * 3.77 The constant crowding in this store irritates me. * 3.35 Std. dev. 0.991 1.129 0.982 1.124 1.029 t df Sig. 25.822 2.389 17.865 -4.976 8.852 854 854 854 854 854 0.000 0.017 0.000 0.000 0.000 1.072 4.007 854 0.000 1.029 15.279 854 0.000 0.945 19.963 854 0.000 1.080 1.069 0.961 0.820 5.674 5.628 16.980 34.351 854 854 854 854 0.000 0.000 0.000 0.000 0.899 22.905 854 0.000 0.815 30.762 0.900 21.403 0.895 23.006 0.982 -18.943 854 854 854 841 0.000 0.000 0.000 0.000 1.130 13.310 836 0.000 1.030 19.489 842 0.000 1.009 21.286 838 0.000 0.996 1.108 22.269 835 9.307 846 0.000 0.000 Test value is 3 (neither agrees nor disagrees) *recoded Volume 3 Number 2 Fall 2013 23 �Keti VENTURA / Ipek KAZANCOGLU / Elif USTUNDAGLI / Rezan TATLIDIL An exploratory factor analyses was perfomed on the total sample in order to identify the specific determinants of the store personality with Varimax rotation. The KaiserMeyer-Olkin (KMO) test and Bartlett’s test of sphericity were computed to assess the appropriateness of factor analyses to the data. The Kaiser-Meyer-Olkin Measure (KMO) of Sampling Adequacy (0.834) also showed that sample adequacy was satisfactory and the Bartlett’s test of sphericity was significant (p<0.000). The factor analysis of the 22 item scale yielded a ‘three principal components’ solution. Each of these three factors had an eigen value greater than one. The statements with factor loadings lower than 0.50 were removed from the study. During the factor analysis, eight variables that were unrelated to any factor were excluded, and a total of three factors were extracted from the remaining 13 items. The analysis produced three store personality factors, and explained 56.3% of the variance. Also, Cronbach’s alpha coefficients were calculated in order to check the internal consistency and reliability of each factor. Factor loadings ranged from 0.63 to 0.81 and alpha coefficients ranged from 0.67 to 0.80, indicating a high internal consistency and reliability for the factors. The factors were declared as “Pleasantness”, “Reliability” and “Welcomeness” in accordance with their respective factor loadings (Table 3). Store Personality: Perceptions Towards Consumer Electronics Chain Stores in Turkey A Case of University Students Table 3. Results of Exploratory Factor Analysis Recoded Factor Common Factors Factor Loading Statements The confusing layout of this store makes it difficult to find what I am looking for.* This store’s interior colour irritates me. * Pleasantness Whenever I want to buy a product from this store, they tell me that the product is out of stock.* The constant crowding in this store irritates me.* I do not like the aggressive attitude of the salespeople towards customers.* Information given related to the products is accurate in this store. I think this store always gives me value for money. I think the advertisements of this store give accuReliability rate information. The salespeople in this store are very knowledgeable. This store determines a price which is appropriate for the quality of the product. I appreciate the interior design of this store. I appreciate the window display of this store. Welcomeness The music played in this store enables me to take pleasure from shopping. KMO Bartlett Test Interpretation (Cumulative % of variance explained) Cronbach Alpha 21.775 0.80 41.989 0.77 56.032 0.67 0.799 0.791 0.762 0.694 0.640 0.751 0.735 0.727 0.670 0.626 0.812 0.752 0.704 0.834 2940.500; (df: 78; p<0.05) In order to compare the respondents’ evaluations of “Pleasantness”, “Reliability” and “Welcomness” factors, and explore the differences between the most preferred stores, both a sample t-test and ANOVA were conducted. H1 is generated as follows: 24 Journal of Economic and Social Studies Volume 3 Number 2 Fall 2013 25 �Keti VENTURA / Ipek KAZANCOGLU / Elif USTUNDAGLI / Rezan TATLIDIL 26 Journal of Economic and Social Studies Number 2 147 3.422 2.87 209 3.909 2.280 The music played in this store enables me to take pleasure 3.12 from shopping. 3.29 393 Test value is 3 (neither agrees nor disagrees) *recoded **p<0.05 147 147 4.369 6.314 3.54 3.14 209 209 7.619 5.150 393 13.560 393 7.489 3.63 3.35 I appreciate the interior design of this store. I appreciate the window display of this store. 3.54 3.37 10.594 147 3.86 11.947 209 3.77 147 7.233 3.63 11.022 209 3.68 393 9.607 3.45 The salespeople in this store are very knowledgeable. 12.811 393 Welcomeness Reliability Fall 2013 This store determines a price which is appropriate for the 3.56 quality of the product. 147 7.941 3.62 209 9.364 16.056 393 3.65 11.135 147 3.84 12.442 209 3.80 12.901 393 3.56 I think this store always gives me value for money. I think the advertisements of this store give accurate infor3.67 mation. 12.473 147 3.93 3.81 22.667 393 13.311 209 144 5.600 3.56 204 8.107 3.62 987 7.368 145 5.283 3.49 206 3.038 3.25 The constant crowding in this store irritates me.* 3.30 5.590 390 14.161 388 Pleasantness I do not like the aggressive attitude of the salespeople to3.41 wards customers.* Information given related to the products is accurate in this 3.83 store. 144 8.004 3.69 205 7.932 3.61 145 9.972 3.77 10.548 200 3.74 14.750 385 3.74 This store’s interior color irritates me. * Whenever I want to buy a product from this store, they tell 3.69 me that the product is out of stock.* Vatan 3.78 206 9.873 3.71 13.812 386 The confusing layout of this store makes it difficult to find 3.70 what I am looking for.* t** Mean df t** Mean Statements Teknosa Volume 3 Common Factors Table 4. Comparison of One Sample T-Test of Three Stores Findings of the sample t-tests (Table 4) revealed that the majority of the mean values for each item were very close among the three stores. Considering the findings, it can be proposed that, although these three are the most preferred ones, they were able to differentiate themselves to a limited extent in relation to store personality determinants. It can be said that, although young people perceive these stores as being similar in all services, Vatan Computer and Teknosa were considered to give better value for money (F=7.847 df: 2/749 p=0.000) compared with MediaMarkt. Vatan Computer sets more reasonable prices according to the quality of their products (F=7.335 df: 2/749 p=0.001) than the other two. Sales personnel in MediaMarkt are perceived to have more knowledge (F=4.662 df: 2/749 p=0.010) than those in Teknosa. Also, the respondents who preferred MediaMarkt and Teknosa reported that the music in these stores gave a more pleasurable shopping experience (F=6.601 df:2/749 p=0.001) than was stated by those who preferred Vatan Computer. Considering these findings, H1g; H1k; H1i and H1n are supported (p<0.05). MediaMarkt df Mean t** df H1a/b/c/d/e/f/g/h/i/k/l/m/n: All three stores are statistically different according to (a) layout, (b) interior colour, (c) product availability, (d) crowdedness, (e) attitude of salespeople, (f )accuracy of product information, (g) value for money, (h) accuracy of information in ads, (i) knowledge of salespeople, (k) price-quality fit, (l) interior design, (m) window display and (n) in store music. 10.093 142 Store Personality: Perceptions Towards Consumer Electronics Chain Stores in Turkey A Case of University Students 27 �Keti VENTURA / Ipek KAZANCOGLU / Elif USTUNDAGLI / Rezan TATLIDIL EFA is essential in determining the underlying constructs for a set of measured variables. In order to test how well the measured variables represent the number of constructs (Brown, 2006), CFA was conducted with Maximum Likelihood Estimation in LISREL 8.80 (Jöreskog and Sörbom, 1997). CFA verifies the factor structure of a set of observed variables and statistically tests the validity and reliability of a hypothesized factor model (Suhr, 2006, p. 1). The hypotheses tested are as follows: Store Personality: Perceptions Towards Consumer Electronics Chain Stores in Turkey A Case of University Students Figure 1. Second-Order Confirmatory Factor Analysis of Perceived Store Personality LAYOUT INTERIOR COLOR PLEASANTNESS H2: The correlated (first-order) store personality factors explain an important proportion of the variance in the data. CROWDED AFFECT ATTITUDE OF SALESPEOPLE H3: The set of store personality determinants comprises the latent variable, overall store personality. First-order CFA was performed to examine the construct more closely and establish construct validity for each of the most preferred consumer electronics chain stores. The estimation of the first-order CFA model revealed that the data defined three factors with regression coefficients varying among the three stores. All the coefficients were significant at the 5 % level (Table 5). Therefore, the hypothesis H2 was supported. Vatan Computer store had the highest correlations between “pleasantness and reliability” (r=0.68), “reliability and welcomeness” (r=0.74), “pleasantness and welcomeness” (r=0.52) respectively. In order to obtain as much understanding of the data as possible, second-order factor analysis was performed (McClain, 1996, p. 131; Correia, et al., 2008, p. 167). In comparison to first-order models with correlated factors, second-order factor models can provide a more interpretable model (Chen, et. al., 2005, p. 472). ACCURATE PRODUCT INFORMATION VALUE FOR MONEY PERCEIVED STORE PERSONALITYY RELIABILITY Journal of Economic and Social Studies ACCURATE INFORMATION IN ADS KNOWLEDGEABLE SALESPEOPLE PRICE-QUALITY FIT Second-order CFA was conducted on the three-dimensional model of perceived store personality and compared each store independently, with the same items. Figure 1 presents the hierarchical construct of perceived store personality, consisting of several correlated first-order factors and a single second-order factor. In this model, the latent variables were “perceived store personality”, “pleasantness”, “reliability”, “welcomeness”, and the observed variables are store personality determinants. “Pleasantness” and “reliability” were represented by five items each, and “welcomeness” by three items. 28 PRODUCT AVALIABILITY INTERIOR DESIGN WELCOMING WINDOW DISPLAY IN STORE MUSIC Volume 3 Number 2 Fall 2013 29 �The standardized regression coefficients of the models and associated t-values for the 13 items are shown in Table 5. The output revealed that every standardized regression coefficient and the associated t-values are significant (p ≤ 0.05). The resulting fit indices (GFI, CFI, AGFI, RMSEA, χ2 /df ) for all three store personality models displays satisfactory measure fit, which supported the construct validity of the measures. In order to assess the convergent validity of “pleasantness”, “reliability” and “welcomeness” constructs, construct reliability was computed. Construct reliability values ranged from 0.617 to 0.893, which shows an acceptable convergent validity. Discriminant validity is computed by latent variable correlation matrix (Table 6). As seen from the Table 6, although some of the AVE (Average Variance Exracted) values are at moderate level (AVE<0.5) (Paswan, 2009), the square root values of AVE for all three stores are larger than the correlations, which demonstrates an acceptable discriminant validity. 30 Journal of Economic and Social Studies Volume 3 Number 2 Fall 2013 *Significant at p ≤ 0.05 Overall Model Fit: PERCEIVED STORE PERSONALITY → PLEASANTNESS PERCEIVED STORE PERSONALITY → RELIABILITY PERCEIVED STORE PERSONALITY → WELCOMENESS PLEASANTNESS →LAYOUT PLEASANTNESS →INTERIOR COLOR PLEASANTNESS →PRODUCT AVAILABALITY PLEASANTNESS →CROWDEDNESS PLEASANTNESS →ATTITUDE OF SALESPEOPLE RELIABILITY →ACCURACY OF PRODUCT INFORMATION RELIABILITY → VALUE FOR MONEY RELIABILITY → ACCURACY OF INFORMATION IN ADS RELIABILITY → KNOWLEDGABLE SALESPEOPLE RELIABILITY → PRICE-QUALITY FIT WELCOMENESS →INTERIOR DESIGN WELCOMENESS → WINDOW DISPLAY WELCOMENESS → IN STORE MUSIC Predictive Parameter Estimates MEDIAMARKT (N=210) VATAN (N=158) Standardized Standardized Standardized t-value Regression R2 t-value Regression R2 t-value Regression R2 Coefficients Coefficients Coefficients 2.77* 0.37 0.13 5.19* 0.66 0.44 5.53* 0.69 0.48 3.22* 0.83 0.68 4.44* 0.86 0.74 10.04* 0.98 0.97 2.64* 0.50 0.25 4.88* 0.50 0.25 8.22* 0.82 0.56 7.60* 0.76 0.58 7.73* 0.77 0.60 6.33* 0.82 0.67 7.49* 0.74 0.55 7.58 * 0.74 0.55 6.35* 0.83 0.69 7.34* 0.74 0.51 6.59* 0.60 0.36 5.52* 0.58 0.34 6.09* 0.54 0.30 5.57* 0.48 0.23 4.77* 0.45 0.20 0.50 0.36 0.61 0.37 0.46 0.21 6.25* 0.54 0.41 5.08* 0.69 0.48 10.68* 0.76 0.58 6.65* 0.72 0.52 5.07* 0.69 0.48 11.88* 0.85 0.72 6.66* 0.73 0.53 5.14* 0.73 0.53 10.99* 0.78 0.61 0.55 0.30 0.42 0.17 0.73 0.53 5.55* 0.53 0.28 4.30* 0.47 0.22 11.61* 0.83 0.68 0.55 0.30 0.82 0.67 0.74 0.55 3.43* 0.67 0.45 7.30* 0.72 0.52 10.44* 0.83 0.69 2.86* 0.30 0.088 6.34* 0.54 0.30 9.20* 0.70 0.49 GFI=0.93, AGFI=0.90,CFI= 0.94,GFI=0.95, AGFI=0.90,CFI=0.98,GFI=0.90, AGFI=0.87,CFI= 0.90, RMSEA=0.033, χ262=96.34,χ2 /RMSEA=0.031, χ262=73.67, χ2/RMSEA=0.074, χ262=259.78, χ2/ df=1.55 df=1.18 df=4.19 TEKNOSA (N=384) Table 5. Results of the CFA of Store Personality Scale Among the Most Preferred Consumer Electronics Chain Stores Keti VENTURA / Ipek KAZANCOGLU / Elif USTUNDAGLI / Rezan TATLIDIL Store Personality: Perceptions Towards Consumer Electronics Chain Stores in Turkey A Case of University Students 31 �Keti VENTURA / Ipek KAZANCOGLU / Elif USTUNDAGLI / Rezan TATLIDIL Store Personality: Perceptions Towards Consumer Electronics Chain Stores in Turkey A Case of University Students Table 6. The Latent Variable Correlation Matrix: Discriminant Validity Reliability Teknosa (n=384) Pleasantness Welcomeness Reliability MediaMarkt (n=210) Pleasantness Welcomeness Reliability Vatan Computer (n=158) Pleasantness Welcomeness Reliability 0.62 0.30 0.41 0.61 0.57 0.43 0.79 0.68 0.74 Pleasantness Welcoming 0.67 0.18 0.53 0.65 0.33 0.70 0.75 0.52 0.76 Note: Square root of AVE is on the diagonal. The values of some other goodness-of-fit indices are the following: GFITEKNOSA = 0.93, AGFITEKNOSA = 0.90, CFITEKNOSA = 0.94, RMSEATEKNOSA = 0.033, χ2/ dfTEKNOSA=1.55; GFIMEDIAMARKT=0.95, AGFIMEDIAMARKT=0.90, CFIMEDIAMARKT=0.98, RMSEAMEDIAMARKT=0.031, χ2/dfMEDIAMARKT=1.18; GFIVATAN=0.90, AGFIVATAN =0.87, CFIVATAN= 0.90, RMSEAVATAN=0.074, χ2/dfVATAN=4.19. Therefore, the three store personality factors determined perceived store personality, thus H3 is supported. The factor “reliability” had the highest standardized regression coefficients among the three stores. This means that when “reliability” increases by one, the perceived store personality increases by 0.83; 0.86 and 0.98. In all three stores, the most important determinants for the “pleasantness” factor are “layout” (βTeknosa=0.76; βMediaMarkt=0.77; βVatan=0.82) and “interior color” (βTeknosa=0.74; βMediaMarkt=0.74; βVatan=0.83). The reliability factor derives mainly from the “accurate information in ads” (βTeknosa=0.73; βMediaMarkt=0.73) and “value for money” (βTeknosa=0.72; βMediaMarkt=0.69) in Teknosa and MediaMarkt; “value for money” (βVatan=0.85) and “price-quality fit” (βVatan=0.83) in Vatan Computer. The highest coefficients for the “Welcomeness” factor were “window display” (βTeknosa=0.67; βVatan=0.83) in Teknosa and Vatan Computer; “interior design” (βMediaMarkt=0.82) in MediaMarkt. the population in Turkey comprises young people (TSI, 2011, p. 13), the interest in consumer electronics is growing rapidly, thus forcing consumer electronics retailers to be more innovative in the diversification of their marketing and positioning strategies. However, it can be seen that there is insufficient diversity in the retailing mix policies and strategies among the retailers with regard to factors such as goods and services offered, store location, operating procedures, pricing tactics, store atmosphere, customer services and promotional methods. Within this context, the purpose of this study is to identify and compare the determinants of the most preferred consumer electronics chain stores’ personalities, as perceived by a representative sample of Turkish university students. It aims to explore the factors that make up the specific store personality determinants in a consumer electronics chain store context. The reason for this is the critical need for the most popular electronics product chain stores to differentiate and gain competitive advantage, especially for young consumers such as university students, who represent an important section of this market (Accenture, 2012, p. 15). In the literature, there are few studies relating to store personality. This concept was firstly introduced by Martineau (1958), who mainly focused on store image attributes in defining store personality, while d’Astous and Levesque (2003) developed a “general” store personality scale based on Aaker’s (1997) brand personality dimensions. Additionally, Brengman and Willems (2008) developed a scale using retailing mix, aimed specifically at “fashion stores”. As the scales developed in these studies are generalized and context based, they are not appropriate for consumer electronics chain stores. Accordingly, these studies have been utilized as the basis for a new scale specifically designed to gain an understanding of university student perceptions of chain stores in the electronics sector. The consumer electronics market is one of the fastest growing in Turkey. In recent years, the entry of global chain stores into the Turkish market and the extension policies of local chain stores have increased competition in this sector. As 34.6 % of The findings of the present study contributes to the literature by developing and validating a store personality scale specifically for consumer electronics retailers based on university students’ perceptions of store personality determinants. In the Turkish market, Teknosa, MediaMarkt and Vatan Computer were selected as the most preferred chain stores. In the study, in order to identify specific factors of store personality, EFA was conducted and three factors were identified: “reliability”, “pleasantness” and “welcomeness”. Following this, CFA was performed on these factors and a confirmatory factor analytic model was generated. First-order models with correlated factors were performed to examine the construct more closely, while second-order factor analysis was used to define the most important factors and determine the relative importance of each factor to the overall, for each 32 Volume 3 Conclusion and Implications Journal of Economic and Social Studies Number 2 Fall 2013 33 �Keti VENTURA / Ipek KAZANCOGLU / Elif USTUNDAGLI / Rezan TATLIDIL Store Personality: Perceptions Towards Consumer Electronics Chain Stores in Turkey A Case of University Students chain store (Correia, et al., 2008, p. 173). The results indicate that “reliability” is perceived to be the most important factor in all three stores. In contrast, factors that are perceived to be least important by university students were “pleasantness” for Vatan Computer and Teknosa, “welcomeness” for MediaMarkt. One of the most important items perceived was “Value for money”, which explains “reliability” factor in all three store. This is due to the fact that purchasing electronic products requires high involvement which means that consumers put a greater emphasis on finding information about brands and products when making purchases. Moreover, in Teknosa and MediaMarkt, “accurate information in the advertisements” of the stores and in Vatan Computer “price-quality fit” best explains the “reliability” factor. As argued by Brengman and Willems (2009), it may be appropriate to propose that the managers of store chains should reduce the perception of overcrowding by rearranging the layout to facilitate shopping and in store traffic flow, to create a more pleasant store atmosphere. Managers may be encouraged to develop strategies for relieving congestion in crowded areas such as entrance, halls, cash register locations, customer services and shopping areas. This study shows the potential for a store-personality scale developed for consumer electronics chain stores in helping retailers understand the perception of young customers. This understanding can enable stores to reposition themselves in a competitive market by implementing an integrated communication strategy. The second store personality factor, “pleasantness” is found to be best explained by “layout” and “interior design” in all three stores. “Window display” is very much related with the “welcomeness’ factor in Teknosa and Vatan, while “interior design” is the most important item in explaining this factor in MediaMarkt. The main academic contribution of this study is that it can be seen as a preliminary effort to identify the most distinctive personality factors and determinants of consumer electronics chain stores perceived by university students in Turkey. As consumer electronics stores and their personality characteristics have received a limited amount of research attention in the marketing literature, this study is expected to be useful for potential domestic and foreign consumer electronics retailers investing in this sector. These findings emphasize the need for accurate information in the purchasing decision making process for high-involvement products, such as consumer electronics (Ahmed, et al., 2004). Young consumers prefer a reliable store that gives accurate information, value for money and has price-quality fit. In addition, the store atmosphere and merchandise are perceived as the most important determinants of store personality by university students. This may be due to the need for young consumers e.g. university students, to be able to touch, hear and even smell products, as well as see them, which contributes to a pleasant shopping experience and a feeling of being welcome in the store. Considering these findings, in order to increase the reliability of such stores it may be appropriate to recommend that managers ensure that sales personnel are provided with information relative to the products, as well as the price. This is considered to promote sales. In addition, stores should avoid misleading advertising and sales promotions as this can cause store avoidance. In order to prevent this problem and assist in monitoring students’ buying habits, loyalty cards can be given to contracted universities. Also, detailed explanations regarding the usage of products can be given on their web sites in the form of videos. Another vital measure is to improve after-sales service, such as maintenance, installation, and repair and even offer replacement with another product where necessary. Considering of the importance of the university market, it would be very useful for chain stores to promote their most popular products at university festivals, organize a variety of events and give special incentives to students, in order to capture these potential long term customers of the future. 34 Journal of Economic and Social Studies Limitations and Future Research This study has a number of limitations. In sampling design in particular, due to budget limitations, the use of convenience sampling method in only one metropolitan city, Izmir, and one university may not represent the general perceptions of Turkish university students. However, despite its limitations, this study can be seen as a preliminary effort in analyzing the perceptions of Turkish university students, a highly profitable segment of the market (Accenture, 2012, p. 15). In his study, Martineau (1958) mostly focused on store image attributes to define store personality, while d’Astous and Levesque (2003) utilized Aaker’s (1997) brand personality dimensions to develop a “general” store personality scale. Additionally, Brengman and Willems’ (2008) developed a scale only for “fashion stores”, which is therefore unsuited to consumer electronics. The scale developed in this study can only be applied to consumer electronics chain stores, because it includes specific determinants. Additionally, this scale can be used to measure the effect of store personality determinants on store loyalty, store image and alternative methodologies, Volume 3 Number 2 Fall 2013 35 �Keti VENTURA / Ipek KAZANCOGLU / Elif USTUNDAGLI / Rezan TATLIDIL Store Personality: Perceptions Towards Consumer Electronics Chain Stores in Turkey A Case of University Students including the usage of both qualitative and quantitative techniques. 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In contrast to this, icardian quivalence Hypothesis defends there is no relationship between these two deficits. win deficits have become the subject of several studies to test which of these hypotheses are reliable but no consensus has been achieved. ome studies found a relationship from budget deficit to current account deficit but some of them had the opposite result. specially after 1980 it is known that many developed and developing countries encountered with this twin deficits problem. urkey also has the problem of twin deficits. Therefore, it is important to find whether there is causality between them and the direction of this causality. In this study the relationship between budget deficit and current account deficit is examined by using Johansen ointegration Analysis. This study is based on period 1996:Q1-2011:Q4. According to results of cointegration; variable coefficients are statistically significant and consistent with what we expected in hypotheses. urrent account deficit ( A ) has a significant negative effect on budget deficit (B ). When there is a 1% increase in A , B decreases 0,12%. This finding is consistent with economic theory because according to Keynesian Approach two deficits have relationship with each other. However, in contrast to this approach, the direction is from A to B and also coefficient is negative. KEYWO D Budget eficit, urrent Account eficit, ustainable Growth, conometric Modelling, urkey A I LE HI O Y ubmitted: 5 ctober 2012 esubmitted: 18 ctober 2012 Accepted: 09 January 2013 JEL odes: H62, 32, 4 38 Journal of Economic and Social Studies Volume 3 Number 2 Fall 2013 39 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 2384 Title A name given to the resource Store Personality: Perceptions Towards Consumer Electronics Chain Stores in Turkey A Case of University Students Author Author Ventura, Keti Kazancoglu, Ipek Ustundagli, Elif Tatlidil, Rezan Abstract A summary of the resource. The purpose of this study is to identify, develop and compare the determinants of store personality of the most preferred consumer electronics chain stores, as perceived by young consumers in urkey. A questionnaire survey including a 22-item store personality scale was conducted among 855 students using a convenience sampling method. xploratory factor analysis ( A) and confirmatory factor analysis ( A) was performed. indings suggest that greater accuracy of information is needed in the purchasing decision related to high involvement products such as consumer electronics. Also it was found that younger consumers prefer reliable stores that give accurate information, value for money, and provides price-quality fit. This study addresses the neglected area of store personality development and validation for consumer electronics relates through an understanding of young consumers perceptions towards store personality determinants. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-12-19 Keywords Keywords. Article PeerReviewed H Social Sciences (General)