275 10 3494 https://omeka.ibu.edu.ba/files/original/e99ffef7e83f75111097c7d5045a0faf.pdf b599ddd1975e17fe78193c7a7bae9b61 PDF Text Text Journal of Economic and Social Studies The Effect of Financial Development on Economic Growth in BRIC-T Countries: Panel Data Analysis Mehmet MERCAN Assist. Prof. Dr., Hakkari University, Department of Economics, Hakkari/TURKEY mercan48@gmail.com İsmet GÖÇER Assist. Prof. Dr., Adnan Menderes University, Department of Economics, Aydin/TURKEY ismetgocer@gmail.com ABSTRACT In this study, the effect of financial development on economic growth was researched for the most rapidly developing countries (emerging markets) (Brazil, Russia, India, China and Turkey, BRIC-T) via panel data analysis using the annual data for the period from 1989 to 2010. Foreign direct investments and trade openness, which was thought to have effects on the growth, were included in the analysis. According to empirical evidence derived from the study made with panel data analysis it was found that the effect of financial development on economic growth was positive and statistically significant in line with theoretical expectations. Evidence that even foreign direct investments and openness contributed to the growth positively was also found. KEYWORDS Financial Development, Economic Growth, BRIC-T, Foreign Direct Investment, Trade Openness. ARTICLE HISTORY Submitted:27Jun 2012 Resubmitted:28 November 2012 Resubmitted: 18 January 2013 Accepted:21 January 2013 JEL Codes: E49, F19, G29 Volume 3 Number 1 Spring 2013 199 �Mehmet MERCAN / İsmet GÖÇER Introduction An increase in financial instruments and the foundation of these instruments more commonly available in a country is defined as financial development. In other words, financial growth means the development of financial markets (Erim and Türk, 2005). Financial growth is the change of the financial system in terms of size and structure. However, financial deepening expresses the share of the money supply in national income and it becomes a measure for financial growth and financial instrument variety (Saltoğlu, 1998). Financial growth can be expressed as a channel that transforms the savings to the investment in the financial changing process. In its literature, great contributions of the financial markets and institutions to the economic growth process of the countries in many ways are emphasised and this constitutes the subjects of many empirical studies. In the studies it is generally stated that a financial system which performs its financial functions would contribute to the economic growth in the long term (King and Levine, 1993a, 1993b; Arestis and Demetriades, 1997; Thiel, 2001; Levine, 2004; Eschenbach, 2004; Lawrence, 2006; Shan and Jianhong, 2006). Smoothly running financial markets in the economy support the capital accumulation, help the small funds direct to the big investments, encourage the disseminations of new technologies and therefore provide the most effective usage of the sources; they support the economic productivity and growth (Aslan and Küçükaksoy, 2006). Economic growth of that country will be high if financial institutions provide the credit demands of the real sector. In early studies about financial and economic growth (Gurley and Shaw, 1955, 1967), we observe that the effect of financial intermediation function on economic growth process is stated, although the theoretical thoughts cannot be expressed as a whole. Although Gurley and Shaw have made an important contribution to the literature by expressing the relationship between the financial sector and economic growth for the first time, they do not make any comment about whether or not there is a causality relationship between financial development and economic growth or if there is, what the direction of this relationship is. Patrick (1966) for the first time dealt with the relationship between the financial sector and economic growth by conceptualising. He expressed the idea that the causality between the financial sector and economic growth could be in two different forms and explained this relationship by using the demand-following and supply-leading concepts. On the demand-following case he expresses the financial sector growth to supply the demand occurring as 200 Journal of Economic and Social Studies �The Effect of Financial Development on Economic Growth in BRIC-T Countries: Panel Data Analysis a result of the developments in real sector and in supply-leading he explains that the growth of the financial sector would institutionally stimulate economic growth. It is very difficult to say if there is an agreement in many studies performed in order to determine the direction of the causality between the financial sector and economic growth. In the empirical analysis between financial development and economic growth we can see that there are studies expressing that the causality relationship is both one-sided and two-sided (Arestis and Demetriades, 1997; Thiel, 2001; Eschenbach, 2004; Lawrence, 2006; Shan and Jianhong, 2006). In some studies it is also stated that the relationship between financial development and economic growth variables is weak, even though financial growth may play a decreasing role in the economic growth process (Singh, 1997; Deidda, 2006). First named BRIC in the early 2000s, countries such as Brazil, Russia, India and China that have common characters such as a wide area, large population and rapid economic growth are accepted as the fastest growing “emerging markets” in the economic world (O’Neill, 2001:1-16). The total area of these countries covers more than 25% of the world’s area and more than 40% of the world’s population. It is argued that the BRIC group would take the G7 group’s place and obtain leadership of the world’s economy when the economic indicators are considered (Frank and Frank, 2010:46-54). Goldman Sachs, who studied the BRIC countries, estimates that in 2050 China will be the greatest economy in the world, India will be the third, Brazil will be the fourth and Russia will be the sixth largest economy. Based on these indicators, with the help of panel data analysis using the annual data of 1989 and 2010, in our study the effect of financial development on economic growth is researched for BRIC countries and Turkey, which is a developing country after China and has a developing economy. In the second section of the study, the literature review of empirical studies is presented as a table. In the following section the data set and method used in the analysis are introduced and evidence is presented. In the final section a general evaluation is conducted. Literature Review The first studies researching the relationship between financial development and economic growth were conducted by Schumpeter (1912). In his study, Schumpeter Volume 3 Number 1 Spring 2013 201 �Mehmet MERCAN / İsmet GÖÇER (1912) indicated that a smooth running economy would support the investors economically by providing the finance of technological innovations that was necessary for producing the new products most effectively and productively. Meanwhile, he expressed the opinion that the growth of the financial sector, especially the growth of the banking sector, was necessary for economic growth. In literature following Schumpeter (1912), many theoretical and empirical studies were performed. The studies researching the relationship between the financial development and economic growth, country group and the used methods and results are indicated in Table 1. As we can observe from Table 1, the view that financial development positively effects economic growth is supported, although there was no agreement between financial development and economic growth in terms of causality in the studies generally. Table 1. The Abstract of Some Theoretic and Empirical Studies Researching the Relationship between Financial Development and Economic Growth Writers Sampling and Econometric Method Basic Evidence King and Levine (1993) An International study–80 countries over the period of 1960-1980 They found that all indicators of financial development were highly related with economic growth rates, physical capital accumulation and economic productivity increase. An international analysis for Demirgüç-Kunt and 30 developed and developing Maksimoviç (1998) countries. Time series data for 20 Kang and Sawada country’s (2000) Endogenous Growth Model Shan et al. (2001) Shan and Morris (2002) Müslümov and Aras (2002) 9 OECD Countries and China Causality and VAR Analysis 19 OECD Countries and China Causality Test OECD Sample (22 countries) Granger Causality and Panel Data Calderon and Liu (2003) 109 Developed and Developing Countries Fink et al. (2003) 13 Developed Countries Co-integration and Correction Model Analysis Beck and Levine (2004) 40 countries Panel Data Analysis 202 An active stock market and a well-developed legal system facilitate the growth of the firms. Financial development and trade liberalisation accelerate economic growth by increasing the marginal benefits of human capital investments. He found two sided causality in 5 countries and supply leading to causality in 3 countries, although in 2 countries he found no relationship. They reached the results that financial development causes economic growth either directly or indirectly. A one sided relationship was obtained from the development of the capital market to economic growth. They reached the result that financial development affects economic growth via capital accumulation and productivity. They found evidence supporting the “demandfollowing” and “supply-leading” approaches in Italy, Japan and Finland; “supply-leading” in USA, Germany, Austria, England, Switzerland and weak “supply-demand” in Holland and Spain. They emphasised the importance of financial development in the economic growth process. Journal of Economic and Social Studies �The Effect of Financial Development on Economic Growth in BRIC-T Countries: Panel Data Analysis Thangavelu et al. (2004) Australia Sample VAR Methodology Christopoulos and Tsionas (2004) 10 Developing Countries Panel Co-integration Analysis 5 South-eastern Asian Countries Co-integration Granger Causality 99 Countries Panel Data Analysis Caporale et al. (2005) Ndikumana (2005) McCaig and Stengos (2005) 71 Countries Rousseau and Vuthipadadorn (2005) 10 Asian Countries Co-integration Granger Causality Shan and Jianhong (2006) Chine Sample VAR Methodology Artan (2007) 79 Countries Sample Panel Data Analysis Ağır et al. (2009) Turkey Sample Literature Review Kar et al. (2011) MENA Countries(1980-2007) Panel Granger Causality Test 168 Countries Classified Hassan, Sanchez Yu According to Income Level (2011) Panel Data Analysis İnce (2011) Turkey Sample (1980-2010) Co-integration Analysis Granger Causality Analysis They found causality from economic growth to the development of financial intermediaries, although they could not find evidence that the development of financial markets would cause economic growth. They found evidence that economic growth was the cause of financial development. It was found that the capital market increased economic growth by increasing investment activity. He presented evidence that the development of financial intermediation increased investments. They identified that the development of financial intermediation affected the growth strongly and positively. They found that financial development stimulated the investments and there was a one-sided relationship (supply-leading) from financial development to investments in many countries. They found that there was a two sided causality relationship between financial development and economic growth. In underdeveloped countries financial development negatively affects growth. He expressed the idea that the relationship between financial development and economic growth could be simultaneous. They inferred that it was impossible to make a certain statement about the causality between financial development and economic growth. It was stated that there was a positive relationship between financial development and economic growth in developing countries. For many country samples a two sided causality was obtained for the short term. They found that although there was a strong relationship between economic growth and financial development in the short term, there was no relationship in the long term. Source: Study of the writers and Kularatne, 2001: 10-11. There are also studies researching the relationship between financial development and economic growth in the Turkish sample. In empirical studies on Turkey it can be said that there is no consensus about the causality relationship between financial development and economic growth. Volume 3 Number 1 Spring 2013 203 �Mehmet MERCAN / İsmet GÖÇER Financial Development Indicators In financial development literature, the proportion of the financial sector to GDP is defined as financial depth (Feldman and Gang, 1990; Outreville, 1999). The indicators based on the size of the loan and money are the variables that are used as a measure of financial development. In the literature the proportion of narrow and broad money supply to GDP (M1/GDP, M2/GDP, M2Y/GDP), private sector loans/GDP, private sector credits of the banks/GDP, market value of the firms in Stock Exchange Market/GDP and effective money/GDP are used as the indicator of financial development and financial depth (Outreville, 1999, Darrat, 1999, King and Levine, 1993; Demetriades and Hussein, 1996, Halıcıoğlu, 2007). The “loans for the private sector” variable that has been used recently as an alternative indicator for financial intermediation is not preferred, because the indicators based on the monetary size (M1, M2, M2Y) in some studies do not represent financial development (Khan and Senhadji, 2000). The most fundamental of these indicators are the indicators giving the proportion of narrow and broadly defined money supply/GDP. It is indicated that the M1/GDP proportion is not in strong relation to the growth, although the M2/ GDP proportion indicates the measure of the size of the whole sector in financial intermediation and it is in strong relation to the change in per capita real GDP (King and Levine, 1993). Empirical Analysis Data Set and Model In this study the effect of financial development on economic growth was researched using the data for the 1989-2010 periods in the sample of 5 developing countries that have an important place in the economic world (Brazil, Russia, India, China and Turkey-BRIC-T). In the analysis, besides the financial development, foreign direct investments and trade openness, which was thought to affect the growth, was included in the model. From the variables used in the analysis y; represents the growth rate (GDP), fd; represents Financial Development (M2/GDP), fdi; repre- 204 Journal of Economic and Social Studies �The Effect of Financial Development on Economic Growth in BRIC-T Countries: Panel Data Analysis sents Foreign Direct Investments (FDI/GDP) and open; represents trade openness (Export+Import/GDP). The data was obtained from the web pages of the IMF and the World Bank (www.imf.org, www.worldbank.org). For analysis Stata 11.0 and Eviews 7.0 econometric analysis programmes were used and for model choice and correction test codes were used. Method Panel data analysis was used to research the data from different countries together. Panel data analysis was based on decomposing the error term ( ) to its components in terms of its individual and time effects (Baltagi, 2001; Gujarati, 1999 and Tarı, 2010): In the model, i indicate the countries, t indicates the time. When the error term ( ) was decomposed the: equation (2) was obtained. This final equation is called error component model. Here indicates the individual effects, indicates the time effects. It is supposed , and (Independent Identically Distributed), in other words the average of error terms is zero, its variant is fixed and it is distributed normally (with a white noise process). In the panel data analysis the stationarity of the series was first researched through panel unit root tests. The type of individual and time effects should then be identified. An endogeneity test should be conducted among the variables when there is a variable which is considered to have a close relation with the given variable, therefore it is suspected for its endogeneity. After that a model should be estimated and the problems of heteroscedasticity and autocorrelation in the model should be tested. Volume 3 Number 1 Spring 2013 205 �Mehmet MERCAN / İsmet GÖÇER Panel Unit Root Analysis It is accepted that the panel unit root tests, which regard the information about both time and cross section dimensions of the data, are statistically stronger than the time series unit root tests, which only regard the information about the time dimension (Im, Pesaran and Shin, 1997; Maddala and Wu, 1999; Taylor and Sarno, 1998; Levin, Lin and Chu, 2002; Hadri, 2000; Pesaran, 2006; Beyaert and Camacho, 2008), because the variability in the data increases when the cross section dimension is included to the analysis. The first problem with the panel unit root test is whether or not the cross sections forming the panel are independent. At that point panel unit root tests are classified as the first generation and the second generation. The first generation tests are also classified as homogeneous and heterogeneous. While Levin, Lin and Chu (2002), Breitung (2000) and Hadri (2000) are based on homogeneous model hypothesis, Im, Pesaran and Shin (2003), Maddala and Wu (1999), Choi (2001) are based on heterogeneous model hypothesis. Conversely, the main second generation unit root tests are MADF (Taylor and Sarno, 1998), SURADF (Breuer, McKnown and Wallace, 2002), Bai and Ng (2004) and CADF (Pesaran, 2006). Since the countries included in the analysis are not homogeneous, Im, Pesaran and Shin (2003) we used (IPS) testing this study. This test: is based on the model in equation (3). Here; is error correction term and when happens; we understand that the series is trend stationary, conversely when happens, it has unit root, therefore it is not stationary. The IPS test enables the to differentiate for the cross section units, in other words the heterogeneous panel structure. Test hypotheses: 206 H0: for all the cross section units, so the series is not stationary. H1: for at least one cross section unit, so the series is stationary. Journal of Economic and Social Studies �The Effect of Financial Development on Economic Growth in BRIC-T Countries: Panel Data Analysis When the probability value obtained from the test results is smaller than 0.05, H0 is rejected and it is decided that the series is stationary. The IPS panel unit root test results are presented in Table 4. Table 4. IPS Panel Unit Root Test Results Variable Level Prob-Value First Difference Prob-Value y -0.74 0.77 -2.64 0.00 fd -0.21 0.41 -4.60 0.00 fdi -1.04 0.14 -3.29 0.00 open 3.66 0.99 -3.79 0.00 Note: In Panel unit root test Schwarz criterions used and lag length is regarded as 1. When we examine the results on Table 4, it is observed that all series are not stationary in level value, although the series becomes stationary when the first differences of the series are taken. In other words, in the studied period it is found that macroeconomic variables are not stationary and the shock effects on these variables do not disappear after a while. Breush-Pagan Lagrange Multiplier (LM) Test In this stage of the analysis the LM test was performed in order to determine the type of time effect and individual effects (random or fixed). Because the selected countries aren’t in a certain economic group, it was anticipated that individual effects would be random and also the time effects of financial development on the growth would be random for the countries in the studied period. Whether or not the effects are really random can be determined with the LM test (Baltagi. 2001:15). The LM test is classified as LM1 and LM2. LM=LM1+LM2. LM1; tests the individual effects are random and LM2 tests the time effects are random. In LM1 test; H0: (no random individual effects) hypothesis is tested through LM1 statistics. LM1 statistics are calculated with the formula below. Volume 3 Number 1 Spring 2013 207 �Mehmet MERCAN / İsmet GÖÇER Here, ; indicates the individual effects in the equation (2), N; indicates the cross section (country) number, T; indicates the time dimension, ; indicates the prediction for the error terms in the equation (1). When the probability value obtained from the test results is smaller than 0.05, H0 is rejected and it is decided that individual effects are random. In LM2 test; H0: (No random time effect) hypothesis is tested by LM2 statistics. LM2 statistics are calculated with the formula below. Here, ; indicates the individual effects in the equation (2), N; indicates the cross section (country) number, T; indicates the time dimension, ; indicates the predictions for the error terms in the equation (1). When the probability value obtained from the test results is smaller than 0.05, H0 is rejected and it is decided that the time effects are random. In LM=LM1+LM2 test; H0: (no random individual and time effects) H1: At least one and at least one (random effects both). When the probability value obtained from the test results is smaller than 0.05, H0 is rejected and it is decided that both of the effects are random. In this case a prediction is made through the two-way random effect model. The LM tests results are presented in Table 5. Table 5. LM Tests Test Prob-Value Decision LM1 0.004 Individual Effects are random. LM2 0.001 Time Effects are random. LM 0.001 Individual Effects and Time Effects are random. When we look the results in Table 5, we can see that individual and time effects are random. According to this result the prediction was made using the two-way random effect model. 208 Journal of Economic and Social Studies �The Effect of Financial Development on Economic Growth in BRIC-T Countries: Panel Data Analysis Hausman Endogeneity Test In this stage of the study, whether or not there was a relationship between the individual effects and the explanatory variables was tested with the Hausman method. Test hypotheses: H0: Cov( No endogeneity problem. H1: Cov( An endogeneity problem. Here, ; indicates the individual effects in the equation (2), although indicates the explanatory variables in the equation (1). When the probability value of obtained from the analysis is smaller than 0.05, H0 is rejected and it is decided that there is an endogeneity problem in the model. In this case the fixed effects model is used (Greene, 2003). However, when H0 is accepted, the random effects model is used. This prediction is effective, non-deviated and coherent. The Hausman test is not an alternative for the LM test. However, it works as a function to check the decision from the LM test. The Hausman test was conducted and 2=14.62 ve 2 probability value=0.404 was obtained and since this value was bigger than 0.05, H0 hypothesis was accepted and it was decided that there is no endogeneity problem in the model. In this case, it is necessary to carry out the analysis with the random effects model and this result supports the LM test results. Two-way Random Effects Model Estimations Panel data analysis is estimated with the two-way random effect model and the results are presented in Table 6. Table 6. Estimation Results Variable Coefficient Standard Error t-Statistics* fd 1.332 0.949 1.403 fdi 0.792 0.439 1.802 open 4.315 2.596 1.662 Constant Term 2.310 1.101 2.097 Weighted 2 R =0.46 Fist= 4.28 *: %10 level of significance was used. Volume 3 Number 1 Spring 2013 209 �Mehmet MERCAN / İsmet GÖÇER In the random effect models weighted statistics values are used (Baltagi 2001: 21). When we look at the weighted test statistics in Table 6, we can see that the model is reliable statistically. Whether there are heteroscedasticity and autocorrelation problems in the model are tested below. Lagrange Multiplier (LM) Heteroscedasticity Test The most common test in order to test whether the error terms variance of the model changes from cross section to cross section is the LM test (Greene, 2003). Test hypotheses: H0: Variant is fix. So there is no heteroscedasticity problem. H1: At least one Variant is not fix. So there is a heteroscedasticity problem. The required statistics to test these hypotheses are calculated through the following formula: When the probability value obtained from the test results is smaller than 0.05, H0 is rejected. In other words it is decided that there is a heteroscedasticity problem in the model (Greene, 2003). LM test was conducted and the probability value was found 0.05. In this case H0 was rejected and it was decided that there was no heteroscedasticity problem in the model. Autocorrelation Test This is a test to examine the relationship of the error terms of the model with its lagged values. The equation to measure this relationship is the AR (1) process (Wooldridge, 2002): 210 Journal of Economic and Social Studies �The Effect of Financial Development on Economic Growth in BRIC-T Countries: Panel Data Analysis Test hypotheses: H0: No autocorrelation problem. H1: An autocorrelation problem. The required statistics to test these hypotheses are calculated with the following formula: (8) Here, SSRR; indicates the sum of the squares of the error terms of the restricted model in the equation (3) SSRUR; indicates the sum of the squares of error terms of the unrestricted model, g; indicates the constraint number and df; indicates the degree of freedom. When the probability value obtained from the test results is smaller than 0.05, H0 is rejected. It is decided that there is an autocorrelation problem in the model (Drukker, 2003). The F test was conducted and the probability value was found 0.052. In this case H0 is accepted and it was decided that there was no autocorrelation problem in the model. Since there are no heteroscedasticity or autocorrelation problems in the model, the prediction results are reliable and interpretable. As can be seen from Table 6, the financial development level positively affects economic growth in line with the theoretical expectations. A 1% increase in the financial development level will increase the growth with the rate of 1.33%. The importance of foreign direct investments especially in developing countries is often emphasised. As a result of the analysis the effect of a 1% increase in the foreign direct investments on the growth will be 0.79%. Also trade openness variable used in the model was observed as the most effective variable in growth and it was found out that a 1% increase in openness level increased the growth with the rate of 4.31%. Therefore, this affected Turkey mostly in terms of the decrease in export depending on the decrease in external demand as a result of the 2008 global economic crisis (Somel, 2009). Conclusion In this study the effect of financial development on economic growth was researched via a panel data analysis method in the sample of 5 developing countries that have an Volume 3 Number 1 Spring 2013 211 �Mehmet MERCAN / İsmet GÖÇER important place in the world’s economy (emerging markets, Brazil, Russia, India, China and Turkey-BRIC-T). The foreign direct investments and trade openness, which was considered to affect the growth, as well as financial development, were included in the study where the annual data of 1989-2010 periods was used. At the panel unit root analysis result it was found that series were not stationary and the effects of shocks on the series did not disappear after a while and therefore it was determined that macroeconomic shocks affected the economy of the countries significantly. Regarding the LM tests result conducted to define the applicable panel data analysis method it was found that individual and time effects were random, for that reason an analysis with the two-way random effect model was carried out. Regarding the endogeneity test result it was found that there was no endogeneity problem in the model. In the diagnosis tests result it was found that there were no heteroscedasticity and autocorrelation problems in the model. In this regard, the estimated model is reliable econometrically. As a result of analysis it has been found that financial development increased the economic growth. Financial systems function for markets by meeting the funding needs of real sector. Therefore, they provide a source by contributing to the effective distribution of savings and eventually they support the economic growth. The fact that trade openness affects the economic growth most is a finding that has to be focused on in the analysis. Switching of the analyzed countries especially Turkey to the export-led growth model instead of import-substitution industrialization after 1980’s and in parallel with these reaching very high figures in foreign trade volume and economic growth supports the model results. For sustainable growth countries need external sources in case of insufficient national savings. In this context, foreign direct investments are a significant source of growth. When the foreign direct investments to BRIC-T countries drawing attention with their high growth rate in 2011 are analyzed, China is the second in the world with $ 220.1 billion, Brazil is the fifth in the world with $ 71.5 billion, Russian Federation is the eighth with $ 52.8 billion, India is the thirteenth with $ 32.1 billion and Turkey is the twenty first with $ 16 billion. Being also the most foreign direct investment attracting countries BRIC-T countries considered as emerging markets in the world is compatible with the analysis results. To summarise, in the study the effect of financial development, foreign direct investments and openness on economic growth were researched and it was found that 212 Journal of Economic and Social Studies �The Effect of Financial Development on Economic Growth in BRIC-T Countries: Panel Data Analysis openness, financial development and foreign investments in turn had the most significant affected on the growth. When we considered that sustainable growth is one of the most important macroeconomic variables for the countries, the increase in foreign trade especially in export, the stimulations for the foreign direct investments and the increase in financial development level are extremely important. References Ağır, H., O. Peker and M. Kar (2009), “An Evaluation on Financial Development Determiners: Literature Review”, BDDK Banking and Financial Markets, 3(2), 31-53. Arestis, P. and P. 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Wooldridge J. M. (2002). Econometric Analysis of Cross Section and Panel Data. Cambridge: MIT Press. 216 Journal of Economic and Social Studies � 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. 2382 Title A name given to the resource The Effect of Financial Development on Economic Growth in BRIC-T Countries: Panel Data Analysis Author Author MERCAN, Mehmet GÖÇER, İsmet Abstract A summary of the resource. In this study, the effect of financial development on economic growth was researched for the most rapidly developing countries (emerging markets) (Brazil, Russia, India, China and Turkey, BRIC-T) via panel data analysis using the annual data for the period from 1989 to 2010. Foreign direct investments and trade openness, which was thought to have effects on the growth, were included in the analysis. According to empirical evidence derived from the study made with panel data analysis it was found that the effect of financial development on economic growth was positive and statistically significant in line with theoretical expectations. Evidence that even foreign direct investments and openness contributed to the growth positively was also found. 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 2013-03-10 Keywords Keywords. Article PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/f6dd59f253dafa4c04cd7bf9f6c7dbc4.pdf 1e69996484c112d272008ec923d3e31a PDF Text Text 3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Wziatek-Kubiak, A. (2003) “Critical Synthesis, Review of the Main Findings, Methodologies and Current Thought on Competitiveness of Accession Countries.Mapping of Competence”, Center for Socail and Economic Research, http://www.case.com.pl, (30.03.2012). Yapraklı, S. (2011) “Makroeconomic Factors Affecting International Competitiveness : A Practice on Turkish Production Industry”, Selçuk University İİBF. Social ve Economic Researces Magazine, Vol.16, Num..22., pages.-373-403. Kazgan, G (1988), Openness Growth in Economy, 2. Press, Altın Kitaplar, İstanbul. Çoban, O. and Çoban, S. (2004) “The Measurement of Competitiveness of Turkey by Globalization İndex: A Comparison with EU Countries, 1970-2001”, Kırgızistan-Türkiye Manas University Social Sciences Magazine, 10,163-174. The Effect Of Financial Development On Economic Growth: Panel Data Analysis Mehmet Mercan1, İsmet Göçer2, Osman Peker2, Şahin Bulut2 1Hakkari University, FEAS, Department of Economy, 2 Adnan Menderes University, FEAS, Department of Economy E –mials: mercan48@gmail.com,ismetgocer@gmail.com, ottopeker@gmail.com, sbulut@adu.edu.tr Abstract In this study, the effect of financial development on economic growth was searched for the most rapidly developing countries(emerging markets)(Brazil,Russia,India,China and Turkey,BRIC-T) via panel data analysis by using the annual data of the period from 1989 to 2010. Foreign direct investments and trade openness which were thought to have effects on the growth were included in the analysis.According to empirical evidence derived from the study made with panel data analysis it was found that the effect of financial development on economic growth was positive and statistically significant in line with theoretical expectations.The evidence thateven foreign direct investments and openness contributed to the growth positively was also found. Keywords:Financial Development, Economic Growth, BRIC-T, Foreign Direct Investment, Trade Openness. Jel Codes: E49, F19, G29 1.INTRODUCTION An increase in financial instruments and becoming of these instruments more commonly available in a country is defined as a financial development.In other words, financial growth 137 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo means the development of financial markets (Erim,2005). Financial growth is the change of financial system in terms of size and structure. However, financial deepening expresses the share of money supply in national income and it becomes a measure for financial growth and financial instrument variety(Saltoğlu,1998). Financial growth can be expressed as a channel that transforms the savings to the investment in financial changing process. In its literature, great contributions of the financial markets and instituations to the economic growth process of the countries in many ways are emphasized and this constitutes the subjects of many ampirical studies.In the studies it is generally stated that a financial system which performs its financial functions would contribute to the economic growth in long term.18Smoothly running financial markets in economy supports the capital accumulation, helps the small funds to direct to the big investments, encourages the disseminations of new technologies and thus by providing the effective usage of the sources , it supports the economic productivity and growth(Aslan and Küçükaksoy,2006) Economic growth of that country will be high, if financial instituations provide the credit demands of the reel sector.In the early studies about financial and economic growth (Gurley and Shaw,1955,1967; Gerschenkron, 1962; Goldsmith, 1969), we observe that the effect of financial intermediation function on economic growth process is uttered although the theoric thoughts can not be expressed as a whole. Though Gurley and Shaw make a great contribution to the literature by expressing the relationship between financial sector and economic growth for the first time, they do not make any comment about whether there is a causality relationship between financial development and economic growth or not or if there is , what the direction of this relationship is.Patrick (1966) for the first time dealed the relationship between financial sector and economic growth by conceptualizing.He expressed that the causality between financial sector and economic growth could be in two different forms. The writer explained this relationship by using the demand-following and supply-leading concepts. In demand-following case he expresses the financial sector growth to supply the demand occuring as a result of the developments in reel sector and in supply-leading he explains that the growth of financial sector institutionally would stimulate the economic growth. It is very difficult to say that there is an agreement in many studies performed in order to determine the direction of the causality between financial sector and economic growth. In the ampirical analysis between financial development and economic growth we can see that there are studies expressing the causality relationship is both one-sided and two-sided.19Also in some studies it is stated that the relationship between financial development and economic growth variables is weak,even financial growth may have a decreasing role in economic growth process(Singh, 1997; Deidda, 2006). Shortly called as BRIC firstly in the early 2000s Brazil,Russia,India and China that have common characters like wide area, big population and rapid economic growth are accepted as the fastest growing “emerging market” in world economy(O’Neill, 2001:1-16). Total area of these countries contains more than %25 of the world area and total population of them 18 Vide infra; King and Levine, 1993a, 1993b;Arestis and Demetriades, 1997; La Porta vd., 1997; Thiel, 2001; Levine, 2004; Eschenbach, 2004; Lawrence, 2006; Shan and Jianhong, 2006; Ang, 2007. 19 Vide infra; Hermes, 1994; Arestis and Demetriades, 1997; Thiel, 2001; Eschenbach, 2004; Lawrence, 2006; Shan and Jianhong, 2006; Ang, 2007 138 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo contains more than %40 of the world population. It is argued that BRIC group would take G7 group’s place and get the leadership of the world economy when the economic indicators are considered(Frank and Frank, 2010:46-54).Goldman Sachs who has studies about BRIC countries estimates that in 2050 China will be the greatest economy in the world,India will be the third,Brazil will be the fourth and Russia will be the sixth biggest economy. Based on these indicators, with the help of panel data analysis by using the annual data of 1989 and 2010 in our study the effect of financial development on economic growth is searched for BRIC countries and Türkiye that is the most devoloping country than after China and has a developing economy.In second section of the study, the literature ranking about empirical studies is presented as a table.In the following sectionsthe data set and method used in the analysis are introduced and evidences are given. In final section a general evaluation is conducted. 2. Literature Review The first studies searching the relationship between financial development and economic growth were conducted by Bagehot (1873) and Schumpeter (1912). In his study Schumpeter (1912) indicated that a smoothly running economy would support the investors economically by providing the finance of technological innovations that was necessary for producing the new products the most effectively and productively. Meanwhile,he expressed that the growth of financial sector especially the growth of banking sector was necassary for economic growth.In literature followingSchumpeter (1912) many theorical and empirical studies were performed.The studies searching the relationship between the financial development and economic growth, country group, the used methods and results were indicated in Table .As we can observe from the Table 1 the view that financial development effects the economic growth positively was supported although there was no agreement between financial development and economic growth in terms of causality in the studies generally. Table 1: The Abstract of Some Theoric and Empirical Studies Searching the Relationship betweenfinancial and economic growth Writers Sampling and Econometric Method Gurley and Theoricstudy Shaw (19551967) Goldsmith (1969) Benecivenga and Smith (1991) Atje and Jovanovic 139 development Basic Evidences They indicated the necessity of the realtionship between financial development and economic growth.They suggest that the services provided by the developed financial structure facilitate the relationship between saving owners and investors. An International study-35 He found a positive relationship between financial system size countries between the periods and economic growth. 1860-1963 Theoric study He estimated that the development of financial mediation in certain conditions would effect the growth rate. An International study-94 They concluded that stock markets and countries betweenthe periods bank credits effect the growth positively. �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo (1993) 1960-1985 King ve Levine An International study– 80 They said that all indicators of financial (1993) countries between the periods development were highly related with 1960-1980 economic growth rates, physical capital accumulation and economic productivity increase. Obstfeld (1994) Theoric study Liquid stock markets were positively related with economic growth,yet the integration with international capiatl markets was not related with the saving rates of theprivate lenders. Benecivenga vd. Teorik çalışma Hisse senedi piyasası likiditesi, büyüme (1995) oranları, verimlilik artışları ve sermaye birikimi arasında güçlü pozitif bağlantı bulunmaktadır. Levine and A horizontal section analysis There is a statistically positive meaningful Zervos using 3 growth rates as relationship between financial deepening (1996) dependent variant containing indicators and growth as the increase of the 77 countries output, the investment andthe productivity in three directions. Jayaratne and Panel data analysis including They found that the quality increase in Strahan (1996) 50 USA states (1972-92) banking debths was related with a more rapid growth. Levine (1997) A horizontal section analysis They indicated that financial development effected the economic growth via capital accumulation and technological innovation. Rousseau and Time series analysis for 5 They estimated the financial growth by a Wachtel (1998) industrialized countries very tiny feedback from the production to (USA, Canada, England, the mediation. Sweden, Norway) Rajan and Time series analysis on the Financial development has a great effect Zingales base of firm and industry for on economic growth.A developed financial (1998) a wide country group. (1980- structure provides a competetive advantage 1990) against the industries depended on external financing. Neusser and Production industries of Financial development gives priority to the Kugler (1998) OECD countries –time series growth and it is co-integrated with the total analysis. factor productivity of production industry and gross rate national product of pruduction sector. Levine and An international analysis Both liquid stock markets and developed Zervos (1976-93) banking sector effect the growth, the (1998) capital accumulation and the increase in productivity positively. Demirgüç-Kunt An international analysis for Active stock market and a well-developed and 30 developed and developing legal system facilitate the growth of the Maksimoviç(19 countries. firms. 98) 140 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Levine and Zervos (1998) Levine, Loayza and Beck (2000) Beck, Levine and Loayza (2000) Kang and Sawada (2000) Henry (2000) Shan vd. (2001) Arestis, Demetriades and Luinted (2001) Shan and Morris (2002) Developed Economies They got the results supporting the Horizontal section regression hypothesis that suggests financial development leads the economic growth. Horizontal section study and Between financial development and long dinamic panel techniques term growth there is a strong positive relationship which is not derived from synchronicity. Horizontal section study, Financial intermadiators have a positive instrumantal variable and great effect on the growth of total procedure, dinamic panel factor productivity supporting the gross techniques rate national product growth. Time series data for 20 Financial development and trade countries liberalizition accelerate the economic Inner Growth Model growth by increasing the marginal benefits of human capital investments. It was found that the liberalization in stock markets 11 developing countries increased the investments in many countries. Panel Data Analysis 9 OECD Countries and China He found two sided causality in 5 countries and Causality Test and VAR supply leading causality in 3 countries,but in 2 countries he found no relationship. Analysis 5 Developed Countries The development of the banks and capital Cointegration and Correction markets accelarates the economic Model Analysis growth,but in this process banks have a more effective role. 19 OECD Countries ve China They reached the results that financial development causes economic growth directly or indriectly. Causality Test Arestis vd. (2002) 6 Developing Countries Standard Econometric Techniques Al-Yousif 30 Developing Countries(2002) Ganger Causality and Panel Data Analysis Müslümov and OECD Sample (22 countries) Aras (2002) Granger Causality and Panel Data Bhattacharya India Sample and Causality Analysis Sivasubramania n (2003) Calderon ve Liu 109 Developed and (2003) Developing Countries Fink vd. (2003) 141 13 Developed Countries Cointegration and Correction Model Analysis The effect of financial liberalization on financial development is ambigious. It was found that there was a two sided causality relationship between financial development and economic growth. It was obtained a one sided relationship from the development of capital market to economic growth. They reached the result that financial development causes economic growth. They reached the result that financial development effects the economic growth via capital accumulation and productivity. They reached the evidences supporting the “demand-following”and “supply-leading” approaches in Italy, Japan and Finland; “supplyleading”in USA, Germany, Austria, England, Switzerlandand weakly “supply-demanding” in Holland and Spain. �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo He expressed that financial system had a signifiacnt role in the growth of African countries. They emphasized the importance of financial development in the economic growth process. Ghirmay (2004) 13 Africancountries Beck and Levine (2004) Dritsakis and Adamopoulos (2004) 40 countries Panel Data Analysis Greece Sample Causality Based on Error Correction Model Thangavelu vd. (2004) Australia Sample VAR Methodology Rioja and Valev (2004) 10 Countries Panel Data Analysis Christopoulos and Tsionas (2004) Chang and Caudill (2005) 10 Developing Countries Panel Cointegraiton Analysis Taiwan Sample VAR Methodology They found a causality from financial development to the economic growth,thus the “supply-leading” hypothesis was confirmed. Caporale vd. (2005) 5 Southeastern Asian Countries Cointegration Granger Causality 99 Countries Panel Data Analysis 71 Countries It was found that capital market increased the economic growth by increasing the investment activity. Ndikumana (2005) McCaig and Stengos (2005) Rousseau ve Vuthipadadorn (2005) 10 Asian Countries Cointegration Granger Causality Shan and Jianhong (2006) Ang and McKibbin (2007) Artan (2007) Chine Sample VAR Methodology Shahbaz vd. (2008) 142 Malaysia Sample Cointegration Granger Causality 79 Countries Sample Panel Data Analysis Pakistan Sample Cointegration Granger Causality They reached the result that there was a causality relationship between financial development and economic growth.They could not find any relationship between the growth and the openness of the economy. They found a causality from economic growth to the development of financial intermediaries,but they could not reach an evidence that the development of financial markets would cause economic growth. They got the evidence that economic growth increased by increasing the productivity in the countries that the financial development was high and by accelerating the capital accumulation in the countries that financial development was low. They found the evidence that economic growth was the cause of financial development. He presented the results that the development of financial intermediation increased the investments. They identified that the development of financial intermediation affected the growth strongly and positively. They reached the results that financial development stimulated the investments and there was a onesided realationship (supply-leading) from financial development to the investments in many countries. They found that there was a two sided causality relationship between financial development and economic growth. They identified that growth increased the financial deepening.Meanwhile the relationship was supply-leading. In underdeveloped countries financial development affects the growth negatively. He showed that there was a stronge and a two sided causality relationship between the development in stock markets and �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo economic growth. Abu-Bader and Middle East and North Abu-Qarn African Countries (2008) VAR Methodology-Causality Enisan and Olufisayo (2009) 7African Countries ARDL Method In analysis results it was identified a demandfollowing causality suggesting the financial development increased the economic growth.However, for Israel it was identified a supply-leading causality from economic growth to financial development. They concluded that the development in stock market in Egypt and South Africa increased the economic growth and the direction for the causality was from the development in stock market to the economic growth. Kar vd. (2011) MENA Countries(1980- They infered that it was impossible to 2007) make a certain comment about the Panel Granger Causality Test causality between financial development and economic growth. Hassan, Sanchez 168 Countries Classified It was discovered that there was a positive Yu (2011) According to Income Level relationship between financial Panel Data Analysis development and economic growth in developing countries.For many country samples a two sided causality was obtained for short term period. Source: Study of the writers and Kularatne, 2001: 10-11. There are also studies searching the relationship between financial development and economic growth in Turkey sample. In ampirical studies on Turkey it can be said that there is no consensus about the causality relationship between financial development and economic growth. Table 2: The Abstract of Some Theoric and Ampirical Studies Searching the Financial Development and Economic Growth Relationship on the Scale of Turkey Kar and Pentecost (2000) Gökdeniz vd. (2003) Turkey Sample Cointegration Analysis Error Correction Model In the study they found that the direction of the financial development and economic growth relationship could change depending on the selected financial development indicator. Turkey Sample1989-2002) The evidence that financial markets Regression Analysis affected the economic growth could not be found. Atamtürk (2004) Turkey Sample(1975-2003) He found the evidence of a one-sided Granger Causality causality from financial development to economic growth.(Supply-leading hypothesis was confirmed.) Onur (2005) Turkey Sample After financial liberalization in Turkish Granger Causality economy it was found out that financial (Autoregressive Model) liberalization, financial development and openness was not the cause of Gross Domestic Product,but Gross Domestic Pruduct was the cause of financial liberalization, financial development and openness. They found out that economic growth was due to Aslan and Turkey Sample financial development.In other words it supported Küçükaksoy (1970-2004) the economic growth. (2006) Granger Causality 143 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Aslan and Korap (2006) Acaravcı vd. (2007) Kandır vd. (2007) Afşar (2007) Altunç (2008) Ağır vd. (2009) Test Turkey Sample (1986-2004) Cointegration AnalysisGranger Causality Test Turkey Sample (1986-2006) Cointegration Analysis Turkey Sample (1988-2004) Cointegration Analysis Error Correction Model Theoric Study-Literature Scan Turkey Sample (1970-2006) Cointegration Analysis Error Correction Model Turkey Sample Literature Scan They expressed that the direction of the causality between financial development and economic growth changedaccording to the financial development indicator. They found out that in Turkey there was a onesided causality from financial development to economic growth. He found out that there was a demand-following relationship between financial development and economic growth.In other words it was observed that economic growth increased the financial development in Turkey. He found out the evidence that there was a strong relationship between financial development and economic growth in Turkey but the direction of the causality was ambiguous. He expressed that the direction of the causality between financial development and economic growth changed according to the financial development indicator. He expressed that the relationship between financial development and economic growth could be simultaneous. Altıntaş and Turkey Sample They found out that financial development Ayrıçay (2010) (1987-2007) was the most effective factor on the growth ARDL(Autoregressive and also the effect of the rate was Distributed Lag Mode)Bound relatively less.They infered that the TestApproach avaibility of the funds rather than their costs could contribute to increase the reel incomein developing countries like Turkey. They observed that there was a demand-following Keskin and Turkey Sample relationship between financial development and Karşıyakalı (1987-2007) economic growth,thus financial development was (2010) Engle-Granger Method and due to economic growth in Turkey. Causality Analysis Öztürk vd. 8 Developing Countries They found out that there was a one-sided (2011) andTurkey Sample (1992- causality from financial development to 2009) economic growth.(Demand-following Panel Causality Test hypothesis was confirmed.) Ekonomik büyümeden finansal gelişmeye doğru tek Özcan and Arı Turkey Sample yönlü bir nedenselliğin varlığı bulgusunu elde (2011) (1998-2009) etmişlerdir. (Talep izleyici hipotez doğrulanmıştır) VAR Analysis They found out that although there was a strong İnce (2011) Turkey Sample relationship between economic growth and (1980-2010) financial development in a long term period, there Cointegration Analysis was a relationship in a short term period. Granger Causality Analysis 144 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 3. Financial Development Indicators In financial development literature, the proportion of financial sector to Gross Domestic Product is defined as financial depth (Feldman and Gang, 1990; Outreville, 1999). The indicators predicating the size of loan and currency are the variables that are used as a measure of financial development.In literature in limited and unlimited sense, the proportion of curruncy supply to GDP (M1/GDP, M2/GDP, M2Y/GDP), private sector loans/GDP, private sector credits of the banks/GDP, market value of the firms in Stock Exchange Market/GDP,effective money/GDP are usedas the indicator of financial development and financial depth.20“ Loans for the private sector” variable that has been used recently as an alternative indicator for financial intermediation is not preferred because the indicators based on the size of currency (MI, M2,M2Y) in some studies do not represent the financial development. (Khan and Senhadji, 2000). The most fundamental of these indicators is the indicators giving the proportion of limited and unlimited defined currency supply/GDP.It is indicated that M1/GDP proportion is not in strong relation with the growth,but M2/GDP proportion indicates the measure of the size of the whole sector in financial intermediation and it is in strong relation with the change in per cepita real GDP (King and Levine, 1993). 4. AMPIRICAL ANALYSIS 4.1. Data Set and Model In this study the effect of financial development on eceonomic growth was searched by using the data between 1989-2010 period in the sample of 5 developing countries which have an important place in world economy (Brazil, Russia, India, China ve Turkey-BRIC-T).In the analysis, besides the financial development, foreign direct investments and trade openness which were thought to affect the growth was included to the model.From the variables used in the analysisy;represents the growth rate (GDP), fd;represents Financial Development (M2/GDP), fdi;represents Foreign Direct Investments (FDI/GDP) ve open;represents trade openness (X+M/GDP).The data was obtained from the web pages of IMF and the World Bank(www.imf.org, www.worldbank.org). For analysis Stata 11 and Eviews 5.1. econometric analysis programmes were used and for model choise and correction tests codes21 were used. 4.2. Method Panal data analysis was used to search the data from different countries together. Panel data analysis (Baltagi, 2001; Gujarati, 1999 and Tarı, 2010): 20 Vide infra; Khan and Qayyum, 2007; s. 4; Outreville, 1999, Darrat, 1999, Gupta, 1984; King and Levine, 1993; Demetriades and Hussein, 1996, Halıcıoğlu, 2007 21 For codes Thanks to Prof. Dr. Haluk Erlat, Asst.Prof. Bülent Güloğlu and Asst.Prof. Şaban Nazlıoğlu . 145 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo This model was based on decomposing the error term ( ) to its components in terms of its individual and time effects. In the modeliindicates the countries, tindicates the time. When the error term was decomposed: was obtained. This final equation is called error component model. Here indicates the individual effects, indicates the time effects.It is supposed (Independent Identically Distributed), in other words the avarage of error terms is zero, its variant is stable and it is distributed normally(having white noise process). In the Panel data analysis the stability of the series are searched through panel unit root tests firtsly.Then the type of individual and time effects should be identified. An indogeneity test should be conducted among the variables when there is a variable which is considered to have a close relation with the given variable,therefore it is suspected for its indogeneity. After that a model should be estimated and the problems of changing variant and autocorrelation in the model should be tested. 4.3.Panel Unit Root Analysis It is accepted that the panel unit root tests which regard the information about both time and horizontal section dimension of the dataare statistically stronger than the time series unit root tests which regard the information only about the time dimension (Im, Pesaran ve Shin,1997; Maddala ve Wu, 1999; Taylor ve Sarno, 1998; Levin, Lin ve Chu, 2002; Hadri, 2000; Pesaran, 2006; Beyaert and Camacho, 2008).Because the variability in the data increases when the horizontal section dimension is included to the analysis. The first problem in panel unit root test is whether the horizontal sections building the panel are independent or not.At that point panel unit root tests are classified as the first generation and the second generation.The first generation tests are also classified as homogeneous and heterogeneous.While Levin, Lin and Chu (2002), Breitung (2000) and Hadri (2000) are based on homogeneous model hypothesis, Im, Pesaran and Shin (2003), Maddala and Wu (1999), Choi (2001) are based on heterogeneous model hypothesis. On the other hand, the main second generation unit root tests are MADF (Taylor and Sarno, 1998), SURADF (Breuer, Mcknown and Wallace, 2002), Bai and Ng (2004) and CADF (Pesaran, 2006). Since the countries included in the analysis are not homogeneous, Im, Pesaran and Shin (2003)will use (IPS) testin this study. This test: is based on the model above. Here ; is error correction term and when <1 happens, we understand that the serie is trend stable ,on the other hand when 1 happens, it has unit root,thus it is not stable. IPS test enables the sto differentiate for the horizontal section units,in other words heterogeneous panel structure.Test hypotheses: H0: 146 for all the horizontal section units,so the serie is not stable. �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo H1: for at least one horizontal section unit,so the serie is stable. When the possibility value obtained from the test results is smaller than 0.05, H0is rejected and it is decided that the serie is stable. IPS panel unit root test results are on Table 4. Table4:IPS Panel Unit Root Test Results Level Possibility First Possibility Variant Value Value Difference Value y -0,74 0,77 -2,64 0,00 m2 -0,21 0,41 -4,60 0,00 fdi -1,04 0,14 -3,29 0,00 open 3,66 0,99 -3,79 0.00 Note:In Panel unit root test Schwarz criterionis used and delay length is regarded as 1. When we study on the results on Table4, it is observed that all series are not stable in level value,but the series become stable when first differences of the series are taken.In other words,in the studied period it is found out that macroeconomic variables are not stable and the shock effects on these variables do not disappear after a while. 4.4. Breush- Pagan Lagrange Multiplier (LM) Test In this stage of the analysis, F test was performed in order to determine the type of time effect and individual effects( random or stable). Because the selected countries are in a certain economic group, it was anticipated that individual effects would be stable and also the time effects of financial development on the growth would be stable for the countries in the studied period. Whether the effects are really random or not can be determined by F test (Baltagi. 2001:15). F test is classified as F1 andF2 . F=F1+F2. andF2tests the time effects are stable. F1;tests the individual effects are stable In F1 test; H0: (No individual effects ) hypothesis is tested throughF1 statistics. F1 statistics is calculated by the formula below. (4) Here ; indicates the individual effects in the equation (4), N;indicates the horizontal section (country) number, T; indicates the time dimension, ; indicates the prediction for the error terms in the equation (3). When the possibility value obtained from the test results is smaller than 0.05 , H0is rejected and it is decided that individual effects are stable. In F2 test; H0: (No time effect) hypothesis is tested by F2 statistics. F2 statistics is calculated by the formula below. 147 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo (5) Here ; indicates the individula effects in the equation(4), N; indicates the horizontal section (country) number, T; indicates the time dimension, ; indicates the predictions for the error terms in the equation (3). When the possibility value obtained from the test results is smaller than 0.05 , H0is rejected and it is decided that time effects are stable. In F=F1+F2 test; H0: (No individual and time effects) H1: or both of them (At least one or two of the effects are random). When the possibility value obtained from the test results is smaller than 0.05 , H0is rejected and it is decided that both of the effects are stable.In this case a prediction is made through the two-sided stable effect model.In Table5 there are F tests results. Table5: LM Tests Test Possibility Value Decision F1 0,004 Individual Effects are not Stable. F2 0,001 Time Effects are not Stable. F 0.001 Individual Effects and Time Effects are not Stable.. When we look the results in Table5, we can see thatindividual effects and time effects are stable.According to this result the prediction was made by the two-sided stable effect model. 4.5. Hausman Endogeneity Test In this stage of the study,whether there was a relationship between the individual effects and the explanatory variables or not was tested by Hausman method. Test hypotheses: H0: Cov( No endogeneity problem. H1: Cov( An endogeneity problem. Here ; indicates the individual effets in the equation (4),but indicates the exlanatory variables in the equation(3).When the possibility value of (Chi2=Kikare) obtained from the analysis is smaller than 0.05 , H0is rejected and it is decided that there is an endogeneity problem in the model.In this case random effects model is used.(Greene, 2003).However, when H0 is accepted,stable effects model is used.This prediction is effective , non- deviated and coherent.Hausman test is not an alternative forF test. But it works as function to check the decision by F test.Hausman test was conducted and χ2=14.62 veχ2 possibility value =0.404 was obtained and since this value was bigger than 0.05 , H0 hypothesis was accepted and it 148 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo was decided that there was no endogeneity problem in the model.In this case, it is necessary to do the analysis with the random effects model and this result supports the F test results. 4.6. Two-Sided Random Effects Model Predictions Panel data analysis is predicted by the two-sided random effect model and the result are on theTable6. Table6: Prediction Results Standard Variable Coefficient Error m2 1,332 0,949 fdi 0,792 0,439 open 4,315 2,596 Stable Term 2,310 1,101 Weighted R2=0,46Fist= 4,28 t-Statistics* 1,403 1,802 1,662 2,097 *: %10 level of significance was used. In stable effect models weighted statistics values are used. (Baltagi 2001: 21). When we look to the weighted test statistics in Table6,we can see that model is reliable as statistically.Also whether there are flexible variants and autocorrelation problems in the model are tested below. 4.7. Lagrange Multiplier (LM) Flexible Variant Test The most common test in order to test whether the error terms variant of the model changes from horizontal section to horizontal section is LM test. (Greene, 2003). Test hypotheses: H0: variant problem. H1: At least one Variant is stable. So there is no flexible Variant is not stable. So there is a flexible variant problem. The required test statistics to test these hypotheses are calculated through the following formula: (6) When the possibility value obtained from the test results is smaller than 0.05 , H0is rejected.In other words it is decided that there is a flexible variant problem in the model. (Greene, 2003).Lm test was conducted and the possibility value was found 0.05.In this case H0 was rejected and it was decided that there was no flexible variant problem in the model. 4.8. Autocorrelation Test It is a test to study the relationship of the error terms of the model with its delayed values.The equation to measure this relationship is AR(1) process (Wooldridge, 2002): (7) 149 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Test hypotheses: H0: No autocorrelationproblem. H1: Am autocorrelationproblem. The required test statistics to test these hypotheses is calculated by the following formula: (8) HereSSRR; indicates the sum of the squares of the error terms of the limited model in the equation (3) SSRUR; indicates the sum of the squares of error terms of the unlimited model, g; indicatesthe limit number and df; indicates the independence grade. When the possibility value obtained from the test results is smaller than 0.05 , H0is rejected.It is decided that there is an autocorrelation problem in the model. (Drukker, 2003). F test was conducted and the possibility value was found0,052.In this case and it was decided that there was no autocorrelation problem in the model. H0is accepted Since there is no flexible variant and autocorrelation problems in the model, the prediciton results are reliable and interpretable. As can be seen from the Table 6, financial development level affects the economic growth positively in line with the theoretical expectations.A % 1 increase in financial development level will increase the growth with the rate of % 1.33. The importance of the foreign direct investments especially in developing countries is often emphasized. As a result of the analysis the effect of a % 1 increase in the foreign direct investments on the growth will be % 0,79. Also trade openness variant used in the model was observed as the most effective variant in growth and it was found out that a %1 increase in openness level increased the growth with the rate of % 4,31.So this affected Turkey mostly in terms of the decrease in export depending on the decrease in external demand as a result of 2008 global economic crisis. (Somel, 2009). 5.CONCLUSION In this study the effect of financial development level on economic growth was searched via panel data analysis method in the sample of 5 developing countries which have an important place in the world economy(emerging markets, Brazil,Russia,India,China and Turkey-BRICT). the foreign direct investments and trade openness which were considered to affect the growth as well as financial development were included in the study where the annual data of 1989-2010 periods were used. At the panel unit root analysis result it was found out that series were not stable and the effects of shocks on the series did not disappear after a while and therefore it was determined that macroeconomic shocks affected the economy of the countries significantly. At the F tests result conducted to define the applicable panel data analysis method it was found out that individual and time effects were stable,for that reason an analysis with the twosided stable effect model was carried out.At the endogeneity test result it was found out that there was no endogeneity problem in the model. At the model conformation tests result it was foud out that there was no flexible variant and autocorrelation problems in the model. In this regard, the predicted model is reliable econometrically. According to the analysis results, it was determined that a % 1 increase in financial development level increased the growth at the rate of % 1,33 , a % 1 increase in foreign direct investments increased the growth at the rate of % 0,79.Also it was found out that trade 150 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo openness in the model was the most effective variant of the growth and the evidence that a % 1 increase in openness level increased the the growth at the rate of % 4,31.The expression that the global economic crisis in 2008 affected Turkey mostly in export dimension supports the analysis result. To sum up, in the study the effect of financial development, foreign direct investments and openness were searched and it was found that openness, financial development and foreign investments in turn affected the growth mostly. 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Jiunn and James (2004), “Financial Development and Economic Growth in Australia: An Ampirical Analysis”, Empirical Economics, 29, 247-260. Thiel, M. (2001), “ Finance and Growth: A Review of Theory and the Available Evidence”, Directorate General for Economic And Financial Affairs, Economic Paper No. 158. (http://ec.europa.eu/economy_finance/publications/publication884_en.pdf, 25.01.2012). Electronic Data Distribution System of Central http://evds.tcmb.gov.tr/ Access Date: 01.06.2011 Bank of Turkish Republic, Yousif, K. A. (2002), “Financial Development And Economic Growth: Another Look At The Evidence From Developing Countries”, Rewiev Of Financial Economics, 11(2), 131-150. 158 � 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. 1321 Title A name given to the resource The Effect Of Financial Development On Economic Growth: Panel Data Analysis Author Author Mehmet Mercan, Mercan Abstract A summary of the resource. In this study, the effect of financial development on economic growth was searched for the most rapidly developing countries(emerging markets)(Brazil,Russia,India,China and Turkey,BRIC-T) via panel data analysis by using the annual data of the period from 1989 to 2010. Foreign direct investments and trade openness which were thought to have effects on the growth were included in the analysis.According to empirical evidence derived from the study made with panel data analysis it was found that the effect of financial development on economic growth was positive and statistically significant in line with theoretical expectations.The evidence thateven foreign direct investments and openness contributed to the growth positively was also found. Keywords:Financial Development, Economic Growth, BRIC-T, Foreign Direct Investment, Trade Openness. Jel Codes: E49, F19, G29 Date A point or period of time associated with an event in the lifecycle of the resource 2012-05-31 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General),HB Economic Theory,HG Finance,HJ Public Finance https://omeka.ibu.edu.ba/files/original/c24ebd095c2325ac4c2846f14d5bc87b.pdf e697e1a7e3e2bd10de0141b4d95cbd1a PDF Text Text The Effect Of Information Technologies On Private School Workers’ Work Stresses Çetin Hakan, Taş Sebahattin, Akdeniz University, Antalya, Turkey, E-mails: hakanc@akdeniz.edu.tr, sebahattintas@akdeniz.edu.tr Abstract In this study, the effect of information technologies on private school teachers and administrators work stress was reviewed. Besides education and training, private schools, unlike public schools, are business organizations. Customer satisfaction is the most important key factor for business organizations to survive. Private schools should use essential information technologies in education and training facilities to satisfy their customers. Information technologies are used effectively not only in indoor education but also in school administration and outdoor education facilities. Concerning the intensive use of ICT (Information and Communications Technology), what kind of effect does it leave on educational staff and administrators? Does it have a positive or negative effect on teachers work stress in a competitive school environment? To answer this question, Organizational Stress Questionaire (VOS-D), translated into Turkish by Meral Türk, was adapted to information technologies and was used as a data collection tool in this study. Data gathered from 10 private schools in Antalya district and 164 staffs, was entered into SPSS program. Both inferential and descriptive statistical methods were used in the analyses of these data. As a result of these analyses, it is revealed that the effect of information technologies on private school staff are as follows, responsibility, overwork, psychological symptoms and fear of unemployment. Keywords: Information Technologies, Work Stress, Private Schools, Education, Computer 1.INTRODUCTION The most significant factor that influences the level of development is the investment made for education. The return of this investment can take many years. The administrators who know that making an investment on education will doubly contribute to their country as a plus value in return and whatever it may cost, they make that investment and wait. The development thrust in education of Turkey with the announcement of republic has gained a new momentum at the end of the 20th century. As a result of the effect of liberalism the free capital in the country has inevitably get involved in education and started to open private schools. This situation has required new rules, regulations and strict controls. All these have been dealt with and by the year 2012, with the dynamism of private schools a new impetus has been given to state school. There is a cost of the contributions of private schools to themselves. Private schools have to continue their profits by increasing the quality level of their education, in other words, they have to survive in the sector by doing this. Teachers play a leading role in this regard, because the efficiency and effectiveness of the teacher are the most important elements providing the quality. The factor to be considered here whether the case of maintaning the quality will 570 �cause a stress on the teacher or not. While private schools are aiming at the maximum quality in education, they have to consider possible pressure that may occur on teachers and must take measures against them. However, the development in information technologies can alleviate the workload of the people, with the wrong decisions and applications it can cause stress on employees. In the sense of quality and applications of the corporations, the administration should convince the employees and ensure the active participation of them for the placement of the sense of quality into the corporation. To prevent stress loads that may arise from the wrong perceptions of the emloyees and even force them to leave from the establishment, to be correctly able to measure the impact of information technology, which is thought to facilitate working life, on the employees is one of the primary concern of the administration. Job Stress, Its Causes and Effects on Teaching The factor that helps people realize and learn how to use their inherent skills is education. Education begins from family and continues with the environment; however the most important period in education is the school period. The effect of the education given in schools increases thanks to the teacher who are efficient and experts in their subjects. Teacher is the person who teaches other people to live better through gaining new and various behaviours51. Teachers performs the actions of planning and evaluating teaching materials, selection and use of teaching strategy, establishing a relationship with the learner for educational purposes52. Problems that may occur in the field of education can have more effect on education than all the other areas. 2.Job Stress More and more people have in paralel with the increase of the speed of life difficulty in maintaining their physical and mental state of health because of more responsibilities, strenuous workload and the relationships getting difficult. As a result, in the human life, it has become a phrase frequently used in everyday language recently; the effort which is spent beyond one’s physical and psychological boundaries due to the incompatible conditions resulting from stress and an individual’s physical and social environment53. People who mostly spend much more time at work than with their family get stressed due to various reasons related to business environment; it is associated with the person’s perception of work and work place. The factors which cause stress in a person may not in another one54. Job stress is a psychological condition that occurs as a result of work-related factors and disrupts normal function of an individual, changes psychological and physical behaviours55. 51 KILBAŞ,Ş., “2000’li Yıllarda Etkili Öğretmen Nasıl Olmalıdır?”, Çukurova Üniversitesi Eğitim Fakültesi Dergisi, S. 19, C. 2, 2000, s. 34. 52 ÜLGEN, G., Eğitim Psikolojisi, Birey ve Öğrenme, Bilim Ya., Ankara, 1995, s. 254. 53 CÜCELOĞLU, D., (1993), İnsan ve Davranış, 4.Ba., Remzi Kitabevi, İstanbul, s. 321. 54 ERDOĞAN,İ., (1996), İşletme Yönetiminde Örgütsel Davranış, İstanbul Üniversitesi İşletme Fakültesi Ya., No: 266, İstanbul, s. 289. 55 IŞIKHAN, V. (2004), Çalışma Hayatında Stres ve Başa Çıkma Yolları, Sandal Ya., Ankara, s. 73. 571 �Within each organization, stress occurs depending on the use of technology, environmental conditions, tendencies and experiences of the members, grouping and conflicts within the organization and the reasons specific to the organization56. Teachers also have stress related to their jobs. This stress may occur depending on management, the materials used, students and their families and other various factors. Teacher stress is defined in the literature as “ a reaction which has a negative effect resulting from such emotions as anger, tension, excitement and depression as a consequence of complexity and diversity of the teachers’ works and taking on various roles”57. Stress has quite important in terms of being able to effect teacher’s attitudes and behaviours. The teachers who are stressful can reflect some negative attitudes like tension, nervousness. In the event that stress level can psychologically, socially and cognitively damage the teacher, that person will have difficulty in performing his profession58. However it may appear as the task of governments to prevent this situation, because of the teachers’s commitment to their work will make difficult to recognize the problem, it should be tried to be prevented by means of researches and observations periodically done before the stress does not reach the level of burnout. 2.1.Causes of Job Stress As people’s reactions to events and viewpoints on them will differ, during enumeration of the factors that cause job stress, individual differences come to mind first. Since the system of all organizations, from the management to physical conditions, will be different from each other, other organizational factors that may also cause job stress are grouped under organizational factors. The biggest factor underlying the different responses of two people in the face of the same event is that the individual differences along with the styles of coping with stress. There are personality structures that make people more sensitive or more resistant to stress. People more impatient, active, not allocating time for rest and more competitive are those prone to stress. In addition to this, personalities tend to negative emotionality and social withdrawal, can find the business environment more stressful than others59. The different perspectives about life of those thinking that their own power directs the life, with an internal locus of control and having and personalities with more fatalistic belief and external locus of control is another cause of stress. The lifestyles climbing out of the natural life is one of the personal factors that increase the stress60. On the other hand, personnel 56 ERTEKİN, Y., (1993), Stres ve Yönetim, Ankara, Türkiye ve Ortadoğu Amme İdaresi Enstitüsü Yayınları No:253, s. 7. 57 ÜNAL, S., (1999), Okullardaki Stres Kaynakları-Verimlilik İlişkisi, Marmara Üniversitesi Eğitim Fakültesi Dergisi, S. 11, s. 366. 58 BEKTAŞ,H., (2003), İş Doyum Düzeyleri Farklı Olan Öğretmenlerin Psikolojik Belirtilerinin Karşılaştırılması, Yüksek Lisans Tezi, Atatürk Üniversitesi Sosyal Bilimler Enstitüsü, Erzurum, s. 3. 59 JEPSON, E., FORREST, S. (2006), “Indivudual Contributory Factors in Teacher Stres: The Role of Achievement Striving and Occupational Commitment”, British Journal of Educational Psychology, 76, 2006, s. 183. 60 EREN, E., (2006), Örgütsel Davranış ve Yönetim Psikolojisi, Beta Ya., 9. Baskı, İstanbul, s. 295. 572 �believed to having social support that is, having healthy relationships and friendships have less stress. Some of the features in organizations will result in increased work stress. Uncertainties in the role are chief among these. This situation that may also be in the main actor position of the conflict in the organization will cause stress load to the employee not knowing what to do and how to do61. While Excessive work load loaded persons a stress factor that everyone will regard very natural, few people realize that less workload can also cause stress. This is because that the disregard for selfhood idea of the individual doing business with monotonous tasks and monotonous working order under his capabilities62. Difficulties brought by the irregularity due to the changing working hours, inadequacies or disturbing factors of the physical working environment, and the idea of the wage return for work done is insufficient are other stress causes related to organization / institution. 2.2. Job Stress in Teachers and Its Effects In the process of individuals’ becoming a member of society and an individual, the most important social environment where the individual is school. The importance of the school's results from its having a regular, disciplined and specialist organization and its being able to keep the individual from early childhood for a long time within itself63. People acquire a place for themselves in society through the knowledge, attitude and behavior they learnt from their teachers. Therefore, the role of training process, and of course teachers in human life is very important64. The most important condition that there can be an effective education depends on efficiency of all aspects related to education. The more prominent element at this point is the teacher's mental health and personality characteristics. The teacher's personality and mental health is mostly more important than knowledge65. The teachers’ socio-economic status in society, and job stress may arise from a variety of reasons are one of the main factors which affect efficiency. Teachers, play an extremely important role in affecting students and their attitudes toward classes. Teachers are able to control working conditions to a large extent, help students to facilitate their work, and choose suitable task and method for the students. Even, they can also help extra scholastic problems of students a lot. However, it is known that a teacher who is patient, exhausted, soulless, or an unstable is prone to make their students soulless, bored, unstable, inefficient, and restless, as 61 ROSS, R. R. ve E. M. ALTMAİER, (1994), Intervention in Occupational Stres, London, SAGE Publications, s. 37. 62 BALCI, A., (2000), Öğretim Elemanının İşStresi: Kuram ve Uygulama, Ankara, s. 13. 63 EKİNCİ,Y., (2006), İlköğretim Okulu Yöneticilerinin Sosyal Beceri Düzeylerine Göre Öğretmenlerin İş Doyumu ve İş Stresinin Karşılaştırılması, Yüksek Lisans Tezi, Gaziantep Ün. SBE, Gaziantep, s. 5. 64 DRUCKER, P., (1998), Gelecek İçin Yönetim, 1990’lar ve Sonrası, (Çev: ÜÇCAN, F.), İş Bankası Ya., 5. Ba., İstanbul, s. 6. 65 HARRIS, K.R., HALPIN, G., (1985), “Teacher Charesteristics and Stress”, The Journal of Educational Research, July, Vol. 78, No. 61, s. 346. 573 �well66. Therefore, the schools which want to get the maximum efficiency of teachers, especially the private schools for which the profitability is the chance of them maintaining their lives should pay attention to factors that stress teachers out and remove these negative factors. 3. Information Technology and Its Affects to Job Stress of the Teachers Informatics is an information science and technology that contains the necessary systems, networks, functions, processes and activities for the transfer, organization, storage, retrieval, assessment and distriution of the information67. Information technologies is the application of technology in business processes to collect data and generate valuable information, and in general consists of resources and personnel supporting them, in conjunction with hardware, software, communication tools68. These technologies are referred to a shift of techno-economic paradigm in other words a transitional period as well as result in renovations in economic fields69. Changes in information technologies are one of the most important factors affecting education. The rapid development in addition to providing convenience to all concerned with the subject, in some cases may also cause problems. Roughly a perspective may say that the biggest stress source of teachers is the students. However, the element of intelligence aware of the teaching profession and being able to recognize that teachers have professional idealism initially or over time, will also admit that the students are the greatest pleasure of this profession. Thus, the factors that stress teachers out are that all the factors preventing them from doing their jobs as they wish. It is obvious that the development of information technologies will affect the systems of teachers spent considerable time in their professions and in particular to the technological imperatives shall stress them out. Particularly management pressures and the attitudes of students regarding the technological shortcomings can lead the subject up to the point that teachers review the decisions on continuing their profession. At this point the issue to be investigated is raised. Do the changes brought by ICT on the workload or education system, or these technologies so the perspectives of the management, 66 PRESSEY, S. L., ROBİNSON, F. P., (1991), Psikoloji ve Yeni Eğitim, (Çev: TAN, H.), Milli Eğitim Basımevi, İstanbul, s. 151. 67 ULUÇ, G., (2003), “Bilişim Teknolojileri, Küreselleşme ve Kalkınma”, EKEV Akademi Dergisi, Y. 7, S. 16, s. 255. 68 BİNGÖL, M., (2006), İşletmelerde Bilişim Teknolojileri ve Yenilikçilik, Yüksek Lisans Tezi, Atatürk Üniversitesi Sosyal Bilimler Enstitüsü, Erzurum, s. 14. 69 BAŞARAN, F., GERAY, H., (2005), İletişim Ağlarının Ekonomisi: Telekomünikasyon, Kitle İletişimi, Yazılım ve İnternet, Siyasal Kitabevi, Ankara, s. 71. 574 �colloquies, students and parents on teachers’ compliance with technology affect more? In the application, the impact of information technology on job stress of teachers working in the private sector has tried to be measured by looking at various angles. 3.1. Application 3.1.1.Educational Status of Research Participants Educational Status of Research Participants Percentage High School 18,2 Bachelor’s Degree 78,8 Master’s Degree 3,0 Total 100,0 Bachelor graduates are 79% of the research participants. Service Years of Research Participants Service Years of Research Participants Percentage 1-5 Years 12,1 6-10 Years 12,1 11-15 Years 36,4 16-20 Years 33,3 575 36% of the research participants have served 11-15 years, 33% of those have served 16-20 years. �21+ Years 6,1 Total 100,0 In-service Training Status of Participants Percentage YES 42,4 NO 57,6 Total 100,0 42% of the participants have received in-service training while %58 of those have not. Daily Computer Usage Times of the Participants in the Workplace Percentage Not using 3,0 Less than an hour 24,4 1-2 hours 30,3 576 42.3% of the research participants use computer more than 3 hours at their workplaces �More than 3 hours 42,3 Total 100,0 4. Crosstabs The distribution of responses given to the question of “do you know exactly what other people expect from you at your workplace?” is remarkable and is an issue to be examined. Percentage I know exacty 24,2 I know almost exactly 33,3 I know roughly 36,4 I don’t know very well 3,0 I don’t know at all 3,0 TOTAL 100,0 36,3% of the employees gave the response of “I know roughly”, 33,3% of them gave the response of “I know almost exactly” When we exemined the reasons of that response, we had following results: When it is compared with the positions of employees; Your Position 577 �ViceTeacher principal Principal I know exactly 22,2 50,0 - I know exactly 37,0 - 50,0 33,3 50,0 50,0 I don’t know well 3,7 - - I don’t know at all 3,7 - - TOTAL 100,0 100,0 almost I know roughly 100,0 While 50% of the principals were stating that they know “almost exactly” what other people expect from them at workplace, 50% of those stated that they “roughly” know it. 50% of vice-principals stated that they know “roughly” what people expect from them at workplace while 50% of those were stating that they know it “exactly”. While 37.7 of the teachers were stating that they know “almost exactly” what the other people expect from them at workplace, 33,3 of those stated that they know it “roughly”. It is remarkable that none of those who serve as principal don’t know the expectations exactly. When it is compared with the service years of employees; Service Years of Employees 1-5 578 6-10 1115 1620 21+ �I know exactly 25,0 50,0 16,7 18,2 50,0 I know almost exactly 25,0 25,0 33,3 36,4 50,0 I know roughly 50,0 25,0 33,3 45,5 - I don’t know well - - 8,3 - - I don’t know at all - - 8,3 - - TOTAL 100,0 100,0 100,0 100,0 100,0 When we examined it in terms of service years, 25% of (1-5 years) employees considered as newly appointed by us stated that they know “exactly”, 50% of those stated that they know “roughly”. As the service years of people increase, it is expected from them to realize what the other people expect from them and the rate of the option chosen “I know exactly” increases, on the contrary, it was observed that this rate decreased in people who served 11-15 years and 16-20 years. It is remarkable that 50% of the people who are in service for 11-15 years and 45% of the people who are in service for 16-20 years gave the responses of “I know roughly”, “I don’t know well” and “I don’t know at all” . When it is compared with “the receiving of in-service traning” of the employees; Did you receive in-service training? I know exactly 579 Yes No 21,4 26,3 �I know exactly almost 28,6 36,8 I know roughly 42,9 31,6 I don’t know well - 5,3 I don’t know at all 7,1 - TOTAL 100,0 100,0 As 50,0% of the employees who received in-service training were giving the responses of “I know exactly” and “I know almost exactly”, 42,9% of those stated that they were roughly aware of the expectations expected from them. On the contrary to that, it is seen that 63,1% of the employees who did not receive in-service traning gave the responses of “I know exactly” and “I know almost exactly”. In addition, as it is considered that 7,1% of the employees who received in-service training gave the response of “ I don’t know at all” such questions as “for what purposes in-service trainings done, whether they are suitably performed for their purposes, in what subject they receive in-service traning and whether they reach their goals or not” come to the minds. When it is compared with status of feeling anxiety from the level of agreement with colleagues or principals; Do you know exactly what your colleagues expect from you at your workplace? I know I don’t I know I know I don’t almost know at exactly roughly know well exactly all 580 �Very often --- 9,1 - - 100,0 Often Are you anxious about the level of agreement Sometimes with your colleagues or your managers? Never --- 18,2 8,3 - - 75,0 45,5 66,7 100,0 - 25,0 27,2 25,0 - - 100,0 100,0 100,0 100,0 100,0 TOTAL In the responses given to the question of “Do you know what other people expect from you at your workplace?” with 36,4%, “roughly” got the highest value, 66,7 of those giving that response state that they sometimes feel anxious about the level of their agreement with their colleagues and their managers. This result shows that these two problems substantially comfirm eachother. It is seen that of the vast majority of the people who stated that they know exactly(75%) or almost exactly(45,5%) what they are expected “sometimes” feel anxious about the level of agreement with their colleagues and their principals. “This means that they know what they are expected to but they don’t do it or they personally can’t get on well ,but do their jobs”. The most attractive part of the table is the area shown by green colour. 27,3% of the ones who know almost exactly what they are expected are “very often” or “often” anxious about the agreement with their colleagues and their managers. 5. CORRELATION It seen that there are medium and high degrees of correlation at the significance levels of 0,01 and 0,05 among the issues related to challenges of IT use. 581 �Related To The Use Of Information Technologies Does it Do you find it Do you Does it enhance difficult and find it make you your incomprehensible boring? nervous? productivity ? ? Do you find it difficult and incomprehensible? r 0,716 p 0,000 r 0,637 0,524 p 0,000 0,002 Does it make you nervous? Does it creativity? dampen your r 0,442 0,442 -0,386 p 0,010 0,010 0,026 Information Technologies; Between those who think that it is difficult and incomprehensible, and boring, it is seen that there is a high and significant correlation. (r=0,716 p<0,01) Those who think that it’s boring get nervous while using IT(r=0,637,p<0,01) Those who think that it is boring state that it dampens their creativity(r=0,442,p<0,05) Those who find it difficult and incomprehensible get nerveous in using(r=0,524,p<0,01) Those who get nerveous in using IT state that it dampens their creativity (r=0,442,p<0,01) While increasing their productivity it dampens their creativity (r= -0,386,p>0,05) are remarkable outcomes . As we examine defining where the responsibility begins and ends, in other words, defining “Job Descriptions” correctly in terms of factors that are considered as signs of stress; The Amout of correlation between the conditions of whether knowing where the responsibility begins and where it ends and other variables affected by these conditions. Pearson Sig. Correlation (2tailed) Do you have to do a difficult work for you even if it is occasionally? -0,563 Do you know exactly what the other people expect from you at your 0,345 582 0,001 0,049 �workplace? Do you know exactly what your managers think about your 0,366 responsibilities? 0,036 Is it clear in your mind what exactly your job consists of? 0,018 0,409 Do you have to do a work in a quite different format than you want to do? -0,469 0,006 Do you enjoy doing your job? 0,653 0,000 Were your hands trembled enough to bother you before? -0,674 0,000 Did you have any sudden heart palpitations that bother you before? -0,468 0,006 Did you have dizziness before? -0,464 0,007 Did you sometimes feel a pain around your chest or your heart? -0,381 0,029 Did you feel that you get tired faster than ever? -0,385 0,027 I feel so hopeless -0,362 0,039 I feel calm 0,493 0,004 It is seen that those who know where their responsibilities begin and ends didn’t have to do a difficult work for them (may be they think so)(r=-0,563 ,p<0,01), they know exactly what they are expected (r=0,345 ,p=), they know what exactly their managers think about their responsibilities(r=0,366 ,p=), the descriptions of job are clear in their minds(r=0,409 ,p=), They didn’t have to do a job different in a different format than they wanted. to do.(r=-0,469 ,p=), they enjoy doing their jobs(r=0,653 ,p=), Their hands were never trembled(r=-0,674 ,p=), they had no sudden heart palpitations(r=-0,468 ,p=), they had no dizziness(r=-0,464 ,p=),they didn’t feel any pain on their chests(r=-0,381 ,p=), they didn’t get tired(r=-0,385 ,p=), they didn’t feel hopeless(r=-0,362 ,p=) and they feel calm(r=0,493 ,p=) As we investigate the correlation table in order to examine the effect of stress on the employees, we understand that hand trembling at medium and high degrees has inverse and linear correlations at 0,05 and 0,01 values with other variables. The comparison of the responses given for the question of were your hands trembled enough to bother you before? and the questions having medium and high correlation among them. Pearson Sig. Correlatio (2n tailed) What do you think about that work pace? 583 0,440(*) 0,010 �Do you sometimes have to do more than one work? 0,412(*) 0,017 Do you have difficulty in your job as it is getting complex gradually? 0,403(*) 0,020 Do you have to do any work difficult for you to do even if it is occasionally? 0,433(*) 0,012 Do you know where your responsibilities begins and where it ends? -0,674(**) 0,000 Is it clear in your mind what exactly your job consists of? -0,404(*) 0,020 Do you sometimes get commands that you don’t approve? 0,351(*) 0,045 Do you have to do a work in a quite different format than you want to do? 0,384(*) 0,027 Is your job routinised and boring? 0,383(*) 0,028 Do you have an effect on adjusting the work pace? -0,365(*) 0,037 Do you enjoy doing your job? -0,745(**) 0,000 Do you sometimes get worried about the future of the enterprise? 0,462(**) 0,007 Do you sometimes get anxious about the level of agreement with your colleagues 0,458(**) and managers? 0,007 Do you get worried when you have to do the works that you don’t approve? 0,520(**) 0,002 Did you have any dizziness? 0,447(**) 0,009 I feel hopeless. 0,473(**) 0,005 I feel calm. -0,610(**) 0,000 According to the results, it is seen that the emloyees who have shivering hands of working at private schools ; Find the work pace high (r=0,440 ,p=0,010 ) sometimes have to do more than one work (r=0,412 ,p=0,017 ) have difficulties as it is getting comlex gradually (r=0,403,p=0,020) have to do a difficult work for them even if it is occasionally (r=0,433 ,p=0,012 ) don’t know where their responsibilities begin and endi (r=-0,674 ,p=0,000 ) have not a clear idea about what exactly their jobs consists of(r=-0,404 ,p=0,020 ) sometimes have commands that they don’t approve(r=0,351 ,p=0,045 ) have to do a work quite different than they want to do. (r=0,384 ,p=0,027 ) think that their jobs are routinised and boring (r=0,383 ,p=0,028 ) 584 �don’t have any effect on adjusting the work pace(r=-0,365 ,p=0,037 ) don’t enjoy doing their jobs(r=-0,745 ,p=0,000 ) get worried about the future of the enterprise (r=0,462 ,p=0,007 ) anxious about the level of agreement with their colleagues and managers(r=0,458 ,p=0,007 ) get worried about doing works that they don’t approve(r=0,520 ,p=0,002 ) have dizziness (r=0,447 ,p=0,009 ) feel hopeless (r=0,473 ,p=0,005 ) don’t feel calm(r=-0,610 ,p= ) 6. REGRESSION As we investigate how much it can be explained that the status of employees’ enjoying their jobs by doing regression analysis among the responses given to the question of “do you enjoy doing your job?” which is seen a high inverse and linear correlation between it and hand shivering; Variables Entered/Removed(b) Mode Variables Entered l Variables Removed Method 1 . Enter F40(a) a All requested variables entered. b Dependent Variable: B26 Model Summary Model R R Square Adjusted R Square Std. Error Estimate 1 0,555 0,540 0,61391 -0,745(a) of the a. Predictors: (Constant), F40 ANOVA(b) Model 1 585 Regression Sum of Squares df Mean Square F Sig. 14,559 1 14,559 38,629 ,000(a) �Residual 11,684 31 Total 26,242 32 0,377 a. Predictors: (Constant), F40 b. Dependent Variable: B26 Coefficients(a) Unstandardized Coefficients Model B Std. Error (Constant) 0,380 0,212 F40 0,720 0,116 Standardized Coefficients t Sig. Beta 1,797 0,002 1 0,745 6,215 0,000 a. Dependent Variable: B26 As we investigate the results of the analysis it is seen that shivering of the hands is a meaningful predictor of the status of emloyees’ enjoying their jobs. (R=-0,745, R2=0,555, F=38,629, P<0,01). It is seen that 56% of the total variance related to enjoying job is explained by the hand shivering. 7. CONCLUSION It is obviously seen that in our age in which Information Technologies are actively used, there are widely online services, every data enreted is usually published as online and there is no place for fault, in terms of increasing of work productivity, it is very important that in what subject in-service trainings are performed and whether the emloyees’ ideas are taken while choosing training subjects. “Job Descriptions” done clearly can provide a relaxion on the employees. Because it is seen that the people whose job descriptions were not explained clearly, can overcome the anxiety of making a mistake only sfter years, when they get experienced. The anxiety of making a mistake shows the use of computer technologies as boring, annoying and difficult. However, the people using these technologies widely have not such problems. It is also seen that incomplete job descriptions can cause the anxiety of not understanding or misunderstanding of the pecking-orders. It is understood that the people who don’t exactly know where their responsibilities begin and end or are not clearly explained about their responsibilities have such health problems as difficulty in focusing on their jobs and hand shivering, dizziness, sometimes palpitations around their chests, get tired easily and are not calm in despair. 586 �It casuses the people who don’t exactly know their responsibilities to think that they have to do more than one work in the high work pace and their jobs get more complex gradually, sometimes they get commands that they don’t want to do. This creates a concern for the future and causes such problems as not enjoying the job and getting bored with the job, dizziness, heart palpitation, hand shivering due to stress. Finally: Everything begins with enjoying what you are doing… (%55) REFERENCES KILBAŞ,Ş., “2000’li Yıllarda Etkili Öğretmen Nasıl Olmalıdır?”, Çukurova Üniversitesi Eğitim Fakültesi Dergisi, S. 19, C. 2, 2000. ÜLGEN, G., Eğitim Psikolojisi, Birey ve Öğrenme, Bilim Ya., Ankara, 1995. CÜCELOĞLU, D., (1993), İnsan ve Davranış, 4.Ba., Remzi Kitabevi, İstanbul. ERDOĞAN,İ., (1996), İşletme Yönetiminde Örgütsel Davranış, İstanbul Üniversitesi İşletme Fakültesi Ya., No: 266, İstanbul. IŞIKHAN, V. (2004), Çalışma Hayatında Stres ve Başa Çıkma Yolları, Sandal Ya., Ankara. ERTEKİN, Y., (1993), Stres ve Yönetim, Ankara, Türkiye ve Ortadoğu Amme İdaresi Enstitüsü Yayınları No:253. ÜNAL, S., (1999), Okullardaki Stres Kaynakları-Verimlilik İlişkisi, Marmara Üniversitesi Eğitim Fakültesi Dergisi, S. 11. BEKTAŞ,H., (2003), İş Doyum Düzeyleri Farklı Olan Öğretmenlerin Psikolojik Belirtilerinin Karşılaştırılması, Yüksek Lisans Tezi, Atatürk Üniversitesi Sosyal Bilimler Enstitüsü, Erzurum. JEPSON, E., FORREST, S. (2006), “Indivudual Contributory Factors in Teacher Stres: The Role of Achievement Striving and Occupational Commitment”, British Journal of Educational Psychology, 76, 2006. EREN, E., (2006), Örgütsel Davranış ve Yönetim Psikolojisi, Beta Ya., 9. Baskı, İstanbul. ROSS, R. R. ve E. M. ALTMAİER, (1994), Intervention in Occupational Stres, London, SAGE Publications. BALCI, A., (2000), Öğretim Elemanının İşStresi: Kuram ve Uygulama, Ankara. EKİNCİ,Y., (2006), İlköğretim Okulu Yöneticilerinin Sosyal Beceri Düzeylerine Göre Öğretmenlerin İş Doyumu ve İş Stresinin Karşılaştırılması, Yüksek Lisans Tezi, Gaziantep Ün. SBE, Gaziantep. DRUCKER, P., (1998), Gelecek İçin Yönetim, 1990’lar ve Sonrası, (Çev: ÜÇCAN, F.), İş Bankası Ya., 5. Ba., İstanbul. HARRIS, K.R., HALPIN, G., (1985), “Teacher Charesteristics and Stress”, The Journal of Educational Research, July, Vol. 78, No. 61. PRESSEY, S. L., ROBİNSON, F. P., (1991), Psikoloji ve Yeni Eğitim, (Çev: TAN, H.), Milli Eğitim Basımevi, İstanbul. ULUÇ, G., (2003), “Bilişim Teknolojileri, Küreselleşme ve Kalkınma”, EKEV Akademi Dergisi, Y. 7, S. 16. 587 �BİNGÖL, M., (2006), İşletmelerde Bilişim Teknolojileri ve Yenilikçilik, Yüksek Lisans Tezi, Atatürk Üniversitesi Sosyal Bilimler Enstitüsü, Erzurum. BAŞARAN, F., GERAY, H., (2005), İletişim Ağlarının Ekonomisi: Telekomünikasyon, Kitle İletişimi, Yazılım ve İnternet, Siyasal Kitabevi, Ankara. Obstacles in collaborative consumption websites’ development: A case from Bosna and Herzegovina Merima Bejtagic-Makic1 , Suncica Hadzidedic2 International Burch University, Sarajevo, Bosnia and Herzegovina Sarajevo School of Science and Technology, Sarajevo, Bosnia and Herzegovina E-mails: merima.bejtagich@gmail.com, suncica.hadzidedic@ssst.edu.ba Abstract According to Rachel Botsman, a renowned social innovator, the 21st century will be characterized by collaborative consumption. It is a new mode of business backed up by network technologies and based on the ancient methods of trading by bartering and swapping. Collaborative consumption websites engage and specialize in information, service and goods sharing, swapping, renting, lending, and trading. The power of these new marketplaces is in changing the way people view ownership and consumption, alleviating the hardship of economic recession, freeing the flow of knowledge and information, and creating a business model which supports the reuse of goods and space for a greener world. The content of this research paper provides an understanding of the drivers for collaborative consumption technology in a developing country in economic recession time, precisely Bosnia and Herzegovina (B&H). The key research question to be addressed in this study is: What are the issues faced in B&H when embarking on a collaborative consumption website development project? Keywords: collaborative consumption (CC), swapping, website development, green technologies, emerging technology issues, system requirements, case study, empirical approach, collaborative technologies 1. INTRODUCTION 1.1 Collaborative Consumption Global economic crisis, environmental issues, social and economic inequality, hyper production have lead to assets such as skills, time, goods, services, land, gardens, and "stuff" to be in a state of "idle capacity" i.e. under-utilization. Therefore, this created a need for an alternative way of obtaining goods and services which is through collaboration consumption. 588 � 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. 1214 Title A name given to the resource The Effect Of Information Technologies On Private School Workers’ Work Stresses Author Author Çetin, Hakan Abstract A summary of the resource. In this study, the effect of information technologies on private school teachers and administrators work stress was reviewed. Besides education and training, private schools, unlike public schools, are business organizations. Customer satisfaction is the most important key factor for business organizations to survive. Private schools should use essential information technologies in education and training facilities to satisfy their customers. Information technologies are used effectively not only in indoor education but also in school administration and outdoor education facilities. Concerning the intensive use of ICT (Information and Communications Technology), what kind of effect does it leave on educational staff and administrators? Does it have a positive or negative effect on teachers work stress in a competitive school environment? To answer this question, Organizational Stress Questionaire (VOS-D), translated into Turkish by Meral Türk, was adapted to information technologies and was used as a data collection tool in this study. Data gathered from 10 private schools in Antalya district and 164 staffs, was entered into SPSS program. Both inferential and descriptive statistical methods were used in the analyses of these data. As a result of these analyses, it is revealed that the effect of information technologies on private school staff are as follows, responsibility, overwork, psychological symptoms and fear of unemployment. Keywords: Information Technologies, Work Stress, Private Schools, Education, Computer Date A point or period of time associated with an event in the lifecycle of the resource 2012-05-31 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General),T Technology (General) https://omeka.ibu.edu.ba/files/original/4f730bf952af2ec4e74eb117e9fb4f38.pdf ceda907d0337ecba2c6d17a98c12bbe5 PDF Text Text Journal of Economic and Social Studies The Effect of Job Security on the Perception of External Motivational Tools: A Study in Hotel Businesses Fazıl ŞENOL Department of Accounting and Finance Gaziosmanpaşa Üniversitesi, Erbaa Meslek Yüksekokulu, Tokat, Turkey fazilsenol@yahoo.com Abstr ct Hotel guests’ satisfaction with service and product depends largely on employees’ doing their job willingly and readily because of the direct relationship between employee motivation and quality of products. Therefore some internal or external means of interference are needed throughout management processes in order to motivate employees. In this study external motivation levels of employees working in hotel businesses and as an independent variable, job security factor’s effect on the perception of external motivational tools are investigated. Population of the study consists of hotel employees working in 4 and 5 star hotels in Turkey. A sample of 24 hotels was chosen from cities with dense tourism activities. The study was conducted in the months of July and August of 2009 and 414 employees participated in the survey. Regression Analysis Methods are used in analyzing the data. The results of the study have shown that there is a meaningful relationship between job security and external motivational tools and existence of job security is effective on the perception levels of all other external motivational tools. Based on the analysis results obtained it has been concluded that job security is most effective on factor variables related to ‘Hierarchical Structure’ among other external motivational tools. Key words: Job Security, External Motivational Tools, Hotel Organization Jel odes: M12, J63 Volume 1 Number 2 July 2011 33 �Fazıl ŞENOL Introduction In today’s world, targets of organizations can be reached only if the employees brought together for a certain purpose do their job willingly and voluntarily. Unless a process which retains employees from doing their job or makes them unwilling for their job occurs, organizational targets can be reached without a deviation. On the other hand, it is not right to expect the employees to realize the same job performance like a programmed machine all the time. Since individuals are social beings, their needs and expectations change in course of time and when these expectations are not met, negative attitudes can also be reflected in their job performance. Therefore organizations need some internal and external means of interference in order to change the attitudes of the employees according to their targets. Determining the right means requires analyzing employees well and identifying the primary needs correctly. Because there is a direct relationship between the effect of selected tools of motivation and employee expectations, and only a correctly selected means of motivation can satisfy employees, and eventually satisfied employees willing to do their jobs will use their talents in their workplaces, which will pave the way for realizing organizational targets. This study, which has been done on the employees of 4 and 5-star hotels in Turkey, aims at measuring the effect of job security on the perception levels of external motivational tools effective on the job motivation of employees. It is out of the question that employees’ anxiety of losing their jobs will increase at the times of economic instability business world encounters. In this kind of a situation, it is thought that job security is one of the most effective factors on job motivation due to its eliminating employee’s future anxiety. Job motivation and job security are issues both of which are related to working. This suggests that there is a meaningful relationship between employees’ perception level of job security and effectiveness of other motivational tools on the employee. This study analyzes validity of this hypothesis by considering a certain number of external factors of motivation involved in the research. Relationship between Job Security and Motivation Today unemployment is an important problem almost every country suffers from. Although the reasons may show variety, job security seems to be in decrease in 34 Journal of Economic and Social Studies �The Effect of Job Security on the Perception of External Motivational Tools: A Study in Hotel Businesses every part of the world. The most prominent reasons for decreasing job security can be cited as technology, internationalization of capital, demographic change and government policies (Smith, 1999, p. 196-198). From this aspect, today’s business world is experiencing a difficult period in terms of both employees and employers. Job security, which is crucial for an employee in terms of keeping his or her job or finding a new job, is also important for the employers since it enables them to keep their employees or find new ones. Therefore, employers should be sensitive about the motivation of their employees under any circumstances for the interest of their organizations (Çeltek, 2004, p. 8). Because employees are not machines running on physical power but social beings thinking, feeling and being affected by their environment. For this reason, trying to understand employees can make them feel valued and inspire them to work harder on the quality of their work. Factors motivating employees can occur in various forms. In fact, job security is one of the most influential means of motivating employees particularly in times of economic downturn. Employees’ belief that they will not lose their jobs or they will be employed in the same organization as long as they want is a significant reason for motivation. Therefore, job security is one of the most significant variables of employee satisfaction which expresses the general attitude of the employee towards his/her job (Bakan and Büyükbeşe, 2004, p. 35). Job security plays an important role in both social and working life because it helps individuals do not worry about their future, contributes to maintaining labor peace, increasing organizations’ productivity and protecting social balance and values. For this very reason, in order not to cause employee’s prestige loss in society, employees should not be dismissed from the organizations without reasonable grounds, because job security has political and social dimensions. Therefore, if in a country employees are dismissed without showing a reason, it is difficult to talk about social order, peace and stability (Güzel, 2001, p. 19; Taşkent, 1992, p. 38). Today, job security is perceived as an indispensable right of an employee which guarantees that the employee and his/her family will not be deprived of their income and maintains an honorable life¹. Thus, employees consider the condition of job security just at the beginning of their careers so as to feel confident about the future. They oppose governments’ privatization policies in order not to lose this warranty or prefer to work in public sector though they may earn less as compared to those working in the private sector due to public sector’s offering job security. Volume 1 Number 2 July 2011 35 �Fazıl ŞENOL Technological progress provides labor saving, which results in technological unemployment. On the other hand, it is difficult to state that technological unemployment is influential on hotel staff. Because product has a labor-intensive character and labor substitution by technology is limited. For this reason, the most important capital of hotel organizations is the human factor. In fact, this character of the sector suggests that lodging industry is one of those sectors which provide the most job security. Nevertheless, the limitations such as job security of the hotel employees being dependent on the occupancy rate of the hotels, seasonal character of the employment in this sector, high unemployment rates in the country or the flexibility of touristic demand unfortunately prevents individuals working in this sector from feeling confident about the future. Besides, employee turnover in the sector validates the rightness of the employees’ worries about the future. On the other hand, when job security is perceived negatively, employees cannot be expected to transfer their knowledge and experience into their work. For this reason, even if hotel organizations adopt the thesis that job security leads employees to laziness, they should provide lifelong job security to their employees and adopt management policies which offer promotions in order to motivate them. External Motivational Tools Motivation, being an administrative process, tries to find correct tools of motivation which can change employees’ behaviors to bring them in line with the organization’s targets. A number of internal and external factors are needed in order to motivate employees during the motivation processes. External factors are most of the time determined depending on organization’s policies and external factors. According to Herzberg’s Two Factor Theory, external motivation methods do not motivate employees but provide employees with conditions appropriate for being motivated (Brislin et al., 2005, p. 89). On the other hand, Murphy & Alexander (2000, p . 28) state that when motivated by external motivational tools, employees act with the aim of obtaining some privileged results. For example, if employees do their jobs in order to obtain a result like wage, job security or promotion, this means that they are influenced by external motivational tools. Numerous theoretical and applied researches done with the purpose of measuring the effect of motivational tools on employees offer different solutions to problems related to this issue. 36 Journal of Economic and Social Studies �The Effect of Job Security on the Perception of External Motivational Tools: A Study in Hotel Businesses The first of researches on motivation was done in 1946 (Hersey and Blanchard, 1969, p. 35). This research, including employees of the industrial sector, was conducted by New York Institute of Labor Relations and published as a report in ‘Foreman Facts’. Employees were asked to put 10 motivational tools in order which they considered as ‘a job reward’ and the results were as shown in Table 1 below. Table 1. Universally Accepted Main Motivational Tools 1 o be appreciated for a good job 2 o be perceived as an important (useful) person 3 Positive approach to personal problems 4 Job security 5 air wage 6 Interesting (attractive) job 7 Promotion possibility 8 Personal or organizational commitment 9 Good working conditions (work safety) 10 Discipline in the workplace Source: (Wiley, 1997:14) The research results show that ‘being appreciated for a good job’ takes the first place in the list, whereas ‘discipline’ is at the bottom of it. Long-term researches done by Kovach (1987) also contributed a lot to management science in terms of motivation. In all his researches Kovach asked participants to put in order the 10 motivational tools in Table 1, which first appeared in 1946 and were universally accepted, according to their priorities (Wiley, 1997, pp. 5-6). These motivational tools provided basis for later researches, too. But most of the time they were reshaped according to field of study and personal preferences. For the current study also the motivational tools seen in Table 1 were used while external motivational factors were being formed. External factors used in this research as study variables are briefly explained below. Wage: It is a fixed amount of money paid by the business organization to the employee in return for work performed for a month. On the other hand Adams’s Equity Theory defines wage as an output which should be in a fair balance with employee’s inputs like labor, effort, education, experience and so on (Leung et al., 1996, p. 948). For the employees, the amount of production is an important fac- Volume 1 Number 2 July 2011 37 �Fazıl ŞENOL tor effecting motivation. According to Taylor, it is enough to pay more in order to motivate employees to work more efficiently (İncir, 2002, p. 73). According to an employee survey conducted in USA, 95% of employees see monetary (cash) rewards as favorable and perceive them as an important tool of motivation (Nelson, 1999, p. 59). Kovach, known as one the leading figures of studies on the perception of motivational tools, (1995) aimed at measuring private sector employees’ levels of perception of factors that motivate. He found out that employees working at managerial positions put pay rise at the top of the list of motivational factors, whereas other employees ordered it as the fifth priority. In a contemporary research, Pfeffer also concluded that par rise is the most important external motivational tool that motivates employees to work more efficiently (1995:7). The first research aiming at understanding employee expectations and the effect of motivational tools was done on 12 hotel employees in USA and Canada in 1946. Later on, a lot of researchers, particularly the one Kovach did, researches investigating which motivational tools were considered as most effective by the employees. The results of all these researches show that the best tools to motivate hotel employees are: 1. Fair wage 2. Job security 3. Promotion and Advancement Opportunity (Simons & Enz, 1995, p. 24). The results of the research on managers by Hanks also show that high wage expectation is at the top of the list (1999: 114). The common point of the studies on this subject is the conclusion that wage motivates. Researches done in Turkey support these results as well. For example results of the researches by Öktem (1991), Ay (1995), Ölçer (2005) and Birdir (2001) show that a fair wage is an important tool of motivation. The research conducted by A&G Research Company on nearly 3000 employees showed that employees listed high wage as the best motivational tool with a rate of 82.2% (Ölçer, 2005, p. 6). In Birdir’s study on hotel employees throughout Turkey wage factor took the first place as well (Abay, 2004, p. 94). On the other hand employees’ earning much does not mean that they will be motivated to work harder. Because, even if the policy of equal pay for equal work is applied within the organization, this time employees can compare their wages with other people doing the same job in other organizations and find a reason to lower their motivations. Therefore, in order to keep their employees, organizations should be loyal to the principle of equality by establishing a fair wage system (Lam et al., 2002, p. 1). 38 Journal of Economic and Social Studies �The Effect of Job Security on the Perception of External Motivational Tools: A Study in Hotel Businesses Status or Promotion: Status is the place of the individual in an organization or a group when compared to others within the hierarchy. Being an abstract concept, status is characterized with esteem and respect shown by other people (Huberman and Onculer, 2004:103). Whatever the position is being appreciated for a good job, or being accepted as a qualified employee and being respected for his/her knowledge, status is a cause of motivation for every employee. On the other hand, promotion is the advancement of an employee to a higher rank with more responsibilities. Having a fair promotion policy in the organization is an important factor increasing motivation. Because in a working place promotion means rewarding success. A promoted employee obtains both a higher status and a higher wage. A promotion obtained due to knowledge and skill can help individuals improve their other talents; On the other hand, if a promotion is not deserved, it can cause anxiety and stress about increasing responsibilities. In this study, variables believed to measure the factor of ‘status and promotion’ are grouped under this factor. Hierarchical Structure: There is an important relationship between employee motivation and organizational structure. For example, employees’ ability to reach top management without an agent and the awareness that top management is accessible to all employees strengthens the commitment to the organization. On the contrary, when a strict normative or hierarchical ladder makes top management inaccessible, this situation affects employees in an undesired way (Pfeffer, 1994,p. 145). Employee Relations: Good employee relations are an important factor in overcoming negativity in the workplace. Superior-subordinate relationships and relationships between members of the organization and customers are effective on the job motivations of employees. Employees pleased with warm and sincere treatment from the superiors would carry out the orders more voluntarily. For this reason, managements should play a constructive role in creating a harmonious atmosphere. They can create such an atmosphere by arranging events like tea breaks, birthday or wedding anniversary parties and trips (Erdoğan, 1996, pp. 301-302; Sabuncuoğlu and Tüz, 1998, p. 149). Job Safety: In terms of physical working conditions, working atmosphere and social rights, a safe environment should be supplied. Particularly in organizations related to production, the purpose of the safety regulations is to minimize work accidents. Physical, biological and chemical risks in the workplace, work speed, working hours, employee empowerment, communication networks, job definitions, information sharing and technological facilities are all important elements determining working conditions of a workplace (Pailhe, 2002, p. 96). Having a secure job and being Volume 1 Number 2 July 2011 39 �Fazıl ŞENOL protected against income loss, physical dangers, crime and risky duties are parts of employee’s safety need. And within the concept of job safety, job security which guarantees the continuity of employment is also an important safety expectation. The assurance that they will work at the same job for long years eliminates questions and worries about future, which is perceived as a part of job safety (Telman and Ünsal, 2004, p. 47). Fear of being dismissed from the organization is an element of oppression for the employee. The behavioral change caused by this fear is felt more obviously particularly in economies with limited employment opportunities. For example results of the research by Probst & Brubaker (2001) show that motivation of employees lowers when they perceive job security negatively, their attitudes change towards not obeying the rules and this leads to an increase in job accidents. Profit Participation: It is a motivational tool which rewards the employee with a certain percentage of profit. Organizations deliver a part of their untaxed profits to employees on a basis of percentage proportional with base pay. Another mode of administration is business partnership provided by equity participation. The purpose of organizations’ preference for motivating employees this way is to gather them around a common cause and create commitment to organizational targets. Since another purpose of this system, in which employees working harder earn more, is to increase the income of the employee, it is out of question (look above) that any practice providing employees with higher wages will affect the motivation of the employee positively. Profit participation is a very important argument to use particularly in case of tourism employees who have very long working hours and most of the time cannot use even their weekly leave days during high seasons. Because Şenol’s study on hotel employees in Turkey (2010, p. 264) showed that employees believe although they work too much, it doesn’t lead to an increase in their wages. In the same study income rise is seen as one of the most important motivational factors for hotel employees although in some subcategories (age, job experience, education level and field, department etc.) its grading may differ. Therefore, a practice like profit participation will both increase employee commitment and effect their motivation. Organizational Culture and Climate: Organizational culture is a system of values, beliefs and habits which shapes behavioral norms designed to realize the same goals and activates mutual perception between members of the organization (Mandy & Noe, 1987, p. 132). From this aspect, organizational culture is shaped by the organizational experiences of the employees (Telman and Ünsal, 2004, pp. 49-51). Another important factor affecting job motivation is organizational climate which is closely related to organizational culture. Organizational climate is the atmosphere resulting 40 Journal of Economic and Social Studies �The Effect of Job Security on the Perception of External Motivational Tools: A Study in Hotel Businesses from employees’ expectations about their employment in the organization and their perception of how much these expectations are met (Schwartz & Davis, 1981, p. 15). Organizational climate is also perceived as a tie between members of the organization because behaviors of the individual change in parallel with organization’s demands. Since employees’ coworkers, superiors (supervisors) and their own individual characteristics are effective in the perception of climate, the concept of organizational climate is also seen as the psychological atmosphere of the organization. Therefore, organizational climate is related to motivation (Efil, 1993, pp. 109-110). These two concepts were discussed under the same factor, regarding the possibility that they may be considered as the same, and variables measuring the factor were formed accordingly. Talent: Talent can bring different points of view to problems. People like their thoughts’ being accepted or their thoughts’ being realized. If employees in an organization can express their thoughts and suggestions freely and see that they are taken seriously and even realized, this means there is a good communicational process in this environment (Ünlüönen and Atınç, 2007:14). For this reason, managements should encourage employees to use self initiative and show that they trust them (İncir, 1985, p. 74). For example, regarding the suggestions of employees to problems or these suggestions being discussed in the meetings would honor them. Besides, rewarding these kinds of behaviors with pay increase or promotion would increase employees’ commitment to the organization and their motivations. Image-Attractive Job: Employees with high pay expectations are more willing to work at full capacity (Filiz, 2002, p. 94). Their identification with the organization and behaving in a manner consistent with the organizational goals are directly proportional to their organization’s reputation in the outside world. The researches have indicated that employees working for a well-known organization with a positive public image are proud of this and more inclined to take the ownership of their organizations (Smitis et al., 2001:1051). Therefore, by building credibility with suppliers, customers and shareholders in order to have a good image, organizations also increase the motivation of their employees. In this respect, it is more attractive for an employee to work for a hotel chain despite a lower salary. Finally, since factors motivating employees differ from each other, motivational tools also show variety. On the other hand, although theories aiming at categorizing motivational tools appear under different titles, in fact they adhere to the ideas of making the job more attractive and meeting the needs of the employee. So the important thing is to determine which motivational tool to use for which employee. Volume 1 Number 2 July 2011 41 �Fazıl ŞENOL When considering the effect of motivational tools, it is also necessary to keep in mind that in addition to organization’s attitude, employee’s him/herself is the most essential source of motivation. Because it is difficult to understand expectations of an employee who does not express his/her purposes clearly, it is hard determine the most effective motivational tool to motivate him/her. Researches on Job Security and Motivation The concept of job security has emerged with the aim of assuring continuity of employment and preventing arbitrary terminations. Employees’ confidence in future and their not being deprived of earning a livelihood are among the most essential rights of them (Koç, 2005, p. 20; Ulucan, 1982, p. 184). One of the main purposes of modern labor law is also to secure these rights of employees and prevent them from losing their job without a valid reason (Süzek, 2006, p. 430). In this respect, job security provides social benefits and it also functions as an important motivational tool enhancing employees’ positive feelings towards their jobs. All around the world, job security is protected by labor laws. On the other hand, due to some constraints like weaknesses in enforcement of laws, employer pressure on the governments or distinctive structure of some businesses, it is difficult to maintain job security in the real sense. Particularly, in tourism sector, implementation of job security laws is quite problematic because some hotels are seasonal and the ones open all year round tend to employ temporary staff. For this reason, in this branch of business psychological security provided by employers is more effective on overcoming employee’s work anxiety than job security enforced by laws. Therefore, dimension of relationship between employee and management in hotels becomes more important in the positive or negative perception of job security. This aspect of the sector has always attracted the attention of the researchers and various studies have investigated the subject. An environment of economic uncertainty leaves employees more defenseless because in such an atmosphere, organizations tend to protect themselves or resist protective regulations, which increases employees’ work stress and affects their psychology deeply. (Önder and Wasti, 2002, p. 639). A study done in the USA showed that fear of being fired can affect employees’ psychological and physical health seriously. Results of the national survey conducted by University of Michigan Institute for Social Research with more than 1000 male and female employees under the age of 42 Journal of Economic and Social Studies �The Effect of Job Security on the Perception of External Motivational Tools: A Study in Hotel Businesses 60, who were interviewed twice, three years apart, revealed that 25% of employees worry about losing their jobs. ² Although it is commonly believed that the best reward is pay rise, as a motivational tool, it is a costly reward for organizations and there is no guarantee that it will have a long-lasting effect. For this reason, organizations can make use of job security as a motivational tool which is symbolically cost-efficient and has a huge effect on employee motivation. Thus, researches on this subject (ŞenoL, 2010; Poyraz and Kama, 2008; Özyaman, 2007, p. 13) suggest that job security provides employee with high motivation and it also affects other motivation levels. For example in Şenol’s research (Şenol, 2010, pp. 246-264) job security was rated as one of the three most important motivational tools in all subcategories. Poyraz and Kama’s study on hotel staff also showed that job security functions as an important motivational tool since it changes negative work behaviors and the thought of leaving the job (2008:2). It is only natural for employees to fear job loss and to have a job or not and it means different things to different people (Özyaman, 2007, p. 13). For this reason it is difficult to estimate the impact of job loss on the employee. Researches investigating effects of job loss and having a job indicate that employee behaviors start going bad as soon as they start worrying about job loss (Domenighett, 2000; Özyaman, 2007). For example according to a research by Cambridge University, when job security is perceived as low employees’ health complaints are five times as much as when it is perceived as high (Worklife Report, 1999). Therefore, considering possible effects of job loss fear, it is concluded that job security is crucial for organizations and there is an important relationship and an interaction between job security and motivational tools. Therefore in this study, as distinct from above mentioned researches on the relationship between job security and motivation, job security has been considered as an independent variable with the purpose of understanding whether it changes employees’ perception levels of motivational tools, or in other words, whether it is effective on motivational tools’ strength of effect or not. The results obtained are described below. Field Study The Importance and Aim of the Study Due to demand elasticity hotels, a sub sector of tourism, are easily affected by outside factors (i.e. weather conditions, counter propaganda, political tension and polemics Volume 1 Number 2 July 2011 43 �Fazıl ŞENOL and terror). Therefore maintaining continuity of hotels is dependent on the continuity of tourism demand. One third of hotel income goes to employee wages (Usal and Kurgun, 2003, p. 13). Therefore as demand shrinks, it is a common practice for hotel managements to dismiss employees with the aim of reducing expenses. Researches done in Turkey (Birdir, 2001; Abay, 2004; Bakan and Büyükbeşe, 2004; Ölçer, 2005; Ertan, 2008; Şenol, 2010) show that employee turnover in hotel sector is higher than other sectors, which is a valid reason for the employees’ feeling anxiety about future of their jobs. Therefore, hotels need to accomplish an effective motivational process in order to keep their employees, the most important capital of them, and change employee behaviors toward organizational goals. There is also a relationship between high employee motivation and customer satisfaction. This relationship between the quality of product offered and guest satisfaction is more apparent particularly in departments where a direct contact with guests is necessary (i.e. service, front desk). Therefore any study on hotel employees, who are considerably effective on guests’ staying at a hotel or visiting a country for the first time, has a particular importance. There is no doubt that in times of economic crisis employees are more concerned about job loss. For this reason it is expected that findings of this study will contribute to literature by being effective on determining motivational tools necessary to manage this difficult situation in which employees suffer from low motivation. This study is different from other researches on motivation as it aims at investigating if there is a relationship between levels of employee confidence in the future and levels of motivation, and if there is such a relationship, determining its direction and measuring its significance level. It is expected that findings obtained will explain how important the perception of job security is in terms of employee motivation. Because it is believed that external motivational tools like pay rise, good relationships, image or promotion will not affect an employee’s anxious about losing his/ her job in the same way as it affects the one who is much more positive about job security. Researches on hotel employees generally focus on job security’s degree of priority among other motivational tools. On the other hand this research differentiates from similar researches in that it does not analyze the place of job security among motivational tools believed to meet expectations, but its relationship with external 44 Journal of Economic and Social Studies �The Effect of Job Security on the Perception of External Motivational Tools: A Study in Hotel Businesses motivational tools included in the research as independent variables. Turkish employees’ future anxiety level is rising justifiably on the grounds that effects of 2008 global economic crisis are still felt in tourism, demand for tourism is elastic and employee turnover in hotels is high in Turkey. Analyzing dimension of the relationship between job security and motivational tools with the aim of reducing this anxiety seems to be distinct from other studies. Research Model Considering the fact that developed models would increase visual of the abstract concepts used in the research, following model shown in Figure 1 was developed in the light of the research hypothesis. Figure 1. Research Model External Motivational actors - Wage - Status-Promotion - Hierarchical tructure - Employee Relations - Job afety - Profit Participation -Organizational Cluture and limate - alent - Image-attractive job Independent Variable J UR Y (9)* External Motivation Level Dependent Variables *Variable number measuring job security in the questionnaire According to the model, job security is independent variable, external motivational tools are dependent variables. Volume 1 Number 2 July 2011 45 �Fazıl ŞENOL Research Hypotheses In accordance with the purpose of the study, main hypotheses to be validated are set as below; H0: There is no meaningful relationship between job security and external motivational factors. H1: There is a meaningful relationship between job security and external motivational factors. H2: Existence of job security increases effectiveness of external motivational tools. If H1 is accepted, the following results are expected to be obtained by further analysis; - Employees’ external motivation level, - Direction of the relationship between job security and effect of external motivational tools, - Motivational factors on which job security is the most influential. Research Population and Sample Selection Population of this study consists of employees working for 4 and 5 star accommodation businesses (i.e. hotel, springs resort, holiday resort). Questionnaire includes paid managers and employees working in all departments of starred hotels, excluding owners of them. Names of the mentioned businesses, thought to represent the whole of the population sufficiently, remaining hidden, the situation related to delivered questionnaire forms is shown in Table 2. 46 Journal of Economic and Social Studies �The Effect of Job Security on the Perception of External Motivational Tools: A Study in Hotel Businesses Table 2. Businesses Questionnaires Delivered and Distribution of the Forms Collected Business Type City Number of Businesses Number of Respondents Percentage of Distribution 5* Hotel dana, nkara, ntalya Aydın, Bursa, İstanbul, İzmir, Muğla 9 150 %36 4*Hotel Ankara, Balıkesir, Bolu, İstanbul, Rize, Sakarya 8 128 %31 5*Holiday Resort Aydın, İzmir 2 47 %12 4* Holiday Resort ntalya 1 25 %6 5* prings Hotel Bursa, İzmir 3 51 %12 4* prings Hotel Balıkesir 1 13 %3 24 414 100 L Accommodation businesses are chosen from regions in Turkey where tourists’ accommodate densely based on the data provided by the Ministry of Tourism so as to represent the whole of the population. Questionnaire forms were sent by e-mail to the managers of accommodation businesses following a face to face or telephone conversation with them. In order to assure the participation of employees from all departments, questionnaire delivery was made within superior managers’ knowledge. An important point to be considered during researches is determining the number of sample representing population. Number of sample of this study was found by calculations based on population. When determining number of sample, Sekaran’s (1992, p. 253) table ‘Acceptable Sample Sizes for Specific Populations’ was used. According to this, total number of employees working for 4 and 5 star businesses in Turkey is 200.000*1 (www.turizm.gov.tr). When error rate is accepted 5%, sufficient number of questionnaires for this study must be 383 according to both of the tables. Since number of employees participating in this study is 414, sufficient number of sample was obtained. *According to official statistics there are 105.489 rooms in 4 star hotels and 147.167 rooms in 5 star hotels by 2008 year-end. Therefore total number of rooms being 252.656, necessary number of employees per room is ½ in 4 star hotels and 1/1 in 5 star hotels. Volume 1 Number 2 July 2011 47 �Fazıl ŞENOL When constituting job security perception scale used in the study, ‘Job Security Index’, validity and reliability analyses of which done by Önder and Wasti (2002) in Turkey was used. In determining motivation variables used for measurement of job security, motivation scales developed by Mottaz (1985) and Lindner (1998) were used. When adapting survey questions about motivational tools to hotel employees, Minnesota Satisfaction Questionnaire, Porter’s Need Satisfaction Questionnaire and expressions related to motivation used by Keenan (1996) and Kovach (1984-1987) in their study. Variables used in relation with motivation were also used in previous similar studies done in Turkey [Birdir, (2001), Ünlüönen, (2007), Taşpınar, (2006),Toker, (2008), Batman vd., (2007), Ertan, (2009), Şenol, (2010). As in the similar study Cronbach’s Alpha reliability test is also used in this study. According to Kalaycı (2009; p. 405) if reliability coefficient is between (α) 0,60≤ α<0,80, scale is quite reliable. Reliability of “job security” scale is determined as 0,709 and reliability coefficient is 0,939 for this study. Findings of the Study In the analyses investigating different aspects of job security’s relation with variables measuring external motivation, how dependent variables (external motivational tools) believed to be affected by independent variable (job security) change employee motivation is being observed. Regression analyses were used in order to reveal the relationships between scales taking place in the questionnaire forms. According to Likert scale used in the questionnaire, distribution of answers about job security is in the range of 1.5 and 4.5. Therefore it can be accepted that data related to job security displays an approximately normal distribution. When the number of variables used in the research questionnaires is too high, in order to decrease the number of variables and explain them with fewer factors, researchers usually refer to factor analyses or determine the factors themselves. For this study the latter option was preferred. It was thought that handling nine external motivational tools explained in the theory part of the study as also factor groups would provide research integrity. So variables taking place in the questionnaire form with the aim of measuring external motivation and shown in Appendix 48 Journal of Economic and Social Studies �The Effect of Job Security on the Perception of External Motivational Tools: A Study in Hotel Businesses 1. are grouped under related factor and mean values were constituted after reliability tests were performed. Data obtained in relation to the factors are shown in Table 3. Table 3. Reliability Values of Scales Used and Perception Levels of the Factors umber of Variables Measuring ach actor EXTERNAL MOTIVATIONAL FACTORS L H X* * Wage 5 0.727 3.315 0.836 Status and Promotion 5 0.811 3.707 0.829 Hierarchical tructure 6 0.790 3.731 0.742 Relationships between Employees 7 0.699 3.827 0.651 Job afety 5 0.791 3.969 0.780 Profit Participation 5 0.673 3.308 0.855 Organizational Culture and Climate 8 0.771 3.777 0.692 4 0.668 3.468 0.825 7 0.797 3.881 0.714 General verage - - 3,665 0.769 External Motivation Scale 40 0.935 - - Job Security Scale 9 0.709 - - alent Image-Attractive Job 4,21 – 5,00 Very High ; dium; 1,81 – 2,60 (Yemane, 2001; Ertan, 2009) * X =Mean; SS=Standard Deviation 3,41 Low; – 4,20 1,00 High; 2,61 – 1,80 – 3,40 Very MeLow Alpha values in Table 3. are in the range of 0.66 and 0.96, validity value of the questionnaire form is at a sufficient level and no factor was excluded from evaluation in the analyses. Some of the variables used to measure factors were used in more than one factor groups. From Table 3. we can also see that employees’ external motivation is not very high with an average level of 3.665. When motivation levels of employees are considered for each factor, the answers given to questions of measuring job safety reveal that employee opinions about hotel employees’ life safety, physical conditions of work environment, sufficient equipment to do their jobs, proper architectural design enabling service flow, safety of places to stay provided by the hotel, occupational hazard, social rights and future of their employment are at more positive levels. In the study, “Image and attractive job” factor was ranked as number two, that is perceived closest to number one factor, which also shows that hotel employees love their jobs and believe that they are doing an important job. From the answers given Volume 1 Number 2 July 2011 49 �Fazıl ŞENOL to variable measuring the same factor, it also appears that employees benefit from educational opportunities offered by the workplace; they expect to earn more in the future, they are pleased with their hotels’ image in the outside world and would be happy when guests leave the hotel satisfied with the service. Hotel managers’ having good relationships with their subordinates causes a positive atmosphere among employees. Thus answers to variables measuring the factor of “Relationships between enployees” show that there is a good communication between hotel departments; and employees are pleased with friendly relationships with managers and co-workers, also with cooperation and positive dialogue between them. It is particularly observed that employees give importance to celebrating their birthdays at workplace and managers’ allowing them to exchange shifts among themselves. These findings of the study support findings of Orpen’s (1997) study results of which showed that “quality communication between employees and good relationships particularly with managers have a positive impact on employee motivation” (Chiu 2004, p. 34). Answers to questions measuring the factor of “Organizational Culture and Climate” also indicate that there is a good relationship between superiors-subordinates and among coworkers; employees can share some of their problems and managers and coworkers help them with the solution of these problems. On the other hand, as it is explained before, these results represent only the average. An average level of 3.77 obtained for “Organizational Culture and Climate” does not mean that motivation levels of all the participants are at the same level. With the questions related to the factor of “Hierarchical Structure”, ranked as number five in terms of perception of external motivation, it was aimed to investigate whether hotel management is helpful or accessible to employees. It can be concluded from the answers that there is a good communication between management and employees. One of the reasons for being a part of an organization and enduring current situation is the expectation of gaining status in the organization or being promoted. Answers given to questions related to this factor reveal the fact that employees rank these statements in the sixth order: Employers evaluate their performance rightfully; they will be able to promote due to their success; and the ones who deserve will reach the top management. Therefore, this factor is not perceived at a good level. In other words, hotel employees believe that they don’t have a high chance of being promoted. On the other hand this belief may show differences according to control variables like department, gender, age or status. It appears that the factor of “Talent” is perceived at a low level in terms of perception levels. Results related to the factor of talent and suggestion, which is explained 50 Journal of Economic and Social Studies �The Effect of Job Security on the Perception of External Motivational Tools: A Study in Hotel Businesses as ability of bringing different point of views to problems, can be interpreted as employee performances are not evaluated sufficiently and their suggestions are not taken for granted. Whereas referring to employees’ thoughts and their witnessing these suggestions’ being evaluated are important in terms of motivation. Considering the fact that a factor’s positive impact increases in parallel with an increase in employees’ external motivational perception level, based on the analysis results of the research, it can be stated that hotel employees are pleased neither with their wages nor management policies which they expect to provide extra income for them, and They are not positive about the future of their employment,either. When the obtained data evaluated, it appears that the most important motivational factors the necessity of which employees feel the most are “profit participation” and “wage”. Therefore this result, also reached through the data in Appendix. 1, support the employee expectation expressed as “we can work hard, but this should be reflected in our wages”. Particularly when the factor of “profit participation” is considered as parallel with income raise, it can be stated that the most important external motivational tool to motivate employees to perform better is “wage increase”. One of the purposes of the research is to investigate whether there is a relationship between job security and employees’ external motivation. In order to validate this hypothesis, the relationship between job security and external motivational tools was analyzed through tests based on Pearson Correlation Analysis. The results obtained are shown in Table 4. below. Table 4. Relationship between Job Security and External Motivational Tools (self assessment) Correlation Coefficient* Wage 0.581* Status and Promotion 0.614* Hierarchical tructure 0.635* Employee Relations 0.523* Job afety 0.501* Profit Participation 0.562* Organizational Culture and Climate 0.539* alent 0.556* Image-attractive job 0.563* Correlation Coefficients: None=0.00-0.09;Low=0.1-03;Medium=0.3-0.5;High=0.5-1.0 * Correlation is significant at 1% level. Probability values showing correlation coefficients’ level of significance (“Prob”) are smaller than 1%. Therefore all correlation coefficients are significant statistically. Volume 1 Number 2 July 2011 51 �Fazıl ŞENOL Since interpretations and explanations related to the perception of factors are made above, here we will only deal with statistical dimensions of this relationship. When data in Table 4. is considered, reliability range being 99%, correlation coefficient is positive (r=0.581) between hotel employees’ perception of “job security” and “wage”, and being closer to 1, it is in a range of high level value. This value is also significant at 1% level. Null hypothesis is defined as two reliable being independent of each other, whereas alternative hypothesis shows that these two reliable are not independent. As seen in Table 4. variable of perception of “job security” and variable of “wage” are not independent of each other. Because their coefficient values (0.581) are significant at 1% level. Therefore there is a relationship at a statistically meaningful level between these two variables. For this reason null hypothesis will be refused. Data in the table also shows that there is a meaningful, positive and high level (r=0.614) relationship between statistical job security and “Status and Promotion”. This value is significant at 1% level. Findings indicate that variables of perception of “job security” and “status and promotion” are not independent of each other. Therefore there is a relationship at a statistically significant level between these two variables, and null hypothesis will be refused here, as well. Again when relation of job security with each of the external factors included in the research is evaluated separately, it appears that; 52 - There is a significant positive and high (r=0.365) correlation between job security and “Hierarchical Structure”, - There is a significant positive and high (r=0.523) correlation between job security and “Employee Relations”, - There is a significant positive and high (r=0.501) correlation between job security and “Job Safety”, - There is a significant positive and high (r=0.562) correlation between job security and “Profit Participation”, - There is a significant positive and high (r=0.539) correlation between job security and “Organizational Culture and Climate”, - There is a significant positive and high (r=0.556) correlation between job security and “Talent”, Journal of Economic and Social Studies �The Effect of Job Security on the Perception of External Motivational Tools: A Study in Hotel Businesses - There is a significant positive and high (r=0.563) correlation between job security and “Image-attractive job”. Therefore due to the existence of a statistically significant correlation for all factors, null hypothesis (Ho) was refused. Based on the data obtained, (H1) Hypothesis of the research which claims that “There is a meaningful relationship between job security and external motivational factors” was accepted. Considering levels of correlation between job security and external motivational factors given in Table 4., it is seen that the most important relationship is with “Hierarchical Structure” due its value’s (0.365) being closest to 1. In fact there is an important relationship between employee motivation and organizational structure. Top management’s being accessible to all employees and their showing a democratic attitude to solution of problems not only affect motivation of employees but also play an important role in shaping employee opinions about future of their employment. The think which makes a hotel employment long-term is managers’ own initiatives (with the exception of employees owing their indispensability to their knowledge and equipment) rather than job security laws in the country. Particularly in hotels where employee turnover is high, future of the current employment is most of the time at the mercy of managers. For this reason, employers’ attitudes towards employees are extremely influential on employees’ positive or negative perception of job security. In this study, dependent variables are measured on 5-point Likert scale. For this reason, average values of variables range from a minimum of 1 to a maximum of 5. Although independent variable in the regression equation seem to be in the range of values 1-5, an average of more than one variables in the questionnaire form measuring the same variable is used when constituting them. In other words dependent variables in the range of values 1-5 actually have tens of further different values. In accordance with the purpose of the study, regression analysis is used in order to measure the effect of job security, independent variable of the research, on external motivational tools through Pearson Correlation Analysis. Tests obtained for each of the models established are shown in Table 5. Volume 1 Number 2 July 2011 53 �Fazıl ŞENOL Table 5. Job security and External Motivational Tools: Results of Regression Analysis Model 1 Model 2 Model 3 Model 4 Model 5 Wage Status-Promotion Hierarchical Structure Employee Relations Job Safety Job ecurity 0.838 0.843 0.801 0.573 0.677 t 12.324*** 12.969*** 13.810*** 10.232*** 8.792*** ixed 0.460 0.835 1.019 1.827 1.686 t 1.811* 3.494*** 4.674*** 8.869*** 5.958*** R- quared 0.362 0.395 0.414 0.281 0.242 25.476 29.246 30.568 17.135 12.207 0.0001 0.0001 0.0001 0.0001 0.0001 External Motivational Tools External Motivational Tools Model 6 Model 7 Model 8 Model 9 Profit Participation Organizational Culture and Climate Talent Image-attractive job Job ecurity 0.832 0.593 0.767 0.661 t 11.718*** 11.189*** 12.175*** 12.018*** ixed 0.499 1.816 0.918 1.665 t 1.897* 9.035*** 3.825*** 7.967*** R- quared 0.348 0.317 0.336 0.316 24.009 22.875 25.386 23.181 0.0001 0.0001 0.0001 0.0001 * significance level of 10%, ** significance level of 5%; ***significance level of 1% As interpretations and explanations related to perception of factors are made above, following statements consider only statistical dimensions of these models. Model 1: Wage =Fixed+ β*Job Security Wage=0.460+0.838*job Security R-squared=0.362 explains 36.2% of change in “wage” factor, one of the internal motivational tools for job security. As P<0.05 Model 1 is significant. Therefore there is a significant positive correlation between job security and perception of “wage” factor. Impact of pay rise on employee satisfaction increases in parallel with an increase in employee’s sense of security about the future of his/her employment. 54 Journal of Economic and Social Studies �The Effect of Job Security on the Perception of External Motivational Tools: A Study in Hotel Businesses Considering all the models in Table 1, it can be affirmed that explanation for Model 1 is also valid for the other models. Model 2: Status and Promotion=Fixed+ β*Job Security Status and Promtion=0.835+0.843 *Job Security R-squared=0.395 explains 39.5% of change in “status and promotion” factor, one of the internal motivational tools for job security. Model 3: Hierarchical Structure=Fixed+ β*Job Security Hierarchical Structure= 1.019+ 0.801*job security R-squared=0.414 explains 41.4% of change in “hierarchical structure” factor, one of the internal motivational tools for job security. Employee Relations= 1.827+ 0.573*job security Model 4: Employee Relations=Fixed+β*Job security R-squared=0.281 explains 28.1% of change in “employee relations” factor, one of the internal motivational tools for job security. Job safety=1.686+ 0.677*job security Model 5: Job security=Fixed+β*Job security R-squared=0.242 explains 24.2% of change in “job safety” factor, one of the internal motivational tools for job security. Model 6: Profit Participation =Fixed+ β*Job security Profit Participation = 0.499+0.832*job security R-squared=0.348 explains 34.8% of change in “profit participation” factor, one of the internal motivational tools for job security. Model 7: Org. Cult. and Climate=Fixed+β*Job security Org. Cult. and Climate =1.816+0.593*job security R-squared=0.317 explains 31.7% of change in “Organizational Culture and Climate” factor, one of the internal motivational tools for job security. Model 8: Talent =Fixed+ β*Job security Talent = 0.918+ 0.767 * job security R-squared=0.336 explains 36.2% of change in “talent” factor, one of the internal motivational tools for job security. Model 9: Image-attractive job =Fixed+ β*Job security Image-attractive job=1.665+0.661* Job security R-squared=0.316 explains 31.6% of change in “image-attractive job” factor, one of the internal motivational tools for job security. Therefore since P<0.05, all of the models are significant and existence of job security has a positive impact on the perception level of each of these factors. Volume 1 Number 2 July 2011 55 �Fazıl ŞENOL Model 9: If H0 and H1 hypotheses are expressed as; H0 Job security is not effective on the perception of ‘image-attractive job’. H1 Job security is effective on the perception of ‘image-attractive job’. Then t-test is done in order to validate alternative hypothesis. Findings indicate that variable of “job security” effects study’s dependent variable, “image-attractive job”, significantly and positively. Stating it more clearly, in case job security is perceived positively, perception level of “image-attractive job” also changes in a positive way. Furthermore fixed value in the model represents the value of our dependent variable, “image-attractive job”, when the values of “job security” variable and control variables are zero, and this value is also significant and positive. As already stated, R-squared value represents explanatory power of the model and this value was found to be 31.6% for this model. Therefore it can be interpreted as this finding explains 31.6% of change in job security and one of the external motivational tools, “imageattractive job”*.2 As mentioned before, if a model is significant in the general sense or not is tested by F-test. F-statistical value for this model was found to be 23.181 and probability of acceptance of null hypothesis as “0”. Therefore since null hypothesis is refused, our model is significant in the general sense. Data in Table 5. indicate that there is a significant (P<0.05) and positive correlation between job security and all of the external motivational tools selected for this study, and existence of job security has an impact on the perception of all the other motivational factors. On other words, if an employee perceives that he/she is provided with job security, he/she perceives other motivational tools more positively. The result obtained supports findings of the research done by Bakan and Büyükbeşe (2004) with the purpose of measuring the dimension of relationship between job security and motivation. They had asserted that “ones who perceive job security positively perceive other motivational variables in the same way, too”. Findings of this study also support Taşpınar’s (2006) conclusion that “in case employees perceive that they are under the risk of being dismissed, they perceive other motivational tools negatively, too; on the other hand the ones who believe that their employment in the organization will be long-term perceive motivational tools more positively. The findings of this study and also findings of two other studies mentioned above show that “job security factor alone is an important motivational tool for increasing employee motivation, and *R-squared value is generally found to be high in time series applications and if this value is higher than 0.7, it is suggested that the model has a high explanatory power. Whereas cross sectional data (questionnaire data) is used for this study, and R-squared values can be low in cross sectional data even if the model is proper (Tarı, 2005;81) 56 Journal of Economic and Social Studies �The Effect of Job Security on the Perception of External Motivational Tools: A Study in Hotel Businesses besides that it increases the effect of each other motivational tool offered in order to motivate employees. Therefore in accordance with the results obtained through analyses done, the hypothesis H2 asserting that “Existence of job security increases the effect of external motivational tools” was accepted. In Herzberg’s model concept of job security is defined as one of the Hygiene Factors and lack of job security is claimed to be one of the reasons for a motivation (Eren, 2000, p. 488). In fact it is not expectable for an employee worrying about the results of losing his/her job to be satisfied with any motivational tool other than job security. Taking the data in Table 5. into consideration, one of the important points to be discussed appears to be statistical results related to on which motivational tool job security is the most effective. Data obtained reveals that job security is the most effective on variables of “Hierarchical Structure” (R-squared=0.414) and “Status-Promotion” (R-squared=0.395) and the least effective on “Job safety”. The reason for this result can be explained with termination of employment’s being only at the initiative of managers. Since employees are hired on personal hiring decisions, they believe that the future of their employment will be determined by the opinions of the managers about themselves, not by the laws. When is it considered that laws protect only registered employees, hotel employees are quite right in their opinion. Therefore employees perceive managers’ having good relationships with them as a kind of job security and this tie between hierarchical structure and job security reveals the existence of a highly significant relationship. “status and promotion”, second most effected factor by job security, appears to be an expectation of only the ones believing that they would have a long-term employment in the organization. It is unexpected for an employee to be in need of gaining status or promotion unless he/she has job security. Therefore only if employees are provided with long-term job security, a need of gaining status or promotion will be intensified. Even it can be assumed that having a long-term job security would be most effective on “status and promotion” factor. Whereas since long-term job security is dependent on good relationships with top management, “hierarchical structure’ factor moves ahead of “status and promotion”. It is impossible for an employee who does not have a positive relationship with management to gain job security. Otherwise it would be natural for an employee with long-term job security (i.e. public servants) to have perception levels of job security most effective on positive perception of “status and promotion” factor. Also according to the results of the research done by Parity, a job placement company, effect of motivational tools on employee motivation is higher when job security Volume 1 Number 2 July 2011 57 �Fazıl ŞENOL is perceived positively (Keser, 2006, p. 95). The findings of this study also support results of Parity’s research. In fact relationship between job security and motivation will always stand as an important research subject due to their revealing possible effects of this relationship on employees. Conclusion Continuity of employment is essential for the existence of job security. In this regard it is impossible to say that an employee who constantly worries about the future of his/her employment would be motivated to work by any motivational tools. For this reason, it can be affirmed that job security alone can function as an important motivational tool in work atmospheres with high anxiety levels of job loss. Findings of the study show that effect of motivational tools on employees is related to their perception of job security in terms of future of their employment. This result also supports previous researches suggesting that people working in the public service have a more positive approach towards job security and thus in this sector job security factor stays in the background when compared to other motivational factors. For instance in Ağırbaş and Büyükkayıkçı’s study (2005) it has been found that chief physician assistants in Turkey rank job security 16th among 19 variables. Results of Sapancalı’s study (1993) on employees in the banking sector have revealed that job security is ranked only 7th among 14 motivational tools. Job security has always been ranked among three most important motivational factors. On the other hand job security’s place in the priority ranking may show differences according to control variables. For instance in Kovach’s (1995) study normal employees perceived job security as a more prior motivational factor than managers did. Priority of job security can also change in times of economic recession. Adak and Hançer’s (2002) study on motivational factors and organizational needs of 5 star hotel employees can be cited as an example of this situation. Their findings showed that job security took the first place among perceived motivational tools, due to the reason that the study was done in a period of economic regression caused by 1999 Marmara Earthquake. According to the findings obtained, priority of motivational tools are exposed to change due to different reasons and the hypothesis claiming that motivation power of motivational tools is related to employee’s perception level of job security has been validated by the results of this study. 58 Journal of Economic and Social Studies �The Effect of Job Security on the Perception of External Motivational Tools: A Study in Hotel Businesses Negative perception of job security in an organization is a cause of a motivation and an employee expectation. Therefore taking precautions enabling positive perception of job security means this expectation is met. Since job security alone can also increase the effect of other motivational tools, by providing it employers will also lower the cost of external motivational tools to the organization. All other motivational tools can be effective only if existence of job security is provided. It is not expectable for an employee with a fear of job loss to be motivated by pay rise or other rewarding methods. According to the findings of this study, relationships with management play a prominent role rather than characteristics of the job. For this reason managers should prefer to focus on external motivational tools in order to lead their employees to success. This study indicates that external motivation level of employees in Turkey (3.66) is lower than their internal motivation level (4.04)*. Therefore, managers in the sector should put more emphasis on external motivation applications. Findings explained by models constituted have shown that job security changes perception dimension of all the other external motivational tools. As P (Probability) value, which shows the probability of rejecting the model, is (0) for all external motivational factors, models of the study are found to be significant. The study has also revealed that job security is most effective on variables related to “hierarchical structure” (R²=414). One of the findings of the study indicates that there is an important correlation between employee motivation and organizational structure, which suggests that managers’ treating all employees equally, bringing fair approaches to the solution of problems and showing interest to their problems would play a crucial role in motivating employees. Managements’ attitudes towards employees and the dimension of employee-management relationships are also very influential on employee opinions regarding future of their employment in the organization. If an employee perceives management’s attitude towards him/her positively, he/she may have grounds to believe that he/she will not be dismissed. As the findings of this study also confirm, in order to achieve an effective motivational process, it is more important to eliminate hotel employees’ anxiety about job security than determining which motivational tools to be used. Analysis results regarding perception levels of external motivational tools have shown that two least perceived factors are “profit participation” (3.31) and “wage” (3.32). Answers given to variables grouped under this factor indicate that hotel employees are * In Şenol’s (2010:225) study on the employees of the same sector, internal motivation levels were determined as 4.04, where external motivation level is 3.66. Volume 1 Number 2 July 2011 59 �Fazıl ŞENOL not pleased with the fact that although they work hard, their performance does not provide an extra income rise. For this reason it can be concluded that income rise is one of the leading motivational tools to increase hotel employees’ motivation. In fact “the person who works harder earns more” is one of the basic principles of classical organization theories, and increasing income in an organization is accepted as a reason for motivation increase. For instance in the study of Goldsmith & Darity testing the validity of the hypothesis “Organizations can increase labor productivity by paying employees wage premiums proportional to their performances”, it was observed that job motivation of employees, who started to get higher wages due to productivity, increased (Chiu, 2004, p. 38). And the analysis results obtained in this study show those hotel employees in Turkey consent working hard as long as it is reflected in their wages. Therefore, managers are supposed to try motivational applications providing income increase, as employees perceive not being rewarded for good performance as a lack of very important external motivation. In fact during the high season employees’ social life almost comes to an end due to workload. For this reason managements should support high performance in the season with extra premiums or meet employee expectations by giving holiday opportunities to them with their families during low season. It is possible to increase employees’ commitment to the organization and their mood and motivation by supportive applications like these kinds of gifts. Employers can hardly achieve labor productivity by having employees work under the thread of job loss. On the contrary this thread would lead to negative effects on employee health and to employee misbehavior like tardiness, evasion, damaging equipment for revenge or misuse of them, the invisible costs of which would be much higher than mentioned rewards. Limitations of the Study The research was intended to include participation of 500 employees working in 4 and 5 star hotels randomly chosen from regions in Turkey with dense accommodation. Whereas number of questionnaires fell below the target because questionnaire forms did not return from some of the hotels in estimated time. Obtained 414 questionnaire forms constitute 82% of the total number of forms, which can be considered as a high percentage. It was difficult to persuade hotel managements to deliver the forms on the grounds that employees were asked to fill in them in the months of July and August, regarded as high season, and forms would take their time and make them busy. 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Gürbüzsel çev.), İstanbul: Literatür Yayıncılık. �Appendix 1 Definitive Statistics About External Motivational Variables Used in the Questionnaire STATEMENTS RELATED TO EXTERNAL MOTIVATION X 1. Facilities like meetings, seminars and conferences are provided 3.741 by professionals. 2. Management encourages us to do our best. 4.057 3. The hotel I am working in has proper physical conditions (e.g. 4.167 light, heat) 4. believe that work performance is evaluated fairly. 3.868 5. I believe that the hotel will provide better financial opportunities. 3.641 6. There is an efficient communication between departments. 4.000 7. ur complaints and suggestions are taken for granted by the 3.794 management. 8. We have sufficient tools and equipment affecting performance 3.891 positively. 9. I have education and self-training opportunities in workplace. 3.866 10. Working hours are obeyed on in this workplace. 4.000 11.I believe that my wage is a sufficient compensation for my 3.367 performance. 12. My managers are helpful in settling disputes with my coworkers 3.955 and customers. 13. Holidays and leave days are effective on my motivation. 4.320 14. I have good relationships with my co-workers. 4.227 15. I have promotional opportunities at work. 3.754 16. I have good relationships with my managers. 4.120 17. Managers here rightfully earned their status. 3.768 18. ips are distributed fairly in this workplace. 3.567 19. Here exists discrimination among employees. 2.548 20. I can involuntarily be assigned to a different position. 2.851 21. I believe that this hotel has rightfully earned its star. 4.127 22. can share my personal and family problems with managers. 3.265 23. Customer leaves the hotel satisfied. 4.150 24. Management reacts positively to my leave request. 3.901 25. Emloyees are informed about financial condition of the 3.437 business. 26. I spend time with my managers outside work. 3.162 27. I spend time with my co-workers outside work. 4.005 28. My co-workers help me with the solution of my problems. 3.553 29. Managers help me with the solution of my personal problems. 3.263 30. am asked for advice on a subject related to my work. 3.599 31. am rewarded for success. 3.366 32. am granted leave when need. 3.967 33. My birthday is celebrated in the workplace. 3.563 34. Working hours are strictly controlled in the workplace. 3.916 SS 1 % 2 % 3 % 4 % 5 % 1.180 7.48 8.73 14.71 40.40 28.68 0.932 2.48 4.71 11.66 46.90 34.24 0.889 2.46 2.71 9.61 46.06 39.16 1.007 2.73 7.44 19.35 41.19 29.28 1.073 4.48 9.95 25.12 37.81 22.64 1.015 4.19 4.43 13.05 43.84 34.48 1.098 4.70 8.66 18.07 39.85 28.47 1.047 5.19 5.19 14.07 46.42 29.14 1.102 4.96 7.94 14.64 40.45 32.01 1.118 5.74 5.99 9.98 39.15 39.15 1.241 10.86 13.09 23.95 32.59 19.51 0.986 2.48 7.69 12.90 45.66 31.27 0.930 0.877 1.074 0.873 1.141 1.186 1.375 1.315 0.946 1.297 0.889 0.942 3.2 2.74 3.92 2.24 5.12 8.35 31.71 20.54 2.21 12.75 2.72 2.20 2.46 2.47 9.07 2.80 10.00 10.57 21.22 21.53 4.18 17.25 2.47 6.04 5.67 5.75 22.06 10.92 18.54 19.41 18.29 21.78 13.27 19.50 9.38 18.41 36.45 47.40 37.50 48.74 35.61 39.31 18.05 24.50 39.31 31.75 47.90 46.15 52.22 41.64 27.45 35.29 30.73 22.36 10.73 11.63 41.03 18.75 37.53 27.20 1.215 6.6 20.05 17.85 33.99 21.52 1.343 1.048 1.224 1.289 1.158 1.250 0.983 1.336 1.116 15.71 3.99 9.38 12.66 5.97 9.17 3.21 10.47 5.93 18.70 6.98 11.60 17.62 14.18 18.61 5.19 15.21 7.16 16.71 9.73 16.05 18.11 16.67 18.89 15.06 11.97 9.63 31.42 43.14 40.25 34.00 40.30 33.06 44.69 32.17 43.95 17.46 36.16 22.72 17.62 22.89 20.28 31.85 30.17 33.33 �35. Employees are provided with free food and tea or coffee by the hotel. 36. am extra paid for good performance. 37. I can change my shifts with other co-workers. 38. Meals provided for personnel are pleasing. 39. Hotel’s architectural design is appropriate to service flow. 40. The place I stay has proper hygiene and health conditions. External Motivation Level 4.229 1.027 3.45 5.42 6.65 33.99 50.25 2.644 3.657 3.867 4.000 3.960 3.665 1.374 1.228 1.016 0.986 0.994 29.32 9.32 3.79 2.49 3.95 20.05 9.57 6.62 5.47 3.62 17.79 13.60 16.40 15.42 16.78 22.56 41.06 45.43 43.03 43.75 10.28 26.45 27.76 33.33 31.91 � 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. 1066 Title A name given to the resource The Effect of Job Security on the Perception of External Motivational Tools: A Study in Hotel Businesses Author Author ŞENOL, Fazıl Abstract A summary of the resource. Hotel guests’ satisfaction with service and product depends largely on employees’ doing their job willingly and readily because of the direct relationship between employee motivation and quality of products. Therefore some internal or external means of interference are needed throughout management processes in order to motivate employees. In this study external motivation levels of employees working in hotel businesses and as an independent variable, job security factor’s effect on the perception of external motivational tools are investigated. Population of the study consists of hotel employees working in 4 and 5 star hotels in Turkey. A sample of 24 hotels was chosen from cities with dense tourism activities. The study was conducted in the months of July and August of 2009 and 414 employees participated in the survey. Regression Analysis Methods are used in analyzing the data. The results of the study have shown that there is a meaningful relationship between job security and external motivational tools and existence of job security is effective on the perception levels of all other external motivational tools. Based on the analysis results obtained it has been concluded that job security is most effective on factor variables related to ‘Hierarchical Structure’ among other external motivational tools. 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 2011-01 Keywords Keywords. Article PeerReviewed H Social Sciences (General),HB Economic Theory,HG Finance https://omeka.ibu.edu.ba/files/original/6369b1e5744a3e31ba193847a566543f.pdf eb8fdccae65dcacb245b26b92db4e74e PDF Text Text 1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo The Effect of L and L2 Word Glossary on Learning of Technical Vocabulary in Reading Comprehension Texts Saeedeh Mansouri Department of English, Chaloos Branch Azad University, Iran S3724m@yahoo.com Abstract: Recent studies suggest that word marginal glossaries are very useful in reading text when readers have no knowledge about some words and help them comprehend the text without wasting time for looking up the word meaning in dictionaries or making mistakes because of incorrect guessing the word meaning according context. The study aimed to compare the effect of L1 & L2 word glossary on learning and retention of technical vocabularies of Civil Engineering students. The research question is: 'Is there any relation between retention and learning of technical vocabulary and using of glossaries?' If so, what is the difference between using of L1 and L2 word glossary and which of these two sorts has more effect on retention and learning of technical vocabulary? and the considered hypothesis is 'The effect of L1 and L2 word glossary is similar on retention and learning of technical vocabulary‘. The study was done by two tests (test 1 & test 2) with five passages of reading comprehension. In test 1, the definition of words in word glossary of technical vocabularies is in English language (L2) and in test 2, the definition of the vocabularies is in Persian language (L1). These two tests were administered one after another with 15 minutes break between them and 45 minutes was considered to answer the questions for each test. The same students participated in two tests. They were 40 Civil Engineering students of Engineering Technical University (Azad University), Chaloos branch. All of them were male and they were selected after administering a placement test among 60 Civil Engineering students of the university. The placement test was administered one week before the main tests. Comparison the scores of two tests and analyzing them showed that the students answer test 2 (with Persian word glossary) better than test 1 (with English word glossary). Although there were students that answer test 1 better than test 2 and some of them act the same in two tests, most of them answer test 2 (with Persian word glossary) better than test 1 (with English word glossary) and totally result disapprove the hypothesis of the study and it can be said L1 word glossary is more effective than L2 word glossary on learning and retention of vocabularies and also technical word glossary. Key Words: vocabulary, vocabulary learning, incidental vocabulary learning, gloss and glossary. Introduction In learning a foreign language, vocabulary plays an important role. It is an element that links the four skills of speaking, listening, reading and writing all together. Words are perceived as the building blocks upon which the knowledge of the second language can be built (Celce-Murcia ,1991). In order to communicate well in a foreign language, students should acquire an adequate number of words and should know how to use them accurately. Vocabulary learning can take place in two general ways: intentional and incidental. Intentional learning is designed, planned learning and incidental learning is the accidental learning of information without the intention of remembering that information. Incidental vocabulary learning takes place without awareness that involves just implicit learning processes (Krashen, 1993). An incidental way of assisting students in their reading and vocabulary learning is using glosses. Glosses help students to enhance general comprehension, improve vocabulary retention, and save student‘s time and effort in reading L2 texts. Glosses have various functions in helping to decode the text by providing additional knowledge in specific content, skills, strategies, and definitions of additional knowledge in specific content, skills, strategies, and definitions of difficult words. In the case of second language (L2) learning, gloss generally means information on important words via definitions or synonyms. Traditionally, 1052 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo glosses provide a short definition or note in order to facilitate reading comprehension processes for L2 learners (Lomika, 1998). This study explores incidental vocabulary learning through using glossary in reading comprehension texts and compares the effect of L1 and L2 word glossary on retention of technical vocabularies. Students can see the glossary and learn the meaning of unknown words while reading a text, but the research question is which glossary presentation (in L1 or in L2) has more effect on retention of technical vocabulary. The study aims to observe these effects. Methodology Subjects The Subjects of the study were 40 Civil Engineering students of Engineering Technical University (Azad University), Chaloos branch that were selected by a placement test one week before administering main tests. The number of participants in the placement test was 60 and 40 students were selected among them. All of them were male with the same ability in English language. Instruments The used instruments in this study are 3 tests: English Placement Test English Placement test was used to select subjects with the same level of ability in English language teaching. The participants in this test were 60 students and finally 40 students were selected among them by comparison of their scores in this test. There were 100 items in this test. It was multiple choice test. This test was administered one week before the main tests (test 1 & test 2). Test 1 There were 5 passages in this test with English word glossary for Civil Engineering Technical vocabularies. There were 30 multiple choices items in this test. The test included reading comprehension and vocabulary questions after each reading passage, there were the related questions. The considered time to answer the questions was 45 minutes. Test 2 Test 2 was administered 15 minutes after test 1 and the same students participated in this test. Test 2 was just like test 1, but the only difference was in their glossary. In test 2, definitions in glossary were in Persian (L1). Test 2 also lasted 45 minutes. Procedure In order to test the research hypothesis, the study utilized the experimental paradigm by administering two tests. The design of this study is referred as the pretest-posttest-control group design. There was one group as both control and experimental group. In test 1, they are considered as control group and in test 2, they are considered as experimental group. It was hypothesized that the effect of L1 and L2 word glossary is similar on learning and retention of vocabulary. At first, test 1 was administered. There were 5 reading passages with English word glossary for technical vocabularies. The vocabularies are typed italic in the reading passage. There were questions (including reading comprehension and vocabulary questions) after each reading passage. In vocabulary items, one vocabulary in glossary was omitted. Test 2 was just like test 1. The only difference was in their word glossary. There was English word glossary in test 1 and Persian word glossary in test 2. There were 30 questions in each test. Each test lasted 45 minutes and 40 students (the same group) were participated in two tests. This group was selected after administering the English placement test. The placement test was administered among 60 Civil Engineering students of Engineering Technical University (Azad University), Chaloos branch and 40 students were selected after comparison of their scores. There were 100 questions in placement test and 1 hour was considered to answer it. One week after administering the English placement test and selecting students, the main tests were administered. 1053 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo Results The analyzing the subjects' two test scores and comparison of them showed that students' scores in test 2 (The reading passages with L1 word glossary) was better than test 1 (The reading comprehension passages with L2 word glossary); therefore, the hypothesis of the study was rejected. The researcher concluded that L1 word glossary is more effective in learning and retention of technical vocabularies rather than L2 word glossary. Because the scores were determined out of 30, the researcher calculated them out of 20. The frequency of the tests scores have been presented in the following Tables: Table 3.1: Students' scores & their frequency in Test 1 & Test 2 Test 1 Score 29= 19.33 28= 18.66 27= 18 26= 17.33 25= 16.66 24= 16 23= 15.33 22= 14.66 20= 13.33 18= 12 17= 11.33 16= 10.66 15= 10 14= 9.33 13= 8.66 11= 7.33 Frequency 1 3 2 2 2 3 2 2 3 1 7 4 4 2 1 1 Test 2 Score 30= 20 29= 19.33 28= 18.66 27= 18 26= 17.33 25= 16.66 24= 16 23= 15.33 22= 14.66 21= 14 20= 13.33 18= 12 17= 11.33 15= 10 14= 9.33 13= 8.66 Frequency 3 7 3 3 6 1 1 4 3 2 1 1 2 1 1 1 Table 3.2. Differences between the scores of test 1 & test 2 Test 1 Score 1- 19.33 2- 18.66 3- 18 4- 18 5- 17.33 6- 16.66 7- 16 8- 16 9- 15.33 10- 18.66 11- 14.66 12- 14.66 13- 13.33 14- 13.33 15- 13.33 16- 11.33 17- 11.33 18- 11.33 19- 11.33 Test 2 Score 20 20 20 19.33 19.33 19.33 18.66 18 19.33 19.33 17.33 18 15.33 14.66 17.33 18.66 18.66 18.66 15.33 D (differences between two scores) .67 1.34 2 1.33 2 2.67 2.66 2 4 .67 2.67 3.34 2 1.33 4 7.33 6 7.33 4 1054 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo 20- 10 21- 10 22- 10 23- 10 24- 10.66 25- 10.66 26- 11.33 27- 11.33 28- 11.33 29- 10.66 30- 10.66 31- 12 32- 15.33 33- 16.66 34- 16 35- 18.66 36- 17.33 37- 9.33 38- 8.66 39- 9.33 40- 7.33 15.33 14 16 15.33 14.66 11.33 12 13.33 19.33 16.66 11.33 14 17.33 14.66 18 17.33 19.33 17.33 9.33 10 8.66 5 4 6 5.33 4 .67 .67 2 8 6 .67 2 2 2 2 1.33 2 8 .67 .67 1.33 Table 3.3: The mean score and standard division of test 1 & test 2 Categories Number of Subjects Mean SD Test 1 40 13.66 Test 2 40 14.662.22 Match-t-test Formula Match-t-test was used in this study because the same group participated in two tests. When formulating research hypothesis, the study researcher determined the level of significance (a) .05 and since degree of freedom (d.f.) is 39, t-critical is 1.697. Now the observed t value should be checked against the critical t value by regarding the degree of freedom. The results have been shown in Table 4.3. Table 3.4: The Results obtained by Match-t-test d.f. Categories Mean SDFinal SD t- observed t- critical Test 1 13.662.22 .35 2.85 1.697 39 Test 2 14.66 As shown in the Table 4.3., the observed t value is greater than the critical t value. So, the difference between the means is said to be statistically significant and then treatment in test 2 is effective and then the hypothesis is rejected. 1055 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo Discussion Lexical competence recently has been identified to be the most significant predictor to general language ability. (Carter and Nunan, 2001); however, it is also identified by most learners to be one of the biggest challenges of language learning (Coady and Huckin, 1997). Incidental learning has a sufficient role in leaning of new words. This kind of learning takes place by listening, reading. The study aimed to observe incidental vocabulary learning about technical vocabulary learning of Civil Engineering texts. Technical vocabularies of a certain field have important role in future success of that field. Students have many problems when they do not know technical vocabularies of their field of study. The current study aimed to observe the effect of incidental vocabulary learning through reading on learning and retention of technical vocabularies. In this study, reading texts were equipped with glossaries in L1 and L2. The glossaries are summarized definitions of vocabularies. Glossaries are effective to cope with authentic texts and they have been considered the means to facilitate reading comprehension by providing information both at the word, sentence and also topic level (Widdoson, 1984). The current study aimed to explorer which type of glossary (L1 and L2) is more effective on learning and retention of technical vocabularies of Civil Engineering and the hypothesis was considered that 'the effect of L1 and L2 word glossary is the same on learning and retention of technical vocabularies'. The result of the study refused the considered hypothesis and showed that L1 word glossary (in this study, Persian language) is more effective rather than L2 word glossary on learning and retention of technical vocabularies. In test 2 that L1 word glossaries was used for technical vocabularies, the scores of test was better than test 1 that L2 word glossary was used. It had been approved that word glossary is effective on incidental learning of vocabularies. Hulstijn, J. H. & Hollander, M. & Greidanus, T. (1996) by a study approved the effect of word glossaries on learning and retention of vocabularies. When students read a text and they do not know the meaning of some words, glossaries are the best mean to help them to know the meaning of the words rather than looking up them in dictionary or guessing them through context that may result in confusion or misguessing. Conclusion Descriptive static indicates that L1 word glossary has more effective role in learning and retention of technical vocabularies rather than L2 word glossary. In recent study first language was Persian and second language was English and technical vocabularies were Civil Engineering technical vocabularies. Subjects were 40 Civil Engineering students of Azad Noshahr-Chalous University that were selected by a placement test that was administered among 60 Civil Engineering students of this university. One week after the placement test, two tests administered. In test 1, the effect of L2 word glossary was observed. Test 2 was administered 15 minutes after test 1 and observed the effect of L1 word glossary. Both test1 and test 2 involved 5 reading comprehension passages with glossaries for technical vocabularies and the questions related to each reading passages followed it. They were reading comprehension and vocabulary questions and they were multiple choices. There were 30 questions in each test. Many of subjects gained high sores in test 2 with L1 word glossary and the hypothesis of the study that believed the effect of L1 and L2 word glossary is the same on learning and retention of technical vocabularies was refused. 1056 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo References Carter, R. & Nunan, D. (2001).The Cambridge languages. Cambridge: Cambridge University Press. guide to teaching English to speakers of other Celce-Murcia, M. (1991). Teaching English as a second or foreign language. USA: NUBARY HOUSE. Coady, J. & Huckin, T. (eds) (1997). Second language vocabulary acquisition. Cambridge: Cambridge University Press. Hulstijn, J. H. & Hollander, M. & Greidanus, T. (1996). Incidental vocabulary learning by advanced foreign language students: The influence of marginal glosses, dictionary use, and reoccurrence of unknown words. The Modern Language Journal, Vol 80, No.3, 327-339. http://links.jstor.org/ Krashen, S. (1993). The power of reading insights from research. Englewood Co:Libraries Unlimited. Krashen, S. (1993). The power of reading insights from research. Englewood Co:Libraries Unlimited. Krashen, S. (1993). The power of reading insights from research. Englewood Co:Libraries Unlimited. Lomika, Lara L. (1998). To gloss or not to gloss: An investigation of reading comprehension online. Received at 2006/07/10. http://llt.msu.edu/vol1num2/article2/default.html Widdowson, H. G. (1984). Teaching language as communication. Oxford: Oxford University Press 1057 � 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. 578 Title A name given to the resource The Effect of L and L2 Word Glossary on Learning of Technical Vocabulary in Reading Comprehension Texts Author Author Mansouri, Saeedeh Abstract A summary of the resource. Recent studies suggest that word marginal glossaries are very useful in reading text when readers have no knowledge about some words and help them comprehend the text without wasting time for looking up the word meaning in dictionaries or making mistakes because of incorrect guessing the word meaning according context. The study aimed to compare the effect of L1 & L2 word glossary on learning and retention of technical vocabularies of Civil Engineering students. The research question is: 'Is there any relation between retention and learning of technical vocabulary and using of glossaries?' If so, what is the difference between using of L1 and L2 word glossary and which of these two sorts has more effect on retention and learning of technical vocabulary? and the considered hypothesis is 'The effect of L1 and L2 word glossary is similar on retention and learning of technical vocabulary‘. The study was done by two tests (test 1 & test 2) with five passages of reading comprehension. In test 1, the definition of words in word glossary of technical vocabularies is in English language (L2) and in test 2, the definition of the vocabularies is in Persian language (L1). These two tests were administered one after another with 15 minutes break between them and 45 minutes was considered to answer the questions for each test. The same students participated in two tests. They were 40 Civil Engineering students of Engineering Technical University (Azad University), Chaloos branch. All of them were male and they were selected after administering a placement test among 60 Civil Engineering students of the university. The placement test was administered one week before the main tests. Comparison the scores of two tests and analyzing them showed that the students answer test 2 (with Persian word glossary) better than test 1 (with English word glossary). Although there were students that answer test 1 better than test 2 and some of them act the same in two tests, most of them answer test 2 (with Persian word glossary) better than test 1 (with English word glossary) and totally result disapprove the hypothesis of the study and it can be said L1 word glossary is more effective than L2 word glossary on learning and retention of vocabularies and also technical word glossary. Date A point or period of time associated with an event in the lifecycle of the resource 2011-05 Keywords Keywords. Conference or Workshop Item PeerReviewed P Philology. Linguistics https://omeka.ibu.edu.ba/files/original/e4f6dd95677a47fec375b83ac0147441.docx 51d38637b178b6a3cc23b3f1de2925c7 https://omeka.ibu.edu.ba/files/original/cc987cbabcf4dc525f7cf0b4f5ecba8a.pdf ca4bb294ca025dec15ae9922d625804a PDF Text Text The Effect of Leitner’s Learning Box on the Improvement of Vocabulary Teaching and Learning (Case Study: First Year Students in Parsabad Moghan Branch, Islamic Azad University, Parsabad Moghan, Iran) Hanieh Davatgar & Zahra Ghorbanzadeh Islamic Azad University, Iran Keywords: Leitner’s learning box, Vocabulary, Flash cards, First year students. ABSTRACT The goal of this paper was to investigate the effect of using Leitner’s learning box in studying inter-mediate to advanced vocabularies among first year students at the Islamic Azad University-Parsabad Moghan Branch in Parsabad Moghan City, Iran. This research was carried out in a class with diversified students from engineering to humanitarian fields. The participants were haphazardly assigned into two homogeneous groups each consisting of twenty five students. The test was performed in fall semester 2012. The control group received the conventional treatment while the experimental group received the Leitner’s learning box to use it for learning vocabulary. Before initiating the treatment, two similar tests were prepared as the pre-test and post-test to discover the vocabulary knowledge of the students at the initial and final stages of the study. The analysis of obtained results in the post-test manifested significant differences between the two groups such that the students in the experimental group outperformed the students in the control group in terms of their vocabulary knowledge. Thus, it was concluded that the use of Leitner’s learning box in studying vocabulary for first year students at the university led to a higher level of vocabulary improvement. � 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. 1798 Title A name given to the resource The Effect of Leitner’s Learning Box on the Improvement of Vocabulary Teaching and Learning (Case Study: First Year Students in Parsabad Moghan Branch, Islamic Azad University, Parsabad Moghan, Iran) Author Author DAVATGAR, Hanieh GHORBANZADEH, Zahra Abstract A summary of the resource. Keywords: Leitner’s learning box, Vocabulary, Flash cards, First year students. ABSTRACT The goal of this paper was to investigate the effect of using Leitner’s learning box in studying inter-mediate to advanced vocabularies among first year students at the Islamic Azad University-Parsabad Moghan Branch in Parsabad Moghan City, Iran. This research was carried out in a class with diversified students from engineering to humanitarian fields. The participants were haphazardly assigned into two homogeneous groups each consisting of twenty five students. The test was performed in fall semester 2012. The control group received the conventional treatment while the experimental group received the Leitner’s learning box to use it for learning vocabulary. Before initiating the treatment, two similar tests were prepared as the pre-test and post-test to discover the vocabulary knowledge of the students at the initial and final stages of the study. The analysis of obtained results in the post-test manifested significant differences between the two groups such that the students in the experimental group outperformed the students in the control group in terms of their vocabulary knowledge. Thus, it was concluded that the use of Leitner’s learning box in studying vocabulary for first year students at the university led to a higher level of vocabulary improvement. Publisher An entity responsible for making the resource available IBU Publishing Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-03 Keywords Keywords. Article PeerReviewed https://omeka.ibu.edu.ba/files/original/dbec47e91947a8ec39934c7c24716104.pdf 26b3a4f3bba82f9c44175632ebb5442f PDF Text Text 3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo The Effect Of Openness On Economic Growth: Panel Data Analysis Mehmet Mercan1,İsmet Göçer2, Şahin Bulut2, Metin Dam2 1Hakkari University, FEAS, Department of Economy, 2Adnan Menderes University, FEAS, Department of Economy, E-mails:mercan48@gmail.com,ismetgocer@gmail.com,sbulut@adu.edu.tr,mdam@adu.edu.tr Abstract In this study, the effect of openness on economic growth was searched for the most rapidly developing countries(emerging markets)(Brazil,Russia,India,China and Turkey,BRIC-T) via panel data analysis by using the annual data of the period from 1989 to 2010. As openness variable, the proportion of external trade scale to GDP was used. According to empirical evidence derived from the study made with panel data analysis it was found that the effect of openness on economic growth was positive and statistically significant in line with theoretical expectations. Keywords:Trade Openness, Economic Growth, BRIC Countries, Turkey. Jel Codes: E41, F43, G53 1.INTRODUCTION In our globalized world whether there is a relationship between trade openness and economic growth and openness is useful for the economy of the countries or not is still a matter in arguement. On one hand by trying to decrease the quotas and tariffs through GATT (General Agreement on Tariffs and Trade ),UNCTAD (United Nations Conference on Trade and Development) which was established to liberalize the trade between countries and WTO (World Trade Organization) which was established instead of GATT in 1995 , increasing the openness of the countries to the world trade is aimed,on the other hand countries impose restrictions in the world trade by increasing the invisible barrier both to protect the domestic industries and to get income. With non-functioning of the national development thesis through the late and the collapse of the Eastern Block at the end of 1980’s it was again started to argue that openness was necessary for the national economies. In this context some economists expressed that having a certain development level was a precondition for openness policies to support the growth while operating the growth models based on openness and export. (Han and Kaya, 2006: 245; Sun and Parikh, 2001: 187-188).There are classical economists on the basis of the view that capital movement liberalization and trade openness will increase the economic growth and welfare after 1980’s.According to Classical and Neoclassical economists foreign trade makes important contributions to the development and the foreign trade is not only an effective productivity instrument but also it is the engine of the growth.Since the sources are limited in developing countries, the production on the scale of a high and sustainable growth can not be performed and new sources can be needed for production.With the openness, domestic markets will encounter with the competition, the domestic industries which can not compete with international prices will transfer their production factor to the other productive factors 159 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo and the welfare increase will happen as a result of more effective allocation of the sources.So for this type of economies it will be useful to make production under free trade.The precondition of providing growth under free trade is to apply a foreign trade policy which the national economies may combine with the international structure and to direct the allocation of the sources for pruduction to the sectors determined by the international demand.The natural aim of this type of economy is the industrilization and the availibility of the growth and it is suggested that the required dynamism for this will be realized by a structuring coming from external demand rather than domestic demand (Çelebi, 1991: 33). Against the liberal understanding of some classical economists , some economists defended the import substitution and drew attention to the importance of protectionism for industrialization. (Bahmani, Oskooee, Niromand, 1999, s.1).He suggested that free trade would not contribute to the growth among the countries that their development levels were different, but it would be useful among the countries that their development levels are the same.For instance,in England where the Industrial Revolution began first and in many of the other countries that were trying to reach England’s development level he expressed that free trade is on behalf of England and less developed countries were negatively affected for foreign trade relatively. (Chang, 2004: 20). Openness was modelled with the New Growth Theories suggested in 1980’s and it was started to be tested ampirically.Internal growth theoriessuppose (varsayar) that trade openness will stimulate the new technologies input. (Harrison, 1996).No matter how the economy is open, technology input increases,technology usage becomes wide and a more rapid growth realizes as compared to a less open economy. (Wu, 2004, s. 1).Internal growth models mentioning the importance of technological diffusion as the source of growth in long period generally suggest the thesis that the countries that are open to the foreign trade will reach higher stiff growth rates(Grossman ve Helpman, 1990: 796).So Romer(1986) and Lucas (1998) expressed that the size of the openness in a country was proportional with the ability of adaptation to the new and imported technologies and the ability of the arrangement in production. In the studies so far about the effect of the trade openness on economic growth it is difficult to say that there is a consensus.Besides Romer (1986) and Lucas (1988) in the context of internal growth theories, while Dollar (1992), Barro and Sala-i Martin (1995), Sachs andWarner (1995), Sinha and Sinha (1996), Edwards (1992, 1998) asserted that the effect of the trade openness on economic growth was positive,Levine and Renelt (1992), Harrison (1996), Rodrigez and Rodrik (1999) claimed the opposite of this idea. Shortly called as BRIC firstly in the early 2000s Brazil,Russia,India and China that have common characters like wide area, big population and rapid economic growth are accepted as the fastest growing “emerging market” in world economy (O’Neill, 2001:1-16). Total area of these countries contains more than %25 of the world area and total population of them contains more than %40 of the world population. It is argued that BRIC group would take G7 group’s place and get the leadership of the world economy when the economic indicators are considered(Frank and Frank, 2010:46-54).Goldman Sachs who has studies about BRIC countries estimates that in 2050 China will be the greatest economy in the world,India will be the third,Brazil will be the fourth and Russia will be the sixth biggest economy.Based on these indicators, in our study the effect of openness on economic growth will be searched for BRIC countries and Türkiye that is the most devoloping country than after China and has a developing economy. 160 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 2.Openness The openness rate of a country is generally calculated as the proportion of foreign trade volume to GDP besides the usage of the proportion of import to GDP (Romer (1993)) and the rate of export increase (Chow (1987), Kwan and Cotsomitis (1991))(Bahmani-Oskooee and Niroomand (1999), Ahmad and Anoruo (2000), Dar and Amirkhalkhali (2003)).Openness also indicates the dependence of the country on the foreign trade.The size of openness rates indicates the importance level of the foreign trade for economy of the country.With the trade openness of the country , an increase can be seen in foreign Exchange incomes and expenses at the export and import volume increase results. The share of foreign trade in GDP will increase with the foreign trade volume increase. In Figure 1 trade openness rates of BRIC-T countries are presented. Figure 1. BRIC-T Countries Trade Openness Rates Source:It was formed by the writers using the World Bank data As can be followed from Figure 1, in all BRIC-T countries called as emerging markets since 1990’s we see a stiff openness rates and the share of foreign trade increases. It has been observed that openness rate is about 0,5 in recent years,so foreign trade volumes of the countries have reached to nearly half of their GDP.Also in Figure 2the growth rate ofBRIC-T countries are presented. 161 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Figure2. BRIC-T Countries Growth Rates Source:It was formed by the writers using the World Bank data As can be followed from Figure 2, we see that the growth rates of the related countries are closs to each other and the countries were nagatively affected from the global economic crisis in 2008 and the Asia crisis in 1997.The striking point in Figure 2 is China and India’s positive growth throughout the whole periods.Also we see that Russia and Turkey are the most affected countries from the global crisis in 2008.In Table 1 economic size of BRIC-T countries are presented. Table 1.Economic Sizes of the Selected Countries(Billion $) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 BRA 645 554 504 552 664 882 1.089 1.366 1.653 1.594 2.088 CHN 1.198 1.325 1.454 1.641 1.932 2.257 2.713 3.494 4.522 4.991 5.927 IND 460 478 507 599 722 834 951 1.242 1.216 1.377 1.727 RUS 260 307 345 430 591 764 990 1.300 1.661 1.222 1.480 TUR BRIC-T WORLD 267 2.830 32.240 196 2.859 32.046 233 3.043 33.305 303 3.526 37.466 392 4.300 42.229 483 5.220 45.658 531 6.274 49.506 647 8.049 55.849 730 9.782 61.305 615 9.800 58.088 734 11.956 63.124 OECD 26.162 25.917 27.085 30.422 33.873 35.749 37.744 41.346 43.816 41.036 42.809 AB 8.477 8.579 9.362 11.409 13.172 13.749 14.665 16.957 18.252 16.310 16.223 Source:It was formed by the writers using the World Bank data As can be followed from Table 1, the GDP of the studied 5 countries in 2010 is totally 11,956 Billion$. This value corresponds to the % 71 of European Unity GDP, % 28 of OECD countries GDP and % 19 of world countries total GDP. In 2000 while BRIC-T countriestotal GDP corresponds to % 8 of world countries total GDP, the increase of this rate to % 19 in 2010 is a significant evidence to be noticed. As can be followed from Table 1, the GDP of the studied 5 countries in 2010 is totally 11,956 Billion$. This value corresponds to the % 71 of European Unity GDP, % 28 of OECD 162 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo countries GDP and % 19 of world countries total GDP. In 2000 while BRIC-T countriestotal GDP corresponds to % 8 of world countries total GDP, the increase of this rate to % 19 in 2010 is a significant evidence to be noticed. 3. Openness and Growth : Literature Scan The studies searching the relationship between trade openness and economic growth, country groups, the used methods and results are presented in Table 2. As can be followed from Table 2 the view that openness affects the economic growth positively is generally supported in the studies and the importance of growth based on export is emphasized. Table 2: Abstract of Some Theoric and Ampirical Studies Searching the Openness and Economic Growth Relationship Writers Sampling and Used Econometric Method Edwards (1998) 93 countries study Method of Least Squares He found that total factor productivity increased more rapidly in the country that are more open. Bahmani-Oskooee and Niroomand (1999) Ahmad and Anoruo (2000) For 59 countries 1960-92 Period Johansen cointegrationmethod They found that there was a positive relationship between openness and growth in 19 countries that has cointegration relations. They indicated that openness and growth variables were cointegrated,and also they expressed that there was a two-sided causality relationship between openness and growth in error correction model. Study results supports the export-oriented growth hypothesis. They expressed that export and foreign capital inputs have significant and positive effects on economic growth. Ahmad (2001) Sun and Parikh (2001) Vamvakidis (2002) Jin (2003) Wu (2004) Kaplan (2004) Utkulu and Kahyaoğlu (2005) Yapraklı (2007) Kurt and Berber (2008) For 5 countries1960-97 period Johansen cointegrationmethod Developed and developing countries, Engle-Granger and VAR model 29 region of China(1985-1995) Panel Data Analysis Regression predicted for various periods North Koreathe period of 1953 and 1999 Granger causality test APEC (Asian-Pacific Economic Cooperation) countries. General Equilibrium Model Türkey (1990-2004) Non-linear Time Series and Markow Modelling Türkey (1990-2006) Johansen Cointegraiton Method Türkey (1989-2003) VAR analysis Yang (2008) 30 countries (OECD and Asya) between 1958 and 2004 Panel Data Analysis Omisakin vd. (2009) Nigeria (1970-2006) Toda-Yamamoto causality and ARDL Method Source: Writers’ studies 163 Basic Findings He identified that free trade has had no positive effect on the growth since 1870,even this effect was positive in 1930’sand he expressed that this could be explained by the changing world trade regime. He supports the hypothesis that free trade arouses the economic growth. He identified that openness not only provided an effective change in country’s economy,but also it changed the structure of production technology. He identified that the changes of economic policy effected the sectors in economy and production factors in different ways. They found that trade openness in Turkey affected the growth positively. He identified that economic growth was affected positively from trade openness and there was a mutual causality between trade openness and economic growth in short term. They expressed that the hypothesis that trade openness claimed by endogeneous growth theories would increase the growth was applicable for Turkish economy. In the economies where the export growth is more rapid than the economic growth it was identifeid that froeign exchang policy helped in this situation. There is a positive relationship betweeen trade openness and growth and a % 10 increase in trade openness rate increases the growth nearly with the rate of % 7. �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 4. AMPIRICAL ANALYSIS 4.1. Data set and Model In this study, the effect of openness on economic growth was searched for the most rapidly developing countries(emerging markets)(Brazil,Russia,India,China and Turkey,BRIC-T) via panel data analysis by using the annual data of the period from 1989 to 2010. From the variables used in the analysisy;represents the growth rate (GDP) andopen;represents trade openness (X+M/GSYİH). The data was obtained from the web pages of IMF and the World Bank (www.imf.org, www.worldbank.org). For analysis Stata 11 and Eviews 5.1. econometric analysis programmes were used and for model choise and correction tests codes22 were used. 4.2. Method Panal data analysis was used to search the data from different countries together. Panel data analysis (Baltagi, 2001; Gujarati, 1999 and Tarı, 2010): This model was based on decomposing the error term ( ) to its components in terms of its individual and time effects. In the modeliindicates the countries, tindicates the time. When the error term was decomposed: was obtained. This final equation is called error component model. Here indicates the individual effects, indicates the time effects.It is supposed (Independent Identically Distributed), in other words the avarage of error terms is zero, its variant is stable and it is distributed normally(having white noise process).In the Panel data analysis the stability of the series are searched through panel unit root tests firstly.Then the type of individual and time effects should be identified. An indogeneity test should be conducted among the variables when there is a variable which is considered to have a close relation with the given variable,therefore it is suspected for its indogeneity. After that a model should be estimated and the problems of changing variant and autocorrelation in the model should be tested. 4.3.Panel Unit Root Analysis It is accepted that the panel unit root tests which regard the information about both time and horizontal section dimension of the data are statistically stronger than the time series unit root tests which regard the information only about the time dimension (Im, Pesaran ve Shin,1997; Maddala ve Wu, 1999; Taylor ve Sarno, 1998; Levin, Lin ve Chu, 2002; Hadri, 2000; Pesaran, 2006; Beyaert and Camacho, 2008).Because the variability in the data increases when the horizontal section dimension is included to the analysis. The first problem in panel unit root test is whether the horizontal sections building the panel are independent or not. At that point panel unit root tests are classified as the first generation 22 For codes Thanks to Prof. Haluk Erlat, Asst.Prof. Bülent Güloğlu and Asst. Prof. Şaban Nazlıoğlu . 164 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo and the second generation. The first generation tests are also classified as homogeneous and heterogeneous.While Levin, Lin and Chu (2002), Breitung (2000) and Hadri (2000) are based on homogeneous model hypothesis; Im, Pesaran and Shin (2003), Maddala and Wu (1999), Choi (2001) are based on heterogeneous model hypothesis. On the other hand, the main second generation unit root tests are MADF (Taylor and Sarno, 1998), SURADF (Breuer, Mcknown and Wallace, 2002), Bai and Ng (2004) and CADF (Pesaran, 2006). Since the countries included in the analysis are not homogeneous, Im, Pesaran and Shin (2003) will use (IPS) testin this study. This test: is based on the model above. Here ; is error correction term and when <1 happens, we understand that the serie is trend stable ,on the other hand when 1 happens, it has unit root, thus it is not stable.IPS test enables the sto differentiate for the horizontal section units, in other words heterogeneous panel structure.Test hypotheses: H0: for all the horizontal section units,so the serie is not stable. H1: for at least one horizontal section unit,so the serie is stable. When the possibility value obtained from the test results is smaller than 0.05 , H0is rejected and it is decided that the serie is stable. IPS panel unit root test results are on Table 4. Table4:IPS Panel Unit Root Test Results Level Possibility First Possibility Variant Value Value Difference Value Y -0,74 0,77 -2,64 0,00 OPEN 3,66 0,99 -3,79 0.00 Note:In Panel unit root test Schwarz criterionis used and delay length is regarded as 1.. When we study on the results on Table 4, it is observed that only Y and OPENseries are not stable in level value and series became stable in the first difference. In other words,in the studied period it is found out that macroeconomic variables are not stable and the shock effects on these variables do not disappear after a while.So we can say that the last economic crisis was destabilized the countries’ economies considerably. 4.4. Breush- Pagan Lagrange Multiplier (LM) Test In this stage of the analysis, LM test was performed in order to determine the type of time effect and individual effects( random or stable). Because the selected countries are not in a certain economic group, it was anticipated that individual effects would be random and also the time effects would be random for the countries because there is an economic crisis affecting most of the countries in the studied period. Whether the effects are really random or not can be determined by LM test (Baltagi. 2001:15). 165 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo LM test is classified as LM1 and LM2 . LM=LM1+LM2. LM1; tests the randomness of individual effects and F2 tests the randomness of time effects. In LM1 test; H0: (No individual effects ) hypothesis is tested throughLM1 statistics. LM1 statistics is calculated by the formula below. (4) Here ; indicates the individual effects in the equation (4), N;indicates the horizontal section (country) number, T; indicates the time dimension, ; indicates the prediction for the error terms in the equation (3). When the possibility value obtained from the test results is smaller than 0.05 , H0is rejected and it is decided that individual effects are random. In F2 test; H0: (No time effect) hypothesis is tested by LM2 statistics. LM2 statistics is calculated by the formula below. (5) Here ; indicates the individual effects in the equation (4), N; indicates the horizontal section (country) number , T; indicates the time dimension, ; indicates the predictions for the error terms in the equation (3). When the possibility value obtained from the test results is smaller than 0.05 , H0is rejected and it is decided that time effects are random. In LM=LM1+LM2 test; H0: (No individual and time effects) H1: or both of them (At least one or two of the effects are random). When the possibility value obtained from the test results is smaller than 0.05 , H0is rejected and it is decided that both of the effects are random.In this case the prediction is made through the two-sided random effect model.In Table 5 there are LM tests results. Table5: LM Tests Test Possibility Value Decision LM1 0,243 Individual Effects are not Random. LM2 0,052 Time Effects are not Random. LM 0.032 Individual Effects and Time Effects are not Random. When we look the results in Table 5, we can see thatindividual effects and time effects are stable.According to this result the prediction was made by the two-sided stable effect model. 166 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 4.5. Hausman Endogeneity Test In this stage of the study,whether there was a relationship between the individual effects and the explanatory variables or not was tested by Hausman method. Test hypotheses: H0: Cov( No endogeneity problem. H1: Cov( An endogeneity problem. Here ; indicates the individual effets in the equation (4),but indicates the exlanatory variables in the equation (3). When the possibility value of (Chi2=Kikare) obtained from the analysis is smaller than 0.05 , H0is rejected and it is decided that there is an endogeneity problem in the model.In this case stable effects model is used.(Greene, 2003).However, when H0 is accepted,random effects model is used.This prediction is effective , non-deviated and coherent. Hausman test is not an alternative forLM test.But it works as function to check the decision by LM test. Hausman test was conducted and χ2=14.62 ve χ2 possibility value =0.406 was obtained and since this value was bigger than 0.05, H0 hypothesis was accepted and it was decided that there was no endogeneity problem in the model.In this case, it is necessary to do the analysis with the random effects model and this result supports the LM test results. 4.6. Two-Sided Random Effects Model Predictions Panel data analysis is predicted by the two-sided random effect model and the result are on theTable6. Table6: Predicition Results Standard Variant Coefficient t-Statistics Error Trade Openness 0,271 0,078 3,442 Crisis Dummy Variable 0,030 0,047 0,648 Stable Term 0,056 0,014 3,791 2 Weighted R =0,39 DW=1,89 Fist= 3,66 Root MSE=0.035 Possibility Value 0,000 0,518 0.000 In random effect models weighted statistics values are used. (Baltagi 2001: 21). When we look to the weighted test statistics in Table 6,we can see that model is reliable as statistically.Also whether there are flexible variants and autocorrelation problems in the model are tested below. 4.7. Lagrange Multiplier (LM) Flexible Variant Test The most common test in order to test whether the error terms variant of the model changes from horizontal section to horizontal section is LM test. (Greene, 2003). Test hypotheses: H0: variant problem. H1: At least one Variant is stable. So there is no flexible Variant is not stable. So there is a flexible variant problem. The required test statistics to test these hypotheses are calculated through the following formula: 167 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo (6) When the possibility value obtained from the test results is smaller than 0.05 , H0is rejected.In other words it is decided that there is a flexible variant problem in the model. (Greene, 2003). Lm test was conducted and the possibility value was found 0.23..In this case H0 was rejected and it was decided that there was no flexible variant problem in the model. 4.8. Autocorrelation Test It is a test to study the relationship of the error terms of the model with its delayed values.The equation to measure this relationship is AR(1) process (Wooldridge, 2002): (7) Test hypotheses: H0: H1: No autocorrelationproblem. Am autocorrelationproblem. The required test statistics to test these hypotheses is calculated by the following formula: (8) HereSSRR; indicates the sum of the squares of the error terms of the limited model in the equation (3) SSRUR; indicates the sum of the squares of error terms of the unlimited model, g; indicatesthe limit number anddf; indicates the independence grade. When the possibility value obtained from the test results is smaller than 0.05,H0is rejected.It is decided that there is an autocorrelation problem in the model. (Drukker, 2003). F test was conducted and the possibility value was found0,622. In this case and it was decided that there was no autocorrelation problem in the model. H0is accepted Since there is no flexible variant and autocorrelation problems in the model, the prediction results are reliable and interpretable. As can be seen from the Table 6, financial development level affects the economic growth positively in line with the theoretical expectations.A % 1 increase in financial development level will increase the growth with the rate of % 1.33. The importance of the foreign direct investments especially in developing countries is often emphasized. As a result of the analysis the effect of a % 1 increase in the foreign direct investments on the growth will be % 0,79. Also trade openness variant used in the model was observed as the most effective variant in growth and it was found out that a %1 increase in openness level increased the growth with the rate of % 4,31. So this affected Turkey mostly in terms of the decrease in export depending on the decrease in external demand as a result of 2008 global economic crisis. (Somel, 2009). 5.CONCLUSION In this study the effect of financial development level on economic growth was searched via panel data analysis method in the sample of 5 developing countries which have an important place in the world economy(emerging markets, Brazil, Russia, India, China and TurkeyBRIC-T). The foreign direct investments and trade openness which were considered to affect 168 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo the growth as well as financial development were included in the study where the annual data between 1989 and 2010 periods were used. At the panel unit root analysis result it was found out that series were not stable and the effects of shocks on the series did not disappear after a while and therefore it was determined that macroeconomic shocks affected the economy of the countries significantly. At the F tests result conducted to define the applicable panel data analysis method it was found out that individual and time effects were stable, for that reason an analysis with the two-sided stable effect model was carried out.At the endogeneity test result it was found out that there was no endogeneity problem in the model. At the model conformation tests result it was foud out that there was no flexible variant and autocorrelation problems in the model. In this regard, the predicted model is reliable econometrically. According to the analysis results, it was determined that a % 1 increase in financial development level increased the growth at the rate of % 1,33 , a % 1 increase in foreign direct investments increased the growth at the rate of % 0,79.Also it was found out that trade openness in the model was the most effective variant of the growth and the evidence that a % 1 increase in openness level increased the the growth at the rate of % 4,31.The expression that the global economic crisis in 2008 affected Turkey mostly in export dimension supports the analysis result. As a conclusion, in the study the effect of financial development, foreign direct investments and openness were searched and it was found that openness, financial development and foreign investments in turn affected the growth mostly. If the sustainable growth is considered as one of the most significant variables of the growth for the countries, the increase in foreign trade especially in export,the stimulations for the foreign direct investments and the increase in financial development level are very important. BIBLIOGRAPHIES Bai J.and Ng S. (2004). A PANIC Attack on Unit Roots and Cointegration. Econometrica, 72, 1127-1178. Baltagi B. H. (2001). Econometric Analysis of Panel Data. (2d ed). New York: John Wiley & Sons. Beyaert A. and Camacho M. (2008). TAR Panel Unit Root Tests And Real Convergence: an Application to the EU Enlargement Process. Review of Development Economics, 12(3), 668681. Breuer B., Mcnown R. and Wallace M. (2002). Series-Specific Unit Root Test With Panel Data. Oxford Bulletin of Economics and Statistics, 64, 527–546. Breitung J. (2000). The Local Power of Some Unit Root Tests for Panel Data. in B. 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(1977) "Exports And Growth: An Empirical Investigation", Journal Of Development Economics, 4, Ss. 49-53. Rodriguez, F. Ve Rodrik, D. (1999) "Trade Policy And Economic Growth: A Skeptic's Guide To The Cross National Evidence", Nber Working Paper, No: 7081. Romer, D. (1993) "Openness And Inflation: Theory And Evidence", Quarterly Journal Of Economics, 108, Ss. 869-903. 172 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Romer, P. (1986) "Increasing Returns And Long Run Growth", Journal Of Political Economy, 94(5), 1002-1037. (1990) "Endogenous Technical Change", Journal Of Political Economy, 98, October, Ss. 71-102. (1994) "Perspectives On Growth Theory", Journal Of Economic Perspectives, 8(1), Winter. Sachs, J. D. Ve Warner, A. (1995) "Economic Reform And The Process Of Global Integration", Brooking Papers Of Economic Activity 0 (1), Ss. 195. Sinha, D., Ve Sinha, T. (1996) "Openness And Economic Growth: Time Series Evidence From India, Applied Economics, Ss.21-28. Seyidoğlu, H. (2003) "International Economy; Theory, Policy and Application", 15. Press, Güzem Publishing, March, İstanbul. Sims, C. A. (1980) "Macroeconomics And Reality", Econometrica, 48, Ss. 146. Vamvakidis, A. (2002) "How Robust Is The Growth-Openness Connection? Historical Evidence", Journal Of Economic Growth, 7, Ss. 57-80. Wu, Y. (2004) "Openness, Productivity And Growth In The Apec Economies", Empirical Economies, 29, Ss. 593-604. http://www.dtm.gov.tr/Ekonomi/Trkekon.htm, 2005. Foreign Capital Inflow and Sustainable Economic Development: A Case Study of Turkey Ahmet Cetin1, Murat Mustafa Kutluturk1, Birol Cetin2 1CankiriKaratekin University, Faculty of Economic and Administrative Sciences, 18100 Cankiri, Turkey. 2Turkish International Cooperation and Development Agency, VlahaBukovca, Podgoritsa. E-mails: akcetin@hotmail.com, mmkutluturk@gmail.com,bcetin@gop.edu.tr Abstract This study analyses the effect of foreign capital inflow (especially foreign direct investment) on the sustainable economic development of Turkey. The main objectives of the study are to analyses the long run relationship between foreign direct investment and sustainable economic development. Quarterly data were used from the period of 1992:Q1 to 2011:Q3. The Engle-Granger Methodology for cointegration was applied to estimate the long run relationship. The Augmented Dickey Fuller (ADF) unit root tests were used to check the stationarity of each variable in the model. The ADF tests of the differences of each variable indicate that all of the variables are integrated of the first order. Cointegration was applied to estimate the long run relationship. A stable long run relationship was found between foreign direct investment and the sustainable economic development. Even if error correction 173 � 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. 1322 Title A name given to the resource The Effect Of Openness On Economic Growth: Panel Data Analysis Author Author Mehmet Mercan, Mercan Abstract A summary of the resource. In this study, the effect of openness on economic growth was searched for the most rapidly developing countries(emerging markets)(Brazil,Russia,India,China and Turkey,BRIC-T) via panel data analysis by using the annual data of the period from 1989 to 2010. As openness variable, the proportion of external trade scale to GDP was used. According to empirical evidence derived from the study made with panel data analysis it was found that the effect of openness on economic growth was positive and statistically significant in line with theoretical expectations. Keywords:Trade Openness, Economic Growth, BRIC Countries, Turkey. Jel Codes: E41, F43, G53 Date A point or period of time associated with an event in the lifecycle of the resource 2012-05-31 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General),HB Economic Theory,HG Finance,HJ Public Finance 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. 840 Title A name given to the resource The Effect of Partners' Gender during Peer Interaction Activities on Learning in EFL Classes Author Author Hamed, Mahsefat Abstract A summary of the resource. This study investigated the merits of pairing learners into different genders in peer interaction activates, here the cloze activities, in EFL classes in Iran. The participants were twelve pre-intermediate EFL students learning English in a Foreign Language Institute. During two nine sessions, students worked together on cloze activities. To diminish the effect of peer interaction activates done during the course, first learners were paired in different sex for 10 sessions and for the last ten sessions they were put in to same sex pairs. They were given a pretest and a posttest in the tenth and twentieth session to find out the impact of gender in peer interaction activities. The results indicated that the learners who had participation with a partner of different sex during the pair and small group activities demonstrated improved production of target forms and their overall their performance significantly improved when they worked with a heterogeneous gender partner. The result of the participants' pretest and posttest was compared through Paired Sample T-Test the table below, the mean score of the learner's on their pretest was which shows a higher achievement compered to posttest in It reflects that the result of each pair's pretest and posttest as indicated in Date A point or period of time associated with an event in the lifecycle of the resource 2012-05 Keywords Keywords. Conference or Workshop Item PeerReviewed P Philology. Linguistics https://omeka.ibu.edu.ba/files/original/8c7727b6112e532a5fb111786c9f1b57.doc 1acaf1648a820b7f81d498c5bc76674e https://omeka.ibu.edu.ba/files/original/ea637508b00dbed28df84b1fe5192c2c.pdf 487c02723e9d46197a1438eaa0d04833 PDF Text Text BOOK OF ABSTRACTS persuasions. Elinor represents the opinion sense and Maryanne sensibility. The other, very important themes are the inheritance of money, women’s struggle for a better life, a better future and survival, irony and sarcasm are widely spread in this novel. According to all these things, Austen gives so much power to her characters and she seems very much in tune with today's sensibilities as well. They are not, in today's parlance, victims. Austen's favourite subjects are love and marriage, and her steadfast refusal to romanticize romance; with her acknowledgment that money, class, and what other people think matter in the real world; that marriage does not result in a happy ending for everyone; and that it is dangerous to let passion blind us to reality. The Effect of Pre-school Education to Learn foreign Language in Turkey Beyza Vahide Çetin International Burch University / Sarajevo, Bosnia and Herzegovina Keywords: social environment, games, effects of media, materials ABSTRACT Learning a foreign language is a vital process during children’s acquisition process. They are affected physiologically and socially in their cognitive development. Turkey is a country where learning a second language and supplementary spending on education are insufficient. This paper indicates how the teaching and learning of foreign language (i.e. English) at pre-schools and the effects of the foreign language education on children in Turkey. After supplying information about learning foreign language during pre-school education, the paper discusses the importance of pre-school education and how the effects of teaching show itself in children’s continuing future education based on Turkey’s education system. Recent studies show that a child’s best time to learn another language is at the age of three of four. This paper also explores what are the defects of teaching a second language on | 37 �1st International Annual Student Symposium education in Turkey and how those defects may be reduced; and how learning a foreign language can be activated, having educated during pre-school age, and used outside of the life. Importance of languages Amila Hadžibajrić International Burch University / Sarajevo, Bosnia and Herzegovina ABSTRACT The modern world we live in thanks to technological advances came to the stage of globalization. Every day news are exchanged from all over the world and people communicate in the largest distances in the simplest ways. To be able to speak we use the language. Native language that we use is limited to geographical area in which it is being spoken. English language is widely spoken all over the world; it is the language that we use when we go on a trip around the world. When we apply for a job, one of the requirements is active knowledge of English language. Speaking English is a norm. So, it is not enough to be an expert in one specific area, it is needed to know the language. Today, many young people are speaking English. Those who do not speak English are not "in". English is all around us. When I decided to study English one person said to me: "Why are studying English you already knowing English?" What to answer on this superficial question that shows that the person who asked it considered enough to know how to communicate in English. Luckily, those of us who are studying English or any other language, we know why we are doing it. "A wound from a tongue is worse than a wound from the sword; the latter affects only the body-the former, the spirit, the soul" is an Old Persian proverb that indicates how the word can be difficult and painful. However, we believe 38 | � 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. 1444 Title A name given to the resource The Effect of Pre-school Education to Learn foreign Language in Turkey Author Author CETIN, Beyza Vahide Abstract A summary of the resource. Learning a foreign language is a vital process during children’s acquisition process. They are affected physiologically and socially in their cognitive development. Turkey is a country where learning a second language and supplementary spending on education are insufficient. This paper indicates how the teaching and learning of foreign language (i.e. English) at pre-schools and the effects of the foreign language education on children in Turkey. After supplying information about learning foreign language during pre-school education, the paper discusses the importance of pre-school education and how the effects of teaching show itself in children’s continuing future education based on Turkey’s education system. Recent studies show that a child’s best time to learn another language is at the age of three of four. This paper also explores what are the defects of teaching a second language on education in Turkey and how those defects may be reduced; and how learning a foreign language can be activated, having educated during pre-school age, and used outside of the life. Date A point or period of time associated with an event in the lifecycle of the resource 2013 Keywords Keywords. Conference or Workshop Item PeerReviewed PE English https://omeka.ibu.edu.ba/files/original/f5a489e8d541f00ebdb91f8ebb781c3a.docx 74a009df1a8e3506c8ccb6862deae779 https://omeka.ibu.edu.ba/files/original/c0a4ab99f382a1d138dae194ac489a16.pdf 28d6722e7f889bffdcc6bf1ea1a7e655 PDF Text Text The Effect of Proficiency Level on the Rate of Receptive and Productive Vocabulary Acquisition Murat Şener Gaziosmanpaşa University/Tokat, Turkey Key words: Vocabulary, vocabulary acquisition, vocabulary size ABSTRACT Teachers and researchers have long been interested in measuring learners’ vocabulary size in order to estimate to what extent do learners acquire and use vocabulary items receptively and productively. There are a number of studies on vocabulary acquisition related to receptive and productive vocabulary. For example, some researchers have looked at the receptive or productive vocabulary size while other researchers have looked at whether receptive knowledge is gained before productive knowledge. However, no investigation has looked specifically at the relationship between proficiency level and the rate of receptive and productive vocabulary acquisition, in conjunction with an examination of materials and instruction. In this paper, I presented the effect of proficiency level on the rate of vocabulary acquisition, taking into account learners’ receptive and productive vocabulary knowledge. The purpose of the study is to explore the rate of vocabulary acquisition of the beginner and elementary students in a Turkish EFL context, investigate the role of materials and instruction in the vocabulary acquisition, and examine the relationship between learners’ proficiency levels and rate of vocabulary acquisition. In this study, two groups of ESL students with different proficiency levels were given experience tests. The same tests were given twice throughout their foreign language education process to estimate their receptive and productive vocabulary development. The gain scores among groups from the two tests were compared to see their development of receptive and productive vocabulary size taking into account their proficiency levels. The participant teachers were interviewed in order to reveal their handling with vocabulary during their courses. The materials were analyzed in terms of the number of vocabulary activities and activity types in order to find out what vocabulary exposure students had. It is thought that the result of the study may be of benefit to classroom teachers, in helping them to choose an appropriate vocabulary teaching strategy for helping their students to acquire receptive and productive vocabularies. Teachers may develop their curriculum, materials and strategies to increase students’ receptive or productive vocabulary and to help them turn their receptive vocabulary knowledge into productive use in speaking and writing courses � 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. 1892 Title A name given to the resource The Effect of Proficiency Level on the Rate of Receptive and Productive Vocabulary Acquisition Author Author SENER, Murat Abstract A summary of the resource. Key words: Vocabulary, vocabulary acquisition, vocabulary size ABSTRACT Teachers and researchers have long been interested in measuring learners’ vocabulary size in order to estimate to what extent do learners acquire and use vocabulary items receptively and productively. There are a number of studies on vocabulary acquisition related to receptive and productive vocabulary. For example, some researchers have looked at the receptive or productive vocabulary size while other researchers have looked at whether receptive knowledge is gained before productive knowledge. However, no investigation has looked specifically at the relationship between proficiency level and the rate of receptive and productive vocabulary acquisition, in conjunction with an examination of materials and instruction. In this paper, I presented the effect of proficiency level on the rate of vocabulary acquisition, taking into account learners’ receptive and productive vocabulary knowledge. The purpose of the study is to explore the rate of vocabulary acquisition of the beginner and elementary students in a Turkish EFL context, investigate the role of materials and instruction in the vocabulary acquisition, and examine the relationship between learners’ proficiency levels and rate of vocabulary acquisition. In this study, two groups of ESL students with different proficiency levels were given experience tests. The same tests were given twice throughout their foreign language education process to estimate their receptive and productive vocabulary development. The gain scores among groups from the two tests were compared to see their development of receptive and productive vocabulary size taking into account their proficiency levels. The participant teachers were interviewed in order to reveal their handling with vocabulary during their courses. The materials were analyzed in terms of the number of vocabulary activities and activity types in order to find out what vocabulary exposure students had. It is thought that the result of the study may be of benefit to classroom teachers, in helping them to choose an appropriate vocabulary teaching strategy for helping their students to acquire receptive and productive vocabularies. Teachers may develop their curriculum, materials and strategies to increase students’ receptive or productive vocabulary and to help them turn their receptive vocabulary knowledge into productive use in speaking and writing courses Publisher An entity responsible for making the resource available IBU Publishing Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-03 Keywords Keywords. Article PeerReviewed