277 10 3494 https://omeka.ibu.edu.ba/files/original/db4a043d49e45105f4ec20ba5827b0e1.pdf 4112a3d862527eaad288f0fce0905fbf PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo The Effects and Role of Regional Development Agencies in Economic Crises Yusuf AKAN Prof. Dr., Gaziantep Üniversitesi Ġ.Ġ.B.F. Ġktisat Bölümü yusufakan@hotmail.com Ġbrahim ARSLAN Doç. Dr., Gaziantep Üniversitesi Ġ.Ġ.B.F. Ġktisat Bölümü arslan@gantep.edu.tr Eda GURSEL AraĢ. Gör., Gaziantep Üniversitesi Ġ.Ġ.B.F. Ġktisat Bölümü Abstract: Regional development agencies,when looked at their historical.development started to be constructed after the World Economic Crisis of 1929. Especially due to the economic and social effects of the Second World War and interregional imbalances ,regional development agencies around the world became prominent. Countries have began to understand that to get rid of the effects of the Economic crisis or to minimize them , emphasizing the potentialities of the region themselves are so important that they could compete with the world. Regional development agencies play the most important role in the development of the region, considering the properties of each region. Globalization has to adapt itself to the recent circumstances in order for all the unıts in economy to be competitive. At the same time,we must benefit from the potentials of all the regions to improve the economic conditions of the countries. Efficient use of resources must be provided by preparing crisis programmes suitable to the region and presenting them to the government to take which has been an effective precautions in the crisis times. Regional imbalance problem has been an agenda in Turkey for years and planned development started in the 1960s,thereby supporting the regional development with the help of 5- year development programmes. In order for Turkey to increase the competition power of the regions and to accelerate development , ıt has to give primary importance to regional development and the agencies which play an important role in it.In this study, the primary focus is to investigate the role and effects of development agencies especially in the face of economic crises. Key words: economic crisis, regional development agencies, Turkısh economy. Introduction It was understood that regional differences, seen almost in all countries of the world, is a problem to be solved and there has been attached importance to development plans for regions. This situation was realized immediately by developed countries and there has been tried to solve this problem by regional development agencies. Development of regions and also country is provided by highlighting potential of the region by development agencies and executing all situations, which are not followed by government, in coordination. At globalization period, all units in all over the world are forced for competition and they have to integrate to these conditions. Because of capital accumulation is not enough in Turkey, there is political uncertainty and it is a country, to be face with crisis, it has been very difficult to apply stable policies for regional development. To develop in high competition environment is enable by making long-term programs for taking place in international area and taking provision for all kind of negative situations. There should be produce policies, peculiar to the region for increasing prosperity level and decreasing economic and social instabilities between the regions. In this study, regional development agencies, used as the most effective tool in performing policies and policies, applied for decreasing crises will be discussed. 330 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Definition of regional development agencies The concept of ―region‖ is defined as community of countries, have same benefits under international laws and in geographical, political and economic relationship. Producing and using of information , qualified manpower, instable distribution in social, physical and economic infrastructure attach importance to necessity of regional development. (Aktakas, 2006:1-7) Generally, regional development agencies are agencies which accelerating economy, determining regional problems, establishing strategies for solving these problems and supporting projects, developing these strategies by gaining foreign capital to the country and giving consultancy services to domestic and foreign investors with professional personnel.(Oskay, Kubar, 2007:204). Regional development agencies are institutions which executing regional planning activities, providing technical and financial support to entrepreneurs by determining advantaged and disadvantaged sectors of the region and taking full support of political and social institution by gathering them together. (Tas, 2008:7). We will have been benefited from our own resources rather than foreign resources by taking required precautions to use regional resources efficiently by the help of regional development agencies and we can become nonreactive against to effects of outside at the time of crisis and therefore we can be saved from crisis with the cheapest way. The most comprehensive scope fields of regional development agencies are to collect information for region by inspecting physical and humanly infrastructure of the region, and to develop development strategies, which will improve the regional competitive power. (Tutar, Demiral, 2007:76). Aims of regional development agencies The most important aim of regional development agencies is to determine the specific characteristics and problems of region and to develop economy of the region by improving policies, special to it and to provide participation of local society to this development and to be benefited either the region and the country. To provide technical support for planning studies of local administrations, to support regional plan and program applications, to provide coordination gathering public organizations, civil organizations and private organizations, to discover business and investment opportunities and to make the region an attraction centre are the other aims of the region.(Oskay, Kubar, 2007:206). One of its duties is to prepare projects with universities and education institutions for regional development(Arslan,2005:287). Improving of quality manpower, giving educational services and forming a competition based business environment are also main aims of it. Regional instability problem in turkey and development agencies Regional development agencies were firstly established in 1930 at United States of America as Tennessee Valley Authority (TVA). When developing countries are compared with developed countries, it was seen that regional planning and regional development agencies there has not provided a sufficient development. (Arslan,2005:275). As a result of destructive effects of Second World War, regional instability has increased in European Countries. This situation has made necessity to form development plans in the world. There was passed to planned development, related with DPT in Turkey on 1960. It was applied to priority regions for development to remove regional development differences. Also inequal spread of natural resources in Turkey could not provide stable spread of region at growth and development period. (Aktakas, 2006:12). Trade centers generally major on west of Turkey. Because of limited capital, high birth rate and unskilled manpower, there is an intensity from the eastern to the western of Turkey. (Tas,2008:7). There is undercapitalization, high unemployment rate and undeveloped industrial structure at less-developed countries. However, a faster development is provided for undeveloped regions rather than other developed regions, the regional manpower rate will increase and the orientation to other developed regions will decrease. (Benek:57). Effect of crisis to economic development It is to break stability of country with crisis and to cause a political and social problem and to create an insecurity in society(Turk-Is, 2008: 5). As a result of global crisis effects on country and also structural problems in economy, the problems of country get deeper. (Turk-Is, 2008:1). Generally, economic development means completion of social, cultural, political development period of a country with economic growth. At the time of crisis, not only economic but also social, cultural and political deterioration is occurred. Crisis, generally, causes decreasing in economy and production quantity and increasing in inflation and unemployment rate and instability in income distribution. (Altuntepe,131). 331 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Macroeconomic Variables Growth Rate Unemployment Rate % 2009 -4.7 14.0 Cpı (2003 Index) Export (Million Dollars) 6.8 102.129 Import (Million Dollars) Gdp (Million Dollars) 140.926 617.611 Table 1: In 2009, macroeconomic variables in Turkey Source: www. tuik.gov.tr After crisis in 2001, the important developments have been made in financial reform, R&D, information, communication, infrastructure fields to increase competitive power in Turkey. Turkey is effected in respect of financial sector as well as real sector at the time of crisis. There is faced with problems such as considering foreign investment as insecurity, increasing of short-term capital transactions and also high foreign debt. (Kaya, Unal; 2009:1). At the time of crisis, the important thing is whether countries are prepared to these situations. If countries whether this crisis with minimum effects, they will be able to protect their situations or they will be able to increase their competition orders. Role and effects of regional development agencies at economic crisis The main subjects, should be interested by government are to remove regional instabilities in a country, to solve their macro variables such as employment, growing and unemployment. It is clear that the developing countries is effected from this situation rather than the others at crisis terms (Altuntepe:129). There should be provided a specified coordination for applying these strategies from base to ceiling. The long-term and shortterm effects of crisis on countries are determined by precautions, taken against to crisis by countries before crisis (Aktan,Sen, 2002:2). If Turkey becomes well-prepared for these situations, it will be integrated to the world positively at the time of crisis. Turkey has been entered to structuring period with crisis in 1970 and a period in which regional development takes first place and there is effective role of regional development agencies. Regional development agencies can develop strategies, confirmed with the facts of country and it may make national economy strong, without needed to foreign resources by an effective planning which will be guiding for private sector and will be binding for public sectors. Development agencies should make studies for protecting and widening the employment by gathering private sectors and government together(Turk-Is, 2008:2). It is to take required actions against problems which will be able to occurred by the planning through regional development agencies. There is an important duty of regional development agencies about developing of industry by discovering internal potential of the region, drawing investments to the region and inciting SMEs and increasing them to competitiveness level. (Arslan,2005:286). After crisis in Turkey in 2000‘s, regional policy applications were realized and the period of conformity to EU has been accelerated. Regions should be pen for innovations and opportunities. Therefore they can provide their development by using information and technologies(Cetin, 131). Especially there should be taken precautions for financial problems of SMEs, which is faced with crisis terms. Also, credit resources should be retained fresh to help them for weathering their financial problems. Supports for R&D studies should be continue at those uncertainty terms. Supportive policies should be continued for providing conformity of manpower with the situations. Conclusion Developed countries discovered the importance of increasing of life standards, raising welfare level, increasing employment rate and to be a competitive country years ago and saw that regional development agencies should be used effectively. It was understood that regional instabilities could not be removed with central plannings and it is needed to the plans and strategies which will be able to use regional resources effectively. Regional development agencies cover with the most important work for realizing these plans and strategies. The importance of regional development agencies has not been discovered for years and it has entered to our life as a liability for EU adaptation process. It will help for regional development by using limited resources of the country effectively with regional development policies and so that it will be provided national development. Regional development agencies can 332 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo carry the country to an international platform by help of high technology and knowledge confirm with the region. There is shown a changing in the direction of well-attended and cooperation with not programs, which will come from centre but by using own information of regional development agencies. If there is not enabled to be given an effective charge to regional development agencies, there will be continued to contend with macro economic problem is, the main problem of the country, for years and it will become a dream fort he country to take place at international competitive area. There con be weathered the crisis periods with minimum damage by using long-term programs made by regional development agencies and by its economic and social advantages. Against to technologic developments in the world, all units at the world are forced for competition. We effect from economic developments in the world and we have to account for move according to these effects. Its aim is to discover region potential with cooperation of civil, special and public institutions via regional development agencies, to make it competitive situation by using information and technology and to make us well-advised at the time of crisis. References AktakaĢ,B.G.(2006). Bölgesel Yerel Kalkınma, Bölgesel geliĢme için bir model,Çukurova üniversitesi Sosyal Bilimler Enstitüsü Yüksek Lisans Tezi Ankara . Aktan, C. C.,& ġen,H.(2002). Ekonomik Kriz : Nedenler ve Çözüm Önerileri,Yeni Türkiye Dergisi Arslan,K.(2005). Bölgesel Kalkınma Farklılıklarının Giderilmesinde Etkin Bir Araç: Bölgesel Planlama Ve Bölgesel Kalkınma Ajansları, Ġstanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi Yıl:4 Sayı:7 s.275-294. Altuntepe,N.(---). 2008 Küresel Krizinin Ülkelerin Ġstihdam Yapısı Üzerine Etkilerinin Dinamik Bir Analizi Süleyman Demirel Üniversitesi, ĠĠbf, iktisat Bölümü. Benek,.S. Ortaya ÇıkıĢı, GeliĢme Seyri Ve Bölgeye Etkileri Bakımından Güneydoğu Anadolu Projesi (GAP), Ankara Üniversitesi SBF Dergisi 64-3, http://dergiler.ankara.edu.tr/dergiler/42/998/12142.pdf Çetin, M. Yerel Kalkınma Ajansları, Bozok Üniversitesi, Yozgat Ġktisadi ve Ġdari Bilimler Fakültesi, Ġktisat Bölümü, http://eab.ege.edu.tr/pdf/6_2/C6-S2-M12.pdf KarataĢ,A.(2009).Kalkınma Ajansları ve Kümelenme ĠliĢkisi, Çerçeve Haziran. Oskay,C.S.& Kubar,Y. (2007).Avrupa Birliği‘ne Uyum Sürecinde Türkiye‘de Bölgesel Kalkınmanın Finansmanında Kalkınma Ajansları,Selçuk Üniversitesi Karaman Ġ:Ġ:B:F Dergisi Yerel Ekonomiler Özel Sayısı. Özer,Y.E. Küresel Rekabet - Bölgesel Kalkınma Ajansları ve Türkiye, Review of Social, Economic & Business Studies, Vol.9/10, 389-408. TaĢ;C.(2008). Kalkınmaya giden yol kalkınma ajanslarından mı geçer?, Gündem,Eylül Tutar, F.,&Demiral,M.(2007). Yerel Ekonomilerin Yerel Aktörleri: Bölgesel Kalkınma Ajansları,EskiĢehir Osmangazi Üniversitesi ĠĠBF Dergisi Nisan, 2(1), 65-83. Türk ,ĠĢ(2008), Türkiye ĠĢçi Sendikaları Konferasyonu, Ekonomik Krize KarĢı Önlemler Raporu , kasım,Ankara. Yazkan,E. (2008).Bölgesel geliĢme politikalarının baĢarısında kalkınma ajanslarının rolü, . Yüksek Lisan Tezi,Kocaeli Üniversitesi Sosyal Bilimler Enstitüsü Siyaset Bilimi Ve Kamu Yönetimi, Kocaeli. http://www.planlama.org/new/imp/bolgesel-kalkinma-ajanslari.html http://www.dpt.gov.tr/bgyu/kalkinmaajans/ajans.html http://www.ttb.org.tr/mevzuat/index.php?option=com_content&task=view&id=698&Itemid=41, Orta Vadeli Program (20102012) 333 � 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. 189 Title A name given to the resource The Effects and Role of Regional Development Agencies in Economic Crises Author Author AKAN, Yusuf ARSLAN, İbrahim GURSEL, Eda Abstract A summary of the resource. Regional development agencies,when looked at their historical.development started to be constructed after the World Economic Crisis of 1929. Especially due to the economic and social effects of the Second World War and interregional imbalances ,regional development agencies around the world became prominent. Countries have began to understand that to get rid of the effects of the Economic crisis or to minimize them , emphasizing the potentialities of the region themselves are so important that they could compete with the world. Regional development agencies play the most important role in the development of the region, considering the properties of each region. Globalization has to adapt itself to the recent circumstances in order for all the unıts in economy to be competitive. At the same time,we must benefit from the potentials of all the regions to improve the economic conditions of the countries. Efficient use of resources must be provided by preparing crisis programmes suitable to the region and presenting them to the government to take which has been an effective precautions in the crisis times. Regional imbalance problem has been an agenda in Turkey for years and planned development started in the 1960s,thereby supporting the regional development with the help of 5- year development programmes. In order for Turkey to increase the competition power of the regions and to accelerate development , ıt has to give primary importance to regional development and the agencies which play an important role in it.In this study, the primary focus is to investigate the role and effects of development agencies especially in the face of economic crises. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/eb7dc03f3d4c40e14777f82237c16516.pdf 91ee1561c92bc958b585cf4ab49563d6 PDF Text Text 3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo The effects of akhism principles on today's business life: A case in the western mediterranean region Hilmi Uyar1,Hasan Erdoğan2 1Akdeniz University Social Sciences Institute Department of Econometrics Antalya /TURKEY 2Akdeniz University Ayşe Sak school of Applied Sciences Antalya/TURKEY E-mials: hilmiuyar@gmail.com,hasanerdogan@akdeniz.edu.tr Abstract In historical process, Akhism guided to the commercial life of Turks. It is in close contact with other institutions of the society. With its rules and principles Akhism seeks to establish good relations between people and also organizations. With these perspectives, Akhism has an quite stable place in history. The purpose of today's commercial applications of the principles and implications of the study is to reveal Akhi. In this context, we did a literature review firstly; followed we implied the survey upon small and medium-sized business owners, than collected data and analyzed. Keywords: Akhism principles, producer, seller, shopkeeper 1.INTRODUCTION In the historical progress of nations, economic wealth plays an important role as well as prosperity in social and cultural make-up. When the entire Turkish history is considered, we come across with the institution of Akhism that is both related to the regulation of sociocultural life as well as to the operation of business life within the framework of certain principles and rules. Even though Akhism has aspects in parallel with today’s management philosophies, history has not been immutable and economical activities have changed since the thirteenth-century establishment of Akhism.11 11 ÜLGER B. and ÜLGER G., “Akhism as a Non-Governmental Association Model in the History of the Turkish Nation and an Assessment of Today’s Business Ethics A Relationship or a Contradiction”, Journal of Human Values, 11,19-61 (2005). 176 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Akhism is such a system with its own principles that developing art, trade and economy of the people of during Ottoman and Seljuk. Ahi in Turkish to mean generous, big-hearted, brave derived from the word “akı”. It is thought the word of Akı transformed to Ahi which is meaning to “my brother” when the Turks rule over Anatolian.12 Akhism is a Turk tradesman founding exposed by historical and socioeconomic conditions and based on religion and moral rules. The main purpose of Ahi organization institutionalized over time was to organize the relationship between producer and consumer in best way and to make honesty dominant over business life. Western historians base the origin of Akhism on Futuvva organization that has developed between Arabs in the east. However, they accept Akhism is far different from Futuvva organization and it is an institution unique to the Anatolian Turks.13 Briefly, Akhism is a professional association which is quite common in Turk countries and especially takes reference Islam religion. With its principles and institutional structure Akhism managed trading life of Turks for a long time. The principles of total quality of today’s business and community life became vision and applied rigorously by members of the Akhism ages ago. The mission of Akhism was determined as “services to all” thus, they aimed to protect all people and in this direction they worked and set required organizations. Correct understanding of Akhism, applying of its vision, mission and organization structure upon business life -especially- is very important for Turkey and world. However, the number of investigation of the effects of Akhism over today’s business life is quite low. The purpose of this study is to show the effects of Akhism applied commonly during Seljuk and Ottoman period, over today’s business life. In this context, in the western Mediterranean region of Turkey (Antalya, Burdur, Isparta), surveyed over small-scale tradesmen and the people engaged in commerce and researched their sensation aimed at Akhism principles. 2.THE VISION OF AHI ORGANIZATON To understand the vision of Akhism it is necessary to analyze thoroughly Futuvvatname which is known as Ahi constitution. Futuvvatnames are the books describing principles of Futuvva organizations and rules entrants must conform of this organization. They are 12 GÖLPINARLI A., "İslâm ve Türk İllerinde Fütüvvet Teşkilatı", İ.Ü. İktisat Fakültesi Mecmuası, C. 11, İstanbul, 1950, s.6 13 www.sebilay.org.tr, (25.04.2012). 177 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo regulations that regulate matters that need attention to be organized of tradesman organizations in cities. The book "Kitab'ul-Fütüvve" written by Ebu Abdi'r-Rahman Muhammed İbn el-Hüseyn es-Sülemi is the first known Futuvvatname. 14 The principles in Futuvvatnames are concern of every moment and every aspect of daily life of Ahi. That encompasses the whole of social life. The principles and doctrines which are accepted unchangeable and indispensable constituting the fundamental values of Ahi vision are listed in Futuvvatnames as follows: 15 Not to leave prayer (ritual of worship centered in prayer). Because prayer keeps away from all forms of evil. Having modesty. Modesty, increases people’s reputation in the community. 1. Not to be a slave of the soul. The slavery of the soul is the beginning of desire and behavior in poor work. 2. Not to be a slave of life of the world. Exalting the dignity of man destroys the mortal ones. 3. Having halal (legitimate) earnings. The thing which is halal is to eat something gained by person’s hand and work. It is one of the most important and indispensable principle of Akhism. This principle has led working life to a dynamic state. 4. Giving and bestowing upon needy people. It is one of the fundamental principles must be based on the generosity and assistance of social and economic life. Provides together with others to reach higher goals. 5. Enjoining goodness and keeping from evil. This principle provides eliminations of errors and injustices that may occur through the internal audit of organization of Akhi. At the beginning of the basic components of Akhi vision, “Excellence in Service” is found. This is the most important building block of Akhi philosophy. No matter who or what the art establishment should do the best and perfect of works. This is in a sense, the reason being Akhism. In doing so, planning for the future is very important. Because Akhis are the people who have partner social values and goals, owner of art and implying these objectives together.16 14 GÖLPINARLI A., “İslam ve Türk İllerinde Fütüvvet Teşkilatı ve Kaynakları”, İ.Ü. İktisat Fakültesi Mecmuası, C.II, İstanbul 1950. 15 Tuhfat-al- Vasayâ, s. 216–217. 16 İbn Batuta, s.8 178 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo A non employed Akhi is unthinkable. Every individual learn a profession according to the ability to dexterity and skill, becomes the owner of business and contribute to social life. Unprofessional ones does not help others. Happiness and the power of the society, only if can be possible to make a contribution of every individuals as an owner of art to social life. 17 3.THE MISSION OF AHI ORGANIZATION The basic mission of Akhism is to achieve perfect communities by training excellent individuals, serve humanity and the people in way streamline the world.18 In Akhism individual excellence comes first from everything. For this reason, primarily Ahi should get a move on him. After this takes place, could bring order and service to the world. Then, it is possible to define Akhi as follows: “good-natured, who continue to pray, giving alms, who bestows and obedience to his father, hosts neighbor, who share properties in his hands, who beautify his jobs, saying that is right, trying his deeds to make most beautiful, storing secrets, who in compliance with love, behaves correctly, without a lie and hypocrisy, who gain halal earnings, working like a bee, avoiding unlawful things, giving to anyone even if he is not given, forgiving those who persecute, favors for malfeasant, that comply with Sharia law, protecting the right of siblings, which is sympathetic to his neighbors, asking who away from, visiting patients and inquire after their health.”19 The eyes of Akhi do not see unlawful things; the mouth of Akhi does not speak sin words, the hands of Akhi do not persecute.20 Perfection of society depends on perfection of individuals. When the individuals become perfect, then societies become perfect. The mission of Akhism refers to the excellence from personal to general and from individual to the community. In this context, perfect individuals create great communities. The missions of Akhism related with community in Futuvvatnames, specified briefly the form of services to all. The fundamentals of Akhi founding were so strong and its rules were so acceptable that these rules were taken example for municipal services and for the control of these services; formalized in such a form of law. Akhis bind the rule every stage of production from supplying raw materials to sell. This eliminated many possible frictions between tradesmen. 17 http://www.ahilik.gen.tr/kavram/vizyon2.html, (25.04.2012). 18 Tuhfat-Al Vasayâ, s.209 19 Tuhfat s.209 20 Tuhfat s.209 ayrıca bkz. http://www.ahilik.gen.tr/kavram/misyon.html, (18.04.2012). 179 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Anyone who did not conform to standards, produced low quality goods and services was penalized in such ways. 21 4.RULES OF AKHISM ETHICS22                     Akhis must strive for not a few businesses or art, but a single business or art that is appropriate their capabilities. That must be a business or and art of Akhi protecting his honor appreciating his labor. Ahi should be accurate, shall not deviate from path of labor to earn more than he deserves. Ahi must have knowledge, should love scholars, should not humiliate against of them and should use his information in proper time and place. Must be good-natured and good morals. Must be accurate and reliable in his business and life. Should know that the talking and must remain the promise. Should not distinguish in service. Should not wait response for his goodness. Must be friendly and soft spoken. Should not twit his errors. Should pay attention to friendship; never forget a friend and brotherhood. Should do favor to anyone even he were evil. Should be modest. Should work friendly, willingly and sincerity. Should not betray someone else’s goods. Should be generous. Should judge for his anger. Must keep secrets. Must protect and regard his employees. 5.ADVICE OF AKHI23   Do not look, eat and drink unlawful things! Be accurate, patient and resistant! 21 www.diyadinnet.com (18.04.2012). 22 Burgazi, Burgazi Fütüvvetnamesi. 23 Burgazi, Burgazi Fütüvvetnamesi. 180 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo          Do not tell a lie! Do not begin talking before than elders! Do not trick anyone! Be frugal! Do not desire goods in the world greedily! Do not measure incorrectly and do not weight defectively! Forgive even if you were strong and high case! Behave softly even if you were angry! Be a generous even if you were needy! 6.REFLECTIONS OF AKHISM PRINCIPLES ON TODAY’S BUSINESS LIFE In the study to determine the effects of Akhism on today’s artisans and craftsmen, 5 Likert scale questionnaire designed on the basis of fundamental principles of Akhism and 29 questions were asked to participants. Questionnaire applied over randomly selected eighteen years and over 450 owner of the business organization. The data collected from fieldwork conducted in Turkey’s western Mediterranean analyzed using package programs SPSS 16.0 TM and Stata . Because of reliability problems, 35 questionnaires were removed and continued with 415 questionnaires to study. 7.DEMOGRAPHIC INFORMATION According to the survey respondents' demographic information is shaped as follows:  Regional and sex distribution is as follows: GAZİPAŞA ALANYA BURDUR MANAVGAT ANTALYA CITY CENTER FİNİKE ISPARTA M F M F M F M F M F M F M F 18–30 5 6 16 7 9 3 9 6 6 7 6 4 17 10 31–45 4 4 14 5 10 1 8 5 9 10 6 5 22 8 46–60 6 3 24 3 8 1 10 2 8 6 7 1 19 5 61-* 6 1 26 0 8 0 7 1 12 2 8 0 18 1 Age / Sex 181 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo TOTAL 35   95 40 48 60 37 100 Only in respect to the age distribution is as follows: Male Female Age / Sex 18–30 68 43 31–45 73 38 46–60 82 21 61-* 85 5 TOTAL 415 According to this distribution it is observed that for each age group the age distribution of male distribute properly, but of female decreasing with increasing age.  The distribution of gender and education level as follows: Education / Sex Male Female Male Female İllitarate 34 5 %8,1 %1,2 Primary Educaion 123 45 % 29,6 %10,8 High school 87 32 %20,9 %7,7 Üniversity 52 23 %12,5 %5,5 Master 12 2 %2,8 %0,4 According the data in the table male with primary education has the highest rate with 29.6% 182 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo It is seen that primary education level is much more than other levels. It is also seen that the rate of university and master is quite low. 8.THE EFFECTS OF PRINCIPLES OF AKHISM ON TODAY’S BUSINESS LIFE The SPSS output giving the average of responses to questions as follows: propositions Std. Std. Error N Mean Deviation Mean In business life good temperament and good morals is important for me. 415 3,971 0,88691 0,04354 Promise is just like honor for me even it was not written. I respect my promises, not writings. 415 2,737 1,14459 0,05619 I do favors for everyone and aspect for their kindness. 415 3,947 0,81773 0,04014 I pay attention for justice, measure and weight. 415 3,947 0,89393 0,04388 I do my job sincerely, honesty and friendly. 415 3,952 0,84989 0,04172 I make proximity and hang on my neighbor’s shortages. 415 3,957 0,86144 0,04229 I call myself instead of someone else in looking for errors. 415 3,986 0,89539 0,04395 I am proud to be and have time with the poor fellow. 415 4,043 0,84445 0,04145 I do not respect to the rich ones due to richness of them. 415 3,889 0,91274 0,0448 I speak the truth and do not give up the truth 415 3,986 0,93498 0,0459 I protect my employees and their rights. 415 3,971 0,90577 0,04446 I perform god’s orders and prohibitions in the open and the secret. 415 3,971 0,88962 0,04367 I avoid the bad words and insults. 415 3,937 0,92779 0,04554 I do favor to anyone even he were evil. 415 3,961 0,85322 0,04188 I show patience against the evil and trouble. 415 3,995 0,92207 0,04526 I sincere in my belief and worship. 415 3,974 0,88562 0,04347 I don’t accredit the goods of mortal world. 415 4,031 0,88546 0,04347 I do not observe anything for my goodness and charity except of god’s sake. 415 3,843 0,90466 0,04441 183 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo I try to my consumers’ heart rather than to sell more expensive. 415 2,901 1,0934 0,05367 I’ll be friendly with people knowledgeable and ask for their though. 415 4,053 0,76271 0,03744 I only trust on god every time and every where. 415 4,089 0,82781 0,04064 Custom and usage are very important for me. 415 4,106 0,79146 0,03885 I content with less, give thanks god with much. 415 4,058 0,86897 0,04266 I make sacrifices for the sake of something. 415 4,161 0,77113 0,03785 I maintain the right and object to evil. 415 4,108 0,82257 0,04038 I firmly tied up to my religion. 415 3,925 0,88559 0,04347 I believe that anyone tied up to religion should be faithful in commerce. 415 3,978 0,92836 0,04557 I try my neighbor to win as least as I win. 415 3,111 1,07103 0,05257 (5: “strongly agree”, 4: “agree”, 3: “neither agrees nor disagrees” 2: “disagree” 1: “strongly disagree”) Given the means the result of “strongly agree” was not observed. The mean of 18 questions is in the shape of “neither agree nor disagree” and the mean of 8 questions is in the shape of “agree”. Especially, three of the questions were answered very low rate. These questions are examined below. If we look at these questions by adding gender factor, questions and averages of answers is as follows:  Promise is just like honor for me even it was not written. I respect my promises, not writings. Gender Frequency Mean Male 313 2,7348 Female 102 2,7451 Both female and male answered this question as “disagree” with the average of 2.7.  I try to my consumers’ heart rather than to sell more expensive. 184 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Gender Frequency Mean Male 313 2,9553 Female 102 2,7353 It can be seen that both sexes answered to this question as “disagree”.  I try my neighbor to win as least as I win. Gender Frequency Mean Male 313 3,0575 Female 102 3,2745 Participants answered this question as “neither agree, nor disagree”. Considering this three major principle, regardless of gender, it is seen that today’s business life is staying far away from these principles. If we analyze the variables according to the region, means are as follows: REGION 185 Average Result Gazipaşa 3.76 Neither agree, nor disagree Alanya 4.10 Agree Manavgat 3.92 Neither agree, nor disagree Antalya City Center 3.59 Neither agree, nor disagree �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Finike 4.05 Agree Isparta 3.91 Neither agree, nor disagree Serik 3.54 Neither agree, nor disagree Within the survey field of application only Alanya and Finike answered as “agree”, other regions answered as “neither agree nor disagree”. Alanya has the highest level with the average of 4.10; Antalya city center and Serik has the least level. Thus, Alanya is mostly keeping the rules and morals of Akhi. From this point, the effects of Akhism can be mentioned today, but it is obvious that Akhism impact is much weakened. If we analyze the variables according to the education, means are as follows: Education average İllitarate 3.95 Primary Educaion 3.77 High school 3.76 Üniversity 3.65 Master 3.59 As can be seen, whether averages are close to each other, there is an inverse ratio that is averages decreasing towards education level increase. If we analyze the variables according to the income level, means are as follows: İncome level (TL) 186 average 500–1000 3.91 1000–2000 3.90 2000–3000 3.93 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 3000–5000 3.83 5000–7500 3.92 7500–10000 3.83 10000-* 3.87 When compared income level almost all levels has close averages. Thus, income level is not a characteristic parameter. If we analyze the variables according to the professional experience, means are as follows: Professional experience (year) average 1–5 3.55 6–10 3.65 11–20 3.88 20-* 3.89 As professional experience increases, the rate of acceptance of the principles of Akhism increases. If we analyze the variables according to the age, means are as follows: age average 18–30 3.67 31–45 3.71 46–60 3.89 60-* 4.17 As it seen, the age variable is quite decisive on the principles and ethics of Akhism. Acceptance rate of principles of Akhi increased with increasing age. In other words, the younger generation less adopted the concept of Akhi. 187 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 9.GENERAL EVALUATION AND CONCLUSION Although the moral and principles of Akhism largely lost its impact, maintained its existence in today’s artisans and craftsmen. The rate of acceptance increases with age and professional experience increase (directly proportional); decreases with education level increase (inverse proportional). In addition, adopting the principles of Akhism rates also vary regionally. It is remarkable that Akhism is more adopted in such regions far from metropolis as Alanya, Finike, Manavgat and Isparta. Correct understanding of principles and morals of Akhism is very important in terms of tradesmen and artisans, and even country’s economy. Who do not know the history could hardly speculate future effectively. However, the Akhi institution and its brought poorly understood by young generations especially. Knowledge of past practices which enlightened business world for centuries and accepted as model for business and personal relationships will help both produce excellent products and exclusion of trust and honesty in consumer relations. With this awareness, it is borne in mind that there are very important duties, to all sections of society and primarily to educators. REFERENCES Abdülkadir GÖLPINARLI, "İslâm ve Türk İllerinde Fütüvvet Teşkilatı", İ.Ü. İktisat Fakültesi Mecmuası, C. 11, İstanbul, 1950. Abdülkadir GÖLPINARLI, “İslam ve Türk İllerinde Fütüvvet Teşkilatı ve Kaynakları”, İ.Ü. İktisat Fakültesi Mecmuası, C.II, İstanbul 1950. Billur ÜLGER and Gürdal ÜLGER, “Akhism as a Non-Governmental Association Model in the History of the Turkish Nation and an Assessment of Today’s Business Ethics A Relationship or a Contradiction”, Journal of Human Values, 11,19-61 (2005). http://www.ahilik.gen.tr/kavram/vizyon2.html, (25.04.2012). Burgazi, Burgazi Fütüvvetnamesi. www.diyadinnet.com (18.04.2012). 188 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo İbn Batuta Seyahatnamesi Seçmeler, Çev. İsmet Parmaksızoğlu, MEB Yay, İstanbul, 1993. www.sebilay.org.tr, (25.04.2012). Tuhfat-Al-Vasayâ. Analysis of Factors Affecting the Life Satisfaction of Household Heads Living in Urban Areas: A Case of West Mediterranean Region Ali Riza Aktas1, Burhan Ozkan2, Onur Oku1 1Akdeniz University, Alanya Faculty of Business, Economics and Finance Dept. 2Akdeniz University, Faculty of Agriculture, Agriculture Economics Dept. E-mails: alirizaaktas@akdeniz.edu.tr,bozkan@akdeniz.edu.tr,onuroku@akdeniz.edu.tr Abstract Since the early ages of history, individuals have sought life satisfaction and considered it as a life goal. Because of this fact, the term life satisfaction has kept its importance in time and has been the focus of many studies. Life satisfaction is seen as a positive value gained by an individual’s own evaluation of the quality of life as a whole, therefore may be described as subjective. Nevertheless, studies made about life satisfaction use both subjective and objective indicators. Life satisfaction is partially conceptualized as the result of satisfaction related to various life fields such as work, family, health, etc. and it is assumed that the effects of environmental conditions highly help satisfaction related with life fields. When studies about life satisfaction are taken into consideration, it is notable that the term job satisfaction is generally emphasized. However, studies show that job satisfaction can explain only a few of the changes in life satisfaction. In this study, it is aimed to determine the socioeconomic factors affecting the life satisfaction of household heads by using data from questionnaires and Logit model. “Unclustered Single-Stage Simple Random Probability Sampling Method” was used to apply the questionnaires to 490 household heads living in city centers of Antalya, Isparta and Burdur. In order to determine the probability of whether the household heads were satisfied with their lives or not, explanatory variables oriented to the current perceptions of household heads were included to the model in the study in addition to the demographic variables. Demographic variables were included to the model as the dummy 189 � 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. 1167 Title A name given to the resource The effects of akhism principles on today's business life: A case in the western mediterranean region Author Author Hilmi, Uyar Abstract A summary of the resource. In historical process, Akhism guided to the commercial life of Turks. It is in close contact with other institutions of the society. With its rules and principles Akhism seeks to establish good relations between people and also organizations. With these perspectives, Akhism has an quite stable place in history. The purpose of today's commercial applications of the principles and implications of the study is to reveal Akhi. In this context, we did a literature review firstly; followed we implied the survey upon small and medium-sized business owners, than collected data and analyzed. Keywords: Akhism principles, producer, seller, shopkeeper Date A point or period of time associated with an event in the lifecycle of the resource 2012-05-31 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/72b187a678978a46fdf2577f88ae4dfb.pdf 3c79ef495b284ce82926e8007ffe2316 PDF Text Text 3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo The Effects of Basic Macroeconomic Prices on Manufacturing Industry Production in Turkey İlknur Pulak Taras, Gülçin Manzak Aydin, Demet Barlin Harmankaya E-mails: ilknur.pulak@sanayi.gov.tr, gulcin.manzak@sanayi.gov.tr demet.barlin@sanayi.gov.tr Abstract In this research; the effects of macroeconomic prices, such as interest rate, exchange rate, energy prices and wages, on Turkish manufacture industry production in the period 19922008 are investigated. The aim of the research is to bring current macroeconomic policies in Turkey up for discussion once more. In this framework, the economic policies implemented in Turkey since 1980 are elaborated in the first place in order to interpret the economic trends between the years 1992 and 2008 ideally. Then for the purpose of analyzing the mentioned relations, various econometric methods are used. First of all, ARDL Bound Test is applied to series in order to investigate the long run relationship among them. Secondly, causality relationships are questioned by using Granger Causality Test based on Hsiao Approach; and impulse-response functions and variance decomposition tables obtained from Vector Autoregressive Model (VAR) are elaborated. At last, findings are evaluated within the economic framework drawn beforehand and the research is concluded by policy proposals. Accordingly, long run relationship among variables cannot be found, however at the end of causality tests all the variables except real wages are found to be “Granger cause of production”. Moreover, the impulse-response functions put forward that the production reacted negatively to real interest rate, positively to real effective exchange rate and negatively to real energy prices. The coefficient derived for real wages, on the other hand, is discovered to be insignificant. This can be explained by the export orientation policy that has targeted foreign demand instead of domestic. Above all, it should not be neglected that real wage level deserves considerable interest since it determines wealth of the majority of society. As a result of the analyses and assessments in the research, it can be concluded that these variables can and should be utilized as efficient and essential policy tools. Keywords: interest rate, exchange rate, energy prices, real wage, Turkish manufacture industry, ARDL Bound Test, Vector Autoregressive (VAR) Model 1.INTRODUCTION The question of whether development is succeeded by the hands of state or market mechanism (state vs. market) takes a central place in development economics literature. Although the answers include theoretical and ideological aspects, historical experiences enlighten these questions. Besides the West European countries, the experiences of South Eastern countries are elaborated again and again in this context. Although both sides underlined the elements that support their arguments, there is little evidence pointing out that only the market mechanism provides sufficient instruments for development. Rather, it seems that industrialization could not be achieved without control and supervision of the state at specific time and situations. 381 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo As for the dominant paradigm, Neoclassical Economics claims that free market economy creates the best conditions for all countries and prices are directive in case of deviances from equilibrium. The equilibrium price of a commodity/factor is said to illustrate the point where the supply and demand become equal and thus demanded production also equals demanded consumption. In summary, according to the Neoclassical model, prices should be determined under free market conditions and the actors would behave rationally with respect to these prices which could not be affected by individual actors under “perfect competition”. At this point, the general price level is determined in national market, energy prices in its own market, exchange rate and interest rate in the money market and lastly wages in the labor market in real world. Beyond these assumptions of Neoclassical Economics, price is not only an endogenous value determined by the associated demand and supply but also effective on them. As Keynes pointed out after 1929 Great Depression, interest rate is, ceteris paribus, effective on investment and exchange rate, ceteris paribus, on balance of payments. As for other prices from a supply side viewpoint, energy prices contribute directly to production cost and wage level is distinctive for production level by its functions both as a cost item and as a main component of demand. In fact, this study is based on the view arguing that utilizing those prices as policy tools in controlling the related variables (investment, import, export, production) are another choice among different economic policies. Multidimensional policy choices are significant since real economic relations are much more complicated than those in free markets idealized by Neoclassical Economics. In fact in real world, all prices are intervened to be held within boundaries determined by certain macroeconomic policies. For instance the main policy in Turkey since 2001 has been to control inflation by intervening interest rate while leaving the exchange rate to fluctuation. This is a policy choice among many others. This choice depends on policy makers’ priorities determined in the framework of current targets and economic relations. In this framework, this article aims to reevaluate the macroeconomic policies implemented in Turkey. For this reason, the effects of variables like interest rate, exchange rate, energy prices and wages on manufacture production are investigated by using various econometric methods. First of all, the series are put to cointegration test in order to investigate long term relation between them. Then causal relations are analyzed by using Granger Causality Test with Hsiao Approach. At last, Vector Autoregressive Model (VAR) is applied to see the effects of variables on production and impulse-response functions and variance decomposition tables are examined. Meanwhile the study is limited by the years between 1992 and 2008 for which continuous time series data for all of these variables are available. Since the policies after 1980 constitute a persistent framework, the second section of this study is devoted to an overview of Turkey’s late economic history for the sake of better evaluation of economic developments in the period 1992-2008. In the third section, data set and method are explained and in the forth, findings are presented. In the fifth section, the results of the application are presented with their economic implications and the study is concluded by a general assessment. 2.Main Milestones of Turkish Economy after 1980 The similarities of macroeconomic policies implemented in developing/peripheral economies are said to be surprising. This can be explained by the close relation of these countries with developed ones, or the centre. Öniş and Şenses (2007) defined this situation with “reactive 382 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo state” concept and exemplified it for Turkey. Accordingly, even if the policy shifts are supported by domestic coalitions, the main factor behind this policy shifts has been external dynamics. In fact, like many other developing countries, policy-makers in Turkey have followed the major centers of international decision making like the World Bank (WB), International Monetary Fund (IMF), World Trade Organization (WTO) etc. In this direction, the post 1980 era can be summarized by Neoclassical dominance that promoted liberalization in all fields of the economy. More clearly, by 24th January 1980 Decisions an inward looking industrial model, import substitution was replaced by an outward looking model, export orientation. This transformation created an environment where free market strengthened its dominance and the state interventions were restricted within the economic area. This atmosphere was spreading all around the world by the decline of the Cold War conditions. Korkut Boratav (2004: 149) defined the post 1980 policies in these words: A foreign exchange policy worked in line with real devaluations; a more liberal import regime; export as a national priority supported by promotions and subsidies like expensive foreign currency49, cheap credit and tax return; abolition of price controls and subsidies on main commodities and macro policies towards the suppression of domestic demand are the key elements of 24th January Decisions. The policies implemented after 1980 including liberalization of trade and capital movements, privatization of state enterprises and pointing private sector as the locomotive of growth have been the most long-termed ones among similar policies. Meanwhile, the dependence of exports to imports influenced the external deficit in a negative way (Boratav, 2004: 161). This structural defect was tried to be fixed by continuous and high capital flows from abroad. For this aim, foreign exchange regime is liberalized in 1984 and capital movements in 1989. İnsel et al. (2004) evaluated this situation as the effort to fill the gap created by infrastructural deficiencies with liberal financial system. In a parallel way, financial liberalization had become a determinant element for the whole economy especially after 1990. For this reason, studies analyzing the mentioned period could not ignore the impact of financial sector. According to the study done by İnsel et al. (2004) the very first effects of financial liberalization in 1989 had been the increase in current account deficit and appreciation of TL. Therefore, external borrowing had increased by 223 % in the period 1989-1993. Likewise, the fact that the majority of capital flows were short termed and their outflows were not restricted or regulated paved the way for a series of financial crisis and resource transfer. As can be seen in Table 1 and 2, financial crises in 1994, 1999 and 2001 led reel growth decrease by values between 3 and 6 % according to the previous years. Table 1: Real Growth, Net Capital Flows and Unemployment Rate (1992-1998) Net Capital Flows Years Real Growth (%) (million $) 6.0 3,648 1992 1993 8.0 Unemployment Rate (%) 8.5 8,903 49 This situation is changed in an opposite way by the effect of capital movement liberalization in 1989. 383 8.9 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 1994 -5.5 -4,257 8.5 1995 7.2 4,565 7.6 1996 7.0 5,483 6.6 1997 7.5 6,969 6.8 1998 3.1 -840 6.9 Source: Turkish Statistical Institute (www.tuik.gov.tr) and Central Bank of the Republic of Turkey (http://evds.tcmb.gov.tr/) Date Accessed: 02.11.2009. Actually, the years after 1990 were differentiated in terms of commodity and capital flows from 1980s when some regulations somehow had been persisted (Kazgan, 1999: 175). In detail, the liberalization process controlled by the IMF and the WB at the beginning of 1980s was reinforced by new agreements signed in 1990s like General Agreement on Trade and Tariffs (GATT) and Customs Union. Both agreements aimed to decrease national protection in trade and increase the capacity of world trade. However, the abolishment of protection in industrializing countries like Turkey promoted the importation50 of industrial goods instead of producing them in the country. This was supported by concessions offered by Customs Union Agreement. Accordingly, while Turkey decreased its tariffs almost to zero for the third parties, the developed countries decreased tariffs in textile, leather goods and rubber shoes, which are exported by the developing world, in small amounts such as from 15.5% to 12.1% (Kazgan, 1999: 177-178). As a result, exports as percentage of imports in Turkey decreased51 day by day besides the capital flows appreciating the domestic currency and thus imports are promoted instead of exports. Pamukçu and Yeldan (2005) emphasized two significant characteristics of the post-1990 era. Firstly, the growth after 1990 had been speculative-led, dependent on capital inflows and secondly, the growth could not create new employment, which is called jobless-growth. The reflections of the arguments can be observed in Table 1 where negative values in net capital flows represented capital outflows. It is acknowledged that in 1994 when capital outflows exceeded inflows, the growth rate had been – 5.5%. Similarly, in Table 2 it can be deducted that 2001 crisis was significant because of the big amount of net capital outflow compared to the net capital inflows or outflows in other years. Looking at these developments, it is not an exaggeration to claim that the high growth rates between 2002 and 2007 are compatible with continuous and big amounts of capital inflows. This can be deducted also from the fact that the slowdown of world capital in 2008 directly influenced the growth rate in Turkey. In other words, the contraction in 2008 created a decrease in net capital inflows which would continue in 2009 when the growth rates are negative. Table 2: Real Growth, Net Capital Flows and Unemployment Rate (1999-2008) Net Capital Flows Years Real Growth (%) (%) (million $) Unemployment Rate (%) 1999 -3.4 4,829 7.7 2000 6.8 9,584 6.5 50 As a result, nominal rate of protection decreased from 65 % in 1983 to 28.3 % in 1990 (Kazgan, 1999: 176). 51 While the value of exports as percentage of imports was 72.4 % between 1984 and 1989, this rate decreased to 55.8 % between 1993 and 1997 (Kazgan, 1999: 180). 384 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo 2001 -5.7 -14,557 8.4 2002 6.2 1,172 10.3 2003 5.3 7,192 10.5 2004 9.4 17,702 10.3 2005 8.4 42,660 10.3 2006 6.9 42,689 9.9 2007 4.7 48,637 10.3 2008 0.9 33,636 Source: Turkish Statistical Institute (www.tuik.gov.tr) and Central Bank of the Republic of Turkey (http://evds.tcmb.gov.tr/) Date Accessed: 02.11.2009. 11 Another characteristic of the capital movements in this period has been that their inflows or outflows are random and volatile, which made the Turkish economy so fragile. Legislations aiming to promote long-term capital inflows instead of short-term or to set certain rules for capital outflows are some suggestions that could decrease the fragility and increase the stability. As mentioned before, the growth in this period was unable to create employment as much as the expected. The values in the 2nd and the 4th columns of the tables put forward the relationship between growth and unemployment. In detail, even in the years 2004 and 2005 when the Turkish economy grew by 9.4% and 8.4% respectively, the unemployment rates were above the 10% level. This situation set forth that the link between growth and physical investment which constitute the base for production has been weak. On the contrary, during the crisis years when the growth rates were below zero, the expected relation worked and the unemployment rates increased. For instance, the rate of unemployment increased from 6.5% in 2000 to 8.4% in 2001 and to 10.3% in 2002. Lastly, the increase in the rate to the level of 11% in 2008 due to global recession supported the expectation that this increase would continue in 2009. As a subset of the period of focus, years between 1998 and 2008 was also special since the IMF was effective on macroeconomic policies through uninterrupted stand-by agreements during the period. In the 2006 Report prepared by Independent Social Scientists, the year of 1998 was evaluated as a cornerstone in the Turkish Economic History as well as 24th January 1980 or the year 1989 when the capital movements were liberalized. In fact, it was the first time that macro policies were tied to the persistent relation between Turkey and the IMF within this period. According to the items in the programs following each other, free movements of international and national financial capital would be allowed, no intervention would be needed in terms of over appreciated value of TL, labor markets would be more flexible, state enterprises would be privatized and the state would be restructured depending on neoliberal understanding (Independent Social Scientists, 2006). 3.Data Set and the Method The data for wage “quarterly reel wage per hour worked in manufacture industry production” and for production “quarterly industrial production” were taken from Turkish Statistical Institute. For interest rate, “ex-post real interest rate” and for exchange rate “monthly real effective exchange rate” and for energy prices “electricity, gas and water” were used from the data set of the Central Bank of the Republic of Turkey. All the data were transformed to quarter data on the same base year 1997 and the price effect was cleared. 385 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo In the first place, the graphics of the variables were analyzed and production series were adjusted seasonally. Then the situations of whether they were stationary or not were tested with ADF Test (Unit Root Test). The series including unit root were also applied structural breaks test in order to analyze their being stationary. ARDL Bound Test was used to analyze the long-term relationship. Since cointegration was not valid, the analyses were continued with lagged variables. Granger Causality Test with Hsiao Approach (1982) was used in investigating the one way causal relation of other variables toward production and the results of impulse-response functions and variance decomposition by using VAR Analysis were discussed. 4.Findings After required adjustments done mentioned above and Granger Causality Test is applied to variables, it is found that exchange rate, interest rate and energy prices Granger-cause manufacturing industry production in Turkey within the related period. As for wages, such a relation could not be identified for this term. Then application of VAR Analysis put forward the findings shown in Table 3 where “F” symbolized interest rate, “E” energy prices, “UC” wage level, “DK” exchange rate and “UR” production. Table 3: Variance Decomposition Table for D(UR) Period 1 2 3 4 5 6 7 8 9 10 S.E. F 0.041386 26.12569 0.045642 21.80958 0.049081 24.66460 0.050463 27.99220 0.050863 28.85729 0.051005 29.16273 0.051039 29.22121 0.051049 29.22451 0.051051 29.22371 0.051051 29.22310 D(E) 10.43293 17.90020 17.76381 17.17754 16.90906 16.85717 16.85599 16.87086 16.87515 16.87678 D(UC) 0.303792 1.188303 1.039880 1.085908 1.069230 1.079802 1.079802 1.080577 1.080618 1.080656 D(DK) 1.880974 8.713255 9.024850 8.758086 8.706563 8.685333 8.684548 8.682052 8.681462 8.681294 D(UR) 61.25661 50.38867 47.50686 44.98626 44.45786 44.21496 44.15845 44.14200 44.13907 44.13817 As seen from Table 3, the change in production is mostly explained by itself, which was followed by interest rate (with 26.13%), energy prices (with 10.43%), exchange rate (with 1.88%) and wages (with 0.3%). It is obvious that the explanation level of wage level has been pretty low. These findings have been parallel to those of the Granger Causality. After using variance decomposition, impulse-response functions seen below have been analyzed. Accordingly, the response of production to interest rate was negative in the first period with significant coefficients. The coefficients have been insignificant in the following periods. In a similar way, production reacted negatively to energy prices in the first two periods and then the coefficients became insignificant. As for the response of production to exchange rate it seemed to be positive for the first two periods and the coefficients became again insignificant in the others. Again in line with the previous findings, the coefficients in terms of wage level have been insignificant for all periods. The Response of D(UR) to F 386 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo The Response of D(UR) to D(E) The Response of D(UR) to D(UC) The Response of D(UR) to D(DK) 5. Conclusion and Remarks In this study, the relationship between the movements of macroeconomic prices, which appeared to be effective on production between 1992 and 2008, and the progress of production has been researched. The macroeconomic prices undertaken at this point have been restricted with interest rate, exchange rate, energy prices and wages. The findings of the econometric analysis have been evaluated with dominant economic policies of the period, which means that the movements of the variables have been discussed in the light of enforced programs. As it has been stated in the study of İnsel and Sungur (2003) covering the years of 1989-1999, free capital movements increased volatility in real and financial indicators and brought short-term perspective on economic programs. As a result of the liberalization of capital movements, the pressures on exchange rate, interest rate and other prices have risen. Nonetheless, this tendency of short-term perspective handicapped both the formation of longterm perspective required for a stable economy and the rise of investments towards 387 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo production. The paragraph below (Doğruel and Doğruel, 2008) has been instructive in terms of stating the main features of the period. In this long period exceeding 30 years since the second half of the 1970’s, the governments have approached the real economy through the framework of export increase and financial capital inflow; the focus of the policies has been on the inflation control and resource creation for economic sustainability, in other words, on the achievement of macro stability. Turkey’s long-term growth aim has lagged behind in this environment and a long-term action plan or approach for manufacturing industry could not have been formulated although considered from time to time. In the same direction, the simultaneous planning custom of policies for industry and international trade, which characterizes the industrialization strategy of 1960s and 1970s, has been given up after 1980. Due to commitments made to European Union and World Trade Organization, Turkey’s priorities have not been attached sufficient importance in international trade policies that could be used for supporting industrial development (Türel, 2007). Likewise, according to Şenses and Taymaz (2003), in the post 1980 era, external dynamics have been very effective on the formation of basic approaches and policies regarding industry. As a matter of fact, Turkey had been missed out the potential positive effects of national and international prices on production. This negative picture of Turkish economy has revealed the importance of this study, namely, the effect of changes in macroeconomic prices on manufacturing industry production. The general situation underlined as such has shown parallelism with objective findings of the study and has required an overview of enforced macroeconomic policies. It has been seen that the empirical findings of the study have supported the opinions and observations discussed through the study. To remember, real effective exchange rate does Granger-cause manufacturing industry production. Thus, any change in this variable had been effective on the future values of manufacturing industry. In fact, this result has provided the satisfactory evidence for the suggestion of using exchange rate as an effective policy instrument. Furthermore, impulse-response functions have shown that production has given positive reaction to exchange rate in the first two periods. As a reminder, increase in the exchange rate serial used in this study has indicated the appreciation of TL. At first sight, there has been an expectation that appreciation of TL would show a negative impact on production by promoting imports rather than exports in international trade. However apparently, the structure of national production dependent on imported inputs has caused the realization of a reverse relationship between exchange rate and production different from the expected one in the economic theory. That is to say, inputs and intermediate goods imported cheaply due to appreciated domestic currency have increased production between 1992 and 2008. Although this result could seem to be favorable at first, it should not be forgotten that the crucial point has been the increase in current account deficit. To put it another way, because of the production structure that is dependent on imports, Turkey’s high growth rates have caused a widening current account deficit. This situation, which gives way to savings balance deterioration, has increased the need for capital inflow and therefore has played a role in supporting free capital movements. It is clear that this cycle has created pressure on interest and therefore it became difficult leave high interest rate policy that has secured the continuity of capital inflow. If the findings in terms of interest rate have been analyzed, it is revealed that real interest rate does Granger-cause manufacturing industry production. This result, on its own, has shown that interest rate could and should be utilized positively for promoting production increases 388 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo besides inflation targeting. In addition, variance decomposition results have shown that the most effective variable on production has been interest rate and impulse-response functions showed that the reaction of interest rate to production was in negative direction in the first period. A relationship in this direction has been in line with the expectations of economic theory. As known, an increase in interest rate would have a negative impact on production because of its deterrent effect on investments. Besides, this situation has influenced the level of employment indirectly. Indeed, employment problem has been one of the most urgent problems to be handled since the official unemployment rates have been in double digits in Turkey. Even so, interest rate has been kept high due to the current restrictions. As stated, high interest rates have caused to reach high growth rates in Turkish economy by warranting hot money flow between 2002 and 2007. Nonetheless, these high rates have both put Turkish economy on the spot in refunding internal and external liabilities and have influenced income distribution negatively because of the economic growth without creating employment. These outcomes have pointed out that the particular variable that policy makers, who wanted to be effective on production, had to take into account had been interest rate. According to another result, energy prices which are taken into notice in terms of electricity, gas and water Granger-cause manufacturing industry production. Furthermore, variance decomposition results achieved by VAR Analysis have stressed that the second most distinctive variable on production has been energy prices after interest rate. In addition, when impulse-response functions were analyzed, it has been seen that production had given a negative reaction to increases in energy prices in the first two periods as expected. At this point, it is noteworthy to assert that the price of electricity in Turkey, which is used intensively in industry, has been higher than almost all OECD countries. The price of natural gas, which is reasonable with respect to that of electricity, has been important both as a primary resource used in industry and as a resource used in electricity production. On the other hand, since the natural gas is dependent on foreign resources, it has been hard to control its supply and price. All these motives have illustrated the significance of following and controlling energy prices for policy makers willing to increase production and income. In other words, regulation of the energy prices to foster production has been crucial for Turkish industry. In this direction, it has been found worthwhile to revise the decision about privatization of energy sector as has been offered as a solution since 2001. Last result of the study is that any change in real wages does not Granger-cause manufacturing industry production. Also, when impulse-response functions and variance decomposition results were analyzed, it was seen that coefficients determining the relationship between production and wages have been insignificant and the explanation level of wages in terms of understanding production has been significantly low. On the basis of this analysis, it could be concluded that the relationship between manufacturing industry sector and domestic demand has been weak. This finding seems to be neither surprising nor unreasonable for an economy that is based on export-led growth, dependent on foreign demand rather than the domestic. Above all, the social dimension of wages has to be taken into account rather than interpreting it solely as a macroeconomic price. This has been a considerable matter due to the fact that the number of people living in poverty in Turkey is increasing day by day. As a result of this situation that has taken its root from 1980 transformation, on the one hand the participation of economy to world trade has increased significantly, the structure of exports has shown an important change towards industrial products and on the other hand, the expected increases in production, employment, private 389 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo domestic and foreign investments have not been provided and real wage developments have shown an unstable outlook. To sum up, as indicated clearly in report of TÜSİAD, the deepening tendency of integration in the world economy after 1990s has been forcing all countries to review their industrial policies. This process has carried the potential of creating a deindustrialization process for developed and developing countries (Doğruel and Doğruel, 2008). The policy making that has to be implemented against this dangerous situation is the use of national resources in a productive way and to allocate them for pre-determined targets. Acknowledging the significance of fiscal policy52, the economy should be managed by a state, responsible not only for regulation but also for direction. Such an increase in production would provide a general improvement in welfare by both preventing unproductive use of resources and by increasing employment through new investments. REFERENCES Boratav, K. (2004) Türkiye İktisat Tarihi: 1908-2002, İmge Publishing, Ankara. Doğruel, S. and Doğruel, F. (2008) “Türkiye Sanayine Sektörel Bakış” TÜSİAD Report Edition No:466, İstanbul. Hsiao, C. (1982) “Autoregressive Modeling and Causal Ordering of Economic Variables”, Journal of Economic Dynamics and Control Vol:4, 243-259. Independent Social Scientists 2006 Report (2006), IMF Gözetiminde On Uzun Yıl, 19982008: Farklı Hükümetler Tek Siyaset, Yordam Publishing, İstanbul. İnsel A. et al. (2004) “The Direction, Timing and Causality Relationships Between the Cyclical Components of Real and Financial Variables During the Financial Liberalization Period in Turkey”, TEK Discussion Text 2004/1, http://www.tek.org.tr, Date Accessed: 10.09.2009. İnsel A. and Sungur N. (2003) “Sermaye Akımlarının Temel Makroekonomik Göstergeler Üzerindeki Etkileri: Türkiye Örneği 1989:III-1999:IV”, TEK Discussion Text 2003/8 www.tek.org.tr, Date Accessed: 31.08.2009. Kazgan, G. (1999) Tanzimattan XXI. Yüzyıla Türkiye Ekonomisi: 1. Küreselleşmeden 2. Küreselleşmeye, Altın Kitaplar Publishing, İstanbul. OECD (2002) “Regulatory Reform in Electricity, Gas and Road Freight Transport” OECD Reviews of Regulatory Reforms: Regulatory Reform in Turkey, http://www.oecd.org/dataoecd/40/11/1840779.pdf, Date Accessed: 15.05.2010. Öniş, Z. and Şenses, F. (2007) "Global Dynamics, Domestic C oalitions and a Reactive State: Major Policy Shifts in Post-War Turkish Economic Development", METU Studies in Development, Vol. 34. No. 2, 251-286. 52 For policies discussed after 2008, see A. Spilimbergo, S. Symansky, O. Blanchard, C. Cottarelli (2008) “Fiscal Policy for the Crisis” IMF Research Department Position Note, http://www.imf.org/external/pubs/ft/spn/2008/spn0801.pdf, Date Accessed: 10.04.2010 390 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Pamukçu, T. and Yeldan, E. (2005) “Country Profile: Turkey, Macroeconomic Policy and Recent Economic Performance” Report prepared for Economic Research Forum, http://www.bilkent.edu.tr/~yeldane/FEMISE_Macro2005.pdf. Spilimbergo, A., Symansky, S., Blanchard, O. and Cottarelli, C. (2008) “Fiscal Policy for the Crisis” IMF Research Department Position Note, http://www.imf.org/external/pubs/ft/spn/2008/spn0801.pdf, Date Accessed: 10.04.2010. Şenses, F. and Taymaz, E. (2003) “Unutulan Bir Toplumsal Amaç: Sanayileşme Ne oluyor? Ne olmalı?”, in İktisat Üzerine Yazılar II, İktisadi Kalkınma, Kriz ve İstikrar, Oktar Türel’e Armağan, (ed. A.H.Köse, F.Şenses and E. Yeldan), İletişim Publishing, İstanbul, 429-461. Türel, O. (2007) “Türkiye’de Sanayileşme ve Kalkınma Planları Dönemsel Uygulamalar” TMMOB Industry Congress, Ankara. Consequences of financial crisis in Bosnia and Herzegovina Fiscal and Monetary Policy Nađa Dreca International University of Sarajevo,Faculty of Business and Administration 71000, Sarajevo, Bosnia and Herzegovina E-mails: nadja.dreca@students.ius.edu.ba, nadja_n88@hotmail.com Abstract Aim of this paper is to analyze effects did global financial crisis have on BiH’s economy and society in general. After examination of effects, it will be researched what are the policies that government has implemented in order to decrease negative effects. Both, fiscal and monetary policies will be examined, with special emphasize will on the stand by arrangement with IMF because it was often debated whether this arrangement was good or wrong movement of the government. Moreover, this paper will provide information about have did these measures affect society and especially certain interest groups, such as demobilized military. Finally when all of these above mentioned are analyzed and discussed, conclusions about efficiency of implemented policies will be made and proposals of what could be done will be developed. Keywords: global crisis, Monetary policy, Fiscal Policy, Central Bank 1. INTRODUCTION Government of Bosnia and Herzegovina introduced some measures aimed in cutting public administration costs and urge state-owned enterprise to devise saving plans. Bosnian government encourages public spending, new capital investments, building roads, open new projects. To conclude, BiH was doing pretty well until 2008, registering decent levels of 391 � 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. 1346 Title A name given to the resource The Effects of Basic Macroeconomic Prices on Manufacturing Industry Production in Turkey Author Author İlknur, Pulak Taras Abstract A summary of the resource. In this research; the effects of macroeconomic prices, such as interest rate, exchange rate, energy prices and wages, on Turkish manufacture industry production in the period 1992- 2008 are investigated. The aim of the research is to bring current macroeconomic policies in Turkey up for discussion once more. In this framework, the economic policies implemented in Turkey since 1980 are elaborated in the first place in order to interpret the economic trends between the years 1992 and 2008 ideally. Then for the purpose of analyzing the mentioned relations, various econometric methods are used. First of all, ARDL Bound Test is applied to series in order to investigate the long run relationship among them. Secondly, causality relationships are questioned by using Granger Causality Test based on Hsiao Approach; and impulse-response functions and variance decomposition tables obtained from Vector Autoregressive Model (VAR) are elaborated. At last, findings are evaluated within the economic framework drawn beforehand and the research is concluded by policy proposals. Accordingly, long run relationship among variables cannot be found, however at the end of causality tests all the variables except real wages are found to be “Granger cause of production”. Moreover, the impulse-response functions put forward that the production reacted negatively to real interest rate, positively to real effective exchange rate and negatively to real energy prices. The coefficient derived for real wages, on the other hand, is discovered to be insignificant. This can be explained by the export orientation policy that has targeted foreign demand instead of domestic. Above all, it should not be neglected that real wage level deserves considerable interest since it determines wealth of the majority of society. As a result of the analyses and assessments in the research, it can be concluded that these variables can and should be utilized as efficient and essential policy tools. Keywords: interest rate, exchange rate, energy prices, real wage, Turkish manufacture industry, ARDL Bound Test, Vector Autoregressive (VAR) Model Date A point or period of time associated with an event in the lifecycle of the resource 2012-05-31 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General),HB Economic Theory,HG Finance,HJ Public Finance https://omeka.ibu.edu.ba/files/original/a7d3dc9cb85fdf39a945a4b49e4af7d3.pdf 4d6422a2003e38aaeb79aeb1589844b9 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo The Effects of Capital Structure Decisions on Firm Performance: Evidence from Turkey Cengiz Toraman University of Gaziantep, Gaziantep, Turkey ctoraman@gantep.edu.tr Yunus Kılıç University of Gaziantep, Gaziantep, Turkey ykilic@gantep.edu.tr Şükriye Gül Reis University of Gaziantep, Gaziantep, Turkey greis@gantep.edu.tr The capital structure decisions of firms have a crucial importance on firms’ financial performance. The capital structure concept is generally described as the combination of debt and equity that make the total capital of firms. The selection of capital components and use of these components play an important role during the determining of financial strategies. Therefore, it is difficult to choose ideal proportion of debt and equity. A good equilibrium of debt and equity can affect the financial performance of company and the value of company. The profitability of an enterprise is directly affected by capital structure decision. Capital structure is the one of the most puzzling issues on corporate finance literature. Beginning with the Modigliani and Miller’s (1958) research, there have been a number of studies which have investigated the relationship between capital structure and financial performance. Modigliani and Miller suggest that the value of a firm is independent from its capital structure in an efficient market when there is no tax factor. Thereby optimal capital structure cannot be reached according to Modigliani and Miller’s approaches. This approach has been taken a number of interests from scholars. The research came in for criticism since capital markets are quite different from efficient market which Modigliani and Miller’s study based on. The aim of this study is to investigate the effects of capital structure decisions on firms’ profitability in manufacturing sector in Turkey. The data used in this research corresponds to the financial statements of manufacturing companies collected between 2002 and 2011. The regression analysis was employed by using financial ratios obtained from financial statements of firms within the scope of analysis. As a result, the capital structure components which have influence on firm performance have been determined and general assessment has been made. Keywords: Capital Structure, Firm Performance, Optimal Capital Structure, Profitability, Financial Leverage, Regression Analysis. 79 � https://omeka.ibu.edu.ba/files/original/878d82811b82fb5b98ee3645674f555b.docx 2d2f0c94eb38665ac9f6e6704f1ecc58 https://omeka.ibu.edu.ba/files/original/4f0491168b7c8b42f5fc3cdae8e7bb6b.pdf c26ac558abfd55c3d26d8b65224bcfee 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. 1557 Title A name given to the resource The Effects of Capital Structure Decisions on Firm Performance: Evidence from Turkey Author Author TORAMAN, Cengiz KILIC, Yunus GUL REIS, Sukriye Abstract A summary of the resource. The capital structure decisions of firms have a crucial importance on firms’ financial performance. The capital structure concept is generally described as the combination of debt and equity that make the total capital of firms. The selection of capital components and use of these components play an important role during the determining of financial strategies. Therefore, it is difficult to choose ideal proportion of debt and equity. A good equilibrium of debt and equity can affect the financial performance of company and the value of company. The profitability of an enterprise is directly affected by capital structure decision. Capital structure is the one of the most puzzling issues on corporate finance literature. Beginning with the Modigliani and Miller’s (1958) research, there have been a number of studies which have investigated the relationship between capital structure and financial performance. Modigliani and Miller suggest that the value of a firm is independent from its capital structure in an efficient market when there is no tax factor. Thereby optimal capital structure cannot be reached according to Modigliani and Miller’s approaches. This approach has been taken a number of interests from scholars. The research came in for criticism since capital markets are quite different from efficient market which Modigliani and Miller’s study based on. The aim of this study is to investigate the effects of capital structure decisions on firms’ profitability in manufacturing sector in Turkey. The data used in this research corresponds to the financial statements of manufacturing companies collected between 2002 and 2011. The regression analysis was employed by using financial ratios obtained from financial statements of firms within the scope of analysis. As a result, the capital structure components which have influence on firm performance have been determined and general assessment has been made. Keywords: Capital Structure, Firm Performance, Optimal Capital Structure, Profitability, Financial Leverage, Regression Analysis. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 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. 911 Title A name given to the resource The Effects of Concept Mapping Strategy Instruction on Reading Strategy Utilization of EFL University Students Author Author Rahimi, Masoumeh Abstract A summary of the resource. Charles Dickens and Emily Bronte are among the greatest novelists in the 19th century in English literature. Great expectations and Wuthering Heights can respectively be regarded as their representative works. In these novels both Heathcliff’s love for Catherine in Wuthering Heights and Pip’s love for Estella in Great expectations are considered as obsessive love.Obsessive love is a form of love where one person is emotionally obsessed with another. Obsessive love can lead to dangerous consequences. John D. Moore in his book, Confusing Love with Obsession describes the concept of "Obsessive Love Wheel" (OLW) which is a hypothetical circle. The wheel illustrates the four stages of Obsessive Relational Progression as part of Relational Dependency (RD). Moore suggests that for people who are afflicted with love addiction, codependency, and etc, their relationships often follow the pattern of the wheel. This obsessive love wheel is divided in four phases as: attraction phase, anxious phase, obsessive phase and destructive phase. In the above mentioned novels the characters Heathcliff and Pip followed the obsessive love wheel pattern. This paper is an attempt to examine the characters’ obsessive love through the psychological phases and how its destructive effect causes the downfall of two of the most powerful literary characters of the British literature, Pip in Great expectation and Heathcliff in Wuthering Heights. 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 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. 902 Title A name given to the resource The Effects of Concept Mapping Strategy Instruction on Reading Strategy Utilization of EFL University Students Author Author Ebrahimi, Maryam Moini, M. Raouf Abstract A summary of the resource. The purpose of the present study was to investigate the effect of instruction of concept mapping (CM) strategy as one of the metacognitive strategies on reading strategy utilization of Iranian EFL university students. Another purpose of the study was determining L2 learners’ attitudes towards use of CM strategy in reading tasks. A pretest-treatment-posttest design and CALLA model for the CM strategy instruction were used. A questionnaire consisting of 30 items (Global Strategies (13 items), Supportive Strategies (9 items), and Problem Solving Strategies (8 items) was used to find out the possible change in participants’ reading strategies utilization. The result of Paired Samples Statistics and t-test showed that after CM instruction participants’ applications of global strategies significantly increased, while the application of other strategies did not change. Moreover, the data obtained from CM questionnaire revealed that participants had significantly positive attitudes towards use of CM in reading tasks. Implications and pedagogical applications for EFL and ESL are discussed. Date A point or period of time associated with an event in the lifecycle of the resource 2012 Keywords Keywords. Conference or Workshop Item PeerReviewed P Philology. Linguistics https://omeka.ibu.edu.ba/files/original/4ea2953c763ddb1d7364f916f4b02bba.pdf 628a3f746797430f689eac0680a90a89 PDF Text Text 1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo The Effects Of Concurrent Product Development On Product Development Performance Birol Akyüz Bilecik University Faculty of Engineering Bilecik, Türkiye birol.akyuz@bilecik.edu.tr A. Yeşim Yayla Marmara University, Technical Education Faculty Istanbul, Türkiye yayla@ marmara.edu.tr Abstract: The intensive competition in global world markets has shown that existence of enterprises is only possible by ensuring customer satisfaction. Ensuring customer satisfaction is possible by developing products that can meet expectations of customers. The companies which can determine demands and expectations of customers fastest and most correctly, reflect this information on product development process in a short time and introduce these products designed with a customer-focused approach will be the companies that can succeed in today’s competitive environment. One of the sectors that successfully take place in Turkey’s global competition is Ceramic Sector. This Ceramic Sector is of great importance in world markets with its high quality products with low costs. One of the most important factors affecting product development performances of the companies in the sector is the successful implementation of concurrent product development technique. In this study, the effects of concurrent product development process on product development performance in Turkish ceramic sector were studied by investigating the factors affecting concurrent product development process. Introduction Together with increasing demands and expectations of customers that change continuously, shortening of life time of products and demand for lower costs cause a pressure on product development speed of companies (Eppinger and Chitkara, 2006). Enterprises spend more money from their budgets on product development studies and carry out their product development studies in a systematically and planned way (Brown et al., 2004). This has raised the importance of concurrent product development processes in the enterprises (Goetsch and Davis, 2006; Cooper, 2001). Profits and competitiveness ofthe companies having high product development performances are highly improved (Brown et al., 2004; Swink, 2002). The main features that make companies superior to their rivals in product development studies are; carrying out studies with product development teams which customers and suppliers take part in, aiming concurrent product development approach in order to pass beyond others by means of especially cost and speed (McGrath, 2004; Ulrich and Eppinger, 2003). Product Development Approaches Companies are constantly striving to improve the performance of their new product development activities. Product development approaches are based on two different methods. These are sequential-serial or traditional product development and concurrent product development. W hen entering the global market the companies encounter several difficulties,the most important one being excessive time for new product development. This problem can be solved by transition from sequential product development to concurrent product development. 343 �1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo Sequential-Serial Product Development Sequential product development, also known as sequential-serial engineering or traditional product development,isthe term used to describe the method of process and production in a linearformat. The different steps are done one after another, with allattention and resources focused on that one task.Afteritis completed it isleft alone and everything isconcentrated on the nexttask (Prasad, 1996). In sequential product development,the various functions such as design, manufacturing, and customer service are separated. The information in serial product development flows in succession from phase to phase. For example, the prototype model, verified by either simulation or prototyping or both, is reviewed for manufacturing, quality and service. Usually, some changes are suggested after the review. If the suggested changesinthe design are made,they areincreasesinthe costand time to develop the product,resulting in delays in marketing the productlaunching (Maylor, 1997).Ifthe changes cannot be made because of market pressure to launch the product quickly, or the fact that the design is already behind schedule, then specialists in other functional areas or managers from manufacturing, quality, and service, among others, are informed of the impending problems. In sequential product development a department starts working only when the preceding one has finished, and, once a department has finished working on a project, or part of a project,this is not planned to come back,information flow is only one way (Ainscough etal., 2003, p.426; Rosenau, 2000). Sequential product development process was carried out in stages by the various functions in a company. The marketing department would conduct its research and create a new product concept, which it would pass on to the design engineers. They would then design a product with no thought for how it was to manufactured and pass it on to the manufacturing engineers, who would redesign itto be manufacturable. They would then pass the designs on to the purchasing department to buy the necessary components. Because very little communication occurs between functions, even at the handovers, this process has become known as “throwing it over the wall”. This lack of communication led to frequent design changes, for example if the design is dependent on a component that has been discontinued by a supplier, a new component or technology has been developed that willimprove the product, orthe market has changed. Each change requires returning to the early stages of the cycle, extending the time to market and increasing the likelihood of further change. The process was inefficient, expensive and led to badly made, badly designed products that didn’t meet customer’s needs (Otto and Wood, 2001; Prasad, 1996). A flow diagram of the sequential product development organization is shown in Fig. 1. Figure 1: Sequential-serial product development (Hartly, 1998). Sequential product development is characterized by downstream departments supplying information to design only after a product has already been designed, verified and prototyped (Hartly, 1998),in orderto change what design engineering did wrong, or what could have been improved. A flow diagram of the serial design engineering organization is shown in Fig. 2. Figure 2: Sequential-serial product development on design process (Staudacher et al., 2003, p.226). 344 �1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo Concurrent Product Development Concurrent product development approach is a systematic approach enabling possible concurrent development of a product in related processes and its integration with the processes (Koufteros et al., 2001; Ribbens, 2000; Poolton and Barclay, 1998). Concurrent product development applications are based on carrying outthe activitiesin product development processes concurrently and on working of allthe related processes in a concurrent, seen Fig.3., and integrated manner including different departments of the enterprise, design, production and support services (Griffin, 2002; Maylor, 1997). Especially, collaboration of design and production departmentsisimportantfor developing products consistent with customer needs,reducing the costs, enhancing the quality and increasing the speed (Barclay et al,2000; Swink, 1998; Salomone, 1995), Main features of concurrent product development practices are; being surethat process designis parallel and concurrent, realizing all the activities in a coordinated way, teams’ making decisions about product development and processes, using cross functionalteams, gathering of the team members regularly,information sharing and collaboration between the teams, shortening product development and market entry times, reducing the costs and developing products consistent with customer needs (Minderhoud and Fraser, 2005; Kusar at al., 2004). Concurrent product development processes affect product development performance in a positive way (Cooper et al., 2003; Griffin, 2002). Concurrent product development is known as concurrent engineering, modern Product Development, overlapping Product Development,integrated Product Development and cross functional Product Development. Concurrent product development, sometimes called simultaneous engineering, or parallel engineering has been defined in several ways by different authors. One ofthe mostpopular one isthat by Prasad (1996), who statethat concurrent engineering ‘is a systematic approach to the integrated, concurrent design of products and their related processes,including manufacture and support.’ This approach is intended to cause the developers, from the outset,to consider all elements ofthe productlife cycle from conception through disposal,including quality, cost,schedule, and user requirements (Carter and Baker, 1992). Figure 3: Concurrent productdevelopment (Hartly, 1998) In concurrent product development allfunctional areas are integrated within the design process.In this case information continuously flows back and forth among all functions. During the design process concurrent product development draws on various disciplines to trade-off parameters such as manufacturability,testability and serviceability, along with customer performance, size, weight, and cost (Ainscough et al., 2003). A flow diagram of concurrent product development is shown in Fig. 4. Figure 4. Concurrent productdevelopment on design process (Staudacher et al., 2003, p.226). The decision making process in a concurrent product development environment differs from sequential engineering in that at every stage decisions are taken considering the constraints and the objectives of all stages ofthe productlife cycle,thus taking atthe product design levelissuesthat are usually addressed much later,thus giving the possibilityto achieve a better overallsolution (Prasad, 1996). The integration of otherfunctional areas within the design process helps to discover hard to solve problems at the design stage. Thus, when the final 345 �1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo design is verified,itis already manufacturable,testable,serviceable,and of high quality. The most distinguishing feature of concurrent product development is the multidisciplinary, cross-functional team approach. Product development costs range between 5% and 15% of total costs, but decisions taken atthis stage affect 60–95% of total costs (Kusar et al., 2004). Therefore itis at the product development stage that the most relevant savings can be achieved. Examples of successful concurrent product development implementations are reported from all over the world (Kusar et al., 2004; Ainscough et al., 2003; Zirger and Hartly, 1996). In concurrent product development, different tasks are tackled atthe same time, and not necessarily in the usual order. This means thatinfo found outlaterinthe process can be added to earlierparts,improving them, and also saving a lot of time. This is a method by which several teams within an organization work simultaneously to develop new products and services and allows a more stream lined approach. The concurrent product development is a non-linear product or project design approach during which all phases of manufacturing operate at the same time - simultaneously. Both product and process design run in parallel and occur in the same time frame. Product and process are closely coordinated to achieve optimal matching of requirements for effective cost, quality, and delivery. Decision making involves full team participation and involvement. The team often consists of product design engineers, manufacturing engineers, marketing personnel, purchasing, finance,and suppliers (Ainscough etal., 2003; Swink, 1998). Concurrent Product Development vs Sequential Product Development Concurrent product development is a simultaneous development of product and process. It is used to achieve “better,faster and cheaper” new productintroduction as it aims to improve the quality of new products as well as bringing them to the market more quickly and cheaply than the serial-sequential product development approach. W hen developing a new product(here we are dealing with development of a product and its production process),itis necessary to harmony all development stages. The product development time can be reduced by concurrent product development time and it is reduced by 50% or more due to the following reasons (Prasad, 1996): * Activities run in parallel, * Team members have regular meetings which allow fast and efficient exchange ofinformation, * Responsibility for all product features is transferred to teams (no time is wasted for searching the person ‘‘who isto be blamed for errors ’’). In the serial-sequential product development the design “wasthrown overthe wall”. On the other hand, in the concurrent product development the departmental barriers are removed. In other words, the designers or cross functional team members have to get involved and discuss the all issues related to manufacturing at the early stage ofthe design process (Kusar et al.,2004; Ainscough et al., 2003). Concurrent product development represents an organisation’s ability to carry out product development as a series of overlapping phases, which delivers product on time, to provide customer satisfaction at the right price (Prasad, 1996). Therefore concurrent engineering can be defined as: • A philosophy of product development:Integrating multiple design issues, • A method of product design: Integration of multidisciplinary folks into design team, • A method to lead people: Design issues are represented by allthe relevantinthe people, The goal of Concurrent Engineering isto improve the interactive work of different disciplines affecting a product. The following are some ofthe benefits(Crowson, 2006; Ribben, 2000): • Well-understood user requirements, • Reduce cycle times, • Firsttime quality producible designs, • Shorter development spans, Eliminate the redesign procedure, • A smoothertransition to production • A new respectfor otherteammates, • Lower cost, decrease production costresultsfrom the minimization ofthe productlife cycle, • Teamwork - Human Resources are working together for a com mon product, • Highly satisfied customers, the company can increase the prospect of delivering a quality producttothe customer. Concurrent product development pays offin (Crowson, 2006; Ainscough at al., 2003; Prasad, 1996): • Product development cycle time reduced 40-60%, 346 �1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo • • • Manufacturing costs reduced 30-40 %, Engineering change orders reduced more than 50 %, Scrap and rework reduced by as much as 75%. Concurrent product development is a commonsense approach to product design, development, production and support. By collecting and understanding allrequirements thatthe product must satisfy through itslife cycle atthe start of concept definition, we can reduce cost,avoid costly redesign and rework, and shorten the development process. We do this by capturing all customer requirements and expectations and involving all related disciplines from the start. Working as a team on all product related processes, we can provide for a smooth transition from development to production (Crowson, 2006). Primary elements of concurrent product development are voice of the customer, multidisciplinary teams, automation tools and techniques and process management (Backhouse and Brookes,2004). Figure 5: Sequential and concurrent developments of new products (Backhouse and Brookes, 2004) Cost of concurrent product and process development (CE) arelower than sequential product and process development costs (SE) costs,as presented in Fig.6. Figure 6: Sequential and concurrent developments of new products (Kusar et al., 2004). Product Development Performance Only recently has there been a widespread understanding ofthe need to measure the different facts of success using product development performance metrics. A number of studies have attempted to define and categoriesthem. A number of metrics exist atthe firm levelto establish the overallsuccess rate of development programmes. They are as follows (Crowson, 2006; Kusar et al.,2004; Ulrich and Eppinger, 2003; Barclay et al., 2000; Prasad, 1996; Clark and Fujimoto, 1991): • Sale success ofthe products developed in the market, • Satisfaction ofthe customers of our enterprise, 347 �1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo • • • • • • Average product development costs, Competition power of our enterprise, Product range (scale) of our enterprise, Number of products developed, Product development speed, A mount saved (%) in the budget for R&D studies. One of the factors that affects product development studies is concurrent product development processes (Brown et al., 2004; Ulrich and Eppinger, 2003; Prasad, 1996; Shina, 1994), see Fig.7. Determining the factors that affect concurrent product development processes will enhance the success of product development processes ofthe companies,leads us to hypothesisthat: Hypothesis: There is relation between product development performance and concurrent product development approach. Methodology The data in this study have been obtained by applying a survey prepared according to the 5-pointlikert scale to the companies in Turkish ceramic sector. The persons were interviewed face to face and the questions were answered by directors in charge of product development, product development team leaders or team members. The data obtained from the questionnaire were studied by making factor analysis,reliability analysis, correlation analysis and regression analysis. Theoretical model ofthe research (see Fig. 7) consists of concurrent product development and product development performance. Product development Performance (PDP) is dependent variables ofthe study. Figure 7: Theoretical model ofthe research. Scope of the Research and Preparation of the Questionnaire The research coversthe companiesin Turkish Ceramic sector.It consists of 60 companies, 52 of which responded positively to our demand forthe survey and answered the survey. In preparing the questionnaire, we used the conceptual information which exists in the references obtained in literature scanning carried outinthe studies while forming the theoretical model ofthe research. The survey sheet consists of questions that evaluate the variables in the theoretical model of the research. All the questionsinthe survey were prepared in such ways that only one answer was valid so thatthe persons answering these questions could give define answers. The persons answering the questions were asked not to leave any question empty. Scales Used in the Questionnaire Scales used in the survey were arranged consistent with theoretical model of the research. Concurrent product development was evaluated with a scale of six questions and product development performance with a scale of eight questions. In answering the scales of concurrent product development on the survey sheet,the 5pointlikertscale was used as;(1)totally disagree,(2) don’t agree,(3) no idea (4) agree,(5) totally agree. Those who answered the survey for product development performance were asked to evaluate product development performance of enterprises in lastthree years according to the sector average. The 5-pointlikert scale was used for evaluation as; (1) much lower than the sector average, (2) lower than the sector average, (3) same as the sector average,(4) higherthan the sector average,(5) much higher than the sector average. 348 �1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo Data Collection As data collection method, companies were visited and company authorities were asked to answer the survey by face to face interview method. By face to face interview method, the questions were understood correctly and answered easily as their demands for additional explanations about the questions were met instantly. Data Analysis and Findings In data analysis, SPSS 11.5 statistics programme was used. Methods used in data analysis are factor analysis,reliability analysis,correlation analysis and regression analysis. Hypothesis was evaluated according to the results obtained from regression analysis. Of 60 companies in Turkish ceramic sector, 52 of them answered the survey. Twenty eight of these companies (53.8%) work in ceramic tileindustry, 16 ofthem (30.8%) in health products industry (sanitaryware), 4 of them (7.7%) in tableware and ornament 4 of them (7.7%) in technical ceramic field. Of the persons who answer the survey, 44.2% were R&D manager, 17.3% technology manager, 13.5% factory manager, 9.6% production manager, 5.8% R& D engineer and 5.8% quality assurance manager. Analyses and Results Reliability analysis was carried out in order to determine the reliability of the survey questions. Reliability coefficient (Cronbach’s coefficient) is α = 0.7439. According to the results of the analysis,the fact thatreliability coefficient(α)has a value higherthan 0.5 shows thatthe survey questions were reliable and valid (Özdamar, 2002; Manly, 1994). Factor loadings were studied by applying factor analysis to the variables in the research model (see Appendix A). According to Appendix A, total variance explained by variables related with concurrent product development characteristicsis 62.206 %. Correlation analysis was applied tothe variablesinthe scope ofthe research and extent and direction of the relation between the variables were investigated (Manly, 1994). Pearson’s correlation coefficients related with the variables, average and standard deviation values are seen in Tab. 1. PDP CPD Pearson Correlation Sig.(2-tailed) Pearson Correlation Sig.(2-tailed) Mean Std.Deviation 3.6226 0.46672 3.6859 0.62418 PDP 1 . 0.246 0.079* CPD 0.246 0.079* 1 . P<0.1*, P<0.05**, P<0.01*** Table 1: Correlations, Mean,Standard Deviation. As seen in Tab. 2, values for regression model of concurrent product development are; p<0.1, F= 3.208 and R2 = 0.060. This shows that variableincluded inthe model defines 6.0 % of variance of product development performance. Concurrent product development affects product development performance at p<0.1 significance level and with beta value 0.246. According to Tab. 2,itis seen thatthere is a positive. This result supports the hypothesis H1. The regression equation is given below. y = β 0 + β1x + ε Independent Variable Standardized Coefficients Beta P Constant F P 0.060 3.208* 0.079 β0 β Concurrent Product Development Constant R2 (0.000) (2.946) 349 �1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo Concurrent Product Development 0.246* 0.079 P<0.1*, P<0.05**, P<0.01*** Table 2: Product development performance regression. Conclusions Continuous and rapid changes in global markets have raised the importance of product development activities ofthe companies.In today’s competitive world in product development studies and concurrent product development processes, it is known that it is important for the enterprises to work by collecting different individuals from different principles, especially by means of product development speed, cost and product development performance. Concurrent product development process is known to be effective on product development performance. Determining the factors that affect concurrent product development processes will enhance the success of product development studies ofthe companies. The companies which succeed in product development will pass beyond theirrivals and launch their products and services earlierthan them. The results obtained from the study briefly are: concurrent product development process has a positive effect on product development performance. Product development is related with allfunctions of the enterprise and it should be seen as a whole. It is not only one department’s or a few persons’ responsibility, but a team work which requires involvement of all employees voluntarily. The factthatteams consist of people who work in different departments of the enterprise affects the speed of product development processes. Reflecting the demands and expectations of the customers and suppliers on product development processes and their existence in product development processes is important for achieving the quality dimensions of the product. It is also important for enhancing com munication, making information sharing easier and coordinating product development activities. Hence,this enables the companies to catch possible opportunitiesin the sector in which they show activity and get a serious advantage in the competition. For success of the companies in product development; carrying out a significant R&D study and providing all sorts of sources for this, determining stronger sides of the company compared to its rivals and taking good advantage ofit, determining weak sides of existing products or processes and seeking ways to solve these, having good knowledge of characteristics and strategies ofthe rivalsinthe sector, having good knowledge of characteristics of the customers, determining target customers successfully, determining the number of new products aimed in one year correctly and using product development tools and techniques effectively are quite importantin the success of product development studies.Itwill be extremely beneficialfor the companiesin the ceramic sector by means of product development performances to evaluate product development studies and plan their product developmentactivities by taking the results ofthis research into account. Co mp. CPD 1 CPD 2 CPD 3 CPD 4 CPD 5 CPD 6 PDP 1 PDP 2 PDP 3 350 Variables C O N C U R RE NT PR O D U C T DEVEL OP M E NT In our enterprise there are electronic data storage systems through which the employees can easily get access toinformation about product development In our enterprise product developmentis a concurrent (parallel) process All sorts of matters and possible problems about product development are discussed in designation stage of product development process In our enterprise designs are made which partially/totally eliminate design changes that may emerge in any stage of product development process In our enterprise great effort and sources are spentinthe firststages of product development process Product development teams (cross functionalteams) which consist of different persons in product development studies and which suppliers and customers also take partin are used PR O D U CT DEVEL OP M E NT PERF O R M A N C E Sale success ofthe products developed in the market Satisfaction ofthe customers of our enterprise Average product development costs Factor Loadin g Total Variance Explained (%) 62.206 % 0.748 0.679 0.829 0.846 0.688 0.741 68.558 % 0.792 0.835 0.828 �1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo PDP 4 Competition power of our enterprise 0.559 PDP 5 Product range (scale) of our enterprise 0.847 PDP 6 Number of products developed 0.884 PDP 7 Product development speed 0.605 PDP 8 A mount saved (%) in the budget for R&D studies 0.599 PDP: Product Development Performance CPD: Concurrent Product Development Appendix A: Factor Loading References Ainscough, M.; Neaily, K.; Tennant, C. (2003). A Self-Assessment Tool for Implementing Concurrent Engineering through Change Management, Int.Journal of Project Management, 21, (pp.426-430). Backhouse J.C and Brookes J.N. (2004). Concurrent Engineering, John Wiley & Sons, Inc. New York. Barclay, I; Dann, Z., Holroyd, P.(2000). New Product Development, CRC Press, New York, USA. Brown, M.; Leavitt, P.; Wright, S. (2004). New Product Development, American Productivity & Quality Center – APQC, Houston, USA. Carter, E.D. and Baker, S.B. (1992). Concurrent Engineering the Product Development Environment for the 1990s, Addison Wesley Publishing Company Inc., USA. Clark, K. B. & Fujimoto, T. (1991). Product Development Performance, Harvard Business School press, USA. Cooper, G.R.; Edgett, J.S.; Kleinschmidt, E.J. (2003). Improving New Product Development Performance and Practices, American Productivity & Quality Center –APQC, USA. Cooper, R.G. (2001). 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Multivariate Statistical Methods, Second Edition, Chapman-Hall, London, UK. Maylor, H.(1997). Concurrent New Product Development: An Empirical Assessment, International Journal of Operations & Production Management, Vol.17, No.12, (pp.1196-1214). Maylor, H.; Gosling, R.(1998). The Reality Of Concurrent New Product Development, Integrated Manufacturing Systems, Vol.9, No:2,(pp.69-76). McGrath, M.E. (2004). Next Generation Product Development, McGraw-Hill Companies, Inc., USA. Minderhoud, S. and Fraser, P. (2005). Shifting paradigms of Product development in fast and dynamics markets, Reliability Engineering and System Safety, 88, (pp.127-135). Otto, N. K. and Wood, L.K. (2001). Product Design, Prentice Hall Inc., USA. Özdamar, K.: “Paket Programlamalar ile Đstatistiksel Veri Analizi”, 4.Baskı, Kaan Kitabevi, Eskişehir, (2002). 351 �1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo Poolton, J.; Barclay, I. (1998). New Product Development from Past Research to Future Applications, Industrial Marketing Management, 27, (pp.197-214). Prasad, B. (1996). Concurrent Engineering Fundamentals, Volume I, Prentice-Hall, Inc., New Jersey, USA. Ribbens, A.J. (2000). Simultaneous Engineering for New Product Development, John Wiley & Sons, Inc., USA. Rosenau, D.M. (2000). Successful Product Development, John Wiley&Sons, Inc., New York, USA. Salomone, A.T. (1995). Concurrent Engineering, Marcel Dekker, Inc., New York, USA. Shina, S. G. (1994). Successful Implementation of Concurrent Engineering Products and Process, Van Nostrand Reinhold, New York, USA. Staudacher, A.P; Landeghem, H.V.; Mappelli, M.;Redaelli, C.E. (2003). Implementation of Concurrent Engineering: A Survey in Italy and Belgium, Robotics And Computer Integrated Manufacturing, V.19, (pp. 226-235). Swink M. (2002). Product development-Faster, on-time, Research and Technology Management, Jul/Aug V.45, N:4, (pp.5059). Swink, L. M. (1998). A Tutorial on Implementing Concurrent Engineering in New Product Development Programs, Journal of Operations Management, 16, (pp.103-116). Ulrich, K.T. and Eppinger, S.D. (2003). Product Design and Development, Third Edition, McGraw Hill Companies, Inc., New York, USA. Zirger, J.B. and Hartly, L.J. (1996). The Effect of Acceleration Techniques on Product Development Time, IEEE Transactions on Engineering Management, Vol.43, No.2, (pp.143-152). 352 � https://omeka.ibu.edu.ba/files/original/4f810642a0e0724cb0c523356a0bc38d.doc 4233f2319fad265e2d048904884bfd6d 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. 502 Title A name given to the resource The Effects Of Concurrent Product Development On Product Development Performance Author Author Akyüz, Birol Yayla, A. Yesim Abstract A summary of the resource. The intensive competition in global world markets has shown that existence of enterprises is only possible by ensuring customer satisfaction. Ensuring customer satisfaction is possible by developing products that can meet expectations of customers. The companies which can determine demands and expectations of customers fastest and most correctly, reflect this information on product development process in a short time and introduce these products designed with a customer-focused approach will be the companies that can succeed in today’s competitive environment. One of the sectors that successfully take place in Turkey’s global competition is Ceramic Sector. This Ceramic Sector is of great importance in world markets with its high quality products with low costs. One of the most important factors affecting product development performances of the companies in the sector is the successful implementation of concurrent product development technique. In this study, the effects of concurrent product development process on product development performance in Turkish ceramic sector were studied by investigating the factors affecting concurrent product development process. Date A point or period of time associated with an event in the lifecycle of the resource 2009-06 Keywords Keywords. Conference or Workshop Item PeerReviewed Q Science (General) https://omeka.ibu.edu.ba/files/original/6720f74b8c1b163a24e90cd2be7c207c.pdf 3769cc50c1ab5a3397a100cd76bb98b5 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo The Effects of Cultural Differences and Politics on Tax Morale: The Case of Italy and Turkey Recep Tekeli University of Adnan Menderes, Turkey rtekeli@adu.edu.tr In this paper we analyze the tax morale in Turkey and Italy, using data from the fifth wave of World Values Surveys. Using Survey data for comparative analysis we can see the differences in several factors affecting Tax Morale between Italy (mainly composed of Catholics) and Turkey (mainly composed of Muslims). The results for the magnitude of tax morale show that Italy and Turkey rank in the highest as compared to other countries within their regions. Thus, this gives a task to explain why tax morale is very high in these two countries which differ in cultures and politics; what determines tax morale and are there any similarities between these two countries in the determination of tax morale level. We empirically test what shapes tax morale by using Ordered Probit model. We have followed the literature but used additional variables to see what determines the notion “intrinsic motivation to pay taxes i.e. tax morale”. Most of our findings are in line with the earlier works in tax morale literature. We agree with the statement that not only trust in the government might have an effect on tax morale (Turkey), but also trust in the court, or the legal system (Italy), and hence the way the relationship between the state and its citizens is established. Also our findings indicate that older individuals tend to exhibit higher tax morale. In line with the previous findings in the literature pride has positive effect on tax morale level in the study countries. The results on religion, indicates that while tax cheating is immoral for Religious individuals in Turkey, we cannot make the same conclusion for the religious individuals in Italy. Keywords: Tax morale; Tax compliance. JEL classification: H26; H30 245 � https://omeka.ibu.edu.ba/files/original/7de7da90b79f4fc17f72b968e96aa0e6.docx d657571bb968a223ba4ad4f3521400fc https://omeka.ibu.edu.ba/files/original/9a34697a8795269288be5c6039fd0920.pdf 79af557814badaac84190e89231ccfbc PDF Text Text International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo The Effects of Cultural Differences and Politics on Tax Morale: The Case of Italy and Turkey RecepTekeli Adnan Menderes University, Nazilli, Turkey rtekeli@adu.edu.tr Abstract In this paper we analyze the tax morale in Turkey and Italy, using data from the fifth wave of World Values Surveys. Using Survey data for comparative analysis we can see the differences in several factors affecting Tax Morale between Italy (mainly composed of Catholics) and Turkey (mainly composed of Muslims). The results for the magnitude of tax morale show that Italy and Turkey are rank in the highest as compared to other countries within their regions. Thus, this gives a task to explain why tax morale is very high in these two countries which differ in cultures and politics; what determines tax morale and are there any similarities between these two countries in the determination of tax morale level. We empirically test what shapes tax morale by using Ordered Probit model. We have followed the literature but used additional variables to see what determines the notion “intrinsic motivation to pay taxes i.e. tax morale”. Most of our findings are in line with the earlier works in tax morale literature. We agree with the statement that not only trust in the government might have an effect on tax morale (Turkey), but also trust in the court, or the legal system (Italy), and hence the way the relationship between the state and its citizens is established. Also our findings indicate that older individuals tend to exhibit higher tax morale. In line with the previous findings in the literature pride has positive effect on tax morale level in the study countries. The results on religion indicate that while tax cheating is immoral for Religious individuals in Turkey, we cannot make the same conclusion for the religious individuals in Italy. Keywords: Tax morale; Tax compliance JEL classification: H26; H30 Introduction Why do people pay taxes? This question recently has started to be pronounced more often and attracted increased attention in the tax (non)compliance literature over the last few years. It is supposed that nobody likes to pay taxes but governments can still generate tax revenues. One possible answer among the scholars is to force people to pay their taxes by establishing a deterrence policy. In line with the economics-of-crime approach, Allingham and Sandmo‟s (1972) model shows that the extent of tax evasion is negatively correlated with the probability of detection and the degree of punishment. However, because of the empirical and experimental findings, their seminal model has attracted many criticisms by researchers. These deterrence models predict a comparatively high incidence of tax evasion; even in many countries, the actual level of deterrence is found to be too low to explain the high degree of tax compliance(see Torgler et al 2010:294; Torgler and Shaltegger, 2006:396). 1 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo In the tax compliance literature this seemed to be a “puzzle”, or in other words, it is indeed an avenue to study further for the scholars. To resolve this puzzle of tax compliance, many researchers have tried to link tax morale to the high degree of tax compliance (e.g., Frey and Feld 2002; Feld and Tyran 2002; Torgler 2001 and Torgler and Schneider 2009). In this perspective, Torgler, (2003:290) argued that Erard and Feinstein‟s work (1994) “demonstrates the relevance of integrating moral sentiments into the models to provide a reasonable explanation of actual compliance behavior”. Also while reviewing the tax compliance, Andreoni et al. (1998:852) suggest that “adding moral and social dynamics to models of tax compliance is as yet a largely undeveloped area of research” (see Torgler Schneider and Shaltegger 2010:294). Following Torgler‟s researches into the field of tax morale, rather than treating tax morale as a black box, or a residuum, many papers have analyzed which factors shape or maintain tax morale (see Torgler and Schneider 2007ab; Torgler and Murphy 2004; and Torgler et al 2010). In addition, this puzzle concerns policymakers because they need to know the driving forces of tax morale and the possibility that it influences willingness to pay taxes so that they can design efficient tax system. In the literature, tax morale is defined as “a moral obligation to pay taxes”, or “a belief in contributing to society by paying taxes”. It is also defined as “the existence of an intrinsic motivation to pay taxes” (Torgler 2003; 2004; Torgler and Schneider 2009; Cummings et al 2009; Torgler 2005). This is not an output variable like the size of shadow economy; it measures individual attitude not individual behavior (Torgler 2004; Torgler and Schneider 2009). Tax morale is also closely linked to the term taxpayer ethics by Alm and Torgler (2006:228) and Torgler and Schneider (2007a:10; 2007b:444) and used the definition by Song and Yarbrough (1978:443) that, “the norms of behaviour governing citizens as taxpayers in their relationship with the government”. Torgler and Murphy(2004:301) defines the concept as “tax morale can generally be understood to describe the moral principles or values individuals hold about paying their tax”1 Why Tax Morale is Important? Stemming from German scholars in the 1960s, Torgler and Schneider (2007a:10-11) argue that values and attitudes can affect individual behavior: Apart from sanctions, Spicer and Lundstedt (1976) argued that a set of attitudes and norms might have effect on the choice between tax compliance and evasion. Lewis (1982) points out that “it could be that tax evasion is the only channel through which taxpayers can express their antipathy … we can be confident in our general prediction that if tax attitudes become worse, tax evasion will increase” (p. 165, 177).” (excerpted from Torgler and Schneider 2007a:10-11). Therefore, we can state that values and attitudes can affect individual‟s behavior. Tax noncompliance is actually inevitable fact in all societies (see Schneider 2005; Schneider et al 2010 and Schneider and Buehn 2013). Schneider (2005:598) argues that most societies attempt to control shadow economic activities “through measures such as punishment and prosecution, or by relying on economic growth or education”. Schnieder (2005), Schneider et al (2010) ) and Schneider and Buehn (2013) have provided estimates of the size of the shadow economies for OECD countries over the periods of time. The first conclusion from these results is that for all countries investigated the shadow economy has 1 Tax morale is sometimes related to the term tax culture. Although it is not well conceptually organized yet, tax culture is defined as all residual factors that have not been considered to explain the behavior of tax compliance. In this aspect, Nerre (2008:155) defines tax culture as follows: “A country-specific tax culture is the entirety of all relevant formal and informal institutions connected with the national tax system and its practical execution, which are historically embedded within the country‟s culture, including the dependencies and ties resulting from their ongoing interaction.” 2 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo reached a remarkably large size and increasing over the years. Also, the empirical results convincingly demonstrate that an increasing burden of taxation and social security payments, combined with rising state regulatory activities, are the major driving forces underlying the size and growth of the shadow economy. In Graph 1, the lowest shadow economies have Austria, Luxembourg and Britain with the size of shadow economy around 10 to 12 percent in 2010. The size of shadow economy in Italy was 26.74% in 2010. The highest shadow economies among 26 EU countries have Romania with 30.9 and Bulgaria 31.9 percent. These countries‟ sizes of shadow economy are above Turkey‟s size in 2010 i.e 29%. The comparison of shadow economies in EU shows an important phenomenon for some countries to deal with. The main problem in the shadow economy, or black economy, is the fact that individuals are behaving dishonestly by providing false information. If so, what would lead citizens to behave more honestly, provide correct information and improve the tax compliance rate? Some believe that tax morale is an answer to this question (see Feld and Frey 2002). Also, Torgler and Schneider (2007b) argue that a reduction of tax morale reduces the moral costs of behaving illegally and increases the incentives to work in the black economy. Shadow, %GDP, 31.9 29 26.7 35 30 25 20 15 9.6 10 5 0 Romania Malta Lithuania Poland Spain Estonia Latvia Mean Finland Denmark Czech… France 20.5 UK Luxemb… Axis Title Graph 1: Size of the Shadow Economy in 26 EU Countries and Turkey (2010) Source: Graph 1 is prepared by using shadow economy estimates of Schneider et al (2013) According to Alm, et al (2004), a negative correlation between the size of the shadow economy, which is a measure of the extent of tax evasion, and tax morale indicates the extent to which individuals‟ revealed actions are related to their attitudes about paying taxes (Torgler and Schneider 2009:230; 2007b). In this extent, a number of previous studies have investigated the simple correlation between tax morale and the size of shadow economy. For example, Alm and Torgler (2006:242) focusing on Europe and the United States find a strong negative correlation (r=-0.460). Alm et al (2006) focused on transition countries and their results indicate a strong negative correlation between both variables (0.657) (see Torgler and Schneider, 2009:230). Torgler (2005) studied in Latin America, and found a strong negative correlation between both variables (-0.511). Torgler and Schneider (2009) find a significant correlation between tax morale and the size of shadow economy. Also, the beta coefficients show that its quantitative impact is comparable to other determinants. Schneider and Buehn (2013) show that average relative impact of the 3 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo tax morale on the shadow economy of 38 OECD countries over 1999 to 2010 is 9,5% and its effect on the shadow economy is -0.21. The conclusion is that higher tax morale leads to a smaller shadow economy. It has been argued that if tax authority places a taxman under every bed it is highly likely to achieve a high level of tax compliance rate but with high costs to the tax authority. Torgler and Shaltegger (2006:397) argues that “even though taxation is enforced by law, there is a moral dimension in paying taxes for many people”. For example, Slemrod (1992:7) “states that methods that reinforce and encourage taxpayers‟ devotion to their responsibilities as citizens play an important role in the tax collection process” (excerpted from Torgler and Shaltegger 2006:397). If tax morale is thought to be an explanation for why tax compliance rates are so high, it would be interesting to analyze what may shape tax morale among taxpayers. Next section examines the magnitude and determinants of Tax Morale. Model and variables which are considered to be important explaining tax morale are presented as well. Section 3 gives the empirical results in Turkish and Italian experience i.e. those countries differ in culture, religion and politics. Last section concludes the paper. Magnitude and Determinants of Tax Morale 1 Magnitude If tax morale is seen as an important factor to understand the puzzle of tax compliance and plays a significant role in determining the levels of shadow economy, then it is necessary to investigate the determinants of tax morale. Thus, this section focuses on the magnitude and determinants of tax morale in the study countries: Turkey and Italy. We define tax morale as “the intrinsic motivation to pay taxes” as defined by Torgler in his papers. This is not physical output variable such as tax evasion or the size of shadow economy. It measures an individual‟s willingness to pay taxes, in other words, “the moral obligation to pay taxes” or “the belief that paying taxes contributes to society”. Data for the tax morale variable are extracted from the World Values Survey (WVS) (see Inglehart et al., 2000). The World Value Survey is a worldwide investigation of socio-cultural and political change, which includes the case of Turkey and Italy. In the 2005 wave of the survey, a total of 1346 Turkish citizens and 1012 Italian citizens agreed to participate in the study. In the survey, our main concern is the question number 200 which is about the attitudes toward cheating on taxation. This attitude was measured with the 10 different scales, where the value of one (1) indicates that cheating on taxation is never justifiable and the value of ten (10) means it is always justifiable. The general question to assess the level of tax morale in World Values Survey is that: “Please tell me for each of the following statements whether you think it can always be justified, never be justified, or something in between”: V200. Cheating on tax if you have the chance. 1 2 3 4 5 6 never justified 7 8 9 10 always justified Following the literature, the tax morale variable is generated by recoding this ten-point scale into a four point scale (0,1,2, and 3), with the value 3 standing for “never justifiable”. As usual, the value of 0 is an aggregation of the last 7 scale points (4-10), which were rarely chosen (ie, 0 = “always justifiable” to 3 = “never justifiable”; original scores of 4-10 were recoded into 0 = “always justifiable”). 4 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo We should point Elffers et al. (1987) that their findings indicate the differences between actual evasion assessed and evasion reported in survey responses. This result shows that subjective surveys are always prone to significant reporting errors. As argued by some researchers, tax morale is also measured with subjective survey responses in WWS, thus the measurement of tax morale is not free of bias (e.g. Torgler 2004; Torgler and Schneider 2007; Torgler et al 2010). Because the available data from surveys are based on selfreports in which respondents may tend to overstate their degree of compliance (Andreoni et al. 1998), no objective or directly observable measure of tax morale is available. However, the degree of honesty is expected to be higher because in the WWS the tax morale is defined less sensitive than directly asking whether a person has evaded taxes. Moreover, the dataset is based on wide-ranging surveys (based on more than two hundred questions) it was assumed to reduce the probability of respondent suspicion and the framing effects of other tax context questions. However, it can still be argued that a taxpayer who has evaded in the past will tend to excuse this kind of behavior and report a higher degree of tax morale in the survey. As no sanctions are involved in the survey many respondents might overstate their willingness to pay taxes or degree of honesty( see Torgler and Schneider 2007a; 2007b; Torgler and Shaltegger 2006).2 On the other hand, it was further argued that the use of such a single question (single item value) has the advantage of reducing problems of index construction complexity, especially in regard to measurement procedure or low correlation between items (see Torgler 2003; 2004; Alm and Torgler 2006; Torgler and Schneider 2007a). According to Torgler and Schneider (2007a:450) “tax morale is a multi-dimensional concept that requires a multi-item measurement tool and the likelihood of a multi-item index being adversely affected by random errors will produce more reliable measures. However, several previous studies have found consistent results using single-item survey measurements and laboratory experiments”. Despite these criticisms our approach to measuring tax morale is consistent with the previous studies in this area (Torgler 2003; 2004; Alm and Torgler2006; Torgler and Schneider 2007a). Never Justifiable: Cheating on Taxes, 80.50% Turkey Romania Netherlands Great Britain EU Mean Germany Finland Poland Sweden Bulgaria Norway 2 Spain 61.50% 56.93% Italy 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% France Tax Morale Graph 2 Tax Morale in EU Countries(12 EU Countries and Turkey) We should also indicate another disadvantage of working with survey data as argued by Alm and Torgler (2006:237-238) that “we cannot control for such traditional factors as the audit probability (because this is not known for each individual) and the fine rate (because this is identical for all individuals in a country)”. 5 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Graph 2 provides a comparison of tax morale levels of 12 EU countries with the same method. It shows the frequency of response for “tax cheating is never justifiable” with respect to the total respondents and the EU average value for scaled response. The descriptive analysis reveals the percentage of individuals in each EU country stating that „tax evasion is never justifiable‟ (i.e., those with the highest level of tax morale) and the mean level of tax morale among EU countries. Turkey with 80.50% shows a higher proportion of never justifiable response than that of EU average (57%). Italy‟s level of tax morale was above EU average. The lowest level of tax morale is observed for France and Norway. In sum, the results for the magnitude of tax morale show that Italy and Turkey rank in the highest as compared to other countries within their regions. Thus, this gives a task to explain why tax morale is high in these two countries; what determines tax morale and are there any similarities between these two countries in the determination of tax morale level. Although two countries with very different cultures and a different history and politics, a comparison of tax morale and compliance between Turkey and Italy as a member of OECD constitutes a good experiment. 2 Determinants After having discussed the magnitude of tax morale in EU countries, the question of the determinants of tax morale in Turkey and in Italy arises. 2.1 Model and Variables The empirical analysis in this paper focuses on tax morale which is influenced by a variety of factors. In empirical analysis social, demographic and economic factors as well as national pride or religiosity play a role in determining tax morale in a society. Also, “there is the institutional arrangement in which the government works. Here, the extent of democratic participation (possibilities) by taxpayers as well as the level of institutional and political trust is decisive. Tax morale is driven by the acceptance of government decisions.” (see Torgler and Shaltegger 2006:397). Our main model for predicting tax morale in the study countries has the following structure: TM i   1 TRUSTi   2 PRIDEi   3 POLi   3 HAPPYi   X  k k i 1 where TM denotes the individual degree of tax morale in a respected country; Our key independent variables TRUST denotes individual‟s trust in authority; PRIDE denotes pride of individual; POL is individual‟s political and pro-democratic attitudes, HAPPY denotes individual‟s wellbeing (happiness) and Xis a vector of variables whichdenotes numerous socioeconomics and control variables such as age, gender, marital status, education, awareness, employment and occupational status. Our choice of independent variables is in line with the literature. Torgler and Shaltegger (2006) discuss the studies using the factors to explain the determinants of tax morale in various countries. The dependent variable in our study is Tax Morale (TMi) and the applied econometric method is Ordered Probit models. The tax morale variable is scaled dependent variable and hence the ordered probit models help to analyze the ranking information of this variable (Torgler 2006). Following Cummings et al (2009) answers of “don‟t know” and missing values were not coded and dropped from the sample. As the estimated equation has a nonlinear form only the sign of the coefficient can be directly interpreted. Calculating the marginal effects is therefore a method to find the quantitative effect of independent variable has on tax morale. The marginal effect indicates the change in the share of 6 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo taxpayers (or the probability of) belonging to a specific tax morale level (i.e. 0,1,2,3) when the independent variable increases by exactly one unit. We will present only the marginal effects for the highest value - i.e. tax evasion is never justified- from the ordered probit estimation. Table 1 shows the frequency of response for “tax cheating is never justifiable” with respect to the total respondents. Turkey shows a higher proportion of never justifiable response than that of Italy. The Italian sample had the lowest percentage (61.50%) response for that position but both countries had responses for the “never justifiable” position above sixty percent. The following hypothesis is going to be tested by using main variables: Hypothesis 1. The more extensive the citizens‟ trust in the government, in the parliament and the legal system (justice or the court), the higher the tax morale. Hypothesis 2. The greater the citizens‟ national pride, the higher the tax morale. Hypothesis 3. A stronger pro democratic attitude leads to higher tax morale. Hypothesis 4. Tax morale increases with individual‟s wellbeing. In addition to the main independent variables discussed above we also use additional independent variables as controls to more fully explore what factors might determine tax morale in the study countries. Each of these variables, the questions to be answered and expected coefficient are discussed below: 1. Age (+) We will use age as a continuous variable and also treat age as a categorical variable (three classes are formed in the survey: 18-29, 30-49, 50+ with 18-29 as the reference group): Do older people have higher tax morale than younger? 2. Gender (+) (categorical variable: 1= male (the reference group), 2=otherwise): Do gender differences affect the level of tax morale? 3. Marital status (+) [married (in the reference group), single, living together, divorced, separated, widowed]: Do married people have different levels of tax morale than others? 4. Education (+/-)[continuous variable for higher educational level attained: 1= low (never gone to the school), 10 = higher education)]: Do more educated people have higher tax morale level than less educated people? Besides using formal education as a proxy of such awareness, we also constructed a variable to measure awareness to see its effect on tax morale (see Torgler and Shaltegger 2006). Awareness is a categorical variable and measured by following question: People use different sources to learn what is going on in their country and the world. For each of the following sources, please indicate whether you used it last week or did not use it last week to obtain information: Daily newspaper? (categorical variable: 1=yes, 2=no) 5. Occupation status (-) [full time employed (in the reference group), part time employed, selfemployed,unemployed, housewife, student, retired, other]: Does the occupation status of individual influence tax morale? 6. Economic class (-)[we used scale of incomes: 1=low income, 10=high income].: Do the levels of tax morale vary with the level of tax payers‟ income? 7. Religiosity (+): Does the religion make any differences to the levels of tax morale? Empirical results We observe for WVS data that tax morale is lower in Italy than in Turkey. However this purely descriptive analysis gives information about the raw effects and not the partial effects. The observed differences between Italy and Turkey might be explained in terms of differences in socio-economic, political and socio-demographic factors. Thus multiple 7 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo regressions in the next section help us to separate the effects of several socio-economic and socio-demographic factors from a possible culture difference. We estimate separately the determinants of Tax Morale at the individual level for Italy and Turkey.3 1 Empirical results on tax morale in Turkey Table 2 presents the estimation results for Turkey, focusing only on ordered probit models.4. In a next step we test Hypotheses 1–4. We use three trust variables, (i.e Trust in Legal System, Trust in Government and Trust in Parliament), to check the robustness of the trust variables. These variables allow us to analyze trust at the constitutional level (e.g., trust in the legal system/justice), thereby focusing on how the relationship between the state and its citizens is established; they also allow us to analyze trust more closely at the current politico-economic level (e.g., trust in the parliament and government) (see Alm and Torgler 2006). Trust in Legal System/Justice and Trust in Government are found highly significant. However Trust in Parliament in some estimations is not significant while in some estimations it is significant but with a negative coefficient implying that for those who does not have confidence in parliament they have higher tax morale. Notes: Dependent variable: tax morale on a four-point scale. In the reference group: fulltime employed, married, read newspaper, male, lower age group (18-29), Marg.: marginal effect. The marginal effect is calculated at the highest TAX MORALE score. Significance levels are: *0.05 < p < 0.10, **0.01 < p < 0.05, ***p < 0.01 . dy/dx is for discrete change of dummy variable from 0 to 1 and dy/dx for factor levels is the discrete change from the base level. In this table and following tables, variables Happiness, Trust Justice, Trust Parliament, Trust Government, Religious Service Attendance, Pride are rescaled in order to interpret the result straightforward. For example, in the survey, pride is measured on a 4 point scale i.e 1 for very proud 4 for not all. This was recoded into 4 for very proud and 1 for not all proud. In all estimations both trust variables have a significantly positive effect on tax morale with marginal effects varying between 2.5 and 4.7 (Trust in Government) and between 2.6 and 3.6 (Trust in Justice/Legal System) percentage points. Therefore, our study finds support for the notion that trust matters for tax morale in Turkey. An increase in the trust in government (trust in legal system) scale by one unit increases the share of subjects indicating the highest tax morale by 2.5 to 4.7 (2.6 to 3.6) percentage points. As trust is highly and positively correlated with tax morale, Hypothesis 1 cannot be rejected. Specifications show the relative importance of Pride in tax morale determination. In five estimations we have significant coefficient on this variable. As can be seen from the tables, there is a positive correlation between Pride and tax morale. The coefficient is always positive and the marginal effects indicate that an increase in Pride by one point raises the share of persons indicating the highest tax morale value by 3 to 4 percentage points. Thus, the results show that we cannot reject our main hypothesis. The results in Tables also indicate that Hypothesis 3 is rejected. We observe a significant correlation between a prodemocracy attitude and tax morale. As Tables show, a one-point increase in the prodemocracy index reduces the share of persons with the highest tax morale by 2 percentage points, meaning that a higher degree of democracy leads to lower tax morale for the reference group. However, calculating the marginal effects at the lowest tax morale level (i.e, 0 scale) we observe that an increase in the democracy index by one 3 The empirical results on the tax morale can be given on request from the author. See also Tekeli (2011). After the first estimation we have not included variables “trust in the government” and “trust in the Parliament” in the same model because there is a strong correlation between these two variables (r=0.60) that makes it impossible to clearly separate the effects of the two variables if they were included in one model. 4 8 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo unit reduces the probability of stating that tax evasion is always justified to less than one percentage point. Political attitude was tested by the variable ideology, the self-placement in a left-right ideological scale from 1 (left) to 10 (right). It has positive sign but insignificant effect on tax morale. We did not find any evidence to support the view that individual‟s political alignments affect his/her behavior toward taxes. To get a broader view and to consider the fact that a considerable number of citizens have a low living standard (as argued by Torgler 2004), we also include the variable happiness. In all specifications this variable does not significantly affect tax morale. The happiness variablehas interestingly, negative marginal effects but it is insignificant to derive any conclusion from it. Thus our hypothesis 4 cannot be proved statistically. As argued by Torgler (2004:249) it was expected that “if the financial situation of a household is bad, the tax payments might be seen as a hard restriction of their possibility set, which might reduce tax honesty”. In line with this argument we included income variable to test whether individuals in lower income classes are more likely to engage in criminal activities due to their lower opportunity costs, or not. However, in all estimations income variable did not have significant coefficient. We include different employment status such as part time employed, self-employed, retired, and unemployed. In the tax compliance literature, it was argued that self-employed persons have higher compliance costs than employed (e.g., Lewis, 1982). Therefore, Torgler and Schneider (2007b:452) argued that “taxes are more visible for the selfemployed, who have a higher opportunity to evade or avoid them. Moreover, pensions of retired individuals are incomes provided or at least heavily regulated by the state, so transparency is higher and the control better”. However, we did not find significant coefficient on self-employed. On the other hand we have significant coefficients on unemployed and housewife. An increase in Housewife by one point reduces the share of persons indicating the highest tax morale value by 8 percentage points. Our results indicate that the proportion of unemployed who report the highest tax morale is approximately 10 percentage points lower than the one of full-time employees. An increase in unemployment by one point reduces the share of persons indicating the highest tax morale value by almost 10 percentage points. Unemployed individuals might have a higher incentive to act in the shadow economy, which might influence their attitude regarding tax evasion. Table presents evidence regarding the variable religiosity, measured as frequency of Mosque attendance. We first included the variable measured as frequency of Mosque attendance. The result in the first specification indicates that an increase in the religious attendance increases the tax morale around 2 percentage points. To make a comparison between Italy and Turkey we included the variable religiosity, measured as Religious person on a three point scale (i.e 1 for religious 3 for atheist). Robust across all 8 specifications is the negative correlation between Tax Morale and Religiosity variables. We would expect that religiosity might influence people‟s habits, and might make individuals reluctant to engage in tax evasion. Our findings are consistent with those of Alm and Torgler (2006) and Torgler and Murphy (2004), who find that a higher religiosity is correlated with a higher tax morale. Our results indicate that an increase in religiosity increases the tax morale between 8 and 10 percentage points. McGee (1998) reports that the coefficient on Muslim is mostly not significant and also argues that Muslims are not always obligated to pay all taxes. Torgler (2006:94) points that “If the government engages in activities that are not legitimated, tax evasion might not be immoral (for a list of possible immoral state activities, see Yusuf, 1971). It would not be 9 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo immoral for a Muslim not to pay indirect taxes, to avoid paying tariffs, to evade income taxes, or not to comply with a law that causes prices to rise”. Our results on religiosity in Turkey do not seem to support McGee‟s (2006:23) argument that “the Muslim view toward tax evasion seemingly falls under category three that evasion is sometimes ethical”. The result rather seems to fit under McGee‟s first category that “tax evasion is never ethical”. The positive coefficients on education and negative coefficients on gender (woman) deserve special attention. In the models we have run, women do not seem to have stronger tax morale than men but this argument is not proved statistically. Our results show that education does not have any significant effects.5 However, we found that if the reading daily newspaper rate decreases tax morale increases by 8 to 10 percentage points. This result indicates that unawareness has significantly positive effect on tax morale. This result does not change even if we drop education variable from the estimation. It seems that reading newspaper makes individual‟s behavior somehow deteriorated. We cannot say that individuals‟ constraints by their social networks affect tax morale. In tables our results indicate that married people having higher tax morale than singles is not supported by the evidence from Turkey. Actually marital status did not have any effect on tax morale in all estimations. Also, older individuals (third age group in the estimation) tend to exhibit higher tax morale, but the coefficients on age group are not statistically significant in all estimations. 2 Empirical results on tax morale in Italy Next we present the results of ordered probit models in Italy6. In Table 3 Trust in Parliament and Trust in Government are found insignificant. In all estimations Trust in Parliament and Trust in Government did not have significant effects on tax morale. However Trust in Legal System/Justice was found significant in all estimations with positive coefficient implying that for those who does have confidence in Legal System/Justice they have higher tax morale. An increase in trust in Legal System/Justice scale by one unit increases the share of subjects indicating the highest tax morale by 4 to 5 percentage points. Therefore, our study finds support for the notion that trust matters for tax morale in Italy. As trust is highly and positively correlated with tax morale, Hypothesis 1 cannot be rejected for Italian case. Specification (1-5) shows the relative importance of Pride in tax morale determination. Only in one specification we did not have significant coefficient on this variable. We find that there is a positive correlation between Pride and tax morale. The marginal effects indicate that an increase in Pride by one point raises the share of persons indicating the highest tax morale value by 3 to 5 percentage points. Thus, the results show that we cannot reject our main hypothesis. The results in Table 3 also indicate that Hypothesis 3 is rejected. We do not observe a significant correlation between a prodemocracy attitude and tax morale. Thus we dropped this variable from the models for Italy. Political attitude was tested by the variable ideology, the self-placement in a left-right ideological scale from 1 (left) to 10 (right). We did not find any evidence to support the view that individual‟s political alignments affect his/her behavior toward taxes in Italy.7 In all specifications in preliminary regressions the variable happiness does not significantly affect tax morale. The happiness variable has positive marginal effects but it 5 The result on education did not change even if we used education as a continuous variable. See footnote 5, as r=0.67. 7 It has negative sign but insignificant effect on tax morale except for the preliminary estimates. 6 10 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo is insignificant to derive any conclusion from it. Thus our hypothesis 4 cannot be proved statistically. We also dropped this variable from various estimations. As previously stated, we included income variable to test whether individuals in lower income classes are more likely to engage in criminal activities due to their lower opportunity costs, or not. As in the Turkish case, income variable did not have significant coefficient. As argued above we include different employment status to see if it affects tax morale. Robust to all estimations is significant coefficient on self-employed. Our results indicate that the proportion of self-employed who reports the highest tax morale is approximately 15 percentage points lower than the one of full-time employees. The result indicates that an increase in self-employee by one point reduces the share of persons indicating the highest tax morale value by 14 to 18 percentage points. The results are in line with the argumentation that higher compliance costs reduce tax morale. Notes: See also notes in Tables for Turkey. We also included both religiosity variables in separate estimations but the results did not change very much. Also with age and age group separate regressions were run but the results did not change. Table presents evidence regarding the variable religiosity, we also included the variable measured as frequency of Religious attendance it was statistically insignificant but it has positive sign indicating that religious attendance increases the level of tax morale. In addition, to make a comparison between Italy and Turkey, we included the variable religiosity, measured as Religious person on a 3 point scale (i.e. 1 for religious 3 for atheist). Robust across all specifications is the insignificant correlation between Tax Morale and Religiosity variables. As argued above we would expect that religiosity might influence people‟s habits, and might make individuals reluctant to engage in tax evasion. However our findings for Italy are not consistent with those of Alm and Torgler (2006) and Torgler and Murphy (2004), who fined that a higher religiosity is correlated with higher tax morale. We found the positive coefficients on education and gender (woman). In the models we have run, women seem to have stronger tax morale than men in Italy. Robust across all 5 specifications is the significant correlation between Tax Morale and Education variables. Our results show that education has significant effects. We found that if the individual‟s education level increases tax morale increases by 2 to 3 percentage points. However, we found that awareness does not have significant effect on tax morale.8 Also, older individuals (third age group in the estimations) tend to exhibit higher tax morale than younger age groups; the coefficients on higher age group are statistically significant in all estimations9. The proportion of people aged over 50 who report the highest tax morale is approximately 18 percentage points higher than the 18-29 year old reference group (lower age category). The result indicates that an increase in old age category by one point increase the share of persons indicating the highest tax morale value by 14 to 18 percentage points. The proportion of people of the age 30-49 who report the highest level of tax morale is around 12 percentage points higher than for the 18-29 reference groups. In fact we can see from the tables that the marginal effects increase with an increase in age. For example 50+ age group reports the highest tax morale higher than the other age groups. We can state that individuals‟ constraints by their social networks affect tax morale. In tables our results indicate that married people having higher tax morale than singles 8 9 This result does not change even if we drop education variable from the preliminary regressions we run. The result on age did not change even if we used age as a continuous variable. 11 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo supported by the evidence from Italy. Actually, marital status did have effect on tax morale in 2 estimations. The proportion of singles who report the highest tax morale is 8 percentage points lower than the married people. The results also indicate that the proportion of the separated people who report the highest level of tax morale is 18 to 20 percentage points lower than the one of the married people. Conclusions It has been argued in the tax compliance literature that audit rate, tax fine and tax rates have effects on tax payers‟ decision to comply. However over last decades researchers have argued that individual‟s tax compliance behavior cannot be explained by traditional economic analysis considering entirely deterrence components of tax compliance. Tax morale has been used as a residual while searching the reasons why people pay taxes. Several studies argued that tax morale, or „„the intrinsic motivation to pay taxes‟‟, might help to explain the puzzle of why so many individuals pay their taxes. Instead of taking tax morale as a black box or a residuum, a number of studies have examined the determinants of tax morale, and what shapes tax morale or has it being changed over the time in a specific country and/or across the countries over the world. Many social, institutional and economic factors have been found to explain the notion of tax morale, or intrinsic motivation to pay taxes. We attempt to bring together the numerous insights from the earlier works on tax morale by examining many social, economic and institutional factors in Turkey and in Italy. By analyzing tax morale as a dependent variable, our findings give further evidence in tax morale literature. We report a large number of alternative specifications in the tables, and all specifications show the marginal effects of the explanatory variables on the highest value of tax morale (i.e tax cheating is never justified). We found that there are not many similarities between Turkey and Italy in determination of tax morale. While variables pride (+), trust (trust in justice system) (+), marital status [separated (-), singles (-)], self-employment (-), education (+), gender (women) (+) and age (+) are significant to explain tax morale level in Italy, trust (trust in the government and trust in legal system) (+), pride (+), religiosity (+), the prodemocracy (-), unemployment (-), house wife (-) and reading daily newspaper rate (-) are found significant in Turkey. The effects of trust on tax morale were analyzed on two different levels: (i) at the constitutional level (trust in the legal system, or in the court/justice system) and (ii) at the current politico-economic level (trust in the government and trust in parliament). We agree with the statement that not only trust in the government might have an effect on tax morale (Turkey), but also trust in the court, or the legal system (Italy), and hence the way the relationship between the state and its citizens is established. Also our findings indicate that older individuals tend to exhibit higher tax morale. In line with the previous findings in the literature pride has positive effect on tax morale level in the study countries. The results on religion, indicates that while tax cheating is immoral for Religious individuals in Turkey, we cannot make the same conclusion for the religious individuals in Italy. References Allingham, Michael G & Sandmo, Agnar (1972), „„Income Tax Evasion: A Theoretical Analysis.‟‟ Journal of Public Economics 1:323–38. Alm, J., & Torgler, B. (2006), “Culture Differences and Tax Morale in the United States and Europe”, Journal of Economic Psychology, 27:224-246. 12 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Alm, J., J. Martinez-Vazquez & Torgler B. (2006) “Russian Attitudes Toward Paying Taxes - Before, During, and After the Transition”, International Journal of Social Economics, 33: 832-857. 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Tekeli, R (2011) The Determinants of Tax Morale: the Effects of Cultural Differences and Politics PRI Discussion Paper Series (No.11A-10) Torgler, B., (2001), “What Do We Know about Tax Morale and Tax Compliance?”, RISEC: International Review of Economics and Business 48:395–419. Torgler, B., (2003), “To Evade Taxes or Not: That is the Question”, Journal of SocioEconomics, 32:283-302. Torgler, B (2004),“Tax Morale in Asian Countries”, Journal of Asian Economics,15:237266. Torgler, B., (2005), “Tax morale in Latin America”, Public Choice, 122: 133-157. Torgler, B., (2006), “The Importance of Faith: Tax Morale and Religiosity”, Journal of Economic Behavior & Organization, 61: 81-109. Torgler, B., & Murphy, K (2004), “Tax Morale in Australia: What Factors Shape It and Has It Changed Over Time?”, Journal of Australian Taxation, 7: 298-335. Torgler, B & Schaltegger, C. A (2006), “Tax Morale: A Survey with a Special Focus on Switzerland”, Schweizerische Zeitschrift für Volkswirtschaft und Statistik,142(3): 395-425. Torgler, B., & Schneider, F.,(2007a), “Shadow Economy, Tax Morale, Governance and Institutional Quality: A Panel Analysis”, QUT School of Economics and Finance Working/Discussion Paper 210, February 2007. Torgler, B & Schneider, F (2007b), “What shapes attitudes toward paying taxes? Evidence from multicultural European countries”, Social Science Quarterly, 88: 443–470. Torgler, B & Schneider, F (2009), “The Impact of Tax Morale and Institutional Quality on The Shadow Economy”, Journal of Economic Psychology 30 (2009) 228–245 14 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Torgler, B, Schneider, F & Schaltegger, C A. (2010), “Local Autonomy, Tax Morale, And The Shadow Economy”, Public Choice 144: 293-321. Yusuf, S.M., (1971), “Economic Justice in Islam”, Sh. Muhammad Ashraf, Lahore. 15 � 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. 1647 Title A name given to the resource The Effects of Cultural Differences and Politics on Tax Morale: The Case of Italy and Turkey Author Author TEKELI, Recep Abstract A summary of the resource. In this paper we analyze the tax morale in Turkey and Italy, using data from the fifth wave of World Values Surveys. Using Survey data for comparative analysis we can see the differences in several factors affecting Tax Morale between Italy (mainly composed of Catholics) and Turkey (mainly composed of Muslims). The results for the magnitude of tax morale show that Italy and Turkey rank in the highest as compared to other countries within their regions. Thus, this gives a task to explain why tax morale is very high in these two countries which differ in cultures and politics; what determines tax morale and are there any similarities between these two countries in the determination of tax morale level. We empirically test what shapes tax morale by using Ordered Probit model. We have followed the literature but used additional variables to see what determines the notion “intrinsic motivation to pay taxes i.e. tax morale”. Most of our findings are in line with the earlier works in tax morale literature. We agree with the statement that not only trust in the government might have an effect on tax morale (Turkey), but also trust in the court, or the legal system (Italy), and hence the way the relationship between the state and its citizens is established. Also our findings indicate that older individuals tend to exhibit higher tax morale. In line with the previous findings in the literature pride has positive effect on tax morale level in the study countries. The results on religion, indicates that while tax cheating is immoral for Religious individuals in Turkey, we cannot make the same conclusion for the religious individuals in Italy. Keywords: Tax morale; Tax compliance. JEL classification: H26; H30 Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 https://omeka.ibu.edu.ba/files/original/fa756564102332343460761ad248edc1.pdf 6cd10b18217a99ac23b0c9e8cf4c02a2 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo The Effects of Deepening Debt Crisis in the Member Countries of European Union on Turkish Economy Erdal Alancıoğlu Harran University, Şanlıurfa, Turkey ealancioglu@harran.edu.tr H. Mustafa Paksoy Kilis December 7 University, Kilis, Turkey hmpaksoy@yahoo.com Sadettin Paksoy Kilis December 7 University, Kilis, Turkey spaksoy@kilis.edu.tr The world's second largest market after the United States is the European Union that has an important position in the context of the global economy. Since the last quarter of 2008, the global financial crisis spread to Europe from the U.S. Currently, the european Union crises which is perceived as an international problem has a negative effect on also our economy as well as on all over the world. Althought, Turkey is not a member of European Union the country is effected by each kind of crises by the Europen Union easily. The effect of European Union on Turkish economy is are examined in this study; foreign trade, credit and finance, dimensions of investment channels and perspective of Turkey in terms of being member of European Union will be evaluated. Keywords: European Union, the Debt Crisis, Economy of Turkey. 105 � https://omeka.ibu.edu.ba/files/original/16212f904fc2e48adab6acd7c6577681.pdf 16e14d9ecbb24475119443c1cd709d1d PDF Text Text International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo The Effects of DeepeningDebtCrisis in the Member Countries of European Union on TurkishEconomy ErdalAlancıoğlu Harran University, Şanlıurfa, Turkey ealancioglu@harran.edu.tr H. Mustafa Paksoy KilisDecember 7University, Kilis, Turkey hmpaksoy@yahoo.com SadettinPaksoy KilisDecember 7University, Kilis, Turkey spaksoy@kilis.edu.tr Abstract In the context of the global economy, the world's second largest market after the United States, the European Union has an important position. Since the last quarter of 2008, the global financial crisis spread to Europe from the U.S., and especially in the last period, the economy and the policy dilemmas and in this sense the observed Debt Crisis in the European Union, which has become an international problem in our country, along with the effects observed in the entire world. Although Turkey is not a member state of the European Union, the European Union, the historical, social and economic ties affected by any development which is due to causes in Europe. In this study, the effects of the European Union Debt Crisis, Turkey's economy foreign trade, credit and finance, and Turkey's European Union membership perspective to the size of investment channels will be evaluated. Keywords: European Union, The Debt Crisis, Economy of Turkey 1. Introduction Integration of nations is getting stronger through increasing international goods and services’ trade volume and capital-labor flows across borders especially from the late of 1980s until now. “Economic globalization” has been experienced thanks to technological progress which enables faster and wide expansion all around the world. Global financial crisis appears at the end of 2008 in USA affects very fast because of characteristics of globalization. When the global crisis continues, European Union which is the biggest international economic organization in the world, is the most affected part of world economy. Financial fluctuations in European countries caused a devastating problems on real economies and financial markets. Diminishing of aggregate demand and financial markets involve lower trade volume. In one sense, governments increase their public spending to lower the effects of global financial crisis in EU countries. On the other hand, tax income of governments declines due to economic recession and these circumstances cause series budget deficits and higher debts in EU economies. The global financial crisis that shown as a debt crisis in Europe, influenced the UE deeply. Member states such as Ireland, Spain, Italy, Portugal and Greece are the first countries impressed by the global crisis. These five EU member 193 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo countries had a crisis not only economic but also political way. Eventually, it involves changes of governments in charge and shows the scope of the debt crisis. With a globalization process in recent years shows that countries which have regional integration and high trade volume are fully integrated on financial markets. Although Turkey is not a member state of EU, consolidation of Turkey and EU exists in a quiet high level. In this paper, current situation of EU debt crisis, effects through Turkish economy; foreign trade, financial conditions, investment performances are evaluated with respect of full membership process of Turkey. 2. Current Situation at EU Debt Crisis European countries did not use its debts effectively. In other words, debts are used in health, education and real estate sectors instead of covering the fields that create more income. Low debt costs enable the loans more attractive. More credits are needed to meet the cost of previous debts. Willingness of financial foundations to give loans and higher returns of financial markets than real markets evolve great debts in European countries. Banks and other institutions did not hesitate to give credits to EU countries and it is not questioned. When credit institutions which affected by global financial crisis increased interest rates, EU countries debt costs rose so that financing of debts is very hard. To conclude Portugal, Ireland, Greece, Italy and Spain called PIGS countries were faced with debt crisis in 2011 (Tunç, 2012:2). Current conditions of EU countries between 2009 and 2012 are shown at Table 1. Table : 1 Current conditions of EU countries Greece GDP (Million Euro) Public Debt 2009 231081 2010 222151 2011 208532 2012 193749 299685 329515 355172 303918 Public Debt / GDP % Portugal GDP (Million Euro) Public Debt Public Debt / GDP % İreland GDP (Million Euro) Public Debt Public Debt / GDP % Spain GDP (Million Euro) Public Debt Public Debt / GDP % 129.7 148.3 170.3 156.9 168 529 172 859 171 065 165 409 141 055 83.7 162 473 94.0 185 241 108.3 204 485 123.6 161 275 156 487 158 993 163 595 104 544 64.8 144 164 92.1 169 226 106.4 192 461 117.6 1 048 060 1 048 883 1 063 355 1 049 525 565 082 53.9 644 692 61.5 736 468 69.3 883 873 84.2 Source: Eurostat, 2013. Using common monetary policy carried out by European Central Bank (ECP) and common currency unit in Europe cause tighter economic relations which facilitate to spread damaging effects fast towards other European countries. Moreover, high integration level of real and financial markets increase response velocity of countries among each other. 194 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Thus, debt crisis appeared in Greece in the second quarter of 2010, treated all of the Euro Zone countries even the existence of economic and monetary union. Euro Zone countries struggled with not only low economic growth but also huge debts of governments and bankruptcy risk of Greece, Spain and Ireland in 2010. Briefly, global financial crisis was turned into European Union debt crisis and then bankruptcy crisis of Euro Zone countries. At this point, European Union faced with the biggest challenge that EU ever seen (Kutlay, 2011:2). Greek debt crisis started in 2009, expand to Portugal and Ireland. With an aid request from Italy and Spain at the end of 2011 and 2012, debt crisis spread much. This deploys mainly affected three ways: foreign trade, interest rates and exchange rates (KöseKarabacak, 2011: 300). When the member states of union are examined, the crisis originated different reasons for any European countries. For instance, Greek crisis was originated from public sector but Ireland suffered from banking sector and real estate. Being higher current account deficit of Portugal caused great risk for banking system; Spain’s inadequate internal and external demand leads to low economic performance with 20% unemployment rate. The weaknesses of public finance of Italy and Belgium make these economies worse (Ministry of EU, 2011:8). 3. Effects of Debt Crisis into Turkish Economy Global crisis appeared firstly in mortgage loans, expanded in financial markets in 20072009 before real markets. USA economy was faced with a serious unemployment rate and recession process. Strong financial relations between USA and other developed countries (especially EU countries) make the crisis easy to spread. Uncertainty and trust problems of credit mechanism restricts the borrowing possibilities and increase costs of debts (Kibritcioglu, 2010:6–7). “ EU and Euro Zone is an important partner with Turkey. Many countries have same position like Turkey and if the crisis deepen global economy will be affected and also Turkey. It will affect Brazil and USA. In comparison with some other countries, Turkey’s portion of trade with Euro Zone is higher but our trade structure is various, that a good thing. Turkish economy either flexible and various and dependence to EU is not too much (Dervis, 2011:1). Financial crisis that surrounds the global markets, affects Turkish economy indirectly, not directly. This indirect impact will continue as the crisis goes on. Euro-USD parity is affected by the crisis and US Dollar became more valuable. This means for the side of Turkey that decrease in export and increase in import because of imbalanced exchange parity. Reflection to the economy will be inflationist impact. Credit volume of Turkey will decrease because Turkish banks will not be able to find appropriate credit from EU financial markets (Tunc, 2012: 2). An economy which has free capital movements and great impacts of capital flows to domestic economy such Turkey, policy volume of government brings different influences on price stability and external balance (Aslan&Korap, 2007: 43). Essentially Greece, Ireland, Spain, Italy, Belgium and Portugal and developing countries such as Turkey is influenced by debt crisis. 195 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo 3.1. Impact Channels of Crisis for Turkey Foreign Trade Impact European Union consists of the biggest part of foreign trade of Turkey. Direct and indirect effects of EU reflect to Turkish economy as well. Intensity of Turkish export on EU originated by country’s export performance is quiet relevant with demand conditions of EU countries. Recession of EU economies influenced Turkish exporters and producers negatively (Vural, 2012: 52). 56 % share of Turkish export in 2007 is covered by EU and EU recession influenced the trade balance of Turkey negatively (TEPAV, 2009: 10). According to floating exchange rate system, exchange rate is determined in free market and it did not work properly because Turkish financial structure is fit with this system. Especially hot money flows and increasing foreign exchange debt of Turkish firms after 2003 put pressure on exchange rates. In addition, higher interest rates prevent the rise in exchange rates. Low exchange rates change the export-import equilibrium, and decrease inflation rate whereas current account deficit grows (Yıldırım, 2010: 50). With contracting external demand, manufacturing shrank. World bigger economies, decrease the interest rate in order to accelerate and exposedemand, in other words, some economic programs are applied to increase the demand. (Karagöz, 2009: 4). Table:2. Share of EU Countries in total Turkish export 16000000 14000000 12000000 10000000 80000000 Total Export (Thousand $) Total Import (Thousand $) 60000000 40000000 20000000 0 2008 2009 2010 2011 2012* Source: Turkstat,2013 *Data for 2012 is for 10 months. Global financial crisis which started as a Mortgage crisis in the USA influenced EU countries substantially. Especially Greece, Spain, Italy and Ireland struggled with a huge 196 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo amount of debt and finally the whole EU countries found themselves in the middle of the crisis. Developments in EU made Turkey worried about because Turkey aimed to solve its current account deficit problem by export activity (Öztürkvd. 2012: 1). EU countries share ($) in Turkey’s total export is shown at Table 2. Turkey’s total export and export to EU started to fall in 2009 and 2010 and total export rose again in 2011 and 2012. Graph: 1.Turkey’s Export (2008–2011). 17.300% AB 1.500% ABD 46.800% Rusya İslam İşbirliği Teş 27.100% Çin Diğer 4.000% 3.200% Source:Turkstat, 2013. Trade relations between Turkey and EU affected negatively due to high budget deficits and financial problems in EU member countries which involve a recession in domestic aggregate demand and insufficient financial facilities. Especially, export amount of Turkey to EU is diminished. Foreign trade is fully related to EU debt crisis and Turkey. Still, EU is mainly trade partner of Turkey but the share of EU is decreasing in past few years and Turkey is trying to create new markets to meet this gap. At this point, a decline in EU import in generally causes a decrease the share of EU on Turkey’s export. Although Turkey did not lose its share in EU market, it is obvious that the crisis narrows Turkey’s export (Boyner, 2012:1). Turkey’s export towards economic groups and organizations between 2008 and 2011 is shown at Graph 1. The biggest share of export is in EU with percentage of 46 % and Muslim countries with 27 %. Notwithstanding economic relationships between EU and Turkey were influenced negatively, the union is still the most important trade partner of Turkey (Akses, 2012:4). A decline in aggregate demand in EU made Turkey to find alternative markets. Thus, Turkey improved its trade relationships with Middle East countries and Commonwealth of Independent States since 2008. Other reason to improve its trade relationship with third world countries is European international trade laws that apply a mutual customs union with inside and other countries. European Union is carrying out many negotiations about free trade agreements with a new perspective of foreign trade. For this reason, it is so 197 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo important that Turkey should execute new free trade agreements parallel to EU negotiations (Akses, 2012:4). Germany (13 billion $), Iraq (10.7 $) and UK (8 billion $) are the top countries in Turkey’s export in 2012 (Graph 2). The most of those countries show that Turkey’s export is still towards EU even though ongoing debt crisis. Additionally, 38.6 % of Turkey’s export is still consisting of EU countries. It shows that an export structure of Turkey which higher quality with low price, gave an advantage to Turkey. Besides, Turkey got a chance to make the crisis an opportunity by using its geopolitical location advantages and responding demands of other countries easily (Karagol, 2012:3). Graph 2. Export of Turkey (billion $), 2012 14 12 10 8 6 4 2 0 Source:Turkstat, 2013 Turkey’s foreign policy decisions are started to applied with integrated economic policy since a new political balance. New policies about the Middle East and African countries made economic relations grown with those countries. It provides country variety in export of Turkey even if it is argued that a huge change of Turkish foreign policy. Free trade agreements that increase the diversity and visa exemption contribute to improve Turkish foreign trade (Karagol, 2012:3). When EU’s free trade agreements with third world countries contain Turkey, Turkey’s trade benefits are not considered by EU because Turkey is still not a full-member of EU. This case creates that third world countries that have an free trade agreement with EU gain a right to get a free trade with Turkey. Also, concessions which are provided by third world countries to EU are not valid for Turkey because of candidate membership of Turkey. Moreover, those countries continue to apply tariffs on Turkey’s export and they are not willing to agree on free trade agreements. For instance, Mexico and Algeria do not negotiate with Turkey about an free trade agreement whereas they have free trade agreement with EU (Akses, 2012:5). Turkey’s export amounts by countries are shown at Table 3. 198 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Table:3. Export with Blocs, 2011-2012 Blocs Total A-EUROPEAN UNION (EU) B-FREE ZONES IN TURKEY C- OTHER COUNTRIES 1-Other European Countries 2-African Countries North African Countries Other African Countries 3-AmericanCountries North American Countries Central American and Caribbean Countries South American Countries 4-AsianCountries Near and Middle East Countries Other Asian Countries 5-Australia and New Zealand 6-Diğer Countries Source: Turkstat, 2013. 134 906 869 62 347 441 2 544 721 70 014 706 12 976 364 10 333 821 6 700 805 3 633 016 7 925 943 5 459 299 626 293 1 840 351 38 134 133 27 934 772 10 199 361 480 755 2011 Share(%) 100,0 46,2 1,9 51,9 9,6 7,7 5,0 2,7 5,9 4,0 0,5 1,4 28,3 20,7 7,6 0,4 152 560 775 59 240 765 2 295 409 91 024 601 14 373 164 13 361 451 9 448 432 3 913 019 9 635 644 6 673 256 769 879 2 192 509 53 058 624 42 476 952 10 581 671 490 446 2012 Share(%) 100,0 38,8 1,5 59,7 9,4 8,8 6,2 2,6 6,3 4,4 0,5 1,4 34,8 27,8 6,9 0,3 163 690 0,1 105 273 0,1 2011 Amount 2012 Amount Change (%) 13,1 -5,0 -9,8 30,0 10,8 29,3 41,0 7,7 21,6 22,2 22,9 19,1 39,1 52,1 3,7 2,0 -35,7 3.1.2. Credit- Finance Impact Another impact of the relationship is about credits. Approximately 75 % of credits that Turkish banks used are originated from EU and problems on banking and finance in EU are very dangerous for Turkey because it can affect Turkey’s growth performance that is dependent foreign savings. Turkish banking system that takes important cautions, still need to conduct profound analysis because of threats about EU debts (Boyner, 2012:2). Instability on foreign resource channel, global uncertainty and lack of confidence about economy cause to decrease credit amount of domestic banks. Especially, a decline in postdated check influences procurement of economy negatively such an environment. Elimination of procurement reflects to SME’s performance like a domino effect. On the other hand, narrowing volume in commercial credits affects in a very bad way to SMEs (TEPAV, 2009:10). Turkish economy applied an economic stability program with IMF after 2001 crisis (İncekara, 2012:4). Great successes are gained and Turkish economy has an outlook as below until debt crisis:  Structural reform and transformation on national economy,  Sustainable growth between 2002 and 2008 and a decreasing growth rate in past few years,  Creates employment and job opportunity,  Increasing export,  More efficient on manufacturing sector,  Increasing foreign direct investment,  Low inflation rates,  Decreasing public debt stock,  Conducting EU negotiations,  GDP per capita above 10.000 $. 199 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Global economic crisis was skipped with a recession because of the reforms on banking and financial after 2001 crisis (Karagol, 2011:3). Significant effect of the crisis was felt on September of 2008. Finance channels are became tight, a strong decline in both internal and external aggregate demand, production and employment losses are occurred in this period. Serious concerns about “bankruptcy again” involved a psychological trauma in the country (MÜSİAD, 2009:14). Global crisis influenced Turkey which is a profound connections with the world. According to both internal and external demand comedown, export and unemployment affected badly. Debt crisis affects occurred in three different ways (Usta, 2010).  Foreign Trade Channel: low external demand and production and employment losses  Credit channel: Scarcity of credit because of global finance system problems  Expectation channel: Domestic aggregate demand is declined because of uncertainties. 3.1.3. Expectation Impact Monthly expectation surveys of Turkish Central Bank did not show any good signal since 2007 and it showed that expectations were getting worse. Real sector confidence index did not get better after the middle of 2007 and it was getting worse on the third quarter of 2008. Consumer’s confidence to the future are gone (Sonmez, 2008). 3.1.4. Investment Impact When we evaluate the improvement on foreign direct investment of Turkey, one of the important factor is investment impact. According to data for past few years , most of the foreign direct investment to Turkey originated from European Union. In this respect, restriction of foreign investment originated from EU debt crisis prevent the opportunities to invest in Turkey and this is another risky factor of the crisis (Boyner, 2012:2). Top 10 countries which attract investment mostly is shown at Table 4. USA, China and Hong Kong are the top three countries and Turkey is the 17th most attractive country for foreign investment in 2010. When we look at the year of 2008 (19.5 billion $), there is a sharp decrease in foreign direct investment of Turkey. Table 4: Most Attractive Countries on Foreign Direct Investment (2010) Rank 1 2 3 4 5 6 7 8 9 10 17 Country FDI* (Billion US $) USA 228,2 China 105,7 Hong Kong 68,9 Belgium 61,7 Brazil 48,4 Germany 46,1 England 45,9 Russia 41,2 Singapore 38,6 France 33,9 Turkey 9,1 World Total 1.243,7 Source: Ministry of Economy of Turkey, Foreign Direct Investment 2012 Report p. 7. *FDI: Foreign Direct Investment 200 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo At present crisis is a situation where both parties are satisfied. Turkey is not insisting about membership and EU is not in a hurry about it. While we're not aware of time passing by this way, the biggest loss for the candidate countries, namely Turkey sees, or will see. Because when the countries join the EU, they must accept all the terms and conditions. Extension of the membership process means the arrival of new issues on the agenda.The EU is a dynamic structure, and continuously develops new rules and practices. As long as the membership process is extending, the candidate country countries have to adapt to the new situations and it must accept the new rules (Ozdemir, 2012:2). The decreasing of the support of EU to Turkey should not be interpreted as giving up the EU projects. Taking a look at the perception of EU in the world and in the EU will be useful to understand this situation. There are serious problems that disturb the public they are not about the state of crisis in the EU. Due to the structure of the EU institutions and decision-making mechanism, the lack of democratic accountability obligation has damaged the legitimacy of the EU institutions and it has reduced the credibility of the EU institutions. EU citizens are now on every occasion give the signal for that they do not like the integration process which is leading by elite class. The EU has to deal with the new regulations which provide legitimacy to overcome those problems. Meanwhile, the financial and debt crisis in the EU up to a short time to exit the growth and employment, rather than based on solid economic discipline and budget constraints compromising stability and social welfare state debate agenda, EU citizens' aspirations for EU integration is reduced(ArısanEralp, 2012: 3). 5. Conclusion Starting in 2007, the United States, the EU and other countries, the impact of the global financial crisis still continues to spread. Especially some EU countries are affected more than others. Despite all the problems and crises, the EU's economic model is still seen as a strong economic zooming and transformation mechanism. This situation shows that EU crises are not only financial but also structural. If the debt crisis will not be solved as soon as possible, it is obvious that debt crisis will be long and problematic process. in this case, Turkey should search for alternative markets to sustain, enhance the competitiveness of the international markets and take steps to fill the loss of the perimeter of the EU countries on world markets. With the financial crisis which arise in 2007 and affect all over the world, the dominant problems of economics such as growth dynamics, distribution problems in the financial sector has been started to discussed (Yener, 2010: 1). Mortgage crisis of 2007 put end to liberal economy policies which pretend that government interfere economy and the increasing of the doubt about the future of the liberal capitalist system makes the policies which regulate financial system important. Indeed, in the G-20 Summit of 2 April 2009 (referred to as the London Summit in London to made), it was stated that the cause of the crisis is the failure of financial regulation, the capable global system should be established, the global cooperation should be extended, transparency and market discipline should be given importance (Er,2011: 323). In this respect, derived lessons from mistakes are written below (Yeldan, 2009:16): 201 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo  First of all, neo-liberal economics doctrines which mention about free market without any government intervention will provide a stabilized and balanced economy, is wrong.  Second one is about process of financial system and structural characteristics. Financial system is a world of expectation and manipulation on the contrary of real sector. Financial system gains are came from “fast” decision mechanism that embodied short term point of view, manipulation and risks. Decision makers who ignore the characteristics of financial markets are still defending the thought that transparency is good solution. We can say the main things that should be done after the crisis (YılmazveGaygusuz, 2009):  Strong supervisions and regulations about extreme leverage are needed.  Much transparency should be needed to lower the counterparty risk.  New and different products that comes from financial system should be controlled by international independent foundations.  Standards and rules should be legislated on banking system and other institutions such as “Basel II”  Derived products markets must be controlled and supervised. With all these regulations, financial system will work properly and risks are lowered. Increasing desire for risk with profit maximization which has been in the nature of capitalistic system should be decreased. 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Küresel Mali Kriz Ve Türkiye Ekonomisinin Orta Vadeli Perspektif, İstanbul Üniversitesi, II. Çalışma Ekonomisi ve Yönetim Kongresi19 Mart 2010 Küresel Mali Kriz Ve Türkiye Vural, G. (2012). AB Krizi ve Türkiye’ye Olası Yansımaları, http://www.sde.org.tr/tr/haberler/1906/ab-borc-krizi-ve-turkiyeye-yansimalarianalizi.aspx 15.04.2013 Yeldan, E. (2009). Kapitalizmin Yeniden Finansallaşması ve 2007/2008 Krizi: Türkiye Krizin Neresinde? http://www.calismatoplum.org/sayi20/yeldan.pdf Yener, C. (2010). Küresel Finansal Kriz ve Kredilendirme ve Değerleme Sorunları: ABD ve Türk İpotekli Konut Finansman Sistemleri Hakkında Bir Değerlendirme. Tam Metin Bildiri (21Kasım 2009, Taşınmaz Değerleme Günleri 2009). TMMOB Harita ve Kadastro Mühendisleri Odası İstanbul Şubesi Yayını: 223-249. Yıldırım, S. (2010). Yılı Küresel Ekonomi Krizinin Dünya ve Türkiye Ekonomisine Etkileri, KMÜ Sosyal ve Ekonomik Araştırmalar Dergisi 12 (18): 47-55, 2010 Yılmaz, D. ve Gayğusuz, F. (2009). 2008 KrizininYeni Global EkonomikYapıÜzerineEtkileri, UluslararasıDavrazKongresi,SüleymanDemirelÜniversitesi, Isparta, 24-27 Eylül. (Erişim: http://idc.sdu.edu.tr/tammetinler/kalkinma/kalkinma39.pdf). http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/2-22042013-AP/EN/2-22042013-APEN.PDF 15.04.2013 204 � https://omeka.ibu.edu.ba/files/original/c15df617c2b6e1ed436032788fc8160b.docx ea3e9b61417d7556cf189707164e646d https://omeka.ibu.edu.ba/files/original/a47eeb2ef3ff5dee07ffe00101d89a4c.pdf 16e14d9ecbb24475119443c1cd709d1d PDF Text Text International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo The Effects of DeepeningDebtCrisis in the Member Countries of European Union on TurkishEconomy ErdalAlancıoğlu Harran University, Şanlıurfa, Turkey ealancioglu@harran.edu.tr H. Mustafa Paksoy KilisDecember 7University, Kilis, Turkey hmpaksoy@yahoo.com SadettinPaksoy KilisDecember 7University, Kilis, Turkey spaksoy@kilis.edu.tr Abstract In the context of the global economy, the world's second largest market after the United States, the European Union has an important position. Since the last quarter of 2008, the global financial crisis spread to Europe from the U.S., and especially in the last period, the economy and the policy dilemmas and in this sense the observed Debt Crisis in the European Union, which has become an international problem in our country, along with the effects observed in the entire world. Although Turkey is not a member state of the European Union, the European Union, the historical, social and economic ties affected by any development which is due to causes in Europe. In this study, the effects of the European Union Debt Crisis, Turkey's economy foreign trade, credit and finance, and Turkey's European Union membership perspective to the size of investment channels will be evaluated. Keywords: European Union, The Debt Crisis, Economy of Turkey 1. Introduction Integration of nations is getting stronger through increasing international goods and services’ trade volume and capital-labor flows across borders especially from the late of 1980s until now. “Economic globalization” has been experienced thanks to technological progress which enables faster and wide expansion all around the world. Global financial crisis appears at the end of 2008 in USA affects very fast because of characteristics of globalization. When the global crisis continues, European Union which is the biggest international economic organization in the world, is the most affected part of world economy. Financial fluctuations in European countries caused a devastating problems on real economies and financial markets. Diminishing of aggregate demand and financial markets involve lower trade volume. In one sense, governments increase their public spending to lower the effects of global financial crisis in EU countries. On the other hand, tax income of governments declines due to economic recession and these circumstances cause series budget deficits and higher debts in EU economies. The global financial crisis that shown as a debt crisis in Europe, influenced the UE deeply. Member states such as Ireland, Spain, Italy, Portugal and Greece are the first countries impressed by the global crisis. These five EU member 193 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo countries had a crisis not only economic but also political way. Eventually, it involves changes of governments in charge and shows the scope of the debt crisis. With a globalization process in recent years shows that countries which have regional integration and high trade volume are fully integrated on financial markets. Although Turkey is not a member state of EU, consolidation of Turkey and EU exists in a quiet high level. In this paper, current situation of EU debt crisis, effects through Turkish economy; foreign trade, financial conditions, investment performances are evaluated with respect of full membership process of Turkey. 2. Current Situation at EU Debt Crisis European countries did not use its debts effectively. In other words, debts are used in health, education and real estate sectors instead of covering the fields that create more income. Low debt costs enable the loans more attractive. More credits are needed to meet the cost of previous debts. Willingness of financial foundations to give loans and higher returns of financial markets than real markets evolve great debts in European countries. Banks and other institutions did not hesitate to give credits to EU countries and it is not questioned. When credit institutions which affected by global financial crisis increased interest rates, EU countries debt costs rose so that financing of debts is very hard. To conclude Portugal, Ireland, Greece, Italy and Spain called PIGS countries were faced with debt crisis in 2011 (Tunç, 2012:2). Current conditions of EU countries between 2009 and 2012 are shown at Table 1. Table : 1 Current conditions of EU countries Greece GDP (Million Euro) Public Debt 2009 231081 2010 222151 2011 208532 2012 193749 299685 329515 355172 303918 Public Debt / GDP % Portugal GDP (Million Euro) Public Debt Public Debt / GDP % İreland GDP (Million Euro) Public Debt Public Debt / GDP % Spain GDP (Million Euro) Public Debt Public Debt / GDP % 129.7 148.3 170.3 156.9 168 529 172 859 171 065 165 409 141 055 83.7 162 473 94.0 185 241 108.3 204 485 123.6 161 275 156 487 158 993 163 595 104 544 64.8 144 164 92.1 169 226 106.4 192 461 117.6 1 048 060 1 048 883 1 063 355 1 049 525 565 082 53.9 644 692 61.5 736 468 69.3 883 873 84.2 Source: Eurostat, 2013. Using common monetary policy carried out by European Central Bank (ECP) and common currency unit in Europe cause tighter economic relations which facilitate to spread damaging effects fast towards other European countries. Moreover, high integration level of real and financial markets increase response velocity of countries among each other. 194 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Thus, debt crisis appeared in Greece in the second quarter of 2010, treated all of the Euro Zone countries even the existence of economic and monetary union. Euro Zone countries struggled with not only low economic growth but also huge debts of governments and bankruptcy risk of Greece, Spain and Ireland in 2010. Briefly, global financial crisis was turned into European Union debt crisis and then bankruptcy crisis of Euro Zone countries. At this point, European Union faced with the biggest challenge that EU ever seen (Kutlay, 2011:2). Greek debt crisis started in 2009, expand to Portugal and Ireland. With an aid request from Italy and Spain at the end of 2011 and 2012, debt crisis spread much. This deploys mainly affected three ways: foreign trade, interest rates and exchange rates (KöseKarabacak, 2011: 300). When the member states of union are examined, the crisis originated different reasons for any European countries. For instance, Greek crisis was originated from public sector but Ireland suffered from banking sector and real estate. Being higher current account deficit of Portugal caused great risk for banking system; Spain’s inadequate internal and external demand leads to low economic performance with 20% unemployment rate. The weaknesses of public finance of Italy and Belgium make these economies worse (Ministry of EU, 2011:8). 3. Effects of Debt Crisis into Turkish Economy Global crisis appeared firstly in mortgage loans, expanded in financial markets in 20072009 before real markets. USA economy was faced with a serious unemployment rate and recession process. Strong financial relations between USA and other developed countries (especially EU countries) make the crisis easy to spread. Uncertainty and trust problems of credit mechanism restricts the borrowing possibilities and increase costs of debts (Kibritcioglu, 2010:6–7). “ EU and Euro Zone is an important partner with Turkey. Many countries have same position like Turkey and if the crisis deepen global economy will be affected and also Turkey. It will affect Brazil and USA. In comparison with some other countries, Turkey’s portion of trade with Euro Zone is higher but our trade structure is various, that a good thing. Turkish economy either flexible and various and dependence to EU is not too much (Dervis, 2011:1). Financial crisis that surrounds the global markets, affects Turkish economy indirectly, not directly. This indirect impact will continue as the crisis goes on. Euro-USD parity is affected by the crisis and US Dollar became more valuable. This means for the side of Turkey that decrease in export and increase in import because of imbalanced exchange parity. Reflection to the economy will be inflationist impact. Credit volume of Turkey will decrease because Turkish banks will not be able to find appropriate credit from EU financial markets (Tunc, 2012: 2). An economy which has free capital movements and great impacts of capital flows to domestic economy such Turkey, policy volume of government brings different influences on price stability and external balance (Aslan&Korap, 2007: 43). Essentially Greece, Ireland, Spain, Italy, Belgium and Portugal and developing countries such as Turkey is influenced by debt crisis. 195 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo 3.1. Impact Channels of Crisis for Turkey Foreign Trade Impact European Union consists of the biggest part of foreign trade of Turkey. Direct and indirect effects of EU reflect to Turkish economy as well. Intensity of Turkish export on EU originated by country’s export performance is quiet relevant with demand conditions of EU countries. Recession of EU economies influenced Turkish exporters and producers negatively (Vural, 2012: 52). 56 % share of Turkish export in 2007 is covered by EU and EU recession influenced the trade balance of Turkey negatively (TEPAV, 2009: 10). According to floating exchange rate system, exchange rate is determined in free market and it did not work properly because Turkish financial structure is fit with this system. Especially hot money flows and increasing foreign exchange debt of Turkish firms after 2003 put pressure on exchange rates. In addition, higher interest rates prevent the rise in exchange rates. Low exchange rates change the export-import equilibrium, and decrease inflation rate whereas current account deficit grows (Yıldırım, 2010: 50). With contracting external demand, manufacturing shrank. World bigger economies, decrease the interest rate in order to accelerate and exposedemand, in other words, some economic programs are applied to increase the demand. (Karagöz, 2009: 4). Table:2. Share of EU Countries in total Turkish export 16000000 14000000 12000000 10000000 80000000 Total Export (Thousand $) Total Import (Thousand $) 60000000 40000000 20000000 0 2008 2009 2010 2011 2012* Source: Turkstat,2013 *Data for 2012 is for 10 months. Global financial crisis which started as a Mortgage crisis in the USA influenced EU countries substantially. Especially Greece, Spain, Italy and Ireland struggled with a huge 196 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo amount of debt and finally the whole EU countries found themselves in the middle of the crisis. Developments in EU made Turkey worried about because Turkey aimed to solve its current account deficit problem by export activity (Öztürkvd. 2012: 1). EU countries share ($) in Turkey’s total export is shown at Table 2. Turkey’s total export and export to EU started to fall in 2009 and 2010 and total export rose again in 2011 and 2012. Graph: 1.Turkey’s Export (2008–2011). 17.300% AB 1.500% ABD 46.800% Rusya İslam İşbirliği Teş 27.100% Çin Diğer 4.000% 3.200% Source:Turkstat, 2013. Trade relations between Turkey and EU affected negatively due to high budget deficits and financial problems in EU member countries which involve a recession in domestic aggregate demand and insufficient financial facilities. Especially, export amount of Turkey to EU is diminished. Foreign trade is fully related to EU debt crisis and Turkey. Still, EU is mainly trade partner of Turkey but the share of EU is decreasing in past few years and Turkey is trying to create new markets to meet this gap. At this point, a decline in EU import in generally causes a decrease the share of EU on Turkey’s export. Although Turkey did not lose its share in EU market, it is obvious that the crisis narrows Turkey’s export (Boyner, 2012:1). Turkey’s export towards economic groups and organizations between 2008 and 2011 is shown at Graph 1. The biggest share of export is in EU with percentage of 46 % and Muslim countries with 27 %. Notwithstanding economic relationships between EU and Turkey were influenced negatively, the union is still the most important trade partner of Turkey (Akses, 2012:4). A decline in aggregate demand in EU made Turkey to find alternative markets. Thus, Turkey improved its trade relationships with Middle East countries and Commonwealth of Independent States since 2008. Other reason to improve its trade relationship with third world countries is European international trade laws that apply a mutual customs union with inside and other countries. European Union is carrying out many negotiations about free trade agreements with a new perspective of foreign trade. For this reason, it is so 197 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo important that Turkey should execute new free trade agreements parallel to EU negotiations (Akses, 2012:4). Germany (13 billion $), Iraq (10.7 $) and UK (8 billion $) are the top countries in Turkey’s export in 2012 (Graph 2). The most of those countries show that Turkey’s export is still towards EU even though ongoing debt crisis. Additionally, 38.6 % of Turkey’s export is still consisting of EU countries. It shows that an export structure of Turkey which higher quality with low price, gave an advantage to Turkey. Besides, Turkey got a chance to make the crisis an opportunity by using its geopolitical location advantages and responding demands of other countries easily (Karagol, 2012:3). Graph 2. Export of Turkey (billion $), 2012 14 12 10 8 6 4 2 0 Source:Turkstat, 2013 Turkey’s foreign policy decisions are started to applied with integrated economic policy since a new political balance. New policies about the Middle East and African countries made economic relations grown with those countries. It provides country variety in export of Turkey even if it is argued that a huge change of Turkish foreign policy. Free trade agreements that increase the diversity and visa exemption contribute to improve Turkish foreign trade (Karagol, 2012:3). When EU’s free trade agreements with third world countries contain Turkey, Turkey’s trade benefits are not considered by EU because Turkey is still not a full-member of EU. This case creates that third world countries that have an free trade agreement with EU gain a right to get a free trade with Turkey. Also, concessions which are provided by third world countries to EU are not valid for Turkey because of candidate membership of Turkey. Moreover, those countries continue to apply tariffs on Turkey’s export and they are not willing to agree on free trade agreements. For instance, Mexico and Algeria do not negotiate with Turkey about an free trade agreement whereas they have free trade agreement with EU (Akses, 2012:5). Turkey’s export amounts by countries are shown at Table 3. 198 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Table:3. Export with Blocs, 2011-2012 Blocs Total A-EUROPEAN UNION (EU) B-FREE ZONES IN TURKEY C- OTHER COUNTRIES 1-Other European Countries 2-African Countries North African Countries Other African Countries 3-AmericanCountries North American Countries Central American and Caribbean Countries South American Countries 4-AsianCountries Near and Middle East Countries Other Asian Countries 5-Australia and New Zealand 6-Diğer Countries Source: Turkstat, 2013. 134 906 869 62 347 441 2 544 721 70 014 706 12 976 364 10 333 821 6 700 805 3 633 016 7 925 943 5 459 299 626 293 1 840 351 38 134 133 27 934 772 10 199 361 480 755 2011 Share(%) 100,0 46,2 1,9 51,9 9,6 7,7 5,0 2,7 5,9 4,0 0,5 1,4 28,3 20,7 7,6 0,4 152 560 775 59 240 765 2 295 409 91 024 601 14 373 164 13 361 451 9 448 432 3 913 019 9 635 644 6 673 256 769 879 2 192 509 53 058 624 42 476 952 10 581 671 490 446 2012 Share(%) 100,0 38,8 1,5 59,7 9,4 8,8 6,2 2,6 6,3 4,4 0,5 1,4 34,8 27,8 6,9 0,3 163 690 0,1 105 273 0,1 2011 Amount 2012 Amount Change (%) 13,1 -5,0 -9,8 30,0 10,8 29,3 41,0 7,7 21,6 22,2 22,9 19,1 39,1 52,1 3,7 2,0 -35,7 3.1.2. Credit- Finance Impact Another impact of the relationship is about credits. Approximately 75 % of credits that Turkish banks used are originated from EU and problems on banking and finance in EU are very dangerous for Turkey because it can affect Turkey’s growth performance that is dependent foreign savings. Turkish banking system that takes important cautions, still need to conduct profound analysis because of threats about EU debts (Boyner, 2012:2). Instability on foreign resource channel, global uncertainty and lack of confidence about economy cause to decrease credit amount of domestic banks. Especially, a decline in postdated check influences procurement of economy negatively such an environment. Elimination of procurement reflects to SME’s performance like a domino effect. On the other hand, narrowing volume in commercial credits affects in a very bad way to SMEs (TEPAV, 2009:10). Turkish economy applied an economic stability program with IMF after 2001 crisis (İncekara, 2012:4). Great successes are gained and Turkish economy has an outlook as below until debt crisis:  Structural reform and transformation on national economy,  Sustainable growth between 2002 and 2008 and a decreasing growth rate in past few years,  Creates employment and job opportunity,  Increasing export,  More efficient on manufacturing sector,  Increasing foreign direct investment,  Low inflation rates,  Decreasing public debt stock,  Conducting EU negotiations,  GDP per capita above 10.000 $. 199 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Global economic crisis was skipped with a recession because of the reforms on banking and financial after 2001 crisis (Karagol, 2011:3). Significant effect of the crisis was felt on September of 2008. Finance channels are became tight, a strong decline in both internal and external aggregate demand, production and employment losses are occurred in this period. Serious concerns about “bankruptcy again” involved a psychological trauma in the country (MÜSİAD, 2009:14). Global crisis influenced Turkey which is a profound connections with the world. According to both internal and external demand comedown, export and unemployment affected badly. Debt crisis affects occurred in three different ways (Usta, 2010).  Foreign Trade Channel: low external demand and production and employment losses  Credit channel: Scarcity of credit because of global finance system problems  Expectation channel: Domestic aggregate demand is declined because of uncertainties. 3.1.3. Expectation Impact Monthly expectation surveys of Turkish Central Bank did not show any good signal since 2007 and it showed that expectations were getting worse. Real sector confidence index did not get better after the middle of 2007 and it was getting worse on the third quarter of 2008. Consumer’s confidence to the future are gone (Sonmez, 2008). 3.1.4. Investment Impact When we evaluate the improvement on foreign direct investment of Turkey, one of the important factor is investment impact. According to data for past few years , most of the foreign direct investment to Turkey originated from European Union. In this respect, restriction of foreign investment originated from EU debt crisis prevent the opportunities to invest in Turkey and this is another risky factor of the crisis (Boyner, 2012:2). Top 10 countries which attract investment mostly is shown at Table 4. USA, China and Hong Kong are the top three countries and Turkey is the 17th most attractive country for foreign investment in 2010. When we look at the year of 2008 (19.5 billion $), there is a sharp decrease in foreign direct investment of Turkey. Table 4: Most Attractive Countries on Foreign Direct Investment (2010) Rank 1 2 3 4 5 6 7 8 9 10 17 Country FDI* (Billion US $) USA 228,2 China 105,7 Hong Kong 68,9 Belgium 61,7 Brazil 48,4 Germany 46,1 England 45,9 Russia 41,2 Singapore 38,6 France 33,9 Turkey 9,1 World Total 1.243,7 Source: Ministry of Economy of Turkey, Foreign Direct Investment 2012 Report p. 7. *FDI: Foreign Direct Investment 200 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo At present crisis is a situation where both parties are satisfied. Turkey is not insisting about membership and EU is not in a hurry about it. While we're not aware of time passing by this way, the biggest loss for the candidate countries, namely Turkey sees, or will see. Because when the countries join the EU, they must accept all the terms and conditions. Extension of the membership process means the arrival of new issues on the agenda.The EU is a dynamic structure, and continuously develops new rules and practices. As long as the membership process is extending, the candidate country countries have to adapt to the new situations and it must accept the new rules (Ozdemir, 2012:2). The decreasing of the support of EU to Turkey should not be interpreted as giving up the EU projects. Taking a look at the perception of EU in the world and in the EU will be useful to understand this situation. There are serious problems that disturb the public they are not about the state of crisis in the EU. Due to the structure of the EU institutions and decision-making mechanism, the lack of democratic accountability obligation has damaged the legitimacy of the EU institutions and it has reduced the credibility of the EU institutions. EU citizens are now on every occasion give the signal for that they do not like the integration process which is leading by elite class. The EU has to deal with the new regulations which provide legitimacy to overcome those problems. Meanwhile, the financial and debt crisis in the EU up to a short time to exit the growth and employment, rather than based on solid economic discipline and budget constraints compromising stability and social welfare state debate agenda, EU citizens' aspirations for EU integration is reduced(ArısanEralp, 2012: 3). 5. Conclusion Starting in 2007, the United States, the EU and other countries, the impact of the global financial crisis still continues to spread. Especially some EU countries are affected more than others. Despite all the problems and crises, the EU's economic model is still seen as a strong economic zooming and transformation mechanism. This situation shows that EU crises are not only financial but also structural. If the debt crisis will not be solved as soon as possible, it is obvious that debt crisis will be long and problematic process. in this case, Turkey should search for alternative markets to sustain, enhance the competitiveness of the international markets and take steps to fill the loss of the perimeter of the EU countries on world markets. With the financial crisis which arise in 2007 and affect all over the world, the dominant problems of economics such as growth dynamics, distribution problems in the financial sector has been started to discussed (Yener, 2010: 1). Mortgage crisis of 2007 put end to liberal economy policies which pretend that government interfere economy and the increasing of the doubt about the future of the liberal capitalist system makes the policies which regulate financial system important. Indeed, in the G-20 Summit of 2 April 2009 (referred to as the London Summit in London to made), it was stated that the cause of the crisis is the failure of financial regulation, the capable global system should be established, the global cooperation should be extended, transparency and market discipline should be given importance (Er,2011: 323). In this respect, derived lessons from mistakes are written below (Yeldan, 2009:16): 201 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo  First of all, neo-liberal economics doctrines which mention about free market without any government intervention will provide a stabilized and balanced economy, is wrong.  Second one is about process of financial system and structural characteristics. Financial system is a world of expectation and manipulation on the contrary of real sector. Financial system gains are came from “fast” decision mechanism that embodied short term point of view, manipulation and risks. Decision makers who ignore the characteristics of financial markets are still defending the thought that transparency is good solution. We can say the main things that should be done after the crisis (YılmazveGaygusuz, 2009):  Strong supervisions and regulations about extreme leverage are needed.  Much transparency should be needed to lower the counterparty risk.  New and different products that comes from financial system should be controlled by international independent foundations.  Standards and rules should be legislated on banking system and other institutions such as “Basel II”  Derived products markets must be controlled and supervised. With all these regulations, financial system will work properly and risks are lowered. Increasing desire for risk with profit maximization which has been in the nature of capitalistic system should be decreased. 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Küresel Mali Kriz Ve Türkiye Ekonomisinin Orta Vadeli Perspektif, İstanbul Üniversitesi, II. Çalışma Ekonomisi ve Yönetim Kongresi19 Mart 2010 Küresel Mali Kriz Ve Türkiye Vural, G. (2012). AB Krizi ve Türkiye’ye Olası Yansımaları, http://www.sde.org.tr/tr/haberler/1906/ab-borc-krizi-ve-turkiyeye-yansimalarianalizi.aspx 15.04.2013 Yeldan, E. (2009). Kapitalizmin Yeniden Finansallaşması ve 2007/2008 Krizi: Türkiye Krizin Neresinde? http://www.calismatoplum.org/sayi20/yeldan.pdf Yener, C. (2010). Küresel Finansal Kriz ve Kredilendirme ve Değerleme Sorunları: ABD ve Türk İpotekli Konut Finansman Sistemleri Hakkında Bir Değerlendirme. Tam Metin Bildiri (21Kasım 2009, Taşınmaz Değerleme Günleri 2009). TMMOB Harita ve Kadastro Mühendisleri Odası İstanbul Şubesi Yayını: 223-249. Yıldırım, S. (2010). Yılı Küresel Ekonomi Krizinin Dünya ve Türkiye Ekonomisine Etkileri, KMÜ Sosyal ve Ekonomik Araştırmalar Dergisi 12 (18): 47-55, 2010 Yılmaz, D. ve Gayğusuz, F. (2009). 2008 KrizininYeni Global EkonomikYapıÜzerineEtkileri, UluslararasıDavrazKongresi,SüleymanDemirelÜniversitesi, Isparta, 24-27 Eylül. (Erişim: http://idc.sdu.edu.tr/tammetinler/kalkinma/kalkinma39.pdf). http://epp.eurostat.ec.europa.eu/cache/ITY_PUBLIC/2-22042013-AP/EN/2-22042013-APEN.PDF 15.04.2013 204 � 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. 1558 Title A name given to the resource The Effects of Deepening Debt Crisis in the Member Countries of European Union on Turkish Economy Author Author ALANCIOGLU, Erdal PAKSOY H., Mustafa PAKSOY, Sadettin Abstract A summary of the resource. The world's second largest market after the United States is the European Union that has an important position in the context of the global economy. Since the last quarter of 2008, the global financial crisis spread to Europe from the U.S. Currently, the european Union crises which is perceived as an international problem has a negative effect on also our economy as well as on all over the world. Althought, Turkey is not a member of European Union the country is effected by each kind of crises by the Europen Union easily. The effect of European Union on Turkish economy is are examined in this study; foreign trade, credit and finance, dimensions of investment channels and perspective of Turkey in terms of being member of European Union will be evaluated. Keywords: European Union, the Debt Crisis, Economy of Turkey. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 https://omeka.ibu.edu.ba/files/original/800547fc1c8c0d7fb66838209bf7d5c5.pdf 001ca3215638224b332adde93333ea39 PDF Text Text The Effects of Different Feeding Programmes on Growth and Survival Rates of Newborn Guppy (Poeciliareticulata PETERS, 1859) Tolga Sahin1, Gurel Turkmen2,Dilek Isgoren Emiroglu2 1Çanakkale 18 Mart Uni.,Faculty of Fisheries, Dep.ofAquaculture, Çanakkale / Turkey 2Ege University, Faculty of Fisheries, Department of Aquaculture, Izmir / Turkey E-mails:tolgasahin@comu.edu.tr,gurel.turkmen@ege.edu.tr, dilek.emiroglu@ege.edu.tr Abstract In this trial, five feeding programmes were used to investigate the optimum feeding process of new-born guppy in five treatment groups. For the study, fish were fed Artemia(nauplii) for 4 weeks (4A), microparticulated feed for 4 weeks(4MF), 1week Artemia+ 3weeks microparticulated feed (1A+3MF), 2weeks Artemia + 2weeks microparticulated feed (2A+2MF) and 3weeks Artemia + 1week microparticulated feed (3A+1MF) in related treatment groups. At the end of the study differences in weight, length, survival and stress resistance of the fish were calculated. According to the measurements, the best average growth of19.94±0.161 mm length and0.0732±0.00120 g weightwas observed in the group fed 4MF (p<0.05), whilst the worst average growth of17.74±0.088 mm lengthand0.0425±0.00061 g weight was observed in the group fed 4A (p<0.05).There were significant differences (p<0.05) in average lengths of18.93±0.038 mm, 18.27±0.055 mm, 17.97±0.025mm in the groups fed 1A+3MF, 2A+2MF and 3A+1MF respectively. The weights did not show any differencewith0.0594±0.00032g and 0.0576±0.00026g between the groups 1A+3MF, 2A+2MF (p>0.05),while the group 3A+1MF showed different live weight of 0.0490±0.00041g (p<0.05) according to other treatment groups. The worst survival rates with %88.14±0.74 has been obtained (p<0.05) in the group fed 4MF while the survival rates has been determined %97.78±0.00 in the group fed 3A+1MF, %97.04±0.74 in the group fed 4A and in the group fed 2A+2MF, %91.85±0.74 in the group fed 1A+3MF respectively. There were no significant differences between the groups fed 4A, 2A+2MF, 3A+1MF (p>0.05) while the groups 4MF and 1A+3MF showed significant differences (p<0.05). According to these results, the diet 4MF and 1A+3MF are not enough for a better aquaculture of new-born guppy. Therefore, it is found in the trial that Artemia supply for the first 2 weeks after birth in guppy are necessary for better survival and stress resistance. Keywords:Poecilia reticulata, Artemia, Microparticulated feed. 1. INTRODUCTION For many fish species, the larval period is considered critical in life history. Success of larval rearing depends mainly on the availability of suitable feed that is readily consumed, efficiently digested and that provides the required nutrients to support good growth and health (Giri et al., 2002). In general, the fish larvae are physiologically immature with little or no capacity to produce certain hormones and digestive enzymes, and they are dependent to a 300 �greater or lesser extent on exogenous sources as live feed (Dabrowski, 1982, Lam, 1994; in Kumar et al., 2008). For this reason, it has been known that, since no artificial feed formulation is yet available to completely substitute for live feed, feeding live prey to young fish larvae still remains essential in commercial hatchery operations (Sorgelooset al., 2001). Hence, live feed is still the most preferred and reliable food organism in the rearing of fish larvae. In theornamental fish production, the fish also have commonly been fed live preyfor several days after hatching depending on the species. The major aim of the aquaculturists are to provide the fish larvae appropriate size of feed at the first feeding stage and to allow for better growth with higher survival rates. However, the mouth-opening is enough to get the microparticulated artificial feed in newborn guppies. Despite the mouth-opening being large enough for exogenous feeding, use of live-feed in the culture of new-born guppy is important due to lower survival rates and weakness to the adverse conditions fish fed only microparticulated feed (OrtadoğuAkv., Pers. Comm., April 4, 2012; ŞirinyerAkv., Pers. Comm., April 4, 2012; Kayhan, S. Email Interview, Feb. 12, 2012; Clapsaddle, C., Email Interview, Feb. 01, 2012). For that reason, many freshwater ornamental fish farmers have shifted from only artificial feed to the cleaner Artemia nauplii to feed their young fish for the first few weeks after hatching. Although Artemia is advantageous, it also has several disadvantages. The high price of Artemia cysts has increased the fish production making it one of the biggest outgoings at the ornamental fish farms. Many studies have been carried out both in marine larvae culture and ornamental fish larvae culture to determine the optimum period for Artemia feeding to solve this economical problem. In this study, the effects of Artemia and microparticulated feed on growth, survival parameters and stress resistance have been calculated in new-born guppies. The optimum feeding period of the new-born guppy with Artemia was investigated. 2. MATERIALS AND METHODS 2.1.Experimental setup and the trial Five treatments, including: Artemiafor 4 weeks (4A), microparticulated feed for 4 weeks(4MF), 1weekArtemia+3 weeks microparticulated feed (1A+3MF), 2weeks Artemia + 2weeks microparticulated feed (2A+2MF) and3weeks A + 1week microparticulated feed (3A+1MF) were fed to triplicate groups of new-bornguppies. The experimental setup has been illustrated in Figure 1. Guppy fry were received from female broodstocks which allthe fish used in the experimentwereoriginated from the same strain. The trials were conducted in 9-Ltransparent plastic containers. After determination of the average length and weight of the fry (8.11 ± 0.21 mm total length ‗TL‘ and 0.0064 ± 0.0006 g weight), new-born guppy were stocked at a density of 45 fish for each experimental tank (Itzkovich, 2011). The containers were continuously aerated and dissolved O2 was kept >7 mg.L-1. Water temperature was maintained at 26 ± 1 ºC and 12 h light/12 hdarkphotoperiod conditions were applied. Filtration was supplied with canister filters in order to filter the tap water in supply tank. % 30 of water was siphoned daily from the experimental containers for removing the uneaten food 301 �and fish waste (Uslu, 2003). The tanks were refilled with filtered tap water from the supply tank after siphoned. Measurements were taken every 7th day from the beginning of the trial until the end. On completion of the trial one final measurement was taken. The sample fish from all the replicates of five treatments were selected randomly and anaesthetized with clove oil (Kanyılmazet al.,2007). After anesthetization, lengths were measured and fish were weighed. The dissolved oxygen, temperature and pH parameters were monitored daily while ammonia, nitrite and nitrate parameters were monitored once a week. Figure 1Experimental setup 2.2.Feeds and feeding protocol The fish were fed Artemianauplii and microparticulated feed throughout the study. As microparticulated feed, a new commercial artificial feed (ÇağatayEcobio, 300-500µ) was used on related treatment groups (Table 1). The microparticulated feed contains optimum levels of significant nutrients according to the information indicated at Shim and Ho (1993), Shim and Chua (1986) (Sales and Janssens, 2003). Table 1 Nutritional Composition of the Microparticulated Feed1(MF) and Artemia1(%). MF Artemia Crude Protein Min. 42 57 Crude Fat Min. 6 13 Crude Cellulose Max. 3 - Crude Ash Max. 9 8 1Obtained from the feed cards. 302 �The requisite Artemia nauplii were obtained daily by hatching the decapsulated cysts. The decapsulatedArtemia cysts were placed into a cone shaped container and filled with >8 pH water. The temperature was set to 27-28 ºC and the salinity was adjusted to ‰ 33. Continuous strong aeration was carried out to the container and 2000 lux illumination was applied to the surface of water. Over 18-24 hours, nauplii were hatched. Feeding procedures was set to adlibitum. Newly hatched naupliiwere supplied to treatment groups three times a day at a concentration of 1 nauplii mL-1 for the first 10 days and then 2 nauplii mL-1 on subsequent days. Hatched nauplii were stored at +4 ºC after use not to lose its nutritional values (Le´ger et al., 1983; in Lim et al., 2003). 2.3. Stress test At the end of the experiment, sample fish were collected randomly from each replicate of the groups in order to determine the stress resistance. A stress test was used to evaluate the stress resistanceof the freshwater ornamental fish. The test entailed exposure of thefish to a certain amount of osmotic shock in a saline solution.Theoptimal salinity for stress tests using guppy fry reported to be 30 ‰according to procedures described by Lim et al.(2000). Hence, during the osmotic application, fish were subjected to osmotic shock in a500-mL beaker containing 500 mL of 30-ppt saline solution, made up of pre-aerated culture water and coarse salt. Themortality was monitored at 15-min intervalsover a 2-h period. The stress resistance of thefish werecalculated according to the number of survived fish recorded atreadings during the observation period. 2.4. Statistical analyses Results were subjected to variance analyses (one-way ANOVA; p< 0.05) and followed by Tukey‘s multiple range testusing a software package SPSS 17.0 to determine the significant differences among treatment groups. 3. RESULTS 3.1. Growth After average measurements were done at the beginning of the experiment, weight and length measurements were carried out on a weekly basis to evaluate the differences between the groups as a result of the protocols applied on nutrition programs. At the end of the first week of the trial, all groups showed approximately similar average live weight and length results (p>0.05). In the second week measurements, the best growth results were obtained from the group 4MF (p<0.05).The groups 4MF and 1A+3MF were significantly different from each other (p<0.05) but the other groups showed no difference between themselves (p>0.05). At the end of the third week, another measurement has been carried out. According to the results, the group 4MF showed the best growth (p<0.05). The groups 4MF, 1A+3MF and 2A+2MF were statistically different from each other (p<0.05) while the others did not show a difference on growth (p>0.05). 303 �The last measurement has been done in the fourth week on completion of the trial. The group 4MF showed the best growth (p<0.05), while the group fed only Artemia (4A) showed the worst live weight and length results (p<0.05). The groups1A+3MF and 2A+2MF did not show a significant difference (p>0.05) in terms of weight while the lengths were significantly different from each other (p<0.05). The group 3A+1MF also showed significant difference for the weight measurements (p<0.05) but the lengths were not significantly different from the groups 4A and 2A+2MF (p>0.05), although the groups 4A and 2A+2MF differ from each other.The average live weights were shown in Table 2 and Figure 2 and the lengths were shown in Table 3 and Figure 3. Table 2Average live weights recorded at weekly measurements (g). Measurements Groups Initial 1. Week 2. Week 3. Week 4. Week 4A 0.0064±0.00 06 0.0103±0.000 12 0.0161±0.0001 5c 0.0349±0.0002 9d 0.0425±0.0006 1d 4MF 0.0064±0.00 06 0.0104±0.000 06 0.0219±0.0002 4a 0.0569±0.0001 7a 0.0732±0.0012 0a 1A+3M F 0.0064±0.00 06 0.0103±0.000 06 0.0196±0.0002 0b 0.0475±0.0002 7b 0.0594±0.0003 2b 2A+2M F 0.0064±0.00 06 0.0103±0.000 10 0.0162±0.0002 1c 0.0436±0.0002 6c 0.0576±0.0002 6b 3A+1M F 0.0064±0.00 06 0.0102±0.000 12 0.0157±0.0001 5c 0.0352±0.0001 2d 0.0490±0.0004 1c 304 �4A 0.08 4MF 1A+3MF 2A+2MF 3A+1MF 3 4 0.07 Weight (g) 0.06 0.05 0.04 0.03 0.02 0.01 0 Initial 1 2 Experimental period (weeks) Figure 2 Graphical representation of live weights recorded at weekly measurements Table 3 Average lengths recorded at weekly measurements (mm). Measurements Groups İnitial 1. Week 2. Week 3. Week 4. Week 4A 8.11±0.21 11.54±0.023b 12.77±0.018c 15.11±0.024d 17.74±0.088d 4MF 8.11±0.21 12.01±0.018a 14.50±0.031a 17.19±0.035a 19.94±0.161a 1A+3MF 8.11±0.21 11.52±0.042b 13.91±0.024b 16.92±0.114b 18.93±0.038b 2A+2MF 8.11±0.21 11.56±0.035b 12.76±0.031c 16.16±0.031c 18.27±0.055c 3A+1MF 8.11±0.21 11.51±0.018b 12.71±0.042c 15.13±0.029d 17.97±0.025cd 305 �4A 4MF 1A+3MF 2A+2MF 3A+1MF 20 Length (mm) 18 16 14 12 10 8 Initial 1 2 3 Experimental Period (weeks) 4 Figure 3Graphical representation of the lengths recorded at weekly measurements 3.2. Survival As a result of observations on each experimental tank, dead fish were recorded daily during the experiment. At the end of the study, survival rates were calculated according to numbers of live and dead fish (Table 4). In consequence of survival data, the fish fed 3A+1MF diet showed the highest survival rates %97.78. The group fed only Artemia and the group fed 2A+2MF also showed better survival rate with both %97.04. The worst survival rates have been obtained from the group fed only MF with %88.14 and followed by the group fed 1A+3MF with %91.85. According to the statistical analyses, the groups 4A, 2A+2MF, 3A+1MF were not different from each other (p>0.05), while the groups 4MF and 1A+3MF were both different (p<0.05). Table 1Survival rates of new-born guppy fry fed different feeding programs (%). Groups 4A 4MF 1A+3MF 2A+2MF 3A+1MF Survival Rates 97.04±0.74a 88.14±0.74c 91.85±0.74b 97.04±0.74a 97.78±0.00a 3.3. Stress Test Results The stress resistance of the fish were calculated during the observations which have been done 15 minutes intervals over 2 hour period. The fish fed 4A and 3A+1MF have shown the best stress resistance between all treatment groups. There were not significant differences among these two groups despite the others were different from each other. Following groups can be listedas 2A+2MF, 1A+3MF and 4MF according to their stress resistance and stamina. The first deaths have been observed in the groups 4MF in the 30th minutes (Table 5, Figure 306 �4). The deaths in all groups have been seen in the 60th minutes. At the end of the application, there were no alive fish in the group 4MF while the survival rate was %30 in the groups fed 4A and 3A+1MF. Table 5Survival rates of new-born guppy exposed to salinity stress test. Survival data recorded at 15 min. intervals (%) Groups 0 15 30 45 60 75 90 105 120 4A 100.0 100.0 100.0 100.0 80.0 63.3 56.6 53.3 30.0 4 MF 100.0 100.0 96.6 83.3 66.6 50.0 23.3 6.6 0.0 1 A+3 MF 100.0 100.0 100.0 96.6 76.6 60.0 46.6 16.6 10.0 2 A+2 MF 100.0 100.0 100.0 90.0 73.3 70.0 40.0 26.6 23.3 3 A+1 MF 100.0 100.0 100.0 100.0 86.6 66.6 56.6 40.0 30.0 Survival Rates of Fish (%) 4A 4 MF 1 A+3 MF 2 A+2 MF 3 A+1 MF 100 90 80 70 60 50 40 30 20 10 0 0 15 30 45 60 75 90 Observations (15 min. intervals) 105 120 Figure 4 Graphical demonstration of the stress test exposed to new-born guppy 4.DISCUSSION In this study, new-born guppy showed good feeding response to both Artemia and microparticulated feed. However, the fish fed 4MF diet ended up with a high performance growth according to other treatment groups (p<0.05). In the first measurement, the weights of the fish did not differ from each other (p>0.05). But for the lengths, four groups including 4A, 1A+3MF, 2A+2MF, 3A+1MF resulted in the same growth rate (p>0.05) while 4MF 307 �outrivaled the others (p<0.05). In the second week of the trial another measurement has been performed and 3 different growth grades have been obtained from the statistical analyses. The groups 4MF and 1A+3MF were significantly different (p<0.05) in terms of live weight and length but the other groups did not show any difference(p>0.05). In the following measurement, the groups 4MF, 1A+3MF, 2A+2MF all showed better weight gain and increase in length in contrast to 3A+1MF and 4A groups respectively. The groups 4MF, 1A+3MF and 2A+2MF were statistically different from each other (p<0.05) while the others did not show a difference on growth (p>0.05).At the end of the trial, the last measurement has been done and the best growth results were obtained from the group fed 4MF (p<0.05), while the group fed only Artemia (4A) showed the worst growth (p<0.05). The other groupscould be arrayed as 1A+3MF, 2A+2MF and 3A+1MF according to growth of the fish depending upon the statistical analyses.Herein, it is clear to see the positive effect of used artificial feed on growth of new-born guppy. However, the survival rates were not the same as growth between the treatment groups. The highest survival rates obtained from the groups 3A+1MF, 2A+2MF and 4A respectively. According to data obtained from the measurements and observations have done during the experiment, the fish fed 4MF diet showed better growth while they have had lower survival rates. In spite of that, the fish fed 4A diet showed lower growth although they have had higher survival rates. Therefore, as is clear from here, Artemia weighted diets have resulted in better survival rates despite they cause lower growth in new-born guppies. Another application has been carried out to determine the stamina of the fish fed different feeding programs. The salinity stress test used in the trial is one of the stress resistance determining tests developed for new-born guppies. The groups 4A and 3A+1MF showed the best survival rates according to stress test results. The groups fed MF weighed diets resulted in lower stress resistance. Thus, the stress resistances of the fish have given similar results to the survival data of the fish during the trial. It is clear that, Artemia increased the stamina of the fish in contrast to MF in this trial. In a similar study, Başçınar and Çakmak, (2010) have investigated the growth performance of Black Sea Trout larvae fed Artemia and granulated feed. According to the results, they have found that the larvae grew better fed only granulated feed for the first 45 days. However, the survival rates were not high in the groups fed Artemia in contrast to this trial. Callan et al., (2003), also have made another experiment to investigate the early weaning of Gadusmorhua larvae from Artemia to artificial feed. They have found that the groups fed 100% A, 50% A and 25% A diets did not differ significantly in standard length, dry weight, specific growth rate or survival. However, the microparticulated diet treatment has had lower growth and survival rates than any of the treatments receiving Artemia. Çalım, (2010) has investigated the effects of Artemia and microcapsule feed on guppy fry, and has found that the growth and survival data were not as well as the fry fed Artemia. In another trial, Kaiser et al., (2003) have found that the larvae (Carassiusauratus) fed Artemia or Artemia + commercial food have showed better growth and survival rates than the fish fed only commercial food. In many studies, Artemia and artificial feed diets show different growth and survival results due to species and other conditions. There are several researches have been already done about the first feeding of new-born guppy. According to the data obtained from these experiments prove that, the use of Artemia nauplii for the feeding of guppy-fry increases the growth and survival. However, being one of the biggest expenditures of ornamental fish 308 �farms, use of Artemia is an important issue for the farmers. Several interviews followed out with the fish-farmers (OrtadoğuAkv., Pers. Comm., April 4, 2012; ŞirinyerAkv., Pers. Comm., April 4, 2012)to investigate the feeding protocols of the culture of new-born guppies and to consider the use of Artemia in ornamental fish farms. According to interviews, the use of Artemia as live feed for the culture of new-born guppy have been expressed as necessary for the first few weeks after birth. The Artemia has been rendered as breast-milk for new-born guppies due to its effects on increased survival and stamina. Person le Ruyet (1993) has also indicated that, reducing the live prey utilization in larvae increases the Artemia savings for the early culture of fish. However, this may lead to deaths, lower juvenile quality, including skeletal abnormalities. It is already known artificial feeds got ahead in time and increase the growth and survival much better in comparison to back. It is because of the recent studies which have provided better understanding of digestion mechanisms in larvae and have led to proposed dietary compositions meeting larvae nutritional requirements. The biochemical studies have also shown that most of the digestive enzymes are present in young larvae to digest the artificial feed (Cahu and Infante, 2001). Therefore, artificial feeds are being improved rapidly to meet the needs of larvae. But total replacement of live prey is still formidable for now. For this reason, Artemia is still the most important live feed in the culture of new-born guppy and highly important for a better growth, survival and stamina. In this trial, the efficient use of Artemia and microparticulated feed were investigated. According to the results Artemia supply to the fish increased the survival and stamina. As a result, the use of Artemia on new-born guppy for the first 2 weeks after birth has been found necessary for better survival and stress resistance. REFERENCES Başçınar, N. S. &Çakmak, E., 2010. Utilization of Granule and Live Feed at Black Sea Trout (Salmotruttalabrax PALLAS, 1811) Larvas: Comparison of Growth Performance. Kafkas Univ. Vet.Fak.Derg. 16 (6): 915-920. Callan, C., Jordaan, A. & Kling, L.J., 2003.Reducing Artemia Use in The Culture of Atlantic Cod (Gadusmorhua). Aquaculture 219, 585–595. Copeman, L.A., Parrish, C.C., Brown, J.A. &Harel, M., 2002. Effects of Docosahexaenoic, Eicosapentaenoic and Arachidonic Acids on the Early Growth, Survival, Lipid Composition and Pigmentation of Yellowtail Flounder (Limandaferruginea): a Live Food Enrichment Experiment, Aquaculture 210, 285–304. Çalım, Ç., 2010.Determination of Requirements of Artemia and Microencapsulated Diets as Food for Goldfish (Carassiusauratus) and Guppy (Poeciliareticulata) larvae.ÇukurovaÜniv., Su Ürün. A.B.D., M.Sc. Thesis, Adana, 30pp. Dagar, A., Zilberg, D., Cohen, Z., Boussiba, S. & Goldberg, Inna K., 2010. Short-term Dietary Supplementation with the Microalga ‗Parietochlorisincisa‘ Enhances Stress Resistance in Guppies ‗Poeciliareticulata‘. Aquaculture Research, 2010, 41, 267-277. 309 �Evangelista, A. D., Fortes, N. R. & Santiago, C. B., 2005.Comparison of Some Live Organisms and Artificial Diet as Feed for Asian Catfish ‗Clariasmacrocephalus‘ (Günther) Larvae. J. Appl. Ichthyol. 21 (2005), 437–443. Fernando, A. A., Phang,V. P. G. & Chan, S. Y., 1991. Diets and Feeding Regimes of Poeciliid Fishes in Singapore.Asian Fish. Sci. 4, 99–107. Giri, S.S., Sahoo, S.K., Sahu, B.B., Sahu, A.K., Mohanty, S.N., Mukhopadhyay, P.K. &Ayyappan, S., 2002. Larval Survival and Growth in ‗Wallagoattu‘ (Bloch and Schneider): Effects of Light, Photoperiod and Feeding Regims. Aquaculture, 213:151-161. Guppy Culture in Israel Using Closed System. Last Accessed on 3 1, 2012, from http://aquafind.com/articles/guppy1.php The Use of Clove Oil as a Fish Anaesthetic. Last Accessed on 3 5, 2012, from http://www.akuademi.net/USG/USG2007/Y/y08.pdf Kumar, D., Marimuthu, K., Haniffa, M. A. &Sethuramalingam, T. A., 2008.Effect of Different Live Feed on Growth and Survival of Striped Murrel‗Channastriatus‘ larvae. E.U. Journal of Fisheries & Aquatic Sciences 2008, Cilt/Volume 25, Sayı/Issue (2): 105–110. Lim, L. C., Dhert, P. &Sorgeloos, P., 2003.Recent Developments in the Application of Live Feeds in the Freshwater Ornamental Fish Culture. Aquaculture 227 (2003) 319–331. Sales, J. &Janssens, G. P. J., 2003.Nutrient Requirements of Ornamental fish.Aquatic. Living Resources, 16 (2003) 533–540. Sorgeloos, P., Dhert, P. &Candreva, P., 2001.Use of the Brine Shrimp, Artemia spp.In Marine Fish Larviculture. Aquaculture, 200, 147-159. Sales, J. &Janssens G. P. J., 1993, Nutrition of Ornamental Fish. Aquatic Living Resources 16 (2003) 533–540. Uslu, M., 2003, Determination of Suitable Feed Source Necessity of Blackmolly (Poecilialatipinna)‘ on Larval and Juvenile Term.ÇukurovaÜniv., Su Ürün. A.B.D., M.Sc. Thesis, Adana, 41pp. Structural Characterization Of Iron Aluminide Coatings On Aisi 4140 Steel By Trd Ugur Sen*, Eren Yılmaz, Saduman Sen Sakarya University, Engineering Faculty, Department of Metallurgy and Materials, Esentepe Campus, 54187, Sakarya- Turkey. E-mail: ugursen@sakarya.edu.tr Abstract In the present study, structural characterization of iron aluminide coated AISI 4140 steel by thermo-reactive deposition technique (TRD) in the powder mixture consisting of pure 310 � 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. 1260 Title A name given to the resource The Effects of Different Feeding Programmes on Growth and Survival Rates of Newborn Guppy (Poeciliareticulata PETERS, 1859) Author Author Tolga , Sahin Abstract A summary of the resource. In this trial, five feeding programmes were used to investigate the optimum feeding process of new-born guppy in five treatment groups. For the study, fish were fed Artemia(nauplii) for 4 weeks (4A), microparticulated feed for 4 weeks(4MF), 1week Artemia+ 3weeks microparticulated feed (1A+3MF), 2weeks Artemia + 2weeks microparticulated feed (2A+2MF) and 3weeks Artemia + 1week microparticulated feed (3A+1MF) in related treatment groups. At the end of the study differences in weight, length, survival and stress resistance of the fish were calculated. According to the measurements, the best average growth of19.94±0.161 mm length and0.0732±0.00120 g weightwas observed in the group fed 4MF (p<0.05), whilst the worst average growth of17.74±0.088 mm lengthand0.0425±0.00061 g weight was observed in the group fed 4A (p<0.05).There were significant differences (p<0.05) in average lengths of18.93±0.038 mm, 18.27±0.055 mm, 17.97±0.025mm in the groups fed 1A+3MF, 2A+2MF and 3A+1MF respectively. The weights did not show any differencewith0.0594±0.00032g and 0.0576±0.00026g between the groups 1A+3MF, 2A+2MF (p>0.05),while the group 3A+1MF showed different live weight of 0.0490±0.00041g (p<0.05) according to other treatment groups. The worst survival rates with %88.14±0.74 has been obtained (p<0.05) in the group fed 4MF while the survival rates has been determined %97.78±0.00 in the group fed 3A+1MF, %97.04±0.74 in the group fed 4A and in the group fed 2A+2MF, %91.85±0.74 in the group fed 1A+3MF respectively. There were no significant differences between the groups fed 4A, 2A+2MF, 3A+1MF (p>0.05) while the groups 4MF and 1A+3MF showed significant differences (p<0.05). According to these results, the diet 4MF and 1A+3MF are not enough for a better aquaculture of new-born guppy. Therefore, it is found in the trial that Artemia supply for the first 2 weeks after birth in guppy are necessary for better survival and stress resistance. Keywords:Poecilia reticulata, Artemia, Microparticulated feed. Date A point or period of time associated with an event in the lifecycle of the resource 2012-05-31 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General),Q Science (General)