308 10 3494 https://omeka.ibu.edu.ba/files/original/74b4dfda8924dd41add7f122f6fe173f.pdf 43a22b9a7a07c402547b95783d072a41 PDF Text Text Keti VENTURA / Ipek KAZANCOGLU / Elif USTUNDAGLI / Rezan TATLIDIL the consumers’ willingness to reward. Psychology and Marketing, 25(6), 521-37. doi: 10.1002/mar.20224 Martineau, P. (1958). The personality of the retail store. Harvard Business eview, 36(1), 47–55. McClain, A. J. (1996). Hierarchical analytic methods that yield different perspectives on dynamics: aids to interpretation. In B. Thompson (Ed.), Advances in social science methodology, Greenwich, CT: JAI Press, 4, 229-240. O’Cass, A. & Grace, D. (2008). Understanding the role of retail store service in light of self-image – store image congruence. Psychology & Marketing, 25(6), 521-537. doi: 10.1002/mar.20223 Journal of Economic and Social Studies The Role of Twin Deficits Problem in Sustainable Growth: An Econometric Analysis for Turkey Halil UCAL Adnan Menderes University Faculty of Economics and Administrative Sciences Nazilli, Aydin, Turkey hucal@adu.edu.tr Orth, U. R., Limon, Y. & Rose, G. (2010). Store-evoked affect, personalities, and consumer emotional attachments to brands. Journal of Business esearch, 63, 1202 – 1208. doi: 10.1016/j. jbusres.2009.10.018 Paswan, Audhesh (2009), “Confirmatory Factor Analysis and Structural Equations Modeling: An Introduction” Seminer Notes, http://www.cob.unt.edu/slides/paswan/BUSI6280/CFASEM%20-%20Intro-May%2018%202009.ppt, Access Date: 5.10.2012 Punja, G. & Moon, J. (2002). Positioning options for achieving brand association a psychological categorization framework. Journal of Business esearch, 55, 275– 283. doi: 10.1016/S01482963(00)00165-X Mehmet BOLUKBAS Adnan Menderes University Faculty of Economics and Administrative Sciences Nazilli, Aydin, Turkey mbolukbas@adu.edu.tr Sirgy, M.J. & Samli, A.C. (1985). A path analytic model of store loyalty involving self-concept, store image, socioeconomic status, and geographic loyalty. The Journal of the Academy of Marketing cience, 13(3), 265-291. doi: 10.1007/BF02729950 Sirgy, M.J., Grewal, D. & Mangleburg, T. (2000). Retail environment, self-congruity, and retail patronage: an integrative model and a research agenda. Journal of Business esearch, 49(2), 127-138. doi: 10.1016/S0148-2963(99)00009-0 Suhr D. (2006). Exploratory or Confirmatory Factor Analysis?. A onference. 31, SanFrancisco: SAS User’s Group:Paper #200. suers Group International Turkish Statistical Institute (TSI) (2011), urkey in tatistics 2011, Pub. No. 3592, Ankara. Wang, X. & Yang, Z. (2008). Does country-of-origin matter in the relationship between brand personality and purchase intention in emerging economies?. International Marketing eview, 25(4), 458–474. doi: 10.1108/02651330810887495 Wesley, S.C., Fowler, D.C., Vazquez, M.E. (2006) “Retail personality and the Hispanic consumer”, Managing Service Quality, 16 (2), 167-84 Yozgat, U. & Deniz, R. B. (2008). Specialty retailers in consumer electronics technology markets as a business model. Journal of Global trategic Management, 3, 114-116. Zentes, J., Morschett, D & Schramm-Klein, H. (2008). Brand personality of retailers – an analysis of its applicability and its effect on store loyalty. The International eview of etail, istribution and onsumer esearch, 1. doi: 10.1080/09593960701868282 Abstr ct In economics literature the relationship between budget deficit and current account deficit is known as twin deficits hypothesis. The Keynesian Approach accepts a relationship between two deficits. In contrast to this, icardian quivalence Hypothesis defends there is no relationship between these two deficits. win deficits have become the subject of several studies to test which of these hypotheses are reliable but no consensus has been achieved. ome studies found a relationship from budget deficit to current account deficit but some of them had the opposite result. specially after 1980 it is known that many developed and developing countries encountered with this twin deficits problem. urkey also has the problem of twin deficits. Therefore, it is important to find whether there is causality between them and the direction of this causality. In this study the relationship between budget deficit and current account deficit is examined by using Johansen ointegration Analysis. This study is based on period 1996:Q1-2011:Q4. According to results of cointegration; variable coefficients are statistically significant and consistent with what we expected in hypotheses. urrent account deficit ( A ) has a significant negative effect on budget deficit (B ). When there is a 1% increase in A , B decreases 0,12%. This finding is consistent with economic theory because according to Keynesian Approach two deficits have relationship with each other. However, in contrast to this approach, the direction is from A to B and also coefficient is negative. KEYWO D Budget eficit, urrent Account eficit, ustainable Growth, conometric Modelling, urkey A I LE HI O Y ubmitted: 5 ctober 2012 esubmitted: 18 ctober 2012 Accepted: 09 January 2013 JEL odes: H62, 32, 4 38 Journal of Economic and Social Studies Volume 3 Number 2 Fall 2013 39 �Halil UCAL / Mehmet BOLUKBAS The Role of Twin Deficits Problem in Sustainable Growth: An Econometric Analysis for Turkey Introduction The twin deficits problem is referred to a situation where an economy is running both Current Account Deficit (CAD) and Budget Deficit (BD). According to Ricardian Equivalence CAD and BD are not correlated. Budget deficit is a result of tax cut which reduces public revenues and public saving (Alkswani, 2000). Decrease in public savings will be compensated by an increase in private saving. Therefore national saving will not be affected and the budget deficit will have no effect on the current trade deficit (Alkswani, 2000). On the other hand, according to Keynesian proposition the two deficits are linked and the direction is from BD to CAD. Because if there is a budget deficit, government has to borrow more and as a result the interest rates rise. The rise of interest rates leads inflow of money from abroad and then the local currency appreciates. The appreciation of currency results with increase in import and decrease in export. As a result, trade deficit increase and current account balance distorted. The twin deficits have started to become a problem with the beginning of the 1980’s in USA. Increase in military expenditures and decrease in income tax raised budget deficit. The increase in budget deficit caused increase in debt of US to the rest of the world and therefore caused distortion in balance of payments. After the global crisis in 2008, it is seen that not only in USA also in other developed and developing countries have the same macroeconomic problems. Especially in developed countries such as European countries faced with serious problems in their economies. Growth in developing economies such as China and India has become a danger for developed countries. Foreign trade worsened and caused decrease in balance of payments in western countries. Also high borrowing of governments deepened crisis in European countries. In recent years, CAD has become the most discussed issue for Turkey’s Economy. According to Peker (2009) macroeconomic policies such as inflation targeting generally cause appreciation of local currency and thus stimulate import. Turkey has lack of savings like other developing countries. Because of this, growth in economy depends on import oriented production and consumption. Although Turkish Economy performs high level of growth, the trade balance is worsening. In the last decade Turkish foreign trade has showed a large increase. However, increase in trade volume has become more than increase in export. Also increase of gas and oil prices in the world has increased Turkey’s energy expenditure. Therefore trade balance and also current account balance worsened. 40 Journal of Economic and Social Studies After the 1999 earthquake and 2001 crisis, fiscal policies tightened and to increase the revenues new tax policies have been implied. Especially new taxes such as Private Consumption Tax (PCT) on import oriented goods have been implied to help improving budget balance. Especially PCT revenues on petroleum products, almost totally import oriented, helped to finance the budget deficit. Tax burden is 20% in 2011 which was 13% in 1998. Also share of value-added taxes (VAT) from import in total value-added tax revenues raised to 17% which was 11% in 1999. The gap between domestic VAT and VAT from import is closed as of 2011. The growth in economy and tightened fiscal policies reduced the vulnerability to crisis of Turkish economy. However, good performance of budget balance had no positive effect on balance of payments. Export-import ratio was under 70% except 2001 and 2009. After 2001 Trade deficit increased continuously and in period 19972004 CAD/GDP ratio was 1,1% but in period 2005-2010 the ratio raised to 5,1%. Graph 1 shows the relation of BD and CAD in the last 15 years. Figure 1. Budget Deficit and Current Account Deficit in Turkey, 1996-2011(millions of $) Source: Electronic Data Delivery System (EDDS), CBRT, 2012. Volume 3 Number 2 Fall 2013 41 �Halil UCAL / Mehmet BOLUKBAS The Role of Twin Deficits Problem in Sustainable Growth: An Econometric Analysis for Turkey As seen in the figure, especially after the 2001, Current Account Balance continuously worsens. However, in this period Turkish economy experienced high growth rates. With the global financial crises in 2009 CAD decreases sharply. After that it increases sharply too. In this period BD moves in the opposite direction. According to graph, BD did not rise over 30 billion dollars except 2009. Shrink in economy and decrease in foreign trade decreased budget revenues in 2009. However in the last decade BD/ GDP ratio decreased continuously and become -1.4% as of 2011. This ratio is less than 3% which is the reference value in Maastricht Criteria. As of 2011 most of the EU member countries do not meet this criterion. In this paper it is discussed whether CAD and BD has a correlation with each other and if there is, in which direction is this relationship. According to hypothesis of this paper there is a correlation between these two deficits and it is negatively correlated. Because the increase in trade deficit increases the budget tax revenues and this help to decrease budget deficit. Literature Review In economic literature, there are many empirical researches that focused on twin deficits problem. In 1980’s United States faced with increase in federal trade deficit (TD) and federal budget deficit together. After that the relationship between trade deficit and budget deficit has become an important subject for researchers. Darrat (1988) tried to find the linkage between TD and BD by using data period 1960:I to 1984:IV for United States. He found the evidence of causality from budget deficit to trade deficit and stronger causality from trade to budget deficit by using multivariate Granger Causality Test. In the other study for the U.S., Enders and Lee (1990) searched the relationship between BD and CAD in period 1947 to 1987 by using VAR analysis. They found that government spending innovation generates a persistent current account deficit. Also, Abelln (1990) examined the relationship between federal budget deficits and merchandise trade deficit for U.S. He used multivariate time series within autoregressive model for period 1979:02 through 1985:02. He found that indirectly budget deficits affect trade deficits. 42 Journal of Economic and Social Studies Another work on US budget deficit and current account deficit linkage is study of Bahmani-Oskooee (1989). He examined the linkage in period 1973-1985 and concluded that the budget deficit contribute to current account deficit. Not only U.S. but also other countries are faced with this twin deficits issue. Therefore, there are studies about other countries too. Islam (1998) examined the casual relationship between budget deficits and trade deficits of Brazil from 1973:1Q through 1991:Q4. The results suggested that there is a bilateral causality between them. Vamvoukas (1999) used annual data in period between 1948 and 1994 for Greece. He used error correction model for the analysis and found that budget deficit has short and long run positive and significant causal effects on trade deficit. Alkswani (2000) studied on twin deficits problem in petroleum economy by using Saudi Arabia annual data from 1970 to 1999. In his empirical analysis he used ECM, Johansen cointegration and Granger bivariate causality tests and as a result found that trade deficit causes budget deficit. Puah et al. (2006) analyzed the twin deficits debate in Malaysia and Johansen-Juselius co-integration test results show that budget deficit and current account deficit do not contain common stohastic trend in long run. In addition unidirectional causality running from current account to budgetary variable where the deterioration in current account deficit could worsen the budgetary position in the case of Malaysia. Merza et al. (2012) examined twin deficits hypothesis for Kuwait for the quarterly period (1993:4-2010:4). To analyze the relationship between variables they applied the VAR model and tested for existence and the direction of causality and the results show that the direction of causality current account to budget balance that is an increase in current account causes a decrease in the government budget surplus or an increase in budget deficit. Also in Turkey, there are many studies focusing on Turkey’s twin deficits problem. Some of these studies are Ay, et al.(2004), Aksu and Başar (2005), Utkulu (2003), Yücel and Ata (2003), Kutlar and Şimşek (2001), Zengin (2000), Sever and Demir (2007), Akbostancı and Tunç (2002). Some of them used current account deficit variable and some used trade deficit variable in their empirical studies. Most of them used quarterly data for Turkey. Volume 3 Number 2 Fall 2013 43 �Halil UCAL / Mehmet BOLUKBAS The Role of Twin Deficits Problem in Sustainable Growth: An Econometric Analysis for Turkey Akbostancı and Tunç (2002) used quarterly variables between 1987:Q1 and 2001:Q3. They used Budget balance and trade balance as a percentage of GDP. By using ECM and Cointegration analysis the empirical results show that there is a long run relationship between two and in the short run worsening of budget balance worsens trade balance. Sever and Demir (2007) used quarterly data between the years 1987 and 2006 to examine the relationship of budget deficit with current account deficit. By using stationarity test, granger causality test and VAR analysis they found that budget deficit influence current account deficit indirectly. Kutlar and Şimşek (2001) used budget deficit and trade balance seasonally adjusted data in log form in period 1984(4) through 2000(2). In the analysis stationarity test, granger causality test, misspecification test, cointegration test and ECM used and found that there is a positive relationship between two variables and trade deficit increase budget deficit. Zengin (2000) used seasonally adjusted quarterly data for period 1987:I through 1998:I. The main variables are trade deficit and consolidated budget deficit as ratios to GNP. In the analysis VAR, Variance decompositions and impulse response function used. The result of the empirical analysis is that budget deficit influence trade balance. Yücel and Ata (2003) used yearly data from 1975 to 2002. The variables are current account deficit and budget deficit both in log form. The result of the empirical analysis is that there is a cointegration between CA and BD and there is a long run positive relationship. Granger causality test results say that causality is from BD to CA in lag(1) and causality is from CA to BD in lag (3,4 and 7). Utkulu (2003) used budget deficit and trade deficit variables as yearly data in period between 1950 and 2000. By using cointegration analysis and ECM, he found that there is a two sided long run causality between budget and trade deficits. Model, Method and Data Set In this section, a multivariate model has established to investigate twin deficits problem in Turkey. (1) Where BD, CAD, are budget deficit and current account deficit respectively. Budget deficit (BD) is generally defined as an amount by which some measure of government expenditure and some measure of government revenue. BD is dependent variable, whereas, current account is independent variable in this model. And current account deficit (CAD) Current account deficit includes foreign trade in goods, services and transfers. Current account occurs when a country’s total import of goods, services and transfers is greater than total export of goods services and transfers. Many studies in the literature use BD as an independent variable. But in this study BD is used as dependent variable unlike other studies. This paper adopted the method of co-integration first found by Engle-Granger (1987), developed by Johansen (1988) and applied by Johansen and Juselius (1990). This method depends on direct investigation of co-integration in the vector autoregressive (VAR) representation and produces maximum likelihood estimators of the unconstrained co-integration vector, but it allows one to explicitly test for number of co-integration vectors. Johansen’s methodology takes its starting points in the vector auto regression (VAR) of order p given by; (2) Where yt is a k vector of non-stationary variables I(1), xt is a d vector of deterministic variable; and Ɛt indicates an innovation vector. This VAR can be written as; Ay et al.(2004) used monthly data between 1992 and 2003 for the empirical analysis to find the linkage between BD and CAD. The variables used in the empirical analysis were in percentage of GDP. They used Granger Causality test and regression analysis. According to the empirical analysis there is reciprocal relationship between two variables. According to two regression analysis the coefficients are positive. 44 Journal of Economic and Social Studies Volume 3 Number 2 Fall 2013 45 �Halil UCAL / Mehmet BOLUKBAS The Role of Twin Deficits Problem in Sustainable Growth: An Econometric Analysis for Turkey Table 1. ADF Unit Root Test (3) where (4) Where cointegration hypothesis defined as a reduced rank of the matrix π is stated in the form of π = αβ. α and β represent the two matrix which have (kxr)-dimensional and r rank. r is the number of co-integration (rank), β is a co-integration vector showing long-term effects of variables in the equilibrium relations and α indicates speed of adjustment in error correction model. Accordingly an matrix π is estimated from an unrestricted VAR in Johansen method and tested that specified conditions with reduced rank of π rejected or not. And determined by the help of Johansen method’s test statistics (λtrace and λmak) how many rank of the matrix π has. In this context, the data set of the variables used to determine the twin deficits problem in Turkey belong to1996:Q1-2011:Q4 period. All data were taken from Electronic Data Delivery System (EDDS) published by the Central Bank of the Republic of Turkey (CBRT). And Econometric Views (Eviews 5.1) software program was used for all tests and estimates. Empirical Results and Discussion Variables BD CAD ΔBD ΔCAD Critical Values ADF Test -2.318258 [3] -3.353061 [1] -9.694507 [2] -4.617754 [6] 1% -4.1118 -4.1104 -3.5440 -3.5526 Note: Trend and intercept term is used as test type for BD and CAD variables, but only intercept term is used for the first differences of variables (Δ). The values in square brackets indicates appropriate length of delay according to AIC. It is necessary to determine an optimum number of delay to apply Johansen method. There are many measurements in the literature to determine the length of delay; Akaike Info Criterion, Schwarz Info Criterion, Hannan-Quin Criterion and Recent Forecast Error Criterion are the most commonly used (Johansen, 1995; Enders, 1995). But these criterions are not enough on their own. Also there should not be econometric problems in the length of delay selected with info criterions. According to this, in this model the length of delay is determined as two. In this context the model presented in Table 2 shows forecasting of diagnostic test is successful. Table 2. Diagnostic Test Results White Heteroskedasticity Chi-sq 14.897 Normality Test Jarque-Bera 0.203535 0.633672 Df 18 Prop 0.669 Df 2 2 Prop 0.9032 0.7285 Before constructing the Johansen method, it is important to make some process and pre-tests. Univariate time series of variables are checked by using Augmented Dickey Fuller (ADF) (1979) unit root test. ADF unit root test results can be seen in Table 1. Variables were initially tested with first-level values and then tested with the levels of receipt of the first differences. Accordingly determined that all variables are integrated in the same order I(1). Therefore the necessary pre-condition for cointegration is provided. After checking univariate of all time series variables the relation between BD and CAD variables can be tested by co-integration test. The purpose of the co-integration test is to determine whether a group of non-stationary series is co-integrated or not. 46 Volume 3 Journal of Economic and Social Studies According to Table 1, all variables are I(1), that means co-integration relation between BD and CAD can be investigated by using Johansen Co-integration Method.The results of λtrace and λmak statistics are presented in Table 3. λtrace and λmak statistics helps to find existence of co-integration and number of vectors. According to the statistics; the null hypothesis (there is no co-integration relation Number 2 Fall 2013 47 �Halil UCAL / Mehmet BOLUKBAS The Role of Twin Deficits Problem in Sustainable Growth: An Econometric Analysis for Turkey between variables), is rejected against to alternative hypothesis (there is at least one co-integration relationship between the variables). In this case, there has to be at least one co-integration relationship at 5 % critical value. Table 3. Co-integration Test Null Hypothesis (H0) Alternative (H1) Hypothesisis Trace and Mak Sta5% Critical Value tistics Eigenvalue λTrace λTrace statistic r=0 r>0 0.309956 23.57399 15.49471 r≤1 r>1 0.009183 0.571998 3.841466 λMak λMak statistic r=0 r=1 0.309956 23.00199 14.26460 r=1 r=2 0.009183 0.571998 3.841466 The co-integration equation is presented in Table 4. According to results of cointegration; variable coefficients are statistically significant and consistent with what we expected in hypotheses. CAD has a significant negative effect on BD. When there is a 1% increase in CAD, BD decreases 0,12%. This finding is consistent with economic theory because according to Keynesian Approach two deficits have relationship with each other. However, in contrast to this approach, the direction is from CAD to BD and also coefficient is negative. Table 4. Co-integration Equation Error correction model (vector error correction: VEC) was established in order to investigate the short-run dynamics of variables acting together in the long-run and the results are presented in Table 5. As seen in Table 5; coefficient of error correction term (ECt-1) is statistically significant and negative. If the error correction term is negative, that means deviations in the short-run will be eliminated and series converges to the long-run equilibrium value again among the series moving together in the long-run. Namely error correction term is good working. According to the result approximately 87 % of deviations from the long-run equilibrium value eliminate in each period. Table 5. Error Correction Model Estimation Results DBAt= β0 + β1DCAt-1 + αECt-1+ ut Variables DBAt-1 DCAt-1 ECt-1 Invariable term CAD Normalized Co-integration coefficient (β′) 1.000 0.122535 (0.08580) Adaptation rates coefficient (α) -0.000427 (7.68E-05) -5.23E-05 (0.00019) Co-integration Equation BD= 5001.857 - 0.122535CAD Journal of Economic and Social Studies Coefficient -0.049275 -0.247044 -0.874470 -138.1142 R 2 = 0.44 R2 = 0.46 BD 48 If there is a co-integration relationship among non-stationary variables, there has to be an error correction representation (Engle and Granger, 1987) which illustrates the dynamic convergence of the system to the long-run equilibrium. A precondition for the existence of co-integration is that all the variables are integrated of the same order. If this is fulfilled, then the residuals from the long-run estimates can be used as the error correction term (ECT) to explain the short run dynamic.The error correction term in short run indicates that when the deviations in the short run will be adjusted in the next period (Cholifihani, 2008). t-statistic -0.33937 -1.45152 -4.69637 -0.31490 F = 17.12 Conclusion In this paper we tested whether there is a relationship between BD and CAD in Turkey with the framework of growth. In the last decade, Turkey’s economy performed well. After the 2001 crisis new economic policies strengthened the economy against Volume 3 Number 2 Fall 2013 49 �Halil UCAL / Mehmet BOLUKBAS The Role of Twin Deficits Problem in Sustainable Growth: An Econometric Analysis for Turkey crises. With the help of tight fiscal policies, government did not compromise on the budget. However increase in consumption, appreciated currency, lack of savings and rise in price of energy products caused an increase in trade deficit. As a result current account deficit rose. According to empirical results there is a significant negative correlation between BD - CAD and the direction is from CAD to BD. When there is a 1% increase in CAD, BD decreases 0,12%. Many studies on Turkey do not cover last decade’s data. But in this study we reflect the effects of structural changes in Turkish Economy after the period 2001 in terms of BD and CAD. In this regard, empirical results of this study are differentiated from others. Because many studies in literature show that incease in CAD results from incease in BD. Unlike studies in literature, the results of this paper indicate that increase in CAD decrease in BD. It is possible to say that Turkey’s fiscal, tax and growth policies in the last periods provide this conclusion. That is to say, an increase in CAD helps to fix the budget balance. 2/3 of tax revenues come from indirect taxes which means most of tax revenues in Turkey come from consumption tax. It seems that economic growth in Turkey bases on consumption and this case results with CAD. This is not a sustainable situation. Because, a period of slowdown in the economy causes not only a decrease in CAD but also a deterioration of budget balance. This situation reduces the credibility of the government and the economy. Therefore Turkish economy has to cope with CAD not with tax policies but with increasing production facilities. If not, the economy may face with both deficits at the same time. Alkswani, A.M. (2000) Twin Deficit Phenomenon in Petroleum Economy: Evidence from Saudi Arabia, Seventh Annual Conference, Economic Research Forum, Amman. Ay, A., Z. Karaçor, M. Mucuk, S. Erdoğan (2004) Bütçe Açığı - Cari İşlemler Açığı Arasındaki İlişki: Türkiye Örneği (1992-2003), Selçuk Üniversitesi, Sosyal Bilimler Enstitüsü Dergisi, 12, 75–82. Bahmani-Oskooee, Mohsen (1989) Effects of the US Government Budget on its Current Account: An Empirical Inquiry, Quarterly Review of Economics and Business, 29, 76-91. CBRT (2012) Electronic Data Delivery System (EDDS), www.tcmb.gov.tr Cholifihani, M. (2008) A Cointegration Analysis of Public Debt Service and GDP in Indonesia, Journal of Management and Social Sciences, 4(2): 68-81. Darrat, D.A. (1988) Have Large Budget Deficit Caused Rising Trade Deficit?, Southern Economic Journal, 54, 879–887. Dickey, D. and Fuller, W. A. (1979) Distribution of the Estimates for Autoregressive Time Series with a Unit Root, Journal of the American Statistical Association, 74, 427-431. Engle, R. F. and Granger, C. W. (1987) Co-integration and Error Correction Representation, Estimation and Testing, Econometrica, 55, 251-276. Enders, W. (1995) Applied Econometric Time Series First Edition, Wiley New York. References Enders, W. and B. S. Lee (1990) Current Account and Budget Deficits : Twins or Distant Cousing, The review of Economics and Statistics, 72(3), 373- 381. Abell, J. D. (1990) Twin Deficits During the 1980’s: An Emprical Investigation, Journal of Macroeconomics, 12, 81-96. Islam, M.F. (1998) Brazil’s Twin Deficits: An Empirical Examination, Atlantic Economic Journal, 26, 2, 121-128. Akbostancı, E. and G.İ. Tunç (2002) Turkish Twin Deficit: An Error Correction Model of Trade Balance, Middle East Technical Universty, ERC working papers, 1–17. Johansen, S. (1988) Statistical Analysis of Cointegration Vectors, Journal of Economic Dynamic and Control, 12, 1988: 231-254. Aksu, H and S. Başar (2005) İkiz Açıklar Hipotezi’nin Türkiye Açısından Araştırılması, İktisat, İşletme ve Finansa Dergisi, (20), 109–114. Johansen, S. and Juselius, K. (1990) Maximum Likelihood Estimation and Inference on Cointegration with Application to the Deman for Money, Oxford Bulletin of Economic and Statistics, 52, 169-210. 50 Volume 3 Journal of Economic and Social Studies Number 2 Fall 2013 51 �Halil UCAL / Mehmet BOLUKBAS Johansen, S. (1995) ikelihood Basic Inference in ointegration Vector Autoregressive Models, Oxford University Press, New York. Kutlar, A. and M. Şimşek (2001) Türkiye’de Bütçe Açıklarının Dış Ticaret Açıklarına Etkileri, Ekonometrik Bir Yaklaşım: 1984–2000, okuz ylül Üniversitesi, İİB ergisi, 16 (1), 1–13. Journal of Economic and Social Studies Cox Regression Models with Time-Varying Covariates Applied to Survival Success of Young Firms 1(*) Merza, E., Alawin, M. and Bashayreh, A. (2012) The Relationship Between Current Account and Government Budget Balance: The Case of Kuwait, International Journal of Humanities and ocial cience, 2(7), 168-177. Aygul ANAVATAN Akdeniz University, Faculty of Economics and Administrative Sciences, Department of Econometrics, 07058, Antalya, Turkey aygulanavatan@akdeniz.edu.tr, Peker, O. (2009) Türkiye’deki Cari Açık Sürdürülebilir mi? Ekonometrik Bir Analiz, Kocaeli Üniversitesi osyal Bilimler nstitüsü ergisi, 17(1), 164-174. Murat KARAOZ Puah, C., Lau, E. and Tan, K. L. (2006) Budget-Current Account Deficits Nexus in Malaysia, Munich Personal eP c Archieves, 37677(27), 1-27. Utkulu U. (2003) Türkiye’de Bütçe Açıkları ve Dış Ticaret Açıkları Gerçekten İkiz mi? Koentegrasyon ve Nedensellik Bulguları”, . .Ü. İİB ergisi, 1(18), 45–61. Sever, E. And M. Demir (2007) Türkiye’de Bütçe Açığı ile Cari Açık Arasındaki İlişkilerin VAR Analizi ie İncelenmesi, skişehir smangazi Üniversitesi İİB ergisi, 2(1), 47-63. Vamvoukas, G. (1999) The Twin Deficits Phenomenon: Evidence From Greece, Applied conomics, 31, 1093-1100. Yücel F. and Ata, A. Y (2003) Eş-Bütünleşme ve Nedensellik Testleri Altında İkiz Açıklar Hipotezi: Türkiye Uygulaması, Çukurova Üniversitesi osyal Bilimler nstitüsü ergisi, 12(12). Zengin, A. (2000) İkiz Açıklar Hipotezi (Türkiye Uygulaması), Gazi Üniversitesi konomik aklaşım ergisi, 11(39), 37–67. Akdeniz University, Faculty of Economics and Administrative Sciences, Department of Econometrics, 07058, Antalya, Turkey, mkaraoz@akdeniz.edu.tr Abstr ct The most widely used model in multivariate analysis of survival data is proportional hazards model proposed by ox. While it is easy to get and interpret the results of the model, the basic assumption of proportional hazards model is that independent variables assumed to remain constant throughout the observation period. Model can give biased results in cases which this assumption is violated. ne of the methods used modelling the hazard ratio in the cases that the proportional hazard assumption is not met is to add a time-dependent variable showing the interaction between the predictor variable and a parametric function of time. In this study, we investigate the factors that affect the survival time of the firms and the time dependence of these factors using ox regression considering time-varying variables. The firm data comes from Business evelopment enters (İŞG M) which is a prominent business incubation center operating in urkey. KEYWO D urvival Analysis, ox egression Model, Proportional Hazard Assumption, ew irms A I LE HI O Y ubmitted:22 Jun 2012 esubmitted:03 January 2013 Accepted:25 March 2013 Jel ode: 41, 24, M13 1 This research paper has been an extension to the findings of the scientific research project “The Factors Affecting Survival and Growth Performance of Newly Established Enterprises in Business Incubators: A Survey on the KOSGEB Business Development Centers (İŞGEM)”, 109K139, which has been funded with grant from TÜBİTAK (The Scientific and Technological Research Council of Turkey). We also acknowledge the administrative support to the project from Turkish Small and Medium Entreprises Development Organisation (KOSGEB). (*) Volume 3 Number 2 Fall 2013 53 � 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. 2385 Title A name given to the resource The Role Of Twin Deficit Problem In Sustainable Growth: An Econometric Analysis For Turkey Author Author UCAL, Halil Bolukbas , Mehmet Abstract A summary of the resource. In economics literature the relationship between budget deficit and current account deficit is known as twin deficits hypothesis. The Keynesian Approach accepts a relationship between two deficits. In contrast to this, icardian quivalence Hypothesis defends there is no relationship between these two deficits. win deficits have become the subject of several studies to test which of these hypotheses are reliable but no consensus has been achieved. ome studies found a relationship from budget deficit to current account deficit but some of them had the opposite result. specially after 1980 it is known that many developed and developing countries encountered with this twin deficits problem. urkey also has the problem of twin deficits. Therefore, it is important to find whether there is causality between them and the direction of this causality. In this study the relationship between budget deficit and current account deficit is examined by using Johansen ointegration Analysis. This study is based on period 1996:Q1-2011:Q4. According to results of cointegration; variable coefficients are statistically significant and consistent with what we expected in hypotheses. urrent account deficit ( A ) has a significant negative effect on budget deficit (B ). When there is a 1% increase in A , B decreases 0,12%. This finding is consistent with economic theory because according to Keynesian Approach two deficits have relationship with each other. However, in contrast to this approach, the direction is from A to B and also coefficient is negative. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-12-19 Keywords Keywords. Article PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/5fde608d738569e1dd732d812b115ea9.pdf 097a67717cc666d68ab24553dd643d45 PDF Text Text 3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo Hatipoğlu M. M., Avrupa Birliği: Çağdaş Uygarlığın Yolu mu, Ulusal Egemenliğin Sonu mu? ( Is the EU way to modern civilizations or the end of national sovereignty?) Symposium, 0809.11.2004, Istanbul Hacettepe University Publication Hakim A., Middle East Needs Turkey’s EU Membership, The Journal of Turkish Weekly Opinion, 02 October 2005 Euractiv http://www.euractiv.com, the independent media portal fully dedicated to EU affairs, 2007 Ministry of Foreign Affairs http://www.mfa.gov.tr/agreement-establishing-an-association-between-the-european economic-community-and-turkey-signed-at-ankara_-september-1_-1963_.en.mfa, 2008 The Role Of Twin Deficit Problem In Sustainable Growth: An Econometric Analysis For Turkey Halil Uçal, Mehmet Bölükbaş Adnan Menderes University, Faculty of Economic and Administritive Sciences, 09900, Nazilli, Aydın, Turkey. E-mails:hucal@adu.edu.tr, mbolukbas@adu.edu.tr Abstract In economics literature the relationship between budget deficit and current account deficit is known as twin deficit hypothesis. The Keynesian Approach accepts a relationship between two deficits. In contrast to this, Ricardian Equivalence Hypothesis defends there is no relationship between these two deficits. Twin deficit has become the subject of several studies to test which of these hypotheses are reliable but no consensus has achieved. Some studies found a relationship from budget deficit to current account deficit but some of them had the opposite result. Especially after 1980 it is known that many developed and developing countries encountered with this twin deficit problem. Also Turkey has the problem of twin deficit. Therefore, it is important to find whether there is a causality between them and the direction of this causality. In this study the relationship between budget deficit and current account deficit is examined by using Johansen Cointegration Analysis. This study is based on period 1996:Q1-2011:Q4. According to results of co-integration; variable coefficients are statistically significant and consistent with what we expected in hypotheses. CAD has a significant negative effect on BD. When there is a 1% increase in CAD, BD decreases 0,12%. This finding is consistent with economic theory because according to Keynesian Approach two deficits have 258 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo relationship with each other. However, in contrast to this approach, the direction is from CAD to BD and also coefficient is negative. Keywords:Budget Deficit, Current Account Deficit, Sustainable Growth, Econometric Modeling, Turkey 1. INTRODUCTION The Twin Deficit is referred to a situation where an economy is running both Current Account Deficit (CAD) and Budget Deficit (BD). According to Ricardian Equivalence CAD and BD are not correlated. Budget deficit is a result of tax cut which reduces public revenues and public saving (Alkswani, 2000: 4). Decrease in public savings will be compensated by an increase in private saving. Therefore national saving will not be affected and the budget deficit will have no effect on the current trade deficit (Alkswani, 2000: 4). On the other hand, according to Keynesian proposition the two deficits are linked and the direction is from BD to CAD. Because if there is a budget deficit, government has to borrow more and as a result the interest rates rise. The rise of interest rates leads inflow of money from abroad and then the local currency appreciates. The appreciation of currency results with increase in import and decrease in export. As a result, trade deficit increase and current account balance distorted. The twin deficit has started to become a problem with the beginning of the 1980’s in USA. Increase in military expenditures and decrease in income tax raised budget deficit. The increase in budget deficit caused increase in debt of US to the rest of the world and therefore caused distortion in balance of payments. After the global crisis in 2008, it is seen that not only in USA also in other developed and developing countries have the same macroeconomic problems. Especially in developed countries such as European countries faced with serious problems in their economies. Growth in developing economies such as China and India has become a danger for developed countries. Foreign trade worsened and caused decrease in balance of payments in western countries. Also high borrowing of governments deepened crisis in European countries. In recent years, CAD has become the most discussed issue for Turkey’s economy. According to Peker (2009) macroeconomic policies such as inflation targeting generally cause appreciation of local currency and thus stimulate import. Turkey has lack of savings like other developing countries. Because of this, growth in economy depends on import oriented production and consumption. Although Turkish economy performs high level of growth, the trade balance is worsening. In the last decade Turkish foreign trade has showed a large increase. However, increase in trade volume has become more than increase in export. Also increase of gas and oil prices in the world has increased Turkey’s energy expenditure. Therefore trade balance and also current account balance worsened. After the 1999 earthquake and 2001 crisis, fiscal policies tightened and to increase the revenues new tax policies implied. Especially new taxes such as Private Consumption Tax (ÖTV) on import oriented goods implied to help improving budget balance. Especially ÖTV revenues on petroleum products, almost totally import oriented, helped to finance the budget deficit. Tax burden is 20% in 2011 which was 13% in 1998. Also share of value-added taxes (VAT) from import in total value-added tax revenues raised to 17% which was 11% in 1999. The gap between domestic VAT and VAT from import is closed as of 2011. 259 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo The growth in economy and tightened fiscal policies reduced the vulnerability to crisis of Turkish economy. However, good performance of budget balance had no positive effect on balance of payments. Export-import ratio was under 70% except 2001 and 2009. After 2001 Trade deficit increased continuously and in period 1997-2004 CAD/GDP ratio was 1,1% but in period 2005-2010 the ratio raised to 5,1%. Graph 1 shows the relation of BD and CAD in the last 15 years. Figure 1. Budget Deficit and Current Account Deficit in Turkey, 1996-2011 (millions of $) Source: Electronic Data Delivery System (EDDS), CBRT, 2012. As seen in the figure, especially after the 2001, Current Account Balance continuously worsens. However, in this period Turkish economy experienced high growth rates. With the global financial crises in 2009 CAD decreases sharply. After that it increases sharply too. In this period BD moves in the opposite direction. According to graph, BD did not rise over 30 billion dollars except 2009. Shrink in economy and decrease in foreign trade decreased budget revenues in 2009. However in the last decade BD/GDP ratio decreased continuously and become -1.4% as of 2011. This ratio is less than 3% which is the reference value in Maastricht Criteria. As of 2011 most of the EU member countries do not meet this criterion. In this paper it is discussed whether CAD and BD has a correlation with each other and if there is, in which direction is this relationship. According to hypothesis of this paper there is a correlation between these two deficits and it is negatively correlated. Because the increase in trade deficit increases the budget tax revenues and this help to decrease budget deficit. 2. LITERATURE In economic literature, there are many empirical researches that focused on twin deficit problem. In 1980’s United States faced with increase in federal trade deficit (TD) and federal budget deficit together. After that the relationship between trade deficit and budget deficit has become an important subject for researchers. Darrat (1988) tried to find the linkage between TD and BD by using data period 1960:I to 1984:IV for United States. He found the evidence of causality from budget deficit to trade 260 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo deficit and stronger causality from trade to budget deficit by using multivariate Granger Causality Test. In the other study for the U.S., Enders and Lee (1990) searched the relationship between BD and CAD in period 1947 to 1987 by using VAR analysis. They found that government spending innovation generates a persistent current account deficit. Also, Abelln (1990) examined the relationship between federal budget deficits and merchandise trade deficit for U.S. He used multivariate time series within autoregressive model for period 1979:02 through 1985:02. He found that indirectly budget deficits affect trade deficits. Another work on US budget deficit and current account deficit linkage is study of BahmaniOskooee (1989). He examined the linkage in period 1973-1985 and concluded that the budget deficit contribute to current account deficit. Not only U.S. but also other countries are faced with this twin deficit issue. Therefore, there are studies about other countries too. Islam (1998) examined the casual relationship between budget deficits and trade deficits of Brazil from 1973:1Q through 1991:Q4. The results suggested that there is a bilateral causality between them. Vamvoukas (1999) used annual data in period between 1948 and 1994 for Greece. He used error correction model for the analysis and found that budget deficit has short and long run positive and significant causal effects on trade deficit. Alkswani (2000) studied on twin deficit problem in petroleum economy by using Saudi Arabia annual data from 1970 to 1999. In his empirical analysis he used ECM, Johansen cointegration and Granger bivariate causality tests and as a result found that trade deficit causes budget deficit. Also in Turkey, there are many studies focusing on Turkey’s twin deficit problem. Some of these studies are Ay, et al.(2004), Uğur and Karatay (2009), Aksu and Başar (2005), Utkulu (2003), Yücel and Ata (2003), Kutlar and Şimşek (2001), Zegin(2000), Sever and Demir (2007), Akbostancı and Tunç (2002). Some of them used current account deficit variable and some used trade deficit variable in their empirical studies. Most of them used quarterly data for Turkey. Akbostancı and Tunç (2002) used quarterly variables between 1987:Q1 and 2001:Q3. They used Budget balance and trade balance as a percentage of GDP. By using ECM and Cointegration analysis the empirical results show that there is a long run relationship between two and in the short run worsening of budget balance worsens trade balance. Sever and Demir (2007) used quarterly data between the years 1987 and 2006 to examine the relationship of budget deficit with current account deficit. By using stationarity test, granger causality test and VAR analysis they found that budget deficit influence current account deficit indirectly. Şimşek and Kutlar (2001) used budget deficit and trade balance seasonally adjusted data in log form in period 1984(4) through 2000(2). In the analysis stationarity test, granger causality test, misspecification test, cointegration test and ECM used and found that there is a positive relationship between two variables and trade deficit increase budget deficit. Zengin (2000) used seasonally adjusted quarterly data for period 1987:I through 1998:I. The main variables are trade deficit and consolidated budget deficit as ratios to GNP. In the 261 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo analysis VAR, Variance decompositions and impulse response function used. The result of the empirical analysis is that budget deficit influence trade balance. Yücel and Ata (2003) used yearly data from 1975 to 2002. The variables are current account deficit an budget deficit both in log form. The result of the empirical analysis is that there is a cointegration between CA and BD and there is a long run positive relationship. Granger causality test results say that causality is from BD to CA in lag(1) and causality is from CA to BD in lag (3,4 and 7). Utkulu (2003) used budget deficit and trade deficit variables as yearly data in period between 1950 and 2000. By using cointegration analysis and ECM, he found that there is a two sided long run causality between budget and trade deficits. Ay et al.(2004) used monthly data between 1992 and 2003 for the empirical analysis to find the linkage between BD and CAD. The variables used in the empirical analysis were in percentage of GDP. They used Granger Causality test and regression analysis. According to the empirical analysis there is reciprocal relationship between two variables. According to two regression analysis the coefficients are positive. 3. MODEL, METHOD AND DATA SET In this section, a multivariate model has established to investigate twin deficit problem in Turkey. BD = β0 + β1 CAD + Ut (1) Where BD, CAD, are budget deficit and current account deficit respectively. Budget deficit (BD) is generally defined as an amount by which some measure of government expenditure and some measure of government revenue. BD is dependent variable, whereas, current account is independent variable in this model. And current account deficit (CAD) Current account deficit includes foreign trade in goods, services and transfers. Current account occurs when a country’s total import of goods, services and transfers is greater than total export of goods services and transfers. Many studies in the literature use BD as an independent variable. But in this study BD is used as dependent variable unlike other studies. This paper adopted the method of co-integration first found by Engle-Granger (1987), developed by Johansen (1988) and applied by Johansen and Juselius (1990). This method depends on direct investigation of co-integration in the vector autoregressive (VAR) representation and produces maximum likelihood estimators of the unconstrained cointegration vector, but it allows one to explicitly test for number of co-integration vectors. Johansen’s methodology takes its starting points in the vector auto regression (VAR) of order p given by; yt= A1 yt-1 + ……. Apyt-p + Bxt + Ɛt, (2) Where yt is a k vector of non-stationary variables I(1), xt is a d vector of deterministic variable; and Ɛt indicates an innovation vector. This VAR can be written as; p-1 Δyt= π yt-1 + Σ τiΔyt-I + Bxt + Ɛt, 262 (3) �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo i-1 where p π = Σ Ai– I, τi= - Σ Aj. (4) I=1 Where cointegration hypothesis defined as a reduced rank of the matrix π is stated in the form of π = αβ. α and β represent the two matrix which have (kxr)-dimensional and r rank. r is the number of co-integration (rank), β is a co-integration vector showing long-term effects of variables in the equilibrium relations and α indicates speed of adjustment in error correction model. Accordingly an matrix π is estimated from an unrestricted VAR in Johansen method and tested that specified conditions with reduced rank of π rejected or not. And determined by the help of Johansen method’s test statistics (λtrace and λmak) how many rank of the matrix π has.In this context, the data set of the variables used to determine the twin deficit problem in Turkey belong to1996:Q1-2011:Q4 period. All data were taken from Electronic Data Delivery System (EDDS) published by the Central Bank of the Republic of Turkey (CBRT). And Econometric Views (Eviews 5.1) software program was used for all tests and estimates. 4. EMPIRICAL RESULTS AND DISCUSSION 4.1. Pre Tests Before constructing the Johansen method, it is important to make some process and pre-tests. Firstly the independent variables were transformed into logarithmic form and variables are understood to have seasonal effect deseasonalized by using moving average method. Then checked the univariate time series of variables by using a unit roots test. Here checked unit roots of variables by adopting the Augmented Dickey Fuller (ADF) (1979) test. ADF unit root test results can be seen in Table 1. Variables were initially tested with first-level values and then tested with the levels of receipt of the first differences. Accordingly determined that all variables are integrated in the same order I(1). Therefore the necessary pre-condition for co-integration is provided. Table 1. ADF Unit Root Test Critical Values Variables ADF Test 1% BD -2.318258 [3] -4.1118 CAD -3.353061 [1] -4.1104 ΔBD -9.694507 [2] -3.5440 ΔCAD -4.617754 [6] -3.5526 Note: Trend and intercept term is used as test type for BD and CAD variables, but only intercept term is used for the first differences of variables (Δ). The values in square brackets indicates appropriate length of delay according to AIC. 263 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo It is necessary to determine an appropriate number of delay to apply Johansen method. There are many measurements in the literature to determine the length of delay; Akaike Info Criterion, Schwarz Info Criterion, Hannan-Quin Criterion and Recent Forecast Error Criterion are the most commonly used (Johansen, 1995; Enders, 1995). But these criterions are not enough on their own. Also there should not be econometric problems in the length of delay selected with info criterions. According to this, in this model the length of delay is determined as two. In this context the model presented in Table 2 shows forecasting of diagnostic test is successfully; Table 2: Diagnostic Test Results White Heteroskedasticity Chi-sq Df Prop 14.897 18 0.669 Jarque-Bera Df Prop 0.203535 2 0.9032 0.633672 2 0.7285 Normality Test 4.2. Cointegration Analysis After checking univariate of all time series variables, now can be tested co-integration among these two variables (BD and CAD). The purpose of the co-integration test is to determine whether a group of non-stationary series are co-integrated or not. According to Table 1, all variables are I(1), that means co-integration relation between unemployment and independent variables can be investigated by helping of Johansen Cointegration Method. The results of λtrace and λmak statistics are presented in Table 3. λtrace and λmak statistics helps to find existence of co-integration and number of vectors. According to the statistics; the null hypothesis (there is no co-integration relation between variables), is rejected against to alternative hypothesis (there is at least one co-integration relationship between the variables). In this case, should be concluded the existence of at least one cointegration relationship at 5 % critical value. Table 3: Co-integration Test Null Hypothesi s (H0) 264 Alternative Hypothesisi s (H1) Eigenvalu e Trace and Mak Statistics 5% Critical Value �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo λTrace r=0 λTrace statistic r>0 0.309956 r≤1 23.57399 15.4947 1 0.571998 3.84146 6 r>1 0.009183 λMak λMak statistic r=0 r=1 0.309956 23.00199 14.26460 r=1 r=2 0.009183 0.571998 3.841466 The co-integration equation is presented in Table 4. According to results of co-integration; variable coefficients are statistically significant and consistent with what we expected in hypotheses. CAD has a significant negative effect on BD. When there is a 1% increase in CAD, BD decreases 0,12%. This finding is consistent with economic theory because according to Keynesian Approach two deficits have relationship with each other. However, in contrast to this approach, the direction is from CAD to BD and also coefficient is negative. Table 4: Co-integration Equation BD Normalized Co-integration coefficient (β′) Adaptation rates coefficient (α) Co-integration Equation CAD 0.122535 1.000 (0.08580) -0.000427 -5.23E-05 (7.68E-05) (0.00019) BD= 5001.857 - 0.122535CAD 4.3. Error Correction Model If there is a co-integration relationship among non-stationary variables, there has to be an error correction representation (Engle & Granger, 1987) which illustrates the dynamic convergence of the system to the long-run equilibrium. A precondition for the existence of co-integration is that all the variables are integrated of the same order. If this is fulfilled, then the residuals from the long-run estimates can be used as the error correction term (ECT) to explain the short run dynamic. The error correction variable in a short run 265 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo dynamic relationship indicates the proportion of the disequilibrium from one period that is adjusted in the next period (Cholifihani, 2008; 74). Error correction model (vector error correction: VEC) was established in order to investigate the short-run dynamics of variables acting together in the long-run and the results are presented in Table 5. As seen in Table 5; coefficient of error correction term (ECt-1) is statistically significant and negative. If the error correction term is negative, that means deviations in the short-run will be eliminated and series converges to the long-run equilibrium value again among the series moving together in the long-run. Namely error correction term is good working. According to the result approximately 87 % of deviations from the long-run equilibrium value eliminate in each period. Table 5: Error Correction Model Estimation Results BAt= β0 + β1CAt-1 + αECt-1+ ut Variables Coefficient t-statistic BAt-1 -0.049275 -0.33937 CAt-1 -0.247044 -1.45152 ECt-1 -0.874470 -4.69637 Invariable term -138.1142 -0.31490 R2 = 0.46 R 2 = 0.44 F = 17.12 5.CONCLUSION In this paper we tested whether there is a relationship between BD and CAD in Turkey with the framework of growth. In the last decade, Turkey’s economy performed well. After the 2001 crisis new economic policies strengthened the economy against crises. With the help of tight fiscal policies, government did not compromise on the budget. However increase in consumption, appreciated currency, lack of savings and rise in price of energy products caused increase in trade deficit. As a result current account deficit rose. According to empirical results there is a significant negative correlation between BD - CAD and the direction is from CAD to BD. When there is a 1% increase in CAD, BD decreases 0,12%. Many studies on Turkey do not cover last decade’s data. However this study reflects the effects of structural changes in Turkish Economy after the period 2001 in terms of BD and CAD. In this regard empirical results of this study differ than other papers. That is to say, an increase in CAD helps to fix the budget balance. 2/3 of tax revenues come from indirect taxes which means most of tax revenues in Turkey come from consumption tax. It seems that economic growth in Turkey based on consumption which results with CAD. This is not a sustainable situation. Because, in period of slowdown in the economy cause not only decrease in CAD but also deterioration of budget balance. This situation reduces the credibility of the government and the economy. Therefore Turkish economy has to cope with 266 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo CAD not with tax policies but with increasing production facilities. If not, the economy may face with both deficits at the same time. REFERENCES Abell, J. D. (1990) Twin Deficits During the 1980’s: An Emprical Investigation, Journal of Macroeconomics, 12, 81-96. Akbostancı, E. ve G.İ. Tunç (2002) Turkish Twin Deficit: An Error Correction Model of Trade Balance, Middle East Technical Universty, ERC workingpapers, 1–17. Aksu, H ve S. Başar (2005) İkiz Açıklar Hipotezi’nin Türkiye Açısından Araştırılması, İktisat, İşletme ve Finansa Dergisi, (20), 109–114. Alkswani, A.M. (2000) Twin Deficit Phenomenon in Petroleum Economy: Evidence from Saudi Arabia, Seventh Annual Conference, Economic Research Forum, Amman. Ata, A. Y. ve F. Yücel (2003) Eş-Bütünleşme ve Nedensellik Testleri Altında İkiz Açıklar Hipotezi: Türkiye Uygulaması, Çukurova Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 12(12). Ay, A., Z. Karaçor, M. Mucuk, S. Erdoğan (2004) Bütçe Açığı - Cari İşlemler Açığı Arasındaki İlişki: Türkiye Örneği (1992-2003), Selçuk Üniversitesi, Sosyal Bilimler Enstitüsü Dergisi, 12, 75–82. Bahmani-Oskooee, Mohsen (1989) Effects of the US Government Budget on its Current Account: An Empirical Inquiry, Quarterly Review of Economics and Business, 29, 76-91. Cholifihani, M. (2008) A Cointegration Analysis of PublicDebt Service and GDP in Indonesia, Journal of Management and Social Sciences, 4(2): 68-81. Darrat, D.A. (1988), Have Large Budget Deficit Caused Rising Trade Deficit?, Southern Economic Journal, 54, 879–887. Dickey, D. and Fuller, W. A. (1979) Distribution of the Estimates for Autoregressive Time Series with a Unit Root, Journal of the American Statistical Association, 74, 427-431. Engle, R. F. and Granger, C. W. (1987) Co-integration and Error Correction Representation, Estimation and Testing, Econometrica, 55, 251-276. Enders, W. (1995) Applied Econometric Time Series First Edition, Wiley New York. Enders, W. ve B. S. Lee (1990) Current Account and Budget Deficits : Twins or Distant Cousing, The review of Economics and Statistics, 72(3), 373- 381. GİB (2012) “Gelir İdaresi Başkanlığı, Vergi İstatistikleri”, www.gib.gov.tr Johansen, S. (1988) Statistical Analysis of Cointegration Vectors, Journal of Economic Dynamic and Control, 12, 1988: 231-254. Johansen, S. (1995) Likelihood Basic Inference in Cointegration Vector Autoregressive Models, Oxford University Press, New York. Kutlar, A. ve M. Şimşek (2001) Türkiye’de Bütçe Açıklarının Dış Ticaret Açıklarına Etkileri, Ekonometrik Bir Yaklaşım: 1984–2000, Dokuz Eylül Üniversitesi, İİBF Dergisi, 16 (1), 1–13. Peker, O. (2009) Türkiye’deki Cari Açık Sürdürülebilir mi? Ekonometrik Bir Analiz, Kocaeli Üniversitesi Sosyal Bilimler Enstitüsü Dergisi 17(1), 164-174. 267 �3rd International Symposium on Sustainable Development, May 31 - June 01 2012, Sarajevo TCMB (2012) Elektronik Veri Dağıtım Sistemi (EVDS), www.tcmb.gov.tr Utkulu U. (2003) Türkiye’de Bütçe Açıkları ve Dış Ticaret Açıkları Gerçekten İkiz mi? Koentegrasyon ve Nedensellik Bulguları”, D.E.Ü. İİBF Dergisi, 1(18), 45–61. Sever, E. And M. Demir (2007) Türkiye’de Bütçe Açığı ile Cari Açık Arasındaki İlişkilerin VAR Analizi ie İncelenmesi, Eskişehir Osmangazi Üniversitesi İİBF Dergisi,2(1),47-63. Vamvoukas, G. (1999) The Twin Deficits Phenomenon: Evidence From Greece, Applied Economics,31, 1093-1100. Zengin, A. (2000) İkiz Açıklar Hipotezi (Türkiye Uygulaması), Gazi Üniversitesi Ekonomik Yaklaşım Dergisi,11(39), 37–67. The Eu Integration And The Monetary Union: Why England Don’t Join The Euro Akcay Ekrem Yasar1,Akman Elvettin2,Akman Cigdem2 1Ankara Unıversity,Ankara/Turkey 2Suleyman Demirel University,Isparta/Turkey E-mails: ey_akcay@hotmail.com,elvettinakman@sdu.edu.tr, cigdemargun@sdu.edu.tr Abstract EU which was established in 1957 with Rome Treaties and in 1992 with Maastricht Treaty made process from economic union towards political union, also has tried considering the harmony many issues such as agriculture, commerce. One of these issues is monetary union. Within the Monetary Union that came into make its plans in 1969 and it was thought that could prevent the cycle and consider the common monetary policy. In this framework, in 1979, The European Monetary System was established and then in 1986 within the Single European Act, this process continued and in 1992 with Maastricht Treaty it became clearer. Then in 1997, The European Monetary Institute was established and finally in 1999, EURO was accepted as monetary unit for EU members. Now, 17 members put the EURO account but England hasn’t yet. There are many causes about this issues such as political, economics, social, national interests. for England. In addition, this issue or policy effected the other relationships of England. Keywords: EU, England, The Monetary Union, EURO, National Interests. 1. INTRODUCTION The idea of integration in Europe begins with Dante in the 13. Century, embodied by the Organization for European Coal and Steel established by the Treaty of Paris (ECSC) after World War II in 1951 and the European Economic Community (EEC) established by Treaties of Rome in 1957, the Union lived an important process of deepening and enlargement over time (Akçay, Akman and Argun, 2011). 268 � 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. 1332 Title A name given to the resource The Role Of Twin Deficit Problem In Sustainable Growth: An Econometric Analysis For Turkey Author Author Halil , Uçal Abstract A summary of the resource. In economics literature the relationship between budget deficit and current account deficit is known as twin deficit hypothesis. The Keynesian Approach accepts a relationship between two deficits. In contrast to this, Ricardian Equivalence Hypothesis defends there is no relationship between these two deficits. Twin deficit has become the subject of several studies to test which of these hypotheses are reliable but no consensus has achieved. Some studies found a relationship from budget deficit to current account deficit but some of them had the opposite result. Especially after 1980 it is known that many developed and developing countries encountered with this twin deficit problem. Also Turkey has the problem of twin deficit. Therefore, it is important to find whether there is a causality between them and the direction of this causality. In this study the relationship between budget deficit and current account deficit is examined by using Johansen Cointegration Analysis. This study is based on period 1996:Q1-2011:Q4. According to results of co-integration; variable coefficients are statistically significant and consistent with what we expected in hypotheses. CAD has a significant negative effect on BD. When there is a 1% increase in CAD, BD decreases 0,12%. This finding is consistent with economic theory because according to Keynesian Approach two deficits have relationship with each other. However, in contrast to this approach, the direction is from CAD to BD and also coefficient is negative. Keywords:Budget Deficit, Current Account Deficit, Sustainable Growth, Econometric Modeling, Turkey 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/159c9cd74ee9154a55e95660f948b007.pdf 07659dd9c770010edc383ecc85743f19 PDF Text Text The Role of Universities in Sustainable Development Ali Rıza ERDEM Pamukkale University Faculty of Education Kudret GEZER Pamukkale University Faculty of Education Abstract: Sustainable development is a concept which entails that economic development needs to be maintained without any harm to the environement. In addition sustainable development is a sort of development which helps today’s generation to meet their needs without risking those of the future generations. In the light of such a view, using the natural resources effectively, reducing the waste amount to a minimum level, and recyling the resources, needs of the future generations will be provided and environment be continously preserved. Sustainable development means programming the present and future life and development in such a way to meet the needs of generations today and tomorrow without exploiting the natural resources but by establishing a balance between the nature and the humanbeings. Sustainable development is also a concept which has its social, environmental, economic and institutional perspectives. The fundemantals of such a concept were first established according to the report prepared by the World Environment and Development Comission in 1987. Behind the environmental problems that arise similarly in many countries lie imbalance between the economy and the environment. Humanbeings increase the standards of life with the help of ever growing science, technology and industry, whereas they do big harm to the nature. The indicators pertinent to sustainable development are the ones used to measure the rate of progress achieved and also to show the extent to which objectives are attained. These are also useful means to facilitate decision-making process to secure sustainable develoopment in environmental, economic and social terms. Universities that play an important role to educate professional people, to carry out academic research, and to assume community service have important responsibilities and duties for sustainable development internationally and nationwide. This article critically reviews the role of universities as one of the strategic components of sustainable development. Key Words: Sustainable Development, Universities, Structure and Role Introduction Word population has increased gradually sınce 1950. The quality of life which is increasing in developed contries brings with fast consumption. The more production means the more consumption, and the more garbage the more contaminated the nature become. Global warming, the ozon layer (weakentig) variety of the herbals and animals, abserviation the negative results of being common of the air, water and earth contaminatied; and also these environmental problems gaining global dimension mutual interaction of economic and cnvironmental atmosphere, so all these reality of the need of being evaluated together makes it conceal. The fact that naturel resource, are limited is a widely accepted view in he intunatiand arena and has turned the sustainable development into a theory. Sustainable Development The terms of Sustainable Development were first took in place in the Project of Our Common Future Report by World Environment and Development Commission in 1987.The main reason of the environmental problems happening in the same way, in many countries in the world is the unbalance between the economy and environment. Mankind at the same time is raising up his economical life standards through the developing science technology and industry, on the other hand he is giving harm to the nature. Sustainable development is one of the most significant concepts of the twenty first century. The sustainable development draws attention that the economical development should be done without giving harm to the nature. The sustainable development is such a development that it meets the needs of present generation’s needs avoiding from giving harm to the future generations to meet their basic needs. By the help of this, using the natural resources effectively, diminishing the amount of the waste, enabling the reuse of resources, the 294 �constant protection of the environment will become true and the needs of future generation’s needs will be provided. Sustainable development means that planning the life and the development of today and the future generations through keeping the balance between the nature and mankind without consuming the natural resources so that the new generations could meet their ends. Sustainable development is such a concept that has social, environmental economical and institutional dimensions. Primarily sustainable development consists in human, honor, basic human rights, justice, frredom, peace, reciprocal love and respect as well as believing in wisdom rather than power. The strategies of sustainable development can be condensed into six titles such as environment, future, life standard, justice, precautional principles and the whole consideration. (Engel1990;Bigg&Felix;Gough&Scott,2006;Poharyles,2007;Talu,2007;Baykal,2008;Sinemilioğlu,2009;Özyol,8 .5.09;Dalal.8.5.09) The signs of the sustainable development related to the dimensions of the sustainable development are the indicators that measures how much improvement in the sustainable development has been gained and how much has been reached to the planned targets. The indicators of the sustainable development are the most important devices that help us to provide the sustainable development in social environmental economical and institutional ways. Sustainable Development And Universities Profession has national and international responsibilities and missions in universities which take on academical searching and ministration to the community in sustainable development. The importance of universities which is one strategic element of sustainable development, mustn't be blinked. University is a strategic agent in improving social, environmental, economical and instituinal indicators of sustainable development in national dimension. The Social Sustainability and Universities ⎯ Educating people is facal point in social dimension of sustainable development. Improving of quality of life is aimed by constant education.These are social indicators of social sustainable development: ⎯ Equality;(a)poverty (ratio of population of whom live under the poverty frontier , index of income inequality , the ratio of unemployment) (b) gender equality (the average of the ration of female employee earning to male employee earning) ⎯ Health; (a) the condition of alimentation ( the condition of alimentation of children)(b) death ratio of children under 5, life expectation in child-bearing) (c) the conditions of hygiene (the ratio of population taking enough dirty water waste ministration) (d)drinking water (the ratio of population taking basic health ministration, the vaccination against contagious child pathos, the ratio of using of methods of birth control) ⎯ Education;(a) education level (the number of primary education grads ) (b) Literacy (the ratio of adult literacy ) ⎯ Settlement ;(a)settlement conditions (life area for a person) ⎯ Security;(a) crime (the crime recorded for 100,000 people) ⎯ Population;(a) changing of popularity (the ratio of increasement of popularity) ⎯ Training of people in society,taking advantage of health ministration is so important. Universities take on an important mission by co-operating with other official, individual education institutions in training forever of people in society.But it is not possible to say that this co-operation is enough.Additionaly, universities having medico faculty and explarotary-technic hospital take on an important mission in taking basic and advanced health ministration to people in society away. Environmental Maintenance and Universities The indications related to the environmental dimension of continuing development which emerges in parallel with technological development are up to the very critical and vital level. It is necessary to give much more importance to the natural sources which are renewable and not to consume the ones, which are not renewable, entirely. Especially living natural sources should be saved from extinction and being used up. Those living sources’ being consumed as a purpose of nourishment unconsciously by people causes corruption of ecological balance by facing those living creatures to extinction. Here, either renewable or not, the effectively usage which can enable every natural sources’ maintenance is the main goal. The environmental indications of continuing development (Nemli, 8.5.2009; Özyol, 8.5.2009): 1. Atmosphere; (a) climate change (emissions of hothouse gases), (b) corruption of ozone layer (consumption of the matters which damage the ozone layer), (c) air quality (ratio of air pollution in cities), 295 �2. Soil; (a) agriculture (plantation fields, usage of fertilizer, usage of agricultural chemicals), (b) forests (percentage of heavily forested areas, intensity of cutting the trees), (c) loosing top soil and becoming desert (fields affected by turning into desert), (d) urbanization (wideness of settlement of urban areas), 3. Oceans, seas and shores; (a) coastal regions (ratio of alga’s being intense by the shores, ratio of population living in the coastal regions), (b) fishery (ratio of important species hunted yearly), 4. Water; (a) amount of water (ratio of yearly usage of groundwater), (b) water quality (level of organic material in the water), 5. Biological variety; (a) ecosystem (ratio of important ecosystems, ratio of fields under control), (b) species (presence of important species) The importance given about issues related to environmental maintenance such as respecting the nature, reducing the pollution, protecting the species, enabling the ecosystem variety etc. has increased nationally and internationally. Universities have contributed a great deal to increase the sensitivity of people about environmental protection by both sharing the results of scientific studies that they have done and acting together and collaborating with the other environmentalist organizations. Universities should be more active for this issue. Sustainable Economy and Univerities The basis of sustainable economy is based an the fact that it’s limited to the saurces in nature. The dimension of sustainable development is production consumption and Grass National Product (GNP) per person. The indicators of sustainable economy are the followings: 1) Economic structure: a) Economic performance (gross domestic product per person, rate of investments in Gross Domestic Product) b) Commerce ( the balance of payments at property and service) c) Financial pasition ( the rate of detts to G.N.P.;exterlar assistance that’s taken as the persent of G.N.P. ) 2) Models of Production and Consumption: a) Consumption of stuffs ( density of the use of stuff) b) Use of energy ( annual cansumption of energy per person rate of the use of renovsable sources of energy) c) Production and direction of waste material (production of solid waste materionis of industry and municipality, production of dangerous waste materials, direction of radioactive waste materials, recyeling and reusing of waste Technoparks which were opened with the coaperation of universty-private sector provide association of industry-universty and indirectly the develapment of structures of production in the direction of protection of natural balance at economic sustainability. However, today tecnoparks which were opened with the coaperation of unıversty-private sector aren’t enough. Institutional Sustainablity and Universities The institutional dimension of sustainable development depends an strategy. The strategies, which are applied at the direction of the decisions that are concerned with the institutional dimensions of sustainable development directly affect the other dimensions, the direction and the success of sustainable development. The institutional indicators of sustainable development are: 1) Institutional frame: a) Strategical sustainable growing applications ( national sustainable developing strategies) b) ınternational cooperation ( the applications of signed global agreements) 2) ınstitutional capasity a) Access to knowledge ( the numbers of internet users-1.000 pers person) b) substructure of communication ( the numbers of telephone lines-1000 per person) c) science and technology ( as a percent of GSMH research-clevelopment (Ar-ge) expenditures) d) being prepared to natural disasters (casualties and economical losses which are caused by natural disasters) In the gross of National Outcame, the partion of research-development is nearly %2.60 in USA, %2.30 in G7, %2.15 in OECD, %1.73 in the countries of Europeon Union (Gümüş, 1.4.2008; TUIK 1.4.2008) Universities contribute to institutional sustainablity by making especially research development studies. If the universities take the important parts of the partion which is seperated from GSMH for research-development, important sources will be provided for bath institutional sustainablity and ecanomical sustainablity. Self-awareness of “Sustainable development” and the Universities Individual and foundational awareness in sustainable development is essential in regards to reaching the suggested aims. Foundational awareness and individual awareness are like two halves of a whole. However, initially individual awareness has to be realized in order to realize foundational awareness. Otherwise, not only 296 �will the support and individual attendance of foundations to sustainable development activities be sufficient, but also there will be no deliberate and permanent pressure to trigger the activation of foundations on sustainable development. Universities are on the top list of foundations which will take the responsibilities and achieve it about rising awareness on social, environmental and foundational sustainable development. Both the qualified staff of them and the respection of society towards them will make it easy to realize this role. Because of this, universities must be the pioneers with their activities to raise awareness among society on “Sustainable life” and to make individuals to gain integrative perspective. Conclusion Sustainable development is not an aim that could be achieved by foundations one by one. Cooperation of foundations at both national and international levels and especially their coordination are necessary. Nongovernmental organizations, private sectors, public sectors and universities should be in cooperation and coordination for sustainable development. Universities should be a more effective strategic (determinant) factor in improving the indicators of especially social, environmental, economical and institutive sustainable development in a national dimension. Additionally, universities should improve individual’s awareness thorough community oriented activities while social, environmental, economical and institutive sustainable development is in effect. Universities should work by comprising realistic, modernist and effective new strategies with other foundations in cooperation and coordination for achieving their roles in sustainable development. According to experimental results, it is necessary that changes in strategies be put into practice on time and functionally. Universities should undertake the lead in any sort of education given about sustainable development ( Charon& Montburn, 2009 ). Renewable and unrenewable natural resources should be advertised with the aid of education programs under the guidance of universities. Also, optimum usage of all resources should be provided by finding alternative energy resources. People should learn development without risking the future while they provide their needs without harming the environment. References Baykal, H. & Baykal T. (2008) Küreselleşen dünyada çevre sorunları, Mustafa Kemal Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 5 (9), 1-17 Bertrand, Y. A. Neden sürdürülebilir kalkınma? (Herkes için pedagojik bir sergi), İnternetten 8.5.2009’da www.sj.k12.tr/html/dayanisma/2005_2006/yab.pdf dan indirildi. Bigg, T. & Felix, D. (1997) The UN commission on sustainable development, Dodds Felix (ed), The Way Forward Beyond Agenda 21 in pp 16-21, London, Earthscan Publication Dalal, B. What is sustainable development, İnternetten 8.5.2009’da www.nssd.net/otherdocuments/sustdev2.doc dan indirildi. Dulupçu, M. A. Sürdürülebilir kalkınma politikasına yönelik gelişmeler, İnternetten 8.5.2009’da www.dtm.gov.tr/dtmadmin/upload/EAD/TanitimKoordinasyonDb/politika.doc dan indirildi. Engel, J. R. (1990) Sürdürülebilir kalkınma ahlakı (Çeviren: İbrahim Özdemir), Joan Gibb Engel (ed) Ethics of Environment and Development in pp: 1-9, London, İnternetten 8.5.2009’da http://dergiler.ankara.edu.tr/dergiler/37/743/9495.pdf dan indirildi. Gough, S & Scott, W. (2006) Education and sustainable development: A political analysis, Educational Review, 58 (3), 273-290 Gümüş, Ş. Ar-ge ve patent, İnternetten 01.04.2008’de www.acarpatent.com/yazdir.asp?id=686 - 10k den indirildi. Nemli, E. Sürdürülebilir gelişme:Ekonomi ile çevre arasındaki denge, İnternetten 8.5.2009’da www.kalder.org/genel/Esra%20Nemli%20Oturum%205E%20Windows%20XP.ppt den indirilmiştir. Özyol, A. Sürdürülebilir kalkınma, İnternetten 8.5.2009’da www.hydra.com.tr/uploads/kutup9.pdf den indirilmiştir. Pohoryles, R.J. (2007) Sustainable development, innovation and democracy: What role for the regions?, Innovation, 20 (3), 183-190 Sinemillioğlu, M. O. (2009) Sürdürülebilir bölgesel kalkınma ve Türkiye süreci, Elektronik Sosyal Bilimler Dergisi, 8 (27), 245-268 Talu, N. (2007) Sürdürülebilir kalkınma ve Türkiye’nin çevre politikaları, Sivil Toplum Dergisi, 5 (20), 109-120 TUİK, 2006 Yılı Araştırma ve Geliştirme Faaliyetleri Araştırması, Haber Bülteni, sayı:31, İnternetten 01.04.2008 ‘de http://www.tuik.gov.tr/PreTablo.do?tb_id=8&ust_id=2 den indirildi. 297 � 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. 361 Title A name given to the resource The Role of Universities in Sustainable Development Author Author ERDEM, Ali Rıza GEZER, Kudret Abstract A summary of the resource. Sustainable development is a concept which entails that economic development needs to be maintained without any harm to the environement. In addition sustainable development is a sort of development which helps today’s generation to meet their needs without risking those of the future generations. In the light of such a view, using the natural resources effectively, reducing the waste amount to a minimum level, and recyling the resources, needs of the future generations will be provided and environment be continously preserved. Sustainable development means programming the present and future life and development in such a way to meet the needs of generations today and tomorrow without exploiting the natural resources but by establishing a balance between the nature and the humanbeings. Sustainable development is also a concept which has its social, environmental, economic and institutional perspectives. The fundemantals of such a concept were first established according to the report prepared by the World Environment and Development Comission in 1987. Behind the environmental problems that arise similarly in many countries lie imbalance between the economy and the environment. Humanbeings increase the standards of life with the help of ever growing science, technology and industry, whereas they do big harm to the nature. The indicators pertinent to sustainable development are the ones used to measure the rate of progress achieved and also to show the extent to which objectives are attained. These are also useful means to facilitate decision-making process to secure sustainable develoopment in environmental, economic and social terms. Universities that play an important role to educate professional people, to carry out academic research, and to assume community service have important responsibilities and duties for sustainable development internationally and nationwide. This article critically reviews the role of universities as one of the strategic components of sustainable development. 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 L Education (General) https://omeka.ibu.edu.ba/files/original/82850200b6c92ae55c79d4ce11eef5d6.pdf f620ab661c739d3f03fd7398876048ae PDF Text Text 1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo The Role of Using Current Issues of Interest on Vocabulary Learning Majid Asgari Department of Humanities Islamic Azad University, Hidaj-Branch, Hidaj, Iran Email: asgarimaj@gmail.com Abstract: This study attempted to investigate the effect of the teacher‘s using currents issues of interest in the society in English classes on the students‘ achievement of the vocabulary in reading comprehension. It was hypothesized that using awareness of current issues of interest has a positive influence on the students‘ achievement of the vocabulary in English class at the university. The research was conducted at Islamic Azad University in Hidaj with participants--male and female-- who were majoring at courses other than English. The research method which was employed was an experimental pretest post-test control group design, and t-test was used to analyze the data. After analyzing the data, it was proved that when teachers contribute current issues of interest in the society to the class materials in teaching reading passages, their students learn vocabulary better. Key Words: Current issues of interest, vocabulary learning Introduction Teachers often teach only the materials which are in the textbooks while according to the findings of some research, they will have better achievements if they use authentic materials in their classes. Also, some research findings show that students become more interested to learn when their teachers integrate materials outside of class to class materials. Some studies claim that if teachers have good information about the issues of interest in the society, and use them in their teaching by referring to those issues as authentic materials they will help the students learn their lessons more successfully. According to research findings, teachers' using awareness of current issues of interest in the society in teaching helps them as it is an issue of common interest for both teachers and learners. Using such awareness in teaching usually leads to learner's interaction and increases their concentration and motivation to learn. Studies support that it helps teachers to have dynamic classes as the learners are being reminded and informed of the issues—regarding the life affairs and the society in which they live or with which they are in immediate contact. The learners see that keeping concentrative helps stay in a state of alertness, which in turn, helps the process of learning. To encounter new and different discussions in any session often leads to keep and increase class dynamism. Generally, most of the studies on this area of language teaching suggest that teachers' using awareness of current issues of interest in the society in language teaching classes has important role in language teaching and requires a close attention. The topic of this research-- teacher's using awareness of current issues of interest in the society-- has been usually studied and discussed under the term 'authenticity' and 'motivation' in language teaching. It has also been somehow related to the issues of 'relevance' and 'interest.' These topics directly and indirectly are related to the desire and determination of learners to learn. Research findings mostly state that language learners have better performance in their learning when they are interested to the topic or process of learning. Learners are in fact encouraged to use all their potential in language learning when the materials are authentic, interesting, and relevant. They become motivated to do their best when they are attentive and have a good concentration in their learning. Most researchers argue that the language aspects like interest, relevance and authenticity has a motivating effect on learners. According to most of the results of studies carried out on this area of language teaching, teachers are suggested to keep their learners motivated and the materials interesting so that learners are highly determined to learn. Stern (1991) citing from Gardner contends that an integrative motivation is needed for successful language learning. Making learners face authentic and interesting materials can probably help them experience their learning meaningfully and communicatively. There are different arguments over the definition of the term and the ways of using authenticity in language teaching. The term authentic materials may mean different things for different people; for some, materials generated by native speakers (Rogers & Medley, 1988). Genuineness, realness, truthfulness, validity, reliability, undisputed credibility, and legitimacy are just some of the words that are used when we talk about authenticity. Frankly there is a lot of confusion connected to the idea of "authenticity" (Tatsuki, 2006). Nunan (1999) defines authentic materials as spoken or written language data that has been produced in the course of genuine communication, and not specifically written for the purposes of language teaching. Pcolinska(2009) states that authenticity is clearly a relative matter and different aspects of it can be present in different degrees. Bax (2003) contends that Authenticity 774 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo has been a major feature in syllabus design, task-based approaches, materials development and the main focus of the Communicative Language Teaching (CLT) in the past. Gebhard (1996) sees authentic materials as a way to contextualize language learning. He continues when lessons are centered on comprehending a menu or a TV weather report, students tend to focus more on content and meaning rather than the language itself and this offers the students a valuable source of language input. In addition to improving students' English language skills; using authentic language would expand their real-world knowledge about their chosen field of study (Knox, 2007). According to Brinton (1991), authentic materials and media can reinforce for students the direct relationship between the language classroom and the outside world. Current issues of interest are also related to 'motivation' in language learning. Longman dictionary of language and applied linguistics define motivation as the factors that determine a person's desire to do something. It also argues that in second language and foreign language learning, learning may be affected by different types of motivation. Two types of motivation are sometimes distinguished: a) Instrumental motivation: Wanting to learn a language because it will be useful for certain "instrumental goals" such as getting a job, reading a foreign newspaper, passing an examination. b) Integrative motivation: wanting to learn a language in order to communicate with people of another culture who speak it. Brown (1987) discusses that motivation is an inner drive or stimulus which can, like self-esteem, be global, situational, or task oriented. Learning a foreign language clearly requires some of all three levels of motivation. The independent variable in this study is vocabulary learning. In the past, vocabulary teaching and learning were often given little significance in second or foreign language programs. Recently a good interest has been put on the role of vocabulary in language learning and teaching process. Vocabulary learning was usually limited itself and received only incidental attention in textbooks and language programs. More attention was given to the aspects of teaching like grammar, reading and speaking and less importance was given to vocabulary teaching or learning. But the research on this aspect of language revealed its significant place in language learning process. Now it is obvious that without good vocabulary knowledge level, and good strategies for vocabulary learning, learners will have little success in their language learning performance and then may be discouraged from using language learning opportunities around them like watching movies, reading newspapers and going into websites. Richards Renandya (2002) believes that Vocabulary is a core component of language proficiency and provides much of the basis for how well learners speak, listen, read and write. In recent years, research on vocabulary has done a lot to make clear what levels of vocabulary learners need to perform successfully in different language aspects. There are different discussions on the using of appropriate approaches and strategies to learn and teach vocabulary. Hunt and Beglar discuss three approaches to vocabulary teaching and learning: incidental learning where learning vocabulary is a product of doing other things such as reading or listening, explicit instruction, and independent strategy development. Nation discusses a systematic rather than and incidental approach to the teaching of vocabulary and argues that such a focus is an essential part of a language course. He points out the limitations of incidental learning and the fact that second language learners are often unable to benefit from incidental vocabulary acquisition through reading because of limitations in their vocabulary knowledge. Learning vocabulary through different approaches requires teachers to plan different activities and exercises, and subsequently demands learners to use different strategies. The amount of attention placed on vocabulary teaching programs depend on the learners' and the educational goal of the teaching program. Generally, there is no doubt that as learners' vocabulary expands in size and depth a high amount of success occurs in all aspects of language, such as reading, listening, speaking and etc. Therefore, This highlights the importance of trying to improve strategies of vocabulary learning. Method of Study The study is designed in quantitative research approach where the research method, an experimental pre-test post-test control group design, is used to examine the research question. The proposed thesis is examined experimentally by giving pre-test and post-test and comparing the means of two groups of the students. The design has been used because the effect of the independent variable on the dependent variable has to be experimented. Sampling 40 students were recruited for this study. They were students of one class at IAU-Hidaj (Islamic Azad university-Hidaj Branch) in Iran. All of the students were taking the course of 'General English.' They were both male and female. The subjects' age ranged from 20-28. The subjects were majoring in such fields as ' mechanical engineering,' ' computer sciences,' and ' electrical engineering.' The subjects were randomly divided into two groups: each with 20 students. In fact, one of the groups was used as the experimental group (G1) and the other one as the control group (G2). 775 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo Data Analysis Process The data have been gathered though two tests (pre-test and post-test). The performance of the subjects of the two groups has been compared through analyzing their scores in the post-test which is the achievement test. A t-test has been used to verify the significance of the difference between the means of the scores of two groups (G1, the experimental group, and G2, the control group) in the post-test. Findings and Discussion Pre-test In order to see whether there is any difference between the two groups regarding their basic English knowledge, the 'Nelson Test,' (050 D) which is used to determine the examinees' English proficiency level was administered. The test results showed that the two groups had nearly the same level of initial English knowledge; that is, the subjects in the two groups appeared to be at the same level of general English. This is clearly shown in the following tables 1 and 2 which demonstrate statistics and graphic representations of the results for the proficiency test (pre-test) for both groups of G1 and G2. It has to be clarified that the score scale is 0-50, that is, the perfect score is 50. N refers to the number of the students in a group, SD is the Standard Deviation of the scores and Sum is the total of the scores for all of the students in a group. Table 1. Descriptive Statistics and Graphic Representation for the Proficiency Test (Pre-test) G1 N Mean Mode SD Variance Minimum Maximum Sum 20 37.75 38 2.0487 4.197 34 42 755 Frequency Bar Graph for Proficie ncy Te s t (Pre -te s t) G1 6 5 4 3 2 1 0 Series1 32 33 34 35 36 37 38 39 40 41 42 Score s Table 2. Descriptive Statistics and Graphic Representation for the Proficiency Test (Pre-test) G2 N Mean Mode SD Variance Minimum Maximum Sum 20 37.35 38 2.183 4.765 32 42 753 776 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo Frequency Bar Graph for Proficie ncy Te s t (Pre -te s t) G2 6 5 4 3 2 1 0 Series1 32 33 34 35 36 37 38 39 40 41 42 Score s As it is evidenced in the tables above, the two groups of subjects have scored very similar results. The mean for both groups is nearly the same: 37.75 for G1 and 37.65 for G2. The Standard Deviation (SD) for the scores of the groups of subjects is also very close: 2.048 for G1 and 2.183 for G2. Other measures also show high similarity between scores of the subjects in the two groups. While the scores could range from 0—50, the highest score for G1 is 42; the lowest is 34 so the Range is 8. For G2 the highest score is 42; the lowest is 32 so the Range is 10. The total of scores for G1 is 755 and for G2, it is 753. Administering the Pre-test and evaluating the related data here was an attempt to find out if the subjects in the two groups were similar or the same with regard to their basic English knowledge before presenting the treatment. After analyzing the results of the Proficiency test (Pre-test), it was concluded that there were not any major differences between the two groups concerning their background English knowledge. Treatment (Teaching the Materials) The subjects who had been randomly divided into two groups of G1 (experimental group) and G2 (control group) were separated and placed into different classes. They were taught in two different one-hour sessions. Each group was taught for one hour; G1 (experimental group was taught from 8 a.m. to 9 a.m. and G2 (control group) was taught from 9: 15 a.m. to 10:15 a.m. The materials that were taught included a passage entitled ‗Culture Shock‘ from the book ‗Select Reading‘ by Linda Lee and Erik Gunderson. This book was intermediate level and provided learners of English with high-interest reading passages from authentic sources that contained reading comprehension activities, reading skills development, vocabulary building and grammatical analysis and practice. The same passage (Culture Shock) was taught for both groups and the teacher was the same. The only difference was that for G1 (experimental group) the teacher attempted to relate certain words and points in the passage to ―current issues of interest in the students‘ society.‖ These issues included popular state TV programs that the subjects often watched, and the news and reports from newspapers, and interesting issues of the university and city where the study took place. In other words, some interesting happenings of TV, newspapers, the university or city had already been studied and selected to be contributed to new words in the passage in G1 class. Most of the students in G1 class could easily remember the mentioned points or characters that were being referred from state TV programs, newspapers, and students‘ university or city. This was probably because people of this country (Iran) usually watch TV and follow news from newspapers or other sources. Perhaps one more reason to this interest is the fact that they are more careful about the current happenings in their country since they are usually expecting some changes to occur. It needs to be pointed out that in teaching the passage in G1 class, certain words of the passage had already been determined as the words to which interesting issues were related. Actually, the new words of the passage were the same for both G1 and G2 students. On the other hand, for the students of G2, the passage was taught without any attempt of contributing any materials from outside of the class; that is, the passage and its words were taught by definition of the words that had already been determined as new words of the passage or by providing explanations and examples from the passage itself, not from out of the class. Post-test The teaching was one session for each group; a one-hour session was held for G1 and another one-hour session for G2. Immediately after teaching, all subjects, students of G1 and G2 took an achievement test (post-test) to determine any difference in students‘ success in achieving the objectives of the course. The achievement test had been individually (course) developed on the reading passage (Culture Shock) taught during one-hour session. The achievement test was the same for both groups and began and finished equally regarding testing time. The results of the achievement test for both groups were collected and organized. Then, these results were analyzed and compared to show any probable differences. The following tables 3 and 4 show the statistics and graphic representations of the results for the achievement test for both groups. 777 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo Table 3. Descriptive Statistics and Graphic Representation for the Achievement Test (Post-test) G1 N Mean Mode SD Variance Minimum Maximum Sum 20 13.6 14 3.1689 10.042 7 19 272 Bar Graph for Achievem ent Test (Post-test) G1 Frequency 5 4 3 Series1 2 1 0 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Scores Table 4. Descriptive Statistics and Graphic Representation for the Achievement Test (Post-test) G2 N Mean Mode SD Variance Minimum Maximum Sum 20 11.55 13 3.2032 10.4 6 18 231 Bar Graph for Achievem ent Test (Post-test) G2 Frequency 5 4 3 Series1 2 1 0 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Scores The tables above evidently show that the two groups of subjects have scored different results. The means for the two groups are different: 13.6 for G1 and 11.55 for G2. The Standard Deviations (SD) for the scores of the groups of subjects are also a little different: 3.1689 for G1 and 3.2032 for G2. Other measures also show difference between scores of the subjects in the two groups. While the scores could range from 0—20, the highest score for G1 is 19; the lowest is 7 so the Range is 12. For G2 the highest score is 18; the lowest is 6 so the Range is 12. The total of scores for G1 is 272 and for G2, it is 231. Administering the achievement test (Post-test) and evaluating the related data here was an attempt to find out if the subjects in the two groups were different with regard to their level of achievement of the materials of the passage after treatment. After analyzing the results of the achievement test (Post-test), it could be shown that there were differences between the two groups concerning the students‘ achievement in vocabulary learning. 778 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo T-test A t-test was also used to show whether or not the difference between the means of the scores of two groups (G1, the experimental group, and G2, the control group) in the achievement test (Post-test) was significant enough. The purpose of t-test was also to assess the hypothesis which assumed that ―teacher‘s using awareness of current issues of interest in the society in teaching new vocabulary has a positive effect on students‘ leaning vocabulary in English classes at university.‖ In t-table, it was observed that when the ‗level of significance for two-tailed test‘ was 0.05, with the ‗df‘ of 38, the critical value would be 2.021. As it is shown in the table below the t-observed value is 2.07. Fortunately, the t-value is enough above t-critical that we are quite safe in rejecting the null hypothesis, ―teacher‘s using awareness of current issues of interest in the society in teaching new vocabulary has no effect on students‘ leaning vocabulary in English classroom at university,‖ and approving the positive hypothesis. Our two groups have scored differently on the achievement test (Post-test). The difference is statistically significant. This is a support for our claim that using awareness of current issues of interest in the society by the teacher in English class can help students learn vocabulary of the passages better. Table 5. t-observed and t-critical for scores means of the two groups ( G1 and G2) in the Achievement Test t-critical two-tailed df t-observed 2.021 0.05 38 2.07 Discussion The results of this study demonstrate that learners do differently depending on teacher‘s using awareness of issues of interest in the society. The analyzed data provides evidence that this difference is significant enough. Actually the findings of the study approve that when teachers use current important matters of their society in their teaching in class, the consequence is the learners can learn the new words better and have better accomplishments in their learning. This clearly supports the idea that teachers should attempt to study more about this issue and put more values for it in their career. They are suggested to study and determine some issues which look to be interested by students because of any possible importance. Then, they can contribute those interesting issues to the materials of their class, which will end in promoting better learning by students. Undoubtedly, this work will encourage students to attend the class happily and with high motivation. It is really useful for teachers to know that by keeping their students happy and attentive, as one of their main tasks, teaching and learning in class can be easily and efficiently performed. The major reason to this improvement in learning is the fact that teachers by relating the points of the passage being taught in class to issues of interest out of the class help their students to build up stronger schematic relationships in their mind. This, in turn, leads to easy increase of the vocabulary knowledge for students. As the results showed students‘ performance became better in learning vocabulary because of teacher‘s continually contribution of interesting issues of the society to the materials in the reading passage. This implied that learning becomes promoted when students‘ lessons are mixed with issues of their life. Generally, issues of interest in a society are a common point for both teachers and students. A lot of research findings claim that learning process can take place much better if the materials of lessons are presented with information that is shared by the teacher and students so that the learning becomes meaningful for learners. Omaggio (2003) contends that learning and practicing language in meaningful contexts is more appealing to both students and teachers than learning isolated bits of language. When teachers bring examples, explanations or etc. from TV programs, newspapers, the students‘ city or university, they provide learning environment that is easily comprehensible by learners, and facilitates their learning. According to different language teaching experts, one way to facilitate learning for learners is by keeping them attentive and encouraged in class which is one of the vital responsibilities of teachers. Chastain (1986) discusses that those teachers who strive to keep students interested, occupied, and reasonably content are the most affective. There is no doubt that addressing and reminding issues of the society where students live in the middle of their lesson easily assists them to keep attentive in their learning. The fact that according to the results of this study teacher‘s using awareness of current issues of interest helps students learn vocabulary better highlights the need for teachers to try to keep updated with issues of interest in the society. In fact, teachers have to be informed about the interesting or important issues that are happening currently in the society. For example, they are suggested to watch popular TV programs, read significant news of newspapers and try to know about important and interesting things that are taking place in their city or university where the teaching goes on. Otherwise, teachers can hardly find things that are interesting and common for both themselves (teachers) and students. Therefore, teachers are required to have pre-planning about choosing issues of interest to be 779 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo used in classes, and this will create a demand in teacher education for teachers to be taught in this regard. Also, special care should be taken on the development of language teaching books and syllabuses. Let‘s say, for example, in any unit of the language teaching book, special sections should be predicted for teacher‘s using current issues of interest in class, and subsequently certain time should be allotted for performing those sections. Conclusion and Recommendations Authenticity, Motivation, Relevance and Interest are the topics where integrating issues of interest is discussed to be helpful for students, facilitating their language learning. This research investigated a special aspect, related to those topics. The focus was on using current issues of interest on vocabulary learning in reading comprehension. The findings and results showed that contributing current issues of interest in the society to the class materials in teaching reading passages, significantly improves students vocabulary learning. In fact, the findings revealed that integrating some very important events of students' society that are currently significant, like those that are on TV or newspapers, creates interest and motivation in students to learn and be attentive in class. Then, such interest leads to easily domain of class materials, including the vocabulary in lessons, as well. As the most previous studies on using issues of interest have shown, the results of the present study showed a significant role of it on students' vocabulary learning. So, it can be concluded that to have better and improved vocabulary learning, teachers and also students should take some points into consideration. The found positive effect of using current issues of interest suggests teachers to try to increase the integration of currently interesting issues to class materials. Actually, the more a teacher blends newly important materials with lessons the more encouraged the students become to learn. For example, it will be helpful to watch the mostly-viewed programs of the television or the popular movies; to read important news of the newspapers or web-sites which are often seen by many people. Teachers are strongly suggested to try to be informed that what programs are currently followed as favorite ones and/or what issues are considered as important ones by their students. Teachers are especially suggested to explain about the significance of this integrating life materials with class materials to the students so that they are convinced and keep informed of the current issues of interest. Thus, both teachers and students will experience more success in their language teaching and learning if they are aware of current interesting topics of the society they live in References Bax, S. (2003). The end of CLT: a context approach to language teaching. ELT Journal, 57(3), 278–287. Brinton, D.M. (1991). The use of media in language teaching. In M, Celce-Murcia (ed.), teaching English as second or foreign language, Boston: Heinle and Heinle Publishers. Brown, H. D. (2001). ‗Teaching by principles: An interactive approach to language pedagogy, (second edition), Longman. Carter, R. & Nunan, D. (2001). Teaching English to speakers of other languages, Cambridge University Press. Chastain, K. (1988). Developing second language skills: Theory and practice, Orlando, FL: Harcourt Brace Jovanovich. Gail, K. (2009). Authentic task-based materials: Bringing the real world into the classroom. Retrieved on Oct 23, 2009 from www.jrc.sophia.ac.jp/kiyou/ki21/gaio.pdf Ghebhard, J.G. (1996). Teaching English as a foreign language: A teacher self-development and methodology guide, Ann Arbor: The University of Michigan Press. Hunt, A. & Beglar, D. (1998). Current research and practice in teaching vocabulary. The Language Teacher, 22(1), 7-11. 780 �1st International Conference on Foreign Language Teaching and Applied Linguistics May 5-7 2011 Sarajevo Knox, J. (2007). Foreign eyes on Thailand: An ESP project for EFL learners. Planning and teaching creatively within a required curriculum, TESOL Inc. Nunan, D. (1999). Second language teaching and learning, Boston: Heinle and Heinle Publishers. Pcolinska, A. (2009). Authenticity of communication in the language classroom. Humanizing Language Teaching. Year 11, (1). Omaggio, H. A. (2003). Teaching language in context, Boston: Heinle and Heinle Publishers. Richards, J. C., Platt, J. & Platt, H. (1992). Longman dictionary of language teaching and applied linguistics, The United Kingdom: Longman Richards, J. C. & Renandya, W. A. (2002). Methodology in language teaching: An anthology of current practice, The United Kingdom :Cambridge University Press. Rogers, C. & Medley, F. J. (1988). Language with a purpose: Using authentic materials in the foreign language classroom. Foreign Language Annals, 21, 467–478. Shomoossi, N. & Ketabi, S. (2007). A Critical look at the concept of authenticity. Electronic Journal of Foreign Language Teaching, 4 (1). 149-155. Retrieved October 25, 2009 from http://www.e-flt.nus.edu.sg/main.htm Stern, H. H. (1983), Fundamental Concepts of Language Teaching, Oxford University Press. Tatsuki, D. (2006). What is authenticity? The Language Teacher, 16(5), 17–21. Retrieved October 1, 2006, from http://jalt.org/pansig/2006/HTML/Tatsuki.htm Taylor, D. (1994). Inauthentic authenticity or authentic inauthenticity? TESL-EJ, 1(2), 1–12. Retrieved October 1, 2006, from http://www-writing.berkeley.edu/TESL-EJ/ej02/a.1.html Ur, P. (1996). A course in language teaching: Practice and theory, Cambridge University Press. 781 � 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. 114 Title A name given to the resource The Role of Using Current Issues of Interest on Vocabulary Learning Author Author Asgari, Majid Abstract A summary of the resource. This study attempted to investigate the effect of the teacher‘s using currents issues of interest in the society in English classes on the students‘ achievement of the vocabulary in reading comprehension. It was hypothesized that using awareness of current issues of interest has a positive influence on the students‘ achievement of the vocabulary in English class at the university. The research was conducted at Islamic Azad University in Hidaj with participants--male and female-- who were majoring at courses other than English. The research method which was employed was an experimental pretest post-test control group design, and t-test was used to analyze the data. After analyzing the data, it was proved that when teachers contribute current issues of interest in the society to the class materials in teaching reading passages, their students learn vocabulary better. Date A point or period of time associated with an event in the lifecycle of the resource 2011-05 Keywords Keywords. Conference or Workshop Item PeerReviewed P Philology. Linguistics https://omeka.ibu.edu.ba/files/original/9e862e9c13c85e176180950788708e81.pdf 87ddd183365b04b37c72ab36bac63d34 PDF Text Text Journal of Foreign Language Teaching and Applied Linguistics The role of verb valency in Croatian and Russian learning at B1 level Ivana Brač & Sanja Drljača Magić University of Zagreb, Croatia Submitted: 15.04.2014. Accepted: 02.11.2014. Abstract Difficulties in learning a second language (L2) may arise when a first-language (L1) speaker attempts to directly transfer a syntactic pattern from L1 into L2. Since there is a very high overlap in verb valency between Croatian and Russian, the generalization of syntactic patterns often leads to systematic errors. In this paper we analyze verbs that were selected from a list of verbs required for B1-level mastery in Croatian and Russian. The analyzed verbs are divided into semantic groups according to Levin (1993), but the paper focuses on the verbs of social interaction, verbs of communication and psych-verbs. Each verb is associated with its syntactic pattern supported by a corpus attestation. Within each semantic group, verbs are further divided into four groups based on the number of complements and their realization on the syntactic and morphological levels. This paper aims to facilitate the acquisition of basic verb complements in Croatian and Russian, with emphasis on non-matching pairs between the two languages. Keywords: Verb valency, Croatian language, Russian language, L2 acquisition Introduction Verb valency is the ability of a verb to determine the number of its complements, as well as their syntactic and morphological realization in a sentence. Herbst (2007) says that: “The phenomenon of valency is one part of the unpredictable, unsystematic aspects of language” (p. 15). The importance of this theory in second language acquisition was noted following the publication of Helbig and Schenkel’s dictionary 119 �The role of verb valency in Croatian and Russian learning at B1 level of German verbs in 1969. Since it is an unpredictable category, students cannot directly transfer every L1 syntactic pattern into L2. This paper analyzes the valency of Croatian and Russian verbs needed for B1-level mastery according to CEFR, emphasizing differences in order to predict errors during the learning process. We have focused only on matching and deviating prototypical verb complements. The verbs are divided into semantic groups, and each verb is associated with its syntactic pattern supported by a corpus attestation (Croatian Language Repository (http://riznica.ihjj.hr/index.hr.html), hrWaC (http://nlp.ffzg.hr/resources/corpora/hrwac/), Framebank.ru) that has been transformed for the sake of clarity. Within each semantic group, the verbs are further divided into four groups based on the number of complements and their realization on the syntactic and morphological levels. Verbs that have different complements in Croatian and Russian were selected. Classification of verbs The analyzed verbs were extracted from the corpora created for the compilation of the Croatian Verb Valency database, which is being developed at the Institute of Croatian Language and Linguistics (project leader: Matea Birtić). The corpora were compiled from relevant textbooks for B1-level Croatian learning. The analyzed verbs were divided into semantic groups according to Levin (1993). The verbs mostly belong to two or more semantic groups based on their polysemy. This paper only takes the basic meaning of the verbs into consideration, while other meanings have been omitted. Our study is founded on semantic analysis, based on the assumption that non-native speakers are unable to recognize essential verb complements if they are unaware of the semantic group the verb belongs to. Levin and Hovav (2005) state that “the syntactic realization of arguments – their category type and their grammatical function – is largely predictable from the meaning of their verbs” (p. 7). Verbs of social interaction, verbs of (verbal) communication, and psych-verbs were analyzed because of their role in B1-level of L2 acquisition. Croatian is used as the source-language. Croatian verbs were associated with their aspectual pairs. The number of complements of each verb is defined, as is the type of complement and its semantic role. Each Croatian verb is then associated with its equivalent in Russian, which is further associated with its own aspectual pair and syntactic pattern. If no fully equivalent meaning exists, close equivalent meanings are mentioned in an endnote. 120 �Journal of Foreign Language Teaching and Applied Linguistics Syntactic patterns: complement types and semantic roles It was assumed that syntactic patterns can be described with 10 types of complements provided in the description of syntactic verb structure in the Croatian Verb Valency Database. Those complements are: the nominative complement (NomC), which mostly correlates with the sentence subject and plays the semantic role of agent; the genitive complement (GenC) which mostly plays the role of the object; the dative complement (DatC); the accusative complement (AccC) with a role of direct object; the instrumental complement (InstC) as the most common complement among analyzed verbs of communication and psych-verbs; the prepositional complement (PrepC) that commonly correlates with the object; and adverbial complement (AdvC), which is further associated when nominal words or prepositional-case phrases can be substituted by an adverb. Infinitival, predicate, and clause complements are not analyzed here. Complements are associated with semantic roles in which the morphological change of the verb causes a change in the syntactic function of participants while the semantic role remains the same. For example, reflexive verbs found among psychverbs become transitive by losing their reflexive pronoun, which causes their complements and syntactic function to change while their semantic role remains unchanged. Unlike semantic roles, conceptual categories (animate-inanimate, human, etc.) that represent knowledge of the world, and are thus closer to both the non-native speaker and the native speaker non-linguist, do not depend on the meaning of the verb, but are inherent for the noun itself (see Herbst & Götz-Votteler, 2007, p. 40). The syntactic patterns of verbs in Croatian and Russian Since Croatian and Russian are genetically related languages, verbs can completely overlap at the semantic and syntactic levels. However, sometimes they do not overlap in one of their meanings, and this can cause a difference in syntactic pattern. Within a semantic group, verbs are divided based on their number of complements (quantitative valency) and on their realization on the syntactic and morphological levels (qualitative valency). These criteria resulted in four groups of verbs. The difference in syntactic pattern as a result of a change in meaning is not taken into account in the classification of verbs, but it is pointed out in the endnote. Verbs with matching complements on the syntactic and morphological levels (cro)Rastala se od muža. (ru)Она рассталась с мужем. 121 �The role of verb valency in Croatian and Russian learning at B1 level s mužem. (cro)separate from (with) (ru)separate with These verbs have two complements in both languages: the nominative and the prepositional (realized as od+genitive or s+instrumental in Croatian and as s+instrumental in Russian). Verbs with matching complements on the syntactic level, but different on the morphological level (cro)Nisam sumnjala u njegove namjere. (cro)Liječnici sumnjaju na zarazu. (cro)doubt in (on) (ru)Не сомневайся в моих словах! (ru)doubt in These verbs have two complements in both languages: the nominative and the prepositional (realized as u+accusative or na+accusative in Croatian and as v+locative in Russian). Verbs with different complements on the syntactic and morphological levels (cro)Nadamo se pomoći Grada. (ru)Я надеюсь увидеть вас сегодня. These verbs have two complements: the nominative and the dative in Croatian, and the nominative, infinitival, or prepositional complements in Russian. When they appear with the prepositional complement na+accusative, the meaning of these verbs changes to 'rely on, expect'. Verbs with a different number of complements No examples of quantitative valency were found in the corpora examined. Verbs of communication We analyzed the verbs pitati (ask), odgovoriti (answer), čestitati (congratulate), ispričati se (apologize) and raspraviti (discuss), all of which can be classified in other semantic groups. However, we decided to place them in the group of verbs of communication due to their syntactic pattern, which includes an agent, goal, and theme. It was observed that, within the class of verbs of communication, verbs match according to their number of complements (trivalent), while the analyzed verbs do not match in their type of complements. The verbs differ in the types of complement 122 �Journal of Foreign Language Teaching and Applied Linguistics associated with the role of a goal (ispričavati se/извиняться (apologize): Croatian – DatC, Russian – PrepC), the role of a theme (raspravljati/обсуждать (discuss): Croatian – PrepC, Russian – AccC (direct object)), and the role of a goal and a theme (čestitati/поздравлять (congratulate): Croatian – DatC (indirect object, goal) and AccC (direct object, theme), Russian – AccC (direct object, goal) and PrepC, theme). The verb pitati/спрашивать (ask) has one nominative and two accusative complements. The difference between the two languages is that the goal can be expressed in Russian not only through the dative case, but also by the prepositional complement u+genitive (at+genitive). If the verbs appear with s+genitive (with+genitive), the meaning changes to ‘make responsible/answer (for)’. The verb odgovarati/отвечать (answer) has nominative, dative, and prepositional complements. The preposition za (for) in Croatian is followed by the accusative case, and this corresponds to three different prepositions in Russian: za, na and dlya (genitive), depending on the verb. Verbs with matching complements on the syntactic and morphological levels (cro)pitati/u(za)pitati : (ru)спрашивать/спросить (eng)ask a) Profesorica me pitala teško pitanje. NomC:nominative AccC:accusative Учитель спрашивал всех такие вещи. NomC:nominative AccC:accusative AccC:accusative AccC:accusative b) Novinari su ga pitali o planovima za budućnost. NomC:nominative AccC:accusative PrepC: o+locative Журналисты спрашивали его о планах на будущее. NomC:nominative AccC:accusative PrepC: o+locative Difference: Ты можешь спросить у своего друга совет? NomC:nominative PrepC:u+genitive AccC:accusative Если что-то будет не так, спрашивать будут с тебя. NomC:nominative PrepC:s+genitive PrepC:o+locative (cro)odgovarati/odgovoriti : (ru)отвечать/ответить (eng)answer Ona mi nije odgovorila na pitanje. NomC:nominative DatC:dative PrepC:na+accusative 123 �The role of verb valency in Croatian and Russian learning at B1 level Иван не отвечает мне на мой вопрос. NomC:nominative DatC:dative PrepC: na+accusative Difference: Dječak je odgovarao matematiku za pet. NomC:nominative AccC: accusative AdvC: za+accusative Мальчик ответил математику на четыре. NomC:nominative AccC:accusative AdvC:na+accusative Verbs with different complements on the syntactic and morphological levels (cro)čestitati : (ru)поздравлять/поздравить; (eng)congratulate a) Čestitam ti rođendan. NomC:nominative DatC:dative AccC:accusative b) Čestitam vam na zadobivenoj časti. NomC:nominative DatC:dative PrepC:na+locative Поздравляю тебя с завершением работы. NomC:nominative AccD:accusative PrepC:s+instrumental (cro)ispričavati se/ispričati se : (ru)извиняться/извиниться; (eng)apologize Ispričavam se čitateljima za konstrukciju teksta /zbog konstrukcije teksta / na konstrukciji teksta. NomC:nominative DatC:dative PrepC:za+accusative zbog+genitive na+locative Я должен извиняться перед вами за свой слова. NomC:nominative PrepC:pered+instrumental PrepC:za+accusative Она часто извиналась болезнью и не приходила на собрания. NomC:nominative InstD:instrumental (cro)raspravljati/raspraviti : (ru)обсуждать/обсудить; (eng)discuss Ministarstvo raspravlja o tome sa sindikatima. NomC:nominative PrepC:o+locative PrepC:s+instrumental Я собираюсь обсудить ваше поведение с вашими преподавателями. NomC:nominative AccC:accusative PrepC:s+instrumental 124 �Journal of Foreign Language Teaching and Applied Linguistics Verbs of social interaction Levin (1993, p. 200) defines verbs of social interaction as verbs that describe activities always involving more than one participant. These verbs can be monovalent or divalent depending on whether the subject is singular or plural. The verbs vjenčati se (get married), oženiti se (marry), rastati se (separate), and razvesti se (divorce) are monovalent if the subject is in plural and all participants have the same status. In this case, the complement is nominative (agent). Oni su se vjenčali. Они поженились. The verbs are divalent if the subject is singular and if they have a nominative and prepositional complement. The verbs rastati se (separate) and razvesti se (divorce) in Croatian have a prepositional complement realized as od+genitive (from+genitive), and as s+instrumental (with+instrumental) in Russian. The corpora attest rastati se s (separate with), while attestations of razvesti se s (divorce with) are negligible. The verb oženiti se (marry) in divalent form has a nominative and instrumental complement with the attested prepositional: s+instrumental (with+instrumental), za+accusative (for+accusative) in Croatian. In Russian, the complement is only the prepositional na+locative (on+locative). Verbs with matching complements on the syntactic level, but different on the morphological level (cro)razvoditi se/razvesti se : (ru)разводиться/развестись; (eng)divorce Razvela se od njega. NomC:nominative PrepC:od+genitive Он развелся с женой. NomC:nominative PrepC: s+instrumental (cro)rastajati se/rastati se : (ru)расставаться/расстаться; (eng)separate Rastala se od muža/s mužem. NomC:nominative PrepC:od+genitive PrepC:s+instrumental Она рассталась с мужем. NomC:nominative PrepC:s+instrumental 125 �The role of verb valency in Croatian and Russian learning at B1 level Verbs with different complements on the syntactic level and morphological levels (cro)ženiti se/oženiti se : (ru)жениться/пoжениться; (eng)marry Oženio se svojom djevojkom (iz ljubavi). NomC:nominative InstC:instrumental (AdvC: iz+genitive) Принц женился на бедной девушке (по любви). NomC:nominative PrepC:na+locative (AdvC:po+dative) Psych-verbs Some authors (Levin & Hovav, 2005, White, 2003) have distinguished minimal pairs such as fear and frighten, like and please, which have a complement with the semantic role of experiencer, however, in the verb fear, the experiencer is the subject, while in the verb frighten, the experiencer is the object. In this paper, verbs were classified into two main groups: A. Verbs that become transitive and change the roles of experiencer and stimulus when they appear without a pronoun (in Russian particle -ся) se (yourself). 1. Verbs with two complements where the experiencer is the subject (reflexive verbs) and the stimulus is a dative (A.1.1.), instrumental (A.1.2.), or prepositional (A.1.3.) complement; 2. Verbs with two complements where the stimulus is the subject and the experiencer is an accusative case object. B. Verbs where the experiencer is the subject, but transformation is not possible: bojati se (fear), smijati se (laugh), nadati se (hope), diviti se (admire). The element se with these verbs stands as a particle, not as a pronoun (Silić & Pranjković, 2005, p. 40). 126 �Journal of Foreign Language Teaching and Applied Linguistics A.1.1. (cro)iznenađivati se/iznenaditi se A. 2. iznenađivati/iznenaditi; (eng)surprise (Ja)Iznenadila sam se daru. NomC:nominative DatC:dative Experiencer Stimulus Dar me iznenadio. NomC:nominative AccC:accusative Stimulus Experiencer (cro)čuditi se/začuditi se (Ja)Čudim se vremenu. NomC:nominative DatC:dative Experiencer Stimulus čuditi/začuditi2;(eng)amaze Vrijeme me čudi. NomC:nominative AccC:accusative Stimulus Experiencer (ru)удивляться/удивиться Я удивилась этой встрече. NomC:nominative DatC:dative Experiencer Stimulus удивлять/удивить Его поступки очень удивили меня NomC:nominative AccC:accusative Stimulus Experiencer (cro)radovati se/obradovati se (Ja)Radujem se daru. NomC:nominative DatC:dative Experiencer Stimulus radovati/obradovati; (eng)please Dar me raduje. NomC:nominative AccC:accusative Stimulus Experiencer (cro)veseliti se/razveseliti se1 (Ja)Veselim se suncu. NomC:nominative DatC:dative Experiencer Stimulus veseliti/razveseliti Sunce me veseli. NomC:nominative AccC:accusative Stimulus Experiencer (ru)pадоваться/обрадоваться Бабушка обрадовалась приезду внучки. NomC:nominative DatC:dative Experiencer Stimulus pадовать/обрадовать Солнце обрадовало нас. NomC:nominative AccC:accusative Stimulus Experiencer A.1.2. (cro)oduševljavati se/oduševiti se (Ja)Oduševljujem se prirodom. NomC:nominative InstD:instrumental Experiencer Stimulus A.2. oduševljavati/oduševiti; (eng)delight Priroda me oduševljuje. NomC:nominative AccC:accusative Stimulus Experiencer (ru)восхищаться/восхититься Я восхищаюсь ее красотой. NomC:nominative InstD:instrumental восхищать /восхитить Меня восхищает её красота. NomC:nominative AccCD:accusative Experiencer Stimulus Stimulus восторгаться Она восторгалась красотой природы. NomC:nominative InstC:instrumental Experiencer Stimulus Experiencer восторгать Красота природы восторгает всех. NomC:nominative AccC:accusative Stimulus Experiencer A close-meaning verb to восхищаться and восторгаться is the verb наслаждаться, a reflexive verb, the meaning of which is 'be enthusiastic', and which has both nominative and instrumental complements. When the verb is 127 �The role of verb valency in Croatian and Russian learning at B1 level nonreflexive, the meaning is 'delight, enrapture'. A close meaning word is also the verb любоваться, which means 'admire'. A.1.3. (cro)ljutiti se/naljutiti se (Ja)Ljutim se na mamu. NomC:nominative PrepC:na+Acc Experiencer Stimulus A.2. ljutiti/naljutiti;(eng)be angry Mama me ljuti. NomC:nominative AccC:accusative Stimulus Experiencer (ru)злиться/разозлиться Мальчик злился на маму. NomC:nominative PrepC:na+Acc Experiencer Stimulus злить/разозлить Меня злит общий скептицизм. NomC:nominative AccD:accusative Stimulus Experiencer (cro)brinuti se/ zabrinuti se (Ja)Brinem se o mami/za mamu/zbog mame. NomC:nominative PrepC:o+ locative za+accusative zbog+genitive brinuti/zabrinuti; (eng)worry Mama me brine. NomC:nominative AccC: accusative Stimulus Experiencer Experiencer Stimulus (ru)волноваться/заволноваться Мы волновались о их судьбе /за сына/из-за экзамена. NomC:nominative PrepC:o+Loc za+Acc iz-za+Gen Experiencer Stimulus волновать/заволновать Cудьба нас волнует. NomC:nominative AccC:accusative Stimulus Experiencer B. Without transformation Verbs with matching complements on the syntactic and morphological levels (cro)bojati se/pobojati se : (ru)бояться/побояться; (eng)fear (Ja)Bojim se mraka. za sina NomC:nominative GenC:genitive PrepC: za+accusative Я не боюсь собак. за тебя NomC:nominative GenC:genitive PrepC:za+accusative (cro)stidjeti se/zastidjeti se : (ru)стыдиться/при(за)стыдиться; (eng)be ashamed (Ja)Stidim se prošlosti. NomC:nominative GenC:genitive Он никогда не стыдился нашей любви. NomC:nominative GenC:genitive Difference: (Ja)Stidim se zbog svoje prošlosti. NomC:nominative GenC:genitive Он стыдился за сына. NomC:nominative PrepC:za+accusative 128 �Journal of Foreign Language Teaching and Applied Linguistics Verbs with different complements on the syntactic and morphological levels (cro)smijati se/nasmijati se : (ru)смеяться/посмеяться; (eng)laugh (Ja)Smijem se bratu. NomC:nominative DatC:dative Она смеялась над братом. NomC:nominative PrepC:nad+Inst (cro)nadati se/ponadati se : (ru)надеяться/понадеяться; (eng)hope (Mi)Nadamo se Vašoj pomoći. NomC:nominative DatC:dative Я очень надеюсь на успех в этом деле. NomC:nominative PrepC:na+Acc (cro)sjećati se/sjetiti se : (ru)вспоминать/вспомнить; (eng)remeber (Ja)Sjećam se djeda. NomC:nominative GenC:genitive Вадим вспоминает первую встречу с Анной. NomC:nominative AccC:accusative The verb вспоминать/вспомнить (remember) is not a reflexive verb, but rather a transitive verb that opens up space to an accusative complement, i.e. to an object. That verb is used as a reflexive verb in impersonal constructions (Мне вспомнилась старинная песня.). Conclusion The generalization of syntactic patterns often leads to systematic errors. Difficulties in second-language learning (L2) may arise when a first-language (L1) speaker attempts to directly transfer a syntactic pattern from L1 into L2. There are certain syntactic patterns that can be foreseen, but there are many more unforeseeable ones. This makes mastering verb valency the key problem in learning a foreign language. Croatian and Russian are related Slavic languages, and thus there is a very high overlap in verb valency between these two languages. When it comes to some of the most frequent errors arising as a result of similarities between the two languages, we must emphasize the incorrect use of prepositions (i.e. incorrect choice of case after a preposition: жениться с ней). Errors can also occur quite often if a verb in L1 has one matching and one or more non-matching meanings with a verb in L2 (надеяться на). This paper aims to facilitate both the acquisition and teaching of Croatian and Russian as foreign languages. A comparative analysis can be very important for language teachers as it helps them predict learners’ errors. 129 �The role of verb valency in Croatian and Russian learning at B1 level Endnotes: In Russian, the verb веселиться means 'to have a great time, have fun'. The Croatian equivalent is radovati se. 1 The verb čuditi (to amaze) is considered normatively unacceptable. However, it is included in our study because of its frequent use and attestation in the corpora. 2 References Apresyan, Yu. D. (Ed.). (2003). Novyj ob"yasnitel'nyj slovar' sinonimov russkogo jazyka. Moskva: Shkola “Yazyki slavyanskoi kul’tury”. Herbst, T., Heath, D., Roe, I.F., & Götz, D. (2004). A valency dictionary of English: a corpus-based analysis of the complementation patterns of English verbs, nouns and adjectives. Berlin: Mouton de Gruyter. Herbst, T., & Götz-Votteler, K. (Eds.). (2007). Valency: Theoretical, Descriptive and Cognitive Issues. Berlin: Mouton de Gruyter. Levin, B. (1993). English Verb Classes and Alternations. Chicago and London: The University of Chicago Press. Levin, B., & Rappaport Hovav, M. (2005). Argument Realization. Research Surveys in Linguistics. New York: Cambridge Univeristy press. Rozental’, D.E. (1981). Upravlenie v russkom yazyke. Slovar'-spravochnik : dlya rabotnikov pechati. Moskva: Kniga. Silić, J., & Pranjković, I. (2005). Gramatika hrvatskoga jezika za gimnazije i visoka učilišta. Zagreb: Školska knjiga. White, L. (2003). Second Language Acquisition and Universal Grammar. New York: Cambridge University press. 130 � 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. 2789 Title A name given to the resource The role of verb valency in Croatian and Russian learning at B1 level Author Author Brač, Ivana Drljač Magić, Sanja Abstract A summary of the resource. Difficulties in learning a second language (L2) may arise when a first-language (L1) speaker attempts to directly transfer a syntactic pattern from L1 into L2. Since there is a very high overlap in verb valency between Croatian and Russian, the generalization of syntactic patterns often leads to systematic errors. In this paper we analyze verbs that were selected from a list of verbs required for B1-level mastery in Croatian and Russian. The analyzed verbs are divided into semantic groups according to Levin (1993), but the paper focuses on the verbs of social interaction, verbs of communication and psych-verbs. Each verb is associated with its syntactic pattern supported by a corpus attestation. Within each semantic group, verbs are further divided into four groups based on the number of complements and their realization on the syntactic and morphological levels. This paper aims to facilitate the acquisition of basic verb complements in Croatian and Russian, with emphasis on non-matching pairs between the two languages. Keywords: Verb valency, Croatian language, Russian language, L2 acquisition Date A point or period of time associated with an event in the lifecycle of the resource 2015 Keywords Keywords. Article PeerReviewed L Education (General),LT Textbooks,P Philology. Linguistics,PG Slavic, Baltic, Albanian languages and literature https://omeka.ibu.edu.ba/files/original/d94a7fcf660a228a8ab7fac432e9e127.pdf 2b0e48de2b053f275d30e98d11a856ca PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo The Role of Work Hope on Entrepreneurial Self-efficacy and Entrepreneurial Intentions: Evidence from Business Students in Turkey Gültekin Altuntaş İstanbul University, İstanbul, Turkey altuntas@İstanbul.edu.tr Aytuğ Sözüer Yalova University, Yalova, Turkey sozuer@hotmail.com Altan Doğan İstanbul University, İstanbul, Turkey altand@İstanbul.edu.tr H. Talha Demirtaş İstanbul University, İstanbul, Turkey talha@İstanbul.edu.tr Based on Bandura’s (1977; 1982) ‘self-efficacy’ concept within socialcognitive theory, management scholars derived ‘entrepreneurial selfefficacy’ (e.g. Boyd & Vozikis, 1994; Chen, Greene & Crick, 1998; De Noble, Jung & Ehrlich, 1999), which is defined as an individual’s thoughts or beliefs of whether he or she has the abilities attributed to an entrepreneur’s role in respect to his or her self-perceptions of their skills (Chen, Greene & Crick, 1998; Wilson, Kickul & Marlino, 2007). Widely accepted entrepreneurial skills are opportunity identification, relationship building, managerial capacity and tolerance for working effectively under conditions of stress, pressure, conflict, and change (Barbosa, Gerhardt & Kickul, 2007). Besides this definition, it is noted that individuals are motivated by their self-efficacy rather than their objective ability to achieve an important tasks as well as a chosen outcome (Bandura, 1989; 1997; Markham, Balkin & Baron, 2002). Individuals with high level of entrepreneurial self-efficacy share another belief of possessing a viable idea for a new business (Wilson, Kickul & Marlino, 2007) on which it is expected for them to have an aspiration to act reflecting a high level of entrepreneurial intention (Chen, Greene & Crick, 1998; De Noble, Jung & Ehrlich, 1999; Krueger, Reilly & Carsrud, 133 �International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo 2000; Krueger, 2007). In other words, individuals engage in entrepreneurship not by accident but by an entrepreneurial intention defined as a conscious state of mind, which directs their personal attention, experience, and behavior toward planned entrepreneurial behavior (Krueger, 2007; Bird, 1988). In order to understand the relationship between self-efficacy and career choice or particularly entrepreneurial intentions, there is extant research (e.g. Barbosa, Gerhardt & Kickul, 2007; Boyd & Vozikis, 1994; Kruger, 1993; Krueger, Reilly, & Carsrud, 2000; Markham, Balkin & Baron, 2002; Shapero & Sokol, 1982; Wilson, Kickul & Marlino, 2007). However, there is limited application of a newly developed construct, i.e. ‘work hope’ within this interaction. Adapted from Snyder’s (2000) hope theory, Juntunen and Wettersten (2006) defines work hope as “a positive motivational state that is directed at work and work-related goals and is composed of the presence of workrelated goals and both the agency and pathways for achieving those goals”. Furthermore, they developed an instrument to assess work hope, which would offer empirical information in vocational research (Juntunen & Wettersten, 2006). In respect, ‘work hope’ is assumed as a promising variable to provide additional perspective to the understanding of individuals’ entrepreneurial intentions. To sum up, this study aims to investigate the role of work hope on the relationship between entrepreneurial self-efficacy and entrepreneurial intentions. The scope of the research would be students enrolled in İstanbul University, School of Business Administration and a cross-sectional survey is intended for data collection. In attempt to expand previous literature, this study is expected to shed light on the moderating effect of students’ vocational prospects on their perceived self-efficacy and entrepreneurial intentions. Keywords: Entrepreneurial Self-Efficacy, Entrepreneurial Intentions, Work Hope. 134 � 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. 1573 Title A name given to the resource The Role of Work Hope on Entrepreneurial Self-efficacy and Entrepreneurial Intentions: Evidence from Business Students in Turkey Author Author ALTUNTAS, Gultekin AYTUG, Sozuer DOGAN, Altan H. TALHA, Demirtas Abstract A summary of the resource. Based on Bandura’s (1977; 1982) ‘self-efficacy’ concept within socialcognitive theory, management scholars derived ‘entrepreneurial selfefficacy’ (e.g. Boyd & Vozikis, 1994; Chen, Greene & Crick, 1998; De Noble, Jung & Ehrlich, 1999), which is defined as an individual’s thoughts or beliefs of whether he or she has the abilities attributed to an entrepreneur’s role in respect to his or her self-perceptions of their skills (Chen, Greene & Crick, 1998; Wilson, Kickul & Marlino, 2007). Widely accepted entrepreneurial skills are opportunity identification, relationship building, managerial capacity and tolerance for working effectively under conditions of stress, pressure, conflict, and change (Barbosa, Gerhardt & Kickul, 2007). Besides this definition, it is noted that individuals are motivated by their self-efficacy rather than their objective ability to achieve an important tasks as well as a chosen outcome (Bandura, 1989; 1997; Markham, Balkin & Baron, 2002). Individuals with high level of entrepreneurial self-efficacy share another belief of possessing a viable idea for a new business (Wilson, Kickul & Marlino, 2007) on which it is expected for them to have an aspiration to act reflecting a high level of entrepreneurial intention (Chen, Greene & Crick, 1998; De Noble, Jung & Ehrlich, 1999; Krueger, Reilly & Carsrud, 2000; Krueger, 2007). In other words, individuals engage in entrepreneurship not by accident but by an entrepreneurial intention defined as a conscious state of mind, which directs their personal attention, experience, and behavior toward planned entrepreneurial behavior (Krueger, 2007; Bird, 1988). In order to understand the relationship between self-efficacy and career choice or particularly entrepreneurial intentions, there is extant research (e.g. Barbosa, Gerhardt & Kickul, 2007; Boyd & Vozikis, 1994; Kruger, 1993; Krueger, Reilly, & Carsrud, 2000; Markham, Balkin & Baron, 2002; Shapero & Sokol, 1982; Wilson, Kickul & Marlino, 2007). However, there is limited application of a newly developed construct, i.e. ‘work hope’ within this interaction. Adapted from Snyder’s (2000) hope theory, Juntunen and Wettersten (2006) defines work hope as “a positive motivational state that is directed at work and work-related goals and is composed of the presence of workrelated goals and both the agency and pathways for achieving those goals”. Furthermore, they developed an instrument to assess work hope, which would offer empirical information in vocational research (Juntunen & Wettersten, 2006). In respect, ‘work hope’ is assumed as a promising variable to provide additional perspective to the understanding of individuals’ entrepreneurial intentions. To sum up, this study aims to investigate the role of work hope on the relationship between entrepreneurial self-efficacy and entrepreneurial intentions. The scope of the research would be students enrolled in İstanbul University, School of Business Administration and a cross-sectional survey is intended for data collection. In attempt to expand previous literature, this study is expected to shed light on the moderating effect of students’ vocational prospects on their perceived self-efficacy and entrepreneurial intentions. Keywords: Entrepreneurial Self-Efficacy, Entrepreneurial Intentions, Work Hope. 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 2303-4564 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. 3454 Title A name given to the resource THE ROLE OFVERBVALENCYIN CROATIANANDRUSSIAN LEARNING ATB1 LEVEL Author Author Brač, Ivana Drljač Magić, Sanja Abstract A summary of the resource. Difficulties in learning a second language (L2) may arise when a first language (L1) speaker attempts to directly transfer a syntactic pattern from L1 into L2. Since there is a very high overlap in verb valency between Croatian and Russian, the generalization of syntactic patterns often leads to systematic errors. In this paper we analyze verbs that were selected from a list of verbs required for B1-level mastery in Croatian and Russian. The analyzed verbs are divided into semantic groups according to Levin (1993), but the paper focuses on the verbs of social interaction, verbs of communication and psych-verbs. Each verb is associated with its syntactic pattern supported by a corpus attestation. Within each semantic group, verbs are further divided into four groups based on the number of complements and their realization on the syntactic and morphological levels. This paper aims to facilitate the acquisition of basic verb complements in Croatian and Russian, with emphasis on non-matching pairs between the two languages. Date A point or period of time associated with an event in the lifecycle of the resource 2014 Keywords Keywords. Conference or Workshop Item PeerReviewed PE English https://omeka.ibu.edu.ba/files/original/fe3a3fa66ad3cc7c0e6486d7883fc182.pdf 0a8eb01ad6b9c4c8c78e73cc1504ac68 PDF Text Text The significance of non-monetary incentives and its relationship with employee motivation: A case of civil service employees in Bosnia and Herzegovina Emir Srna International Burch University Bosnia and Herzegovina emirsrna@yahoo.com M. Sait Dinc International Burch University Bosnia and Herzegovina m.sait.dinc@ibu.edu.ba Abstract: The purpose of this paper is to examine the perceived importance of non-monetary incentives as well as the degree of their current utilization within the civil service sector in Bosnia and Herzegovina. One of the aims of the study is to explore if non-monetary incentives have prospective to increase employee’s motivation in comparison to monetary rewards. Such finding could play a beneficial role in understanding the fact that an individual’s behaviour and motivation can be greatly influenced by alternative and cost-friendly non-financial motivating factors. The study is conducted on a sample of 129 civil servants of all categories at the state level. The relationships between the variables were evaluated by descriptive statistics, correlations and non-parametric independent samples test. The study findings demonstrate that the non-monetary incentives are not sufficiently utilized in the civil service sector. Furthermore, according to the findings, non-monetary incentives represent a very strong motivating factor and could be widely and actively used in order to secure increased motivation of the civil servants in Bosnia and Herzegovina. Keywords: Non-monetary incentives, Motivation, Civil service, monetary incentives. 1 Introduction The human capital is the brain of any process organized in the form of an institution, corporation or organization, private or public one. In this regard, the organization success depends on its workforce. Unfolding this process to the level of employees, it can be said that one of the greatest factors for the employee success is motivation. Therefore, due attention must be given to this factor. Organizations, in order to achieve success and reach their strategic goals, must have motivated employees, the ones who work with enthusiasm, energy and dedication. On the other 158 �hand, the organizational management must do everything in order to establish and bring into force healthy and motivated employees. The first assumption that comes to mind when word “incentive“ is mentioned is usually some form of monetary reward for employees. However, it can be noted that incentive in fact is the thing that encourages or motivates someone to perform a certain action. Besides well-known monetary incentives, there are other stimuli that boost our performance and in the end, support the accomplishments of the goals. Therefore, the importance of such stimuli or incentives should not be neglected or undermined by company managers or employees who should take proactive role in seeking the establishment of the incentive system. The reason behind the introduction and use of such incentives can be manifold: commitment enhancement, productivity increase, psychological satisfaction of employees leading to job satisfaction, higher work enthusiasm and many others. Although companies in developed countries have been aware of the benefits of use of nonmonetary incentives, it can be easily said that the culture of use of non-monetary incentives in developing countries is at a low level. Bosnia and Herzegovina (BiH) is one of those developing countries. After brutal war, BiH started recovering its economy and is now working to join the European Union. But managers in this country are still not fully aware of the potential that such incentives may have on employee’s job satisfaction and motivation to drive them to better performance. Since there is a very scarce literature as well as research conducted on this issue in Bosnia and Herzegovina (Dinc & Plakalovic, 2016), it is deemed appropriate to instigate a study in this regard and further research the current use as well as possible effects of the increased use of non-monetary incentives. It is also well known in our society that the possibility of use of monetary rewards in public institutions is stipulated by different laws in Bosnia and Herzegovina and the fact is that these rules and regulations greatly limit the use of monetary rewards, especially having in mind the financial crisis in the last decade. This fact multiplies the importance of other, alternative means of employee motivation and that is actually why this study focuses primarily on the non-monetary incentives. In the wake of limitations on the use of monetary incentives in public service in Bosnia and Herzegovina, this study tries to identify the value of non-monetary incentives and their link with the motivation and performance of employees (See Figure 1). This is especially important having in mind that little or no evidence exists regarding the effects of non-monetary incentives on motivation in Bosnia and Herzegovina and its civil service. 159 �Figure 1 Proposed Research model Job-related NMI Tangible NMI Social NMI Employee motivation 2 Literature review Motivation represents anything that ignites our physical and mental capacities to move towards a certain accomplishments or objectives. Max A. Eggert (1999), who has worked on the complex subject of motivation, stated “Motivation is like a jellyfish. Everyone knows what it is but it is difficult to describe or define”. In essence, various authors have different views on the concept of motivation. However, all these offered definitions share few common points: all are tackling the “factors or events that energize, channel, and sustain human behaviour over time “(Steers, Mowday, & Shapiro, 2004). The starting point in the motivational process are the needs, followed by the process of sending signals, thus triggering our behaviour in the direction of reaching and meeting the objectives that we believe will satisfy our needs. If motivation is induced internally, originated from an individual, such type of motivation is called intrinsic motivation. Many of the authors consider this type of motivation to be the most important. According to Deci and Ryan (2000), the intrinsic motivation develops out of the psychological needs, such as a need for competency, autonomy and self-determination. On the opposite, the extrinsic motivation is when employees perform the activities to realize a certain outcome with showing no personal interest in the specified activity. The only interest of the employee in this context is related to tangible incentives he may earn by repeating some specific action or process. For example, the only motivation for employee to stay another three hours overtime is to get a full day off, or to receive some other kind of monetary or other reward. Job satisfaction is not equal to motivation but it is rather linked to it. One of the most commonly used definition of job satisfaction is given by Locke (1976) who defines it as “a pleasurable or positive emotional state resulting from the appraisal of one's job or job experiences “. Employee 160 �satisfaction is very important in order for employees to remain happy and to perform to the maximum of their capabilities. There are several important factors that may impact satisfaction: work itself, benefits, promotions, peers and colleagues (Locke, 1976). According to Lut (2012), both motivation and satisfaction relate to job performance and they can influence it either positively or negatively. The companies should approach each individual employee in order to establish the type of their dominant needs and act accordingly – giving the proper value to non-monetary incentives (Alderfer, 1972). In support to non-monetary incentives importance and value, McClelland (1975) differentiated three types of needs in the organizations: need for power, need for affiliation and need for achievement. 2.1 Non-monetary incentives versus monetary incentives While monetary incentive is a money based reward, non-monetary, as its name implies, is a reward that is not directly associated with the financial means. It is not to say that non-monetary incentives have no monetary value, on the contrary. Many researches argue that the use of non-monetary incentives, especially in jobs with cognitive requirements, have a longer lasting effect on employee motivation. McKinsey global survey of 1047 executives, managers and employees from different sectors established that three nonfinancial incentives are even more effective motivators than the three top-rated monetary incentives (Dewhurst, Guthridge and Mohr, 2009). The top three non-monetary incentives identified by the report were: praise and commendation, attention by managers and new tasks opportunity. A performance study found that even a task requiring very limited cognitive efforts, a larger monetary reward led to a poorer performance (Ariely, 2008). This study was replicated several times and the results were consistent throughout. The people offered medium monetary bonuses performed equal to those offered low bonuses and interestingly enough, the people offered the highest bonuses performed worse than other two groups. In conclusion, it seems that the high monetary rewards may cause additional costs for institutions but may also have a demotivating or discouraging effect on employees. 161 �2.1.1 Social non-monetary incentives Social non-monetary incentives are related to relationship between the superior and the employee in the work environment. These incentives are important since they have crucial impact on satisfying the needs such as relatedness and growth which represents the top two types of needs (Alderfer, 1972). One of the most powerful incentives within this category is recognition or praise. Providing recognition to the employees for certain performance has very strong motivational effect. In addition to that, it results in no additional cost to the managers of the institution. 2.1.2 Job-related non-monetary incentives Job-related NMI are closely connected, stem from the job itself and these intrinsically motivate employees. The employees exercise more effort in order to perform at their job because the achievement itself provides them with pleasure and motivates them further. McClelland (1975) in his achievement and acquired need theory argues that the need for achievement represents the need for reaching challenging goals. The best rewards for such employees certainly are not connected with any kind of monetary rewards, since such employees are exclusively driven by the sense of pleasure after accomplishments. Some of the most important job-related non-monetary incentives are: promotion, goal setting, job empowerment, job enrichment, job enlargement, job rotation, participation in decision-making processes and opportunities for further growth. 2.1.3 Tangible non-monetary incentives Tangible non-monetary incentives are goods and services given by managers in order to reward and motivate employees. These incentives are considered non-cash in nature, but should be regarded as extrinsic motivators since they are provided by a source other than individual in question (Jeffrey & Shaffer, 2007). Furthermore, there are four psychological phenomena associated with these type of incentives: justifiability, social reinforcement, separability and evaluability. The value of the incentive is directly proportionate to the difficulty the employee would face to justify the purchase of the specific goods with his own money. Social reinforcement is directly related to the visibility – the effects of such incentive do not come from the incentive itself but rather from other people’s respect and their knowledge of employee’s good performance. Evaluability is referred to the fact that employee who received the reward evaluates the award differently. The employees tend to value positive aspects of rewards rather than negative ones that are associated with any specific reward. Meacham and Wiesen (1969) have offered classification on non-monetary incentives in two categories, social and pre mack. The first category included informal recognition, formal 162 �acknowledgement and friendly greetings, while the other category included job rotation, extended breaks and job with more responsibility. These categories were redesigned in order to establish final three categories of non-monetary incentives: social, tangible non-monetary incentives and job related non-monetary incentives (Yavuz, 2004). 3 Hypotheses Recent studies have demonstrated that the non-financial recognition is the most effective of rewards (Silverman, 2004). The latest research and empirical evidence indicate that intrinsic motivation decreases while extrinsic work motivation seems to decrease with age (de Lange, Bal, Van der Heijden, de Jong, & Schaufeli, 2011). Several other researches confirmed these findings, including Jurkiewicz and Brown (1998) who conducted a study amongst public service employees in the U.S. According to the Warr proposal (1997) the older employees have reduced need for high job demands, job variety and feedback. Finally, it is argued that there is significant difference between the superiors and subordinates average ranking of incentives contributing to their willingness to produce more effort in their jobs (Yavuz, 2004). The following hypotheses are posited in this study: Hypothesis 1: Monetary and non-monetary incentives are equally important motivating factor both for senior civil servants and for civil servants. Hypothesis 2: The effect of job-related, social and tangible incentives on motivation decreases with the years of age. Hypothesis 3: There is no statistically significant difference in the effect of job factors on motivation based on gender. Hypothesis 4: There is no statistically significant difference in the effect of job-related, social and tangible incentives on motivation based on position or rank. 4 Research method 4.1 Sample and data collection In accordance with the information provided by the Civil Service Agency of Bosnia and Herzegovina, the total number of state institutions employing civil servants amounts to 69. A total of 3700 civil servants are employed in these institutions. The following tables offer further disaggregation of the employed civil servants by gender and their rank: 163 �Figure 2. Actual ratio of civil servants by gender and rank Gender Position 7% Civil servant Female 47% 53% Male Senior civil servant 93% A questionnaire using the web tool was distributed to civil service institutions while certain number of questionnaires were given in a hard copy. A total of 129 employees reverted with the fully completed questionnaire. A summary of sample characteristics is presented in Table 1. The majority of the respondents were female (57.4%) while 62.8% of the respondents were between 31 and 40 years old. The majority of respondents (87.6 %) were Civil servants while the rest belong to senior civil servant category. Table 1. Sample Characteristics Variable Demographics Gender Female 74 57.4 Male 55 42.6 21-30 years 3 2.3 31-40 years 81 62.8 41-50 years 31 24 51-60 years 14 10.9 under 12 months 2 1.6 1-5 years 14 10.9 6-10 years 70 54.3 11-15 years 43 33.3 under 5 years 6 4.7 5-10 years 29 22.5 11-15 years 43 33.3 over 16 years 51 39.5 Senior civil servant 16 12.4 Civil servant 113 87.6 Age Tenure in the institution Total job tenure Rank Number 164 Valid Percent (%) �4.2 Instruments and measures A three-page questionnaire was used to collect the data. The first set of items is designed to assess the current level of utilization of non-monetary incentives within the respondent’s institutions. The following set of items is related to the most important job factors that contribute to the motivation from the perspective of the respondents. Another set of items the employees were asked to indicate the degree of importance of specific incentives belonging to one of the three non-monetary incentive categories. Finally, the last part included demographic questions such as age, gender, rank, job tenure with the current institution and the total job tenure. The survey was initially prepared in the English language, but before forwarding it to the study population, it was translated into Bosnian language. In order to assess the validity of the study, the pilot study of the survey was performed on 25 civil service employees at the High Judicial and Prosecutorial Council of BiH. In order to measure the job-related, social and tangible incentives, the scale developed by Morgeson & Humphrey (2006) and Yavuz (2004) was used which was additionally modified. The questionnaire consisted of 39 items. Current utilization of the non-monetary incentives is evaluated using 20 items. The respondents were asked to rate the current status of utilization of job-related, social and tangible incentives, broken down into twenty specific incentives belonging to one of these three categories. These items were measured using a 5-point Likert scale (5=strongly agree; 1= strongly disagree). Most important factors affecting motivation are measured using 13 items. These items were measured also using 5- point Likert scale. In order to evaluate employee incentive preference, 1 item with 14 incentives was listed and evaluated using 5- point Likert scale (5=very important; 1=not important). 4.3 Data analysis The data was analysed using the SPSS (version 23) software as well as STATA (release 14). Reliability of the scales was assessed by Cronbach’s alpha. Sample characteristics of respondents were summed up running a descriptive statistic. Independent sample t-test was used to understand whether there is difference in motivation by monetary and non-monetary incentives between two groups of rank: senior civil servants and civil servants. Polychoric correlations were used to show the correlation between three non-monetary incentives and age. In order to determine difference in distribution/effect of job factors across two gender categories, nonparametric independent samples Mann-Whitney U test was used. Finally, nonparametric independent samples Mann-Whitney U test was used to show the difference in the effect of each 165 �of the non-monetary incentive category - job-related, social and tangible on motivation based on position or rank of the civil servants. 5. Results 5.1 Initial results As it was demonstrated in Table 2, the Cronbach’s Alpha for the first part of questionnaire targeting the current overall use of non-monetary incentives was 0.895 while the Cronbach’s Alpha for non-monetary incentives was 0.880. Table 2. Reliability Coefficients Cronbach’s Alpha Current incentive utilization (20 items) Non-monetary incentives (14 items) 0.895 0.880 5.2 The results of the employees’ perception of the current use of non-monetary incentives in institutions Descriptive statistics – frequencies were used to summarize and present the level of satisfaction of employees with the usage of non-monetary incentives in their respective institutions. The participant employees consider that the current use of these incentives is at unsatisfactory level. 47.3% employees strongly or moderately disagree with the statement that the use of nonmonetary incentives is at satisfactory level. 36.4% of employees have a neutral opinion while only 16.3% are satisfied with the level of utilization of non-monetary incentives currently. 5.3. Hypotheses testing In the testing of the first hypothesis, in line with the mean results, both groups, senior civil servants and civil servants ranked non-monetary incentives as the most important motivating factor. Independent samples t-test was used for each of the incentive and for grouping variable senior civil servants and civil servants in order to test if there is statistically significant difference between mean scores between these two categories of staff. For the non-monetary incentives, the t-test had a p-value of 0.175 (equal variances assumed). For the monetary incentives, the t-test had a p-value of 0.242 (equal variance assumed). As a result, the hypotheses 1 is supported with the conclusion that there is no difference in the importance of monetary and non-monetary incentives based on rank of civil servants. 166 �Table 3. Mean scores of the two incentives based on rank Monetary incentives Mean Non-monetary incentives Mean Senior civil servants Civil servants 2.93 3.28 3.87 3.48 p value 0.242 0.175 The second hypothesis stated that the effect of job-related, social and tangible incentives on motivation decreases with the years of age. For this purpose, the polychoric correlation tests in STATA package were carried out with the aim to estimate the degree of correlation between categorical ordinal variables. They have been used in line with the justified assumption that in fact the ordinal variables are basically truncated versions of their underlying continuous variables. Table 5 shows that polychoric correlation between the tangible incentives and age is negative, and as indicated by goodness of fit tests statistically significant, which means that with the age progression the effects of tangible incentives on motivation decreases. Furthermore, polychoric correlation between social incentives and age is positive, and statistically significant as indicated by goodness of fit tests, which means that with the age increase, the effects of social incentives on motivation increase accordingly. Polychoric correlation between job-related incentives and age is not statistically significant. Table 4. Correlation between incentives and age Rho. Tangible incentives Social incentives Job-related incentives Goodness of fits test Pearson G2 Likelihood ratio X2 23.430325 16.76458 44.361491 32.26361 10.821232 7.8695617 -.04558337 .2409996 .09423693 The third hypothesis indicated that there is no significant difference in distribution/effect of job factors across two gender categories. Nonparametric Independent samples Mann-Whitney U test was carried out since this test analyses the equality of the distribution in both of subsamples. The results are listed in the Table 6. According to the results, there is no statistically significant difference in the ability of tangible, social, monetary factors and good interpersonal relationships to increase motivation across male and female employees. Furthermore, the results indicated there is significant difference in the influence of wage on motivation (Mann-Whitney U=1401; p<0.05) between male and female employees. The effect of wages on motivation is higher with female population (mean rank=73.57) when compared to male population (mean rank=53.473). There is also a significant difference in the influence of job-related factor on motivation between male and female employees (Man-Whitney U=1798; p <0.05). Likewise, the influence of this factor on motivation is higher with female population (mean rank=70.43) compared to male 167 �population (mean rank=57.69). Finally, the results indicated that there is also significant difference in the influence of job security on motivation based on gender (Man-Whitney=1091.5; p<0.05). The effect is higher with female population (mean rank=77.75) when compared to male population (mean rank=47.85). Table 5. Difference in the effect of job factors on motivation across gender Mean rank N Tangible incentives Female 74 61.63 Male 55 69.54 Satisfactory wage Female 74 73.57 Male 55 53.47 p value 0,219 0.001 0,441 Social incentives Female 74 67.09 Male 55 62.19 Job-related incentives Female 74 70.43 Male 55 57.69 0,040 0,509 Monetary incentives Female 74 63.27 Male 55 67.33 0.000 Job security Female 74 77.75 Male 55 47.85 0,196 Good interpersonal relationship Female 74 68.20 Male 55 60.69 The Hypothesis 4, stated that there is no statistically significant difference in the effects of each of the non-monetary incentive categories - job-related, social and tangible on motivation based on position or rank of the civil servants. Nonparametric Independent samples Mann-Whitney U test was carried out and the results are listed in the Table 7. According to the results, there is no statistically significant difference in the effect of social, tangible and job-related incentives on motivation between senior civil servants and civil servants. This finding supports the Hypothesis 4. The mean rank from the table below indicates which group of employees is more motivated by each of these three categories of non-monetary incentives. 168 �Table 6. Impact of job-related, social and tangible incentives on motivation based on rank of the civil servants Mean rank N Job-related incentives Senior civil servant 16 58.88 Civil servant 113 65.87 Social incentives Senior civil servant 16 58.63 Civil servant 113 65.90 p value 0.453 0.445 0.799 Tangible incentives Senior civil servant 16 67.16 Civil servant 113 64.69 6. Conclusions and Limitations As mentioned earlier in the text, the human capital is the most important value of any institution or company. All institutions need motivated employees in order to successfully operate and perform their activities. In our case of civil service employees, it is evident that civil servants have fixed salaries and monetary compensations, with little or no room for any sort of monetary incentives to be granted to employees. It transpires from the research and its results, that the respondents’ first and primary focus is to satisfy their physiological requirements. Hence the satisfactory wage was rated as the most important of seven factors motivating good performance. The next most crucial factor is job security followed by the good interpersonal relationships with colleagues. Job-related aspects of work that are closely connected to and stem from the job itself and intrinsically motivate employees are also very important. In this case, the least important incentives that motivate the employees are tangible – materialistic incentives and monetary incentives. After conducting extensive employee survey in Czech Republic, Vaskova (2006) concluded that financial compensation in the form of basic-pay is the most important factor, followed by positive relations and social incentives. It is meaningful to conclude that civil servants in Bosnia and Herzegovina, almost completely adhere to the Maslow hierarchy of needs, ranking and giving priority to the most basic needs and then moving up the pyramid with other above identified needs consequently. This finding is completely in line with the Pink (2009) theory of what motivates employees. The theory states that in cognitive professions, upon receiving proper and satisfactory wages, employees are no longer motivated by money and monetary incentives. 169 �Another set of questions in the questionnaire showed the wage as the factor of importance with the aim to show and present the distribution of the perceived importance only between the monetary and non-monetary incentives as well as to show whether these two categories are equally important when compared to each other. The majority of employees (72.1%) stated that non-monetary incentives can elevate the interest of employee in the job even in cases when monetary incentives cannot be utilized. Moreover, when compared separately with monetary incentives, non-monetary incentives are valued slightly more than monetary incentives which indeed confirms they represent a significant motivating factor, allowing for an argument that civil service employees are not completely satisfied with the wage levels, therefore the issue of money is still important for them. Still, job security, good relationships and job recognition and appreciation continue to be the most important motivating factors. Furthermore, approximately half of the respondents are not satisfied with the current utilization of the non-monetary incentives in their institutions with only 16% of employees who are in fact satisfied with its use. The results of the research imply that there is a strong and unequivocal relationship between nonmonetary incentives and motivation and civil service sector management should work relentlessly in order to increase the use of non-monetary incentives especially having in mind the ease and economy of their use. The research also found that the ability of tangible incentives to motivate us to perform better decreases with the age while the ability of social incentives to motivate increases with the age. According to the results, the following factors equally motivate male and female employees: tangible, social, monetary factors and good interpersonal relationships. The results furthermore show that female employees are more motivated by wages when compared to their male counterparts. Moreover, job-related sources of satisfaction represent a more important motivating factor for female employees. Finally, the results indicated that female employees value more jobsecurity aspects when compared to their male colleagues. Therefore, it can be concluded that distribution of all kind of incentives should be tailored to match the needs or choices of different gender categories. Finally, even though this research has helped us better understand motivating factors of specific group of employees, it has few limitations. The results were obtained from a limited number of employees and a survey of a larger sample size could possibly give different findings. Another limitation could perhaps be the scarcity of literature. Additional research should aim to review the actual legal aspects and possibilities of use of monetary and non-monetary incentives in the civil service in BiH. Additionally, the future research should examine the direct relationship between the performance and extrinsic and intrinsic motivating factors and therefore give a proper tool to managers to use and apply different types of incentives. 170 �References Alderfer, C. P. (1972). Existence, relatedness, and growth. New York: Free press. Ariely, D. (2008). What is the value of Big Bonus? New York times. de Lange, A. H., Bal, M. P., Van der Heijden, B. I., de Jong, N., & Schaufeli, W. B. (2011). When I'm 64: Psychological contract breach, work motivation and the moderating roles of future time perspective and regulatory focus. Work & Stress. Deci, E. L., & Ryan, R. (2000). Intrinsic and Extrinsic Motivations: Classic Definitions and New Direction. Contemporary Educational Psychology 25, 54-67. Dewhurst, M., Guthridge, M., & Mohr, E. (2009). Motivating people: Getting beyond money. New York: McKinsey and Company . Dinc, S. M., & Plakalovic, V. (2016). 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Power: the inner experience. New York: Irvington publishers. Meacham, M. L., & Wiesen, A. E. (1969). Changing Classroom Behavior: A Manual for Precision Teaching. Scranton: International Textbook Company. Morgeson, F. P., & Humphrey, S. E. (2006). The Work Design Questionnaire (WDQ): Developing and Validating a Comprehensive Measure for Assessing Job Design and the Nature of Work. American Psychological Association, 1321-1339. Pink, D. H. (2009). Drive: The surprising truth about what motivates us. New York: Riverhead books. 171 �Silverman, M. (2004). Non-Financial Recognition The Most Effective of Rewards? Institute for employment studies. Steers, R. M., Mowday, R. T., & Shapiro, D. L. (2004). The future of work motivation theory. Academy of Management Review, 379. Vaskova, R. (2006). Gender differences in performance motivation. Prague: Research Institute of Labour and Social Affairs. Warr, P. (1997). Age, work, and mental health. The impact of work on older adults: (pp. 252-296). New York: Springer. Weiss, D. J., Dawis, R. V., England, G. W., & Lofquist, L. H. (1967). Manual for the Minnesota Satisfaction Questionnaire. Minnesota: Industrial Relations Center . Yavuz, N. (2004, July 20). The Use of Non-Monetary Incentives as a Motivational Tool: A Survey Study in a Public Organization in Turkey. Ankara, Turkey. 172 � 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. 3646 Title A name given to the resource The significance of non-monetary incentives and its relationship with employee motivation: A case of civil service employees in Bosnia and Herzegovina (doi: 10.14706/icesos179) Author Author Srna, Emir DINÇ, Muhammet Sait Abstract A summary of the resource. Abstract: The purpose of this paper is to examine the perceived importance of non-monetary incentives as well as the degree of their current utilization within the civil service sector in Bosnia and Herzegovina. One of the aims of the study is to explore if non-monetary incentives have prospective to increase employee’s motivation in comparison to monetary rewards. Such finding could play a beneficial role in understanding the fact that an individual’s behaviour and motivation can be greatly influenced by alternative and cost-friendly non-financial motivating factors. The study is conducted on a sample of 129 civil servants of all categories at the state level. The relationships between the variables were evaluated by descriptive statistics, correlations and non-parametric independent samples test. The study findings demonstrate that the non-monetary incentives are not sufficiently utilized in the civil service sector. Furthermore, according to the findings, non-monetary incentives represent a very strong motivating factor and could be widely and actively used in order to secure increased motivation of the civil servants in Bosnia and Herzegovina. Keywords: Non-monetary incentives, Motivation, Civil service, monetary incentives. Date A point or period of time associated with an event in the lifecycle of the resource 2017 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/e510aabab52cafcad84a7186cff72ff2.pdf e27290be231f4f81958b868bfa5ab345 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo The Social Constructivist Approach as an Instrument for Understanding the “Identity” Dimension of the EU Enlargement Process Begüm Burak Fatih University, İstanbul, Turkey bburak@fatih.edu.tr This study deals with the emergence of European Union (EU) enlargement process as a kind of common political identity formation. It can be said that, the case of EU points to the need to re-conceptualize the relationship between self and other in the international relations literature. The central argument of the study is that fundamental structures of international politics are social rather than strictly material and these structures shape actors’ identities and interests, rather than just their behavior. In this context the enlargement process of the EU can well be analyzed from a social constructivist perspective. Keywords: Social Constructivism, European Union, EU Enlargement, Identity, European Identity, National Interest. 54 � 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. 1501 Title A name given to the resource The Social Constructivist Approach as an Instrument for Understanding the “Identity” Dimension of the EU Enlargement Process Author Author BURAK, Begum Abstract A summary of the resource. This study deals with the emergence of European Union (EU) enlargement process as a kind of common political identity formation. It can be said that, the case of EU points to the need to re-conceptualize the relationship between self and other in the international relations literature. The central argument of the study is that fundamental structures of international politics are social rather than strictly material and these structures shape actors’ identities and interests, rather than just their behavior. In this context the enlargement process of the EU can well be analyzed from a social constructivist perspective. Keywords: Social Constructivism, European Union, EU Enlargement, Identity, European Identity, National Interest. 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 2303-4564 https://omeka.ibu.edu.ba/files/original/95d662ce13daddebaddee3a08918a651.docx e67ec8e2c8740eb762a899cdcfe8292e https://omeka.ibu.edu.ba/files/original/9921f7db10f5a2ad17a871a12706e15a.pdf 7214b29ca4cacdd4d0ff5ee1dffc07cd PDF Text Text The Social Work Perspective of Civil Society Organizations in Turkey Hüseyin Gül Adnan Menderes University Turkey huseyingul@adu.edu.tr Ahmet Pekcan Adnan Menderes University Turkey apekcan@adu.edu.tr Abstract: Civil Society Organizations (CSOs) [i.e. Non-Governmental Organizations (NGOs)] come out to be important entities due to the recent changes in the traditional perception about the state and the restriction of the power of the government. CSOs are known to play key roles in the determination of the political, cultural, economic and social boundaries of state and the political identities that are at the core of the liberal democratic system, and in forming of the social policies. The controversies and debates over the non-governmental or civil society issues seem to focus to a great extent on the relation between these organizations and state. Nongovernmental or civil society refers to "apolitical society". This does not refer to a society that is aloof from politics rather envisions a society that has spaces that government cannot intervene. Moreover, this type of society is in a position to influence political authority, shape and articulate its existence and demands that are often social in nature independent of the political authority. CSOs that attained an important status in the liberal democratic system contribute to the development of the society; help the solutions of problems in a wide variety of areas ranging from economic development to struggling poverty, from environment protection to animal rights, from education to collaboration in the social cultural areas. In this study, CSOs that vary with respect to the functions they perform in social life are viewed from a social work perspective. To this end, the study begins with a brief mention of the historical course and legal foundations of civil society in Turkey. Subsequently, focusing on a sample of CSOs that deal with primarily charity work in Turkey in terms of their goals, operations and organizational structure the study attempts to develop a perspective regarding the current status and activities of these organizations in Turkey. Keywords: Civil Society, Civil Society Organizations, Social Work, Social Activity, Charity, Collaboration. 181 �181 � 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. 2660 Title A name given to the resource The Social Work Perspective of Civil Society Organizations in Turkey Author Author GUL, Huseyin PEKCAN, Ahmet Abstract A summary of the resource. Civil Society Organizations (CSOs) [i.e. Non-Governmental Organizations (NGOs)] come out to be important entities due to the recent changes in the traditional perception about the state and the restriction of the power of the government. CSOs are known to play key roles in the determination of the political, cultural, economic and social boundaries of state and the political identities that are at the core of the liberal democratic system, and in forming of the social policies. The controversies and debates over the non-governmental or civil society issues seem to focus to a great extent on the relation between these organizations and state. Non-governmental or civil society refers to "apolitical society". This does not refer to a society that is aloof from politics rather envisions a society that has spaces that government cannot intervene. Moreover, this type of society is in a position to influence political authority, shape and articulate its existence and demands that are often social in nature independent of the political authority. CSOs that attained an important status in the liberal democratic system contribute to the development of the society; help the solutions of problems in a wide variety of areas ranging from economic development to struggling poverty, from environment protection to animal rights, from education to collaboration in the social cultural areas. In this study, CSOs that vary with respect to the functions they perform in social life are viewed from a social work perspective. To this end, the study begins with a brief mention of the historical course and legal foundations of civil society in Turkey. Subsequently, focusing on a sample of CSOs that deal with primarily charity work in Turkey in terms of their goals, operations and organizational structure the study attempts to develop a perspective regarding the current status and activities of these organizations in Turkey. Keywords: Civil Society, Civil Society Organizations, Social Work, Social Activity, Charity, Collaboration. 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 2014-04 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 H Social Sciences (General)