325 10 3494 https://omeka.ibu.edu.ba/files/original/60876f3b41a4e1247dfdd9821188c1c3.pdf c219d4eed6e807374ed2be1c389423d9 PDF Text Text A Study of Differences in Learning Orientations of EFL Students Öznur Semiz English Language and Literature Department Karadeniz TechnicalUniversity Turkey oznur@atauni.edu Makbule Küleri English Language Teaching Department Atatürk University gamzegen@yahoo.com Abstract: This study reports on an investigation into differences in learning orientations of EFL students at Atatürk University located in Erzurum, Turkey, using Vermunt’s (1977) Inventory of Learning Styles (ILS). The Inventory of Learning Styles (ILS) is an instrument aimed at measuring several components of student learning, namely, cognitive processing strategies, metacognitive regulation strategies, conceptions of learning, and learning orientations. This study focuses on determining patterns in student learning in only one learning style category: learning orientations. For statistical analyses, Mann Whitney U and Kruskal Wallis tests were used. No significant differences were found with regards to department. Some significant differences were present with respect to gender and class level. Introduction Students in higher education differ in what they hope to achieve from being in higher education. Some wish to gain a qualification, while for others their main concern is to pursue an interest. The orientation of the students towards learning and the higher education study is a significant determinant of what students in higher education attend to, how they study, and finally what they learn. Beaty, Gibbs, and Morgan (1997) introduced four learning orientations based on four main functions of higher education—academic, vocational, personal and social. They define learning orientations as “all those attitudes and aims which express the student's individual relationship with a course of study and the university. It is the collection of purposes which form the personal context for the individual student's learning. The idea of an orientation assumes that students have an active relationship with their studying. From the point of view of learning orientation, success and failure is judged in terms of the extent to which students fulfill their own aims”(p. 76). The work of Beaty and her colleagues on learning orientations overlaps with dimensions within Vermunt's (1998) Inventory of Learning Styles (ILS), discussed later, and also with the literature on goal orientation theory; however, it differs in important ways. Goal orientation theory has typically focused on students’ perceptions of why they are trying to achieve in academic settings with most of the research being centred on the study of task goals and ability goals (Urdan & Maehr, 1995). In contrast, learning orientations focus more on students’ perceptions of what they are trying to achieve in their studying (Entwistle & Peterson, 2005) . The concept of “learning orientation” refer to the whole domain of personal goals, intentions, motives, expectations, attitudes, concerns, and doubts students have in following a educational programme or a course (Gibbs, Morgan & Taylor, 1984). They are long-term general educational goals students set for themselves. There will thus always be a mixture of motives for attending higher education and choosing a particular set of courses. As students progress through higher education, their orientations usually change. This tends to happen with changing circumstances and in re-evaluating their own capabilities and intentions and develop when an individual interacts with a given higher education context at a particular time in her/his life (Webber,2004). In the ILS, the learning orientation domain (motivation) has five scales: personally interested, certificate oriented, self-test oriented, vocation oriented, and ambivalent. These sub-sections focused upon in this study are: 1. Personal interests where students are motivated from perceived intrinsic benefits to themselves. Students with this orientation are motivated by their interest in the subject and their own personal development; 101 �2. Certificate directed interests where learning is seen as being a means to an end – to pass exams or obtain a certification. Students with this orientation see education primarily as a means of obtaining a certificate or qualification; 3. Self-test directed interests where learning is seen as a personal challenge. This includes studying to test one’s own capabilities and to prove to oneself and others that one is able to cope with the demands of higher education. 4. Vocation directed interests where learning is a means to advance in a profession or trade learning. Students with this orientation see education primarily as a means of acquiring skills for a specific occupation and for securing employment; 5. Ambivalent directed interest where the process is perceived as too challenging and/or inappropriate. Students with this orientation have an insecure, hesitant attitude towards education and little confidence in their learning abilities. Table 1 shows sample items from the subscales. ___________________________________________________________________________ 1. Personally Interested 60. The only aim of my studies is to enrich myself. 73. I do these studies because I like to learn and study. 2. Certificate Directed 63. What I want in these studies is to earn credits for a diploma. 75. To me, written proof of having passed an exam represents something of value in itself. 3. Self-Test Directed 53. I want to prove to myself that I am capable of doing studies in higher education. 67. I want to discover my own qualities, the things I am capable and incapable of. 4. Vocation Directed 62. For the kind of work I would like to do, I need to have studied in higher education. 68. What I want to acquire above all through my studies is professional skill. 5. Ambivalent 54. I doubt whether this is the right subject area for me. 70. I wonder whether these studies are worth al the effort. Table 1. Sample Items from ILS The Study The Aim of the Study The aim of this study is to determine differences in learning orientations of EFL students with respect to selected variables, such as department, class level and gender. The research question guiding the present study is: Are there any differences in learning orientations of EFL students with respect to department, gender and class level? Participants EFL students at Departments of English Language Teaching (ELT) and English Language and Literature (ELL) were invited to participate in this study. Interested students were given a brief and informative overview of the nature and purpose of the study during a lesson. A total of 308 EFL students volunteered to participate in this study. Of these, 157 were ELT (50, 6%) and 152 were ELL (49, 4%). Of the participants, 79 (25, 6%) were male, 229 (74, 4%) were female. The total sample consisted of 74 (24%) sophomores, 89 (28, 9%) juniors and 145 (47, 1%) seniors. Freshmen students were not included in the study because they were absent Instrument The Inventory of Learning Styles (ILS) (Vermunt 1998) has been developed in the context of higher education, and helps to determine three different levels of student learning. Vermunt (1996,1998) uses the term ‘learning style’ as a superordinate concept in which the cognitive and affective processing of subject matter, the metacognitive regulation of learning, mental models of learning, and learning orientations are united. The Inventory of Learning Styles has both 100-item and 120-item versions and provides scores on four learning styles and four domains. The four learning domains were identified as cognitive processing strategies (cognition), metacognitive 102 �regulation strategies (metacognition), conceptions of learning (views about teaching and learning), and learning orientations (motivation). Each of these had five scales (Vermunt, 1996, 1998, 2005). This study focuses on determining patterns in student learning in only one learning style category: learning orientations. The survey instrument consisted of 25 items. Students were asked to indicate on a five-point scale (1.Disagree entirely, 2. Disagree for the most part, 3. Undecided, 4. Agree for the most part and 5. Agree entirely) the degree to which the described items correspond to their own practice, views or motives. Data Analysis Data were analyzed using the Statistical Package for Social Sciences (SPSS version 16, 0). Since the aim of the study is to assess whether there are significant departmental, gender and class differences in respondents’ perceptions and the data for the ILS consisted of ordinal variables, the Wilcoxon-Mann-Whitney and Kruskal Wallis tests were used. The Wilcoxon-Mann-Whitney test (also called the Wilcoxon rank sum test or the Mann-Whitney U test) is a non-parametric test and is analogous to the parametric two sample t-test. The Wilcoxon-Mann-Whitney test is used to test whether the difference between the medians of the two groups is significant. The Kruskal-Wallis test is used to determine whether differences among three or more groups are significant in situations that do not meet the assumptions necessary for ANOVA. These tests are used when the normality assumption is questionable and/or when data is ordinal, i.e. when the data can be ranked. Thus, they are most suitable for an analysis in this study. Findings Results of the Mann Whitney U-test for learning orientation scores of ELT and ELL groups are presented in Table 2. Mann-Whitney U-test (P<.05) test showed that ELT and ELL students do not appear to differ in their learning orientations. Most of the differences found between departments were very small. Some moderate differences were: ELT students were more personally interested, certificate directed and self-test directed. ELL students were slightly more vocation directed and ambivalent. Subscale Department N Mean Z Rank PersonallyInterested CertificateDirected SelfTestDirected VocationDirected Ambivalent ELT 156 ELL 152 Total 308 ELT 156 ELL 152 Total 308 ELT 156 ELL 152 Total 308 ELT 156 ELL 152 Total 308 ELT 156 ELL 152 Total 308 Asymp. Sig. 161,38 147,44 155,39 153,59 ,859 - ,741 - ,652 - ,870 ,452 153,68 155,34 - ,330 152,25 156,81 ,167 ,178 156,15 152,81 1,380 ,164 Table 2. Results of the Mann Whitney U-test for Learning Orientation Scores of ELT and ELL Groups In regard to class level differences, Kruskal-Wallis test (p < .05) revealed that sophomores had the highest 103 �rank on personal interest (170, 24), Sef-test directed (164, 79) and vocation directed (170, 57) scales. Seniors had the highest rank on certificate-directed (168, 99) and ambivalent (164, 92) scales. Juniors occupied the middle rank position on all five scales. Table 3 displays the results of the Kruskal-Wallis test. Subscale Class N Mean Rank PersonallyInterested CertificateDirected SelfTestDirected VocationDirected Ambivalent Asymp. Sig. Sophomore 74 170,24 Junior 89 161,44 Senior 145 142,21 Total 308 Sophomore 74 129,47 Junior 89 151,71 Senior 145 168,99 Total 308 Sophomore 74 164,79 Junior 89 153,89 Senior 145 149,62 Total 308 Sophomore 74 170,57 Junior 89 162,04 Senior 145 141,67 Total 308 Sophomore 74 137,88 Junior 89 151,34 Senior 145 164,92 Total 308 ,059 ,007 ,487 ,047 ,095 Table 3. Kruskal Wallis Test results of Class Level Differences Table 4 shows the results of the Mann-Whitney U-test (P<.05) that was used to test for group differences between male and female students. With respect to gender, the results of the Mann-Whitney U test showed there were significant differences in the perceptions of female and male students. Female students were found to be more personally interested more self-test directed and more vocation directed than male students. However, male students scored high on ambivalent and certificate-directed scales. 104 �Subscale Gender N Mean Z Rank PersonallyInterested CertificateDirected SelfTestDirected VocationDirected Ambivalent Female 229 Male 79 Total 308 Female 229 Male 79 Total 308 Female 229 Male 79 Total 308 Female 229 Male 79 Total 308 Female 229 Male 79 Total 308 Asymp. Sig. 163,97 127,05 150,97 164,73 ,235 - ,010 - ,012 - ,012 2,509 150,42 166,32 - 2,576 161,95 132,91 ,001 1,188 162,15 132,32 3,192 1,372 Table 4. Results of the Mann Whitney U-test for Gender Differences Conclusion The aim of this study was to determine whether there are differences in learning orientations of EFL with respect to department, class grade and gender. The results show that both departments in this study generally held similar views about what motivates them to learn. For that reason, it seems possible to conclude that learning orientations of EFL students do not vary by educational context. The results showed that gender and class level are important sources of variations in learning orientations. Fore example, female students were found to have more personal interest than male students and male students are more certificate-directed than female students. It seems that in Turkish culture, gender is still a key variable that may directly influence or even determine attitudes or motivations or behaviors (Tercanlıoğlu, 2005). Another finding is that as students progress through higher education, they more likely become less personally interested, self-test directed ,vocation-directed and more certificate-directed and ambivalent. Although the results of this study are limited in terms of sample size and generalization, it gives some insight into what motivates students to learn in an academic environment and the motives, objectives and attitudes they may have with regard to their studies. Students may display several goals for studying, for instance gathering knowledge, passing exams, avoiding failure, pleasing parents, and qualifying for later studies or a future profession. These orientations are believed to influence the way learning takes place (Boekaerts, 1996 and Pintrich & Schunk, 1996). To understand the academic behaviors of university students, researchers and educators must begin by understanding what motivates university students to engage in such behaviors in the first place. Therefore, a learning orientation provides a useful construct for understanding a student’s personal context for study (Beaty et al, 1997) and contributes to our understanding of what students learn. As France and Beaty (1998) point out, they provide a means of gaining a better understanding of the complexities of learner motivations and how these influence learning. An understanding of learning orientations may be extremely useful to both educators and students in understanding student motivations and making the most of learning opportunities. Focusing on orientations to learning could prove an effective means of helping students to challenge their own assumptions about higher education and explore possibilities which they would otherwise not have considered. 105 �References Beaty L, Gibbs G, Morgan A. Learning orientations and study contracts. In: Marton F, Hounsell D, Entwistle N, editors. The Experience of Learning. 2nd ed. Edinburgh: Scottish Academic Press, 1997, 72–86. Boekaerts, M. 1996. Personality and the psychology of learning. European Journal of Personality 10, pp. 377–404 Coeffield, F. M. D. Hall, E. and Ecclestone, K. (2004) Learning Style and Pedagogy in Post–16 Learning: A systematic and critical review. London: Learning and Skills Research Centre. Entwistle, N.J. & Peterson,E. R. 2004. Conceptions of Learning and Knowledge in Higher Education: Relationships with Study Behaviour and Influences of Learning Environments. International Journal of Educational Research, 41.407–428. Entwistle, N. J. 1979 Motivation, styles of learning and the academic environment. University of Edinburgh, Scotland: Scottish Academic Press. Pintrich, P. R., & Schunk, D. H. (1996). Motivation in education: theory, research and applications. Englewood Cliffs, NJ: Prentice Hall. Slaats, A. Lodewijks, H.G.L.C., & Vander-Sanden, J.M.M.(1999). Learning styles in secondary vocational education: Disciplinary differences. Learning and Instruction, 9, 475–492. Tercanlioglu, L. (2005). Pre-service EFL teachers’ beliefs about foreign language learning and how they relate to gender. Electronic Journal of Research in Educational Psychology, 5-3(1), 145-162. Urdan, T., & Maehr, M. L. (1995). Beyond a two-goal theory of motivation: A case for social goals. Review of Educational Research, 65, 213–244. Vermetten, Y.J. Vermunt, J.D. & Lodewijks, H.G. (1999b). A longitudinal perspective on learning strategies in higher education: Different viewpoints towards development. British Journal of Educational Psychology, 69, 221–242. Vermunt, J.D. (1995). Process-oriented instruction in learning and thinking strategies. European Journal of Psychology of Education, 10, 325–349. Vermunt, J.D. (1996). Metacognitive, cognitive and affective aspects of learning styles and strategies: a phenomenographic analysis. Higher Education, 31, 25–50. Vermunt, J.D. (1998). The regulation of constructive learning processes. British Journal of Educational Psychology, 68, 149–171. Vermunt, J.D. (2005). Relations between student learning patterns and personal and contextual factors and academic performance. Higher Education, 49, 205–234. Vermunt, J.D. & Verloop, N. (1999a). Congruence and friction between learning and teaching. Learning Instruction, 9, 157–180. Vermunt, J.D. & Verloop, N. (1999b). The regulation of constructive learning processes. British Journal of Educational Psychology, 68, 149–171. (See Van Eekelen, et al, 2005, p. 451). Vermunt, J. & Vermetten, Y. (2004). Patterns in student learning: relationships between learning strategies, conceptions of learning, and learning orientations. Educational Psychology Review, 16, 359–384. Webber, Trix(2004)'Orientations to learning in mid-career management students',Studies in Higher Education,29:2,259 — 277 Wlodkowski, R.J. (1999). Enhancing adult motivation to learn (Rev. ed.). San Francisco: Jossey-Bass Publishers. 106 � 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. 348 Title A name given to the resource A Study of Differences in Learning Orientations of EFL Students Author Author Semiz , Öznur Küleri, Makbule Abstract A summary of the resource. This study reports on an investigation into differences in learning orientations of EFL students at Atatürk University located in Erzurum, Turkey, using Vermunt’s (1977) Inventory of Learning Styles (ILS). The Inventory of Learning Styles (ILS) is an instrument aimed at measuring several components of student learning, namely, cognitive processing strategies, metacognitive regulation strategies, conceptions of learning, and learning orientations. This study focuses on determining patterns in student learning in only one learning style category: learning orientations. For statistical analyses, Mann Whitney U and Kruskal Wallis tests were used. No significant differences were found with regards to department. Some significant differences were present with respect to gender and class level. 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/8037283d8e9df3199e6341d46fb4419f.pdf bb0d7d8e4c00600b0c68695773916c48 PDF Text Text 1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo Sustainable Redevelopment of Sanitary Landfills as Future Golf Courses Yasin Çağatay Seçkin Department of Landscape Architecture Istanbul Technical University, Turkey cseckin@itu.edu.tr Abstract: Redevelopment of sanitary landfills plays a major role in sustainable development, providing economical, social and environmental benefits. A combination of rising land values, a growing urban population, their needs for recreation activities and mitigation of ecological impacts have encouraged the conversion of completed sanitary landfills into functional golf courses. This study examines the reclamation problems of completed landfill to golf course developments and the possibility of designing a sanitary landfill based on its final use as a golf course. For this aim, a sustainable planning approach for landfill-to-golf course adaptive use projects are discussed, which combines sanitary landfill and golf course design processes and modifies them in a sustainable way. Introduction Landfill disposal of waste has been practiced for centuries, but the concept of sanitary land filling has been used for less than 100 years (Graves, 1998, Bagchi, 1994). Basically, sanitary land filling is a method of controlled disposal of refuse on land where wasteisisolated from the environment untilitissafe. First practices began in Great Britain in the 1910’s under the name controlled tipping. The refuse was being dumped between houses and the piles were being covered with street sweepings,ratherthan taking the refuse to a speciallocation and alternately layering the waste and dirt as in modern sanitary landfills. The Fresno Municipal Sanitary Landfill, opened in Fresno, California in 1937, is considered to have been the first modern sanitary landfill.In Fresno, layers of refuse were deposited in tidelands to produce additional land. Itis the firstlandfillto employ the trench method of disposaland firstto utilize compaction (Encyclopædia Britannica, 2009, Melosi, 2000). There are two types of landfills: Conventional and Bioreactor landfills. Conventionally,they consist of a clay and/or synthetic flexible membrane liner at the base of the landfillto prevent liquid seeping into ground water. Pipes are laid above the bottom liner to capture contaminated water and leachate which is the liquid produced by decomposing organic waste. This liquid is then transported to a wastewater treatment plant for treatment. The gas generated by the breakdown of wasteiscollected and burned eitherin flares orin enginesthat recover useable energy. Bioreactor landfills also work in the same way as conventional landfills but with one major difference. Some of the leachate in bioreactorlandfillsisrecycled through the waste to acceleratethe rate of decomposition. This provides more rapid stabilization of waste, controllable and increased short-term gas yields and betterleachate controlthan conventionallandfills. However, bothtypes oflandfills pose environmentalrisksfrom gas emissions and leachate. Bacteria break down organic matter and methane releases. Leachate sinks into ground and pollutes water. These effects could only be reduced with more recycling, carefully design, betterlandfill management and awareness of com munity (WSN Environmental Solutions, 2006). Because of their environmental and visual negativities, the existing image of sanitary landfill by the com munity is predictably not very good and if simply closed afterthey filled, they continue to be environmental problems and eyesores, and this situation increases the anticipation of community growth (Thompson, 2008). On the other hand, communities will need to rely on sanitary landfills because they are still the most logical and economical choice for disposal needs. According to U.S. EPA, in the United States, municipal solid waste generation in 2007 was 765 kg per person per year. While 45 percent of this total discards was either recycled or sent for combustion with energy recovery, the remaining refuse continue to be sent to landfills. In other words, sanitary landfillshost 55 percent ofthe municipal solid waste (EPA, 2008). Actually no matter how much a community recycles or sends the waste for combustion, a sanitary landfill will always be needed for residue that cannot be handled in any other way. 286 �1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo Redevelopment of Sanitary Landfills W hen landfills reach their capacity and are closed,they offer remarkable open-space opportunities. With careful planning, completed landfills could be ultimately utilized for a variety of purposes. Converting closed landfillsinto park and recreation areas has been used during the past 50 years. Golf is one of these converted recreation areas and the research showed that first sanitary landfill used for golf courses was builtinthe early 60sin Carson, CA (Goldsberry, 1996). The importance and acceptance ofthis phenomenon is growing withthe continued expansion ofthe game and the need to clean up and rehabilitate contaminated sites (EPA, 2003). As the demand for golf continues to grow throughout the world, there is an increasing need to design and construct more golf courses. However,itis difficultto find suitable land for course construction and landfills, with their low value, may be one of the few properties large enough for golf development. So, a combination of rising land values, growing urban population, their need for recreation activities and mitigation of ecological impacts have encouraged people to convert completed sanitary landfills into functional golf courses. From environmental, economic and social standpoint,landfills and golf courses are a good match. Land improvement and adaptive reuse can be one of the most beneficial aspects of a golf course (Love, 2008). Environmental benefits of this match include many ecological enhancements like remediation of soil or treatment of ground water impacts from waste disposal. A landfill golf course can have positive economic and socialimpacts,too, by increasing land values in the vicinity and creating jobs.In addition to these benefits, golf courses are one ofthe few legalland uses forlandfillsites.(Kavazanjian, 2007, Gross, 1994). Although numerous benefits, they are not perfect and have several problems. Four main problems with landfill developments are toxic gases, uneven settling,leachate and drainage (Hazelrigg, 2005). These problems have both environmental and economical disadvantages. Another problem is directly related with designing and construction of golf course. The landfills are not suitable to cut and shape, because of their type of structure (Schmidt, 1991). According to all these problems, golf course development may not be economically feasible and construction costs may be higherthan the normal golf course. In this instance, brief descriptions of two different case studies can help for better understanding the issues associated with redevelopment of sanitary landfills as future golf courses. Harborside International Golf Center The site was originally used for disposal ofthe City of Chicago's municipal solid waste. Laterit was used to dispose of incinerator ash and wastewater sludge. In 1991, this 180 hectares solid waste landfill was closed. About 80 hectares ofthe site was a partially-closed sanitary landfilland a 100 hectares parcel was being used as a construction debris landfill. After its closure, itis decided to convert itinto a golf center. The site was near important motorways which carry approximately 300.000 cars per day. The planners anticipated that the combination of good access and a good facility would attract sufficient business to make the golf facility economically viable (EPA, 2003). Firstly, the old sanitary landfill was capped with a 50 cm-thick layer of impermeable clay - or about 400.000 m³ - dredged from the adjacent Lake Calumet. Capping the landfillto keep the ground from cracking and methane gas from migrating to the surface was an absolute necessity under currentregulations (EPA, 2003). Course architect Dick Nugent didn't want tree roots piercing the fill's clay sealant, so he designed an open, sweeping links-style facility with trees that have shallow roots, which are non destructive to the underlying clay cap (Klein, 1998). Drainage and irrigation systems were also carefully designed to protectthe integrity of the clay cap. The golf course architect and the engineer collaborated in the design of an elaborate drainage and collection system that collects all site drainage and stores it at seven dry retention locations within the site, untilit releases to a sewage treatment plant for processing (EPA, 2003). Protecting the existing wetland areas was important,too. A buffer was created at some points between the course and the shoreline, and some portions ofthe fairway were raised up to 3 metersto allow the incorporation of drainage basins to prevent storm water from flowing into the lake (EPA, 2003). Another problem was to grow turfgrass on site. Every year 200.000 m³ of sludge had been transported to the site, during the operation period oflandfills. Sludge was very organicin nature. However, because ofits high rates of fats and salts,it was not by itself, providing a good growing medium. It was drawing water out of plants and was not readily saturating. To solve this problem, a 15-20 cm layer of sand was placed over the fairway. Eventually, with the combination of materials on site and creative design,the grass flourished with virtually no additional fertilizer (EPA, 2003). At the end,the Golf Center consist a matched pair of 6.500 m, 18-hole championship golf courses and a 24 hectares practice facility,including a Golf Academy. Itwas built between 1992 and 1995 and the final cost of 287 �1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo golf course approached $30 million (EPA, 2003). Granite Links Golf Club This site was originally used for disposal of both Milton Town and Quincy City. Most of the land was for the famous granite quarrying industry dating back to the mid 1800’s. After abandoning quarries,it was used to dispose of municipal solid waste, construction debris and some industrial and hazardous debris (Hazelrigg, 2005). In 1989, Developers started to think about the reuse of old landfill and they decided to create a recreational complex which includes a championship golf course (Love, 2008). Total area of this complex was 220 hectares, which includes several former landfills and quarries. The golf course incorporated two largest landfills and covered 100 hectares oftotal(Hazelrigg, 2005). In the same time, another project was being prepared close to this area: Big Dig, an extensive tunnel projectforthe relocation of a major highway through the city of Boston. Developers proposed using the material excavated from the tunnel for the closure of the landfill and enhancement of degraded areas of the site (Love, 2008). Firstly, the landfill had to be closed by being capped with specific layers and depths of material. Fill material from the excavation of the highway tunnel was perhaps the most important item that made the project possible. Both Big Dig Projectand Granite Links Landfill Redevelopment Project assisted each otherin reaching their own targets. Big Dig saved $40 million by trucking excavate to landfill area rather than to sites farther away and Granite Links Projectsaved atleastthe same amount of money by closing the landfill with Big Dig fill (Hazelrigg, 2005). After the excavated fill was placed and graded to the contours designed for the golf course,it had to be sealed with 25 – 40 cm of clay, placed in 15 cm layers, de-stoned by hand and compacted to eliminate water infiltration into the landfill or allow leachate to escape. Next, a layer of 50 – 100 cm of clean fill material was placed on top ofthe clay and graded tothe design contours. Thislayer of material was designed to accommodate the sub-surface drainage system, the irrigation and gas recovery system. On top ofthe clean material,another 15 – 30 cm layer of sandy loam was placed to provide a planting medium forthe grasses (Love, 2008). The recovery system for methane gas from the landfillinvolved the installation of some 150 wells and a system of blowers and flares for control. Ultimately, this gas will be channeled to drive an engine to generate electricity and is expected to produce for some 20 to 25 years (Love, 2008). Settlement of the landfill was another concern and required close attention during design of the facilities. Most of the play areas were surcharged with huge stockpiles of excavated fill, whenever possible, as construction progressed (Love,2008). After thirteen years, 900,000 truckloads of fill material and a cost more than $110 million, the 27-hole Granite Links Golf Course, athletic fields, rock climbing sites, hiking trails and other amenities provide a successfulrecreationalfacilityforthe visitors(Hazelrigg, 2005).If considered the EPA’s assumption aboutfinal costs of landfill golf courses, which is between $25-30 million, this cost looks a little bit costly for these kind operations (Walsh, 2003). Butit must be considered thatthe final costincludesthe cost of filling and capping the landfill as part ofthe construction cost where others use previously filled landfills. A Sustainable Planning Approach for Landfill to Golf Course Development As is seen, problems encountered in landfill golf courses differfrom case to case and solutions depend on how creative the designer is.Just one common problem is about the planning approach. Like above mentioned examples,in most cases, golfcourses designed on landfillsare afterthought projects and they did not plan before the landfill was designed. However, the best strategy must be to plan for the final use before the landfill is designed (O’Leary, 1992). This will be extremely beneficialfrom both environmental and economical aspects. To plan for the final use from the beginning of landfill design and planning,typical sanitary landfill and golf course processes must be combined and both must be modified in a sustainable way. Inventory and Analysis First of all, a detailed inventory and analysis should be conducted, as in every project. The desirable design features forthe landfilland future golf course should be reflected in the program and siteinventory. The program and siteinventory provides a means of gathering information about client’s needs and site properties. A typicalinventory data could be formed with the facts below: - The wastesto be received 288 �1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo (Total volume, sources and types of wastes, daily quantity estimation, etc) - The landfill method and materialsto be used (Type of method,landfill operation time, degree of compaction, filling materials, etc) - The landfill design (Proposed landfill elements, cover thickness,slope, additive cover/waste ratio, etc) - The golf course design (Type of golf course, proposed golf course facilities, etc) - The specific siteinformation (Geology, soiltype,topography, existing vegetation, sensitive fields, etc) - The client’s needs and purposes - Social, political and economic considerations. After collecting program and site inventory data, they must be analyzed to determine site potential and restrictions for golf course conversion. The goal of this analysis is to integrate the golf course design elements with the landfillones, in unison withthe site. This analysisrequires ateam of consultants whoseinitial goalisto produce a restrictions map and a report of development challenges and opportunities (Hurdzan, 2006). Design Development Considering the landfill and golf course projects simultaneously makes the design development process complicated. In the proposed process, the landfill and golf course projects are separated, to create as many alternatives as possible. However,the alternatives should be based on the concepts and site specific conditions noted in the results of analysis report. Because of the special case of sanitary landfills, a design completed without care to the results of analysis report,the course can quickly become a disaster area (Graves, 1998). The next step isto overlay those alternative designs and to adjustthem to develop the best master plan for the landfill-to-golf course project. During design development process, the course architect must study in cooperation with the consulting engineer of the landfill. The process of coming to the final design solution required patience, much error, a bit more trial and severalfeedback processes. Evaluation Process First step for this process is feasibility study. Normally, feasibility studies are prepared by a team of consultants and this is usually undertaken in cooperation with the golf course architect and other members of analysis and design development processes. In this stage, client’s needs and purposes are the most important parameter (Hurdzan, 2006). Ideally, feasibility studies should include estimation and evaluation of net benefits with alternatives for achieving the defined public goals and, both quantitative and socialimpact analysis, which is hard to estimate, must be taken into account (Yang, 1993). After finishing the feasibility study, economic, environmental and social benefits of project will become definite. If the total benefit is less than the total cost, the proposed design will not acceptable and the whole design process should be repeated to change until the benefit is greater than the cost. Here, both the environmental and economic costs have an equal importance. For example, an ideal result in terms of profitability may not be ideal for environment. On the other hand, because of environmental issues and legal restrictions,the total cost of a landfill golf course can be more expensive than a comparable course created on a natural site. Sure, not all golf courses should be low-cost, but cost – benefit balance must be achieved. Otherwise, a loss-making golf course will never be sustainable in terms of both environmental and social responsibility. Except allthese, feasibility study validates the prospective timeline of golf course development. Before moving into construction phase, the data generated by the study could be used to help set milestones and deadlines for golf course development. Following the feasibility study process,alllegalrequirementsfor operating, closing, and then maintaining a landfill must be studied. These requirements are usually strict and they include location restrictions, facility design criteria, closure care requirements, cap zone design criteria, gas and groundwater monitoring requirements (Graves, 1998,Rogoff, 1992). Afterthe feasibility and alllegalrequirements are studied,all planning processis complete and itisready to be realized. 289 �1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo Conclusion The approach inthis paperisbased on the beliefthatifthe community needs alandfill,landfilldesign and its future land use should be considered at the beginning of the development process. With this belief, a sustainable planning approach was developed to pave the way of sustainable redevelopment of sanitary landfills as future golf courses. This approach consists ofthree steps: - Inventory and analysis process - Design development process - Evaluation process After completing every process, a feedback process is also needed. In this way, the planning approach works like a flow chart with a series of accepted or not accepted answers. When all processes are completed with accepted answer, then, our sanitary landfill will be ready to contribute to sustainability by achieving beneficial and profitable future use ofthe site, as a golf course. References Bagchi, A. (1994). Design, Construction and Monitoring of Landfills. 2nd ed., New York, NJ: Wiley-Interscience. Encyclopædia Britannica (2009). Sanitary Landfill. Retrieved April 24, 2009, from Encyclopædia Britannica Online. EPA Office of Solid Waste (2008). Municipal Solid Waste in The United States. Washington, DC: EPA. EPA Office of Solid Waste and Emergency Response (2003). Reusing Cleaned Up Superfund Sites: Golf Facilities Where Waste is Left on Site. Washington, DC: EPA Goldsberry, C., (1996) Golf Links Old Landfills to New Uses, Waste & Recycling News. February 26, 1996. Graves, R.M. & Cornish, G.S. (1998). Golf Course Design. New York, NY: John Wiley & Sons, Inc. Gross, P.J. (1994). What Can You Do If Your Golf Course Has Gas. USGA Green Section Record. July/August 1994, 1-4. Hazelrigg, G. (2005). Garbage In, Golf Out. Landscape Architecture Magazine. January 2005, 54-62. Hurdzan, M.J. (2006). Golf Course Architecture: Evoluations in Design, Construction and Restoration Technology. 2nd ed., Hoboken, NJ: John Wiley & Sons, Inc. Kavazanjian, E. (2007). Sustainable Redevelopment of Former and Abandoned Landfills: Lessons From Practice. 11th International Waste Management and Landfill Symposium. Cagliari, Italy: CISA, Environmental Sanitary Engineering Center. Klein, B.S., (1998). Reclamation Projects: The Greening of A Landfill. The New York Times. May, 28, 1998. Love, B. (2008). An Environmental Approach to Golf Course Development. Brookfield,WI: American Society of Golf Course Architects. Melosi, M.V. (2000). Fresno Sanitary Landfill. National Historic Landmark Nomination (NPS Form 10-900), Washington, DC: U.S. Department of Interior, National Parks Service. O’Leary, P & Walsh, P. (1992). Landfill Closure and Long Term Care. West Age. March 1992, 87-94. Rogoff, M. (1992) New Landfill Regulations. American City & County, January 1992, 20-22. Schmidt, E.Jr. (1991). Garbage to Golf. Golf Journal. January/February 1991, 35-38. Thompson, W. & Sorvig, K. (2008). Sustainable Landscape Construction: A Guide to Green Building Outdoors. 2nd ed., Washington, DC: Island Press. Walsh, J.J., DiPuccio, A.J. & Simon, R.A. (2003). Golf Courses to Greenhouses – And Beyond Redevelopment of Closed Landfills. Cincinnati, OH: SCS Engineers. 290 �1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo WSN Environmental Solutions (2006). Landfills What You Need to Know: Responsible Management of Our Landfills. Chatswood DC, New South Wales: WSN Environmental Solutions. Yang, C.C. (1993) A Study of Designing/Reclaiming A Sanitary Landfill As A Future Golf Course. Master Thesis, Baton Rouge, LA: LSU. 291 � 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. 485 Title A name given to the resource Sustainable Redevelopment of Sanitary Landfills as Future Golf Courses Author Author Seçkin, Yasin Çağatay Abstract A summary of the resource. Redevelopment of sanitary landfills plays a major role in sustainable development, providing economical, social and environmental benefits. A combination of rising land values, a growing urban population, their needs for recreation activities and mitigation of ecological impacts have encouraged the conversion of completed sanitary landfills into functional golf courses. This study examines the reclamation problems of completed landfill to golf course developments and the possibility of designing a sanitary landfill based on its final use as a golf course. For this aim, a sustainable planning approach for landfill-to-golf course adaptive use projects are discussed, which combines sanitary landfill and golf course design processes and modifies them in a sustainable way. Date A point or period of time associated with an event in the lifecycle of the resource 2009-06 Keywords Keywords. Conference or Workshop Item PeerReviewed Q Science (General) https://omeka.ibu.edu.ba/files/original/977c4c4fd57b1d9b5ecb98a2332c7448.pdf 19fb337da3833269ea9c387faf356e51 PDF Text Text Edward Bond’s Play for Children: Education for Sustainable Development and the Need for Theatre in Education Mehmet TAKKAÇ Ataturk University, Erzurum,/Turkey takkac@atauni.edu.tr Ahmet Gökhan BİÇER Kafkas University, Kars, Turkey gokhanbicer@hotmail.com Abstract: Education for sustainable development is a process that gives much importance to create a better, safer and a just world. It emphasizes the need for a new vision of education system. Learning for sustainable development, critical thinking, and problem solving should be the main concepts of this process and also the main principles of Theatre in Education movement. Edward Bond, one of the most innovative voices of modern British drama and a leading dramatist who writes for Theatre in Education movement, believes that theatre has a social, political and moral purpose. For this reason he writes plays for educational contexts. His greatest aim to write plays for young people is to enable children to understand themselves, the political society around them and to create a just society. His play The Children (2001) shows a bleak vision of future for children in an unjust society. This paper examines young people’s isolation in a technologised society and shows Bond’s concepts of Theatre in Education movement for a sustainable development. The importance of drama is that it may directly confront radical innocence and the need for humanness…Real events (in war, sickness, triumph) may also confront the relationship between imagination and reason, but reality tends to be subordinated to ideology…Drama is…created to circumvent this.1 The work of Edward Bond is a crystallization of the major concerns of British theatre during the past forty five years. From his plays in the sixties, to his most recent works, dialectics of violence, politics, revolution, justice, imagination, and children have been continually present on his stage. His early plays echo the ideas of the post-war British left, and his most recent plays, especially after the collapse of socialism, address the fate of children and the world of education. During the past four decades Bond has developed his own form of theatre which he has termed the ‘Rational Theatre’. In his essay ‘The Rational Theatre’ Bond argues the function of literature and art in society. For him art must include these two features below: Firstly, rational objectivity, the expression of the need for interpretation, meaning, order…That is for a justice that isn’t fulfilled in the existing social order. Doing this it tends to humanize society, make society truly self-conscious instead of self-identified. This is a truly moral function. But, secondly, it also includes a misinterpretation of experience, and this misinterpretation has a historical class origin. It distorts the first function, because it is dictated by the needs of the ruling class and its problems in running the structure it imposes on society.2 In a Bondian sense, art must deal with the conflict between ideal justice and a wrong interpretation of this justice by ruling class. Bond maintains that it is artist’s duty to illustrate the need for justice in the world and artist cannot be inactive about this conflict. Regarding art as a political instrument which must develop a human consciousness, Edward Bond believes that art has also a vital moral function. The playwright claims that: 1 Edward Bond, The Hidden Plot: notes on theatre and the state, Methuen, London, 2000, p. 181. 2 Edward Bond, Plays: Two, London, Eyre Methuen, 1978, p. xiii. 167 �Art is…not only evidence of the moral autonomy of individuals but also the fact that they can achieve moral sovereignty only under a good government or in struggling to create such a government. Art, it hardly needs saying, can’t create a good society on its own, but it is a necessary part of its creation. It produces its interpretations of experience as technological and scientific development makes them possible; this development is the foundation of human consciousness.1 For creating this human consciousness Bond has taken a particular interest in dramatizing the hopes and anxieties of children and their isolation from the corrupting culture of adults. There are playwrights-a- plenty who can create powerful images of corrupt and dangerous modernity, inimical to humanity and justice. What Bond presents in addition is a built-in set of tools with which to do more than be shocked or confirmed in our anger and suffering. These are the tools of education and they are present in the plays because the writer has always been fired by the processes by which children learn and fail to learn.2 To overcome this negative process, which he thinks is a barrier for change, he offers Theatre in Education as an effective tool. Bond regards Theatre in Education fundamental to young people’s development and education for a sustainable development. For him, “Theatre in education is the most valuable cultural institution the country has”3 and “TIE∗ lets children come to know themselves and their world and their relation to it. That is the only way that they can know who they are and accept responsibility for themselves. TIE is carrying out the injunction of the Greeks, who founded the basis of democracy and theatre: as they said ‘know yourself- otherwise you are a mere consumer of time, space, air and fodder’ to humans.4 Having the responsibility of the artist to his society, Edward Bond doesn’t close his eyes, ears and hearts to the social and political events of the world that effect young people. His childhood experience of the Second World War and the weak post-war peace have been transformed into the intense imagery to write brilliant plays for children to defeat injustices which shape the modern societies. For this reason he has constructed a bridge between art and education. With the disappointment of conventional theatres in Britain he only writes for school children, students, and works with Big Brum Theatre in Education Company in Birmingham. His aim with the collaboration of this company is to use theatre as a tool for learning. In Theatre in Education learning is not instrumental but conceptual, using the power of theatre to resonate with our own lives in order to reach new social understandings about the world we inhabit, to explore the human condition and behavior so that it can be integrated into young people’s minds and make them morally more human, as Bond says, allowing them to know themselves.5 Like Bond, believing in the indispensability of Theatre in Education as a factor of supreme significance in the social lives and education of children, Gillham thinks: And, because such things concern the processes of social and human interactions, the domain particularly of drama and theatre in education, real understanding is a process of coming to understand: we cannot ‘give’ someone our understanding. Real understanding is felt. Only if the understanding is felt can it be integrated into children’s minds, or anyone’s. Resonance is the starting point of the integration process. The resonance of something engages us powerfully; that is, affectively. But, significantly, it also engages us indirectly with that which it resonates. Resonance is not authoritarian; yet it’s an offer you cannot refuse.6 1 A.g.e., p. xiv. 2 Tony Coult, “Building the Common Future”, in, Edward Bond and the Dramatic Child, Edward Bond’s plays for young people, edited by David Davis, Trentham Books, UK and Sterling, USA, 2005, p. 11. 3 Edward Bond, Selections from the Notebooks of Edward Bond, Volume One, Ed. Ian Stuart, Methuen, London, 2000, p. 58. ∗ Theatre in Education 4 Edward Bond, “The Importance of Belgrade TIE”,in, SCYPT Journal, 27,1994, pp. 36–38. 5 Chris Cooper, “Edward Bond and the Big Brum Plays”, in, Edward Bond and the Dramatic Child, p.50. 6 Geoff Gillham, “The Value of Theatre in Education”, in, SCYPT Journal, 27, 1994, p.5. 168 �Gillham’s viewpoint that resonance is not strict but ‘an offer you cannot refuse’ connects openly with how the plays of Edward Bond work with their spectators. Bond believes that theatre has a strong communal, political and an ethical function, and he is interested in drama which encourages young people to question the world around them and invites to imagine how it might be different. He explains his understanding of this issue as follows: TIE does not cure or punish. It does the only moral-and practically useful- thing that can be done to bewilderment and violence. It turns it to creativity. It does not stop at helping the disaffected to understand themselves and others, vital though that is. I t gives them the only reward creativity can give-the ability to change. That is something that cure and punishment could never do.1 A fundamental figure in much of Bond’s work has been the child, and the correlation between past and present. The Children, written for Manor Community College and performed by the students of this college deals with children’s feelings of social isolation through a central dramatic question: What would Medea’s children say if they were allowed to speak? By using the familiar Bondian tool of exploring contemporary social questions through mythic stories; The Children broke the silence of children whose only words were cries for help as they were sent to their deaths. This powerful dramatic symbol presents insights into the politics of childhood, making the division between the worlds of children and adults painfully noticeable to a contemporary audience. In addition to interrogating the ethical seriousness of its content, the act of performing the play would also offer this particular group of young people a very public voice in a city where they felt ignored and undermined.2 In The Children Joe, who “marks the difference between self-discovery and self-creativity, and carries with him the experiences and attitudes of his friends into the adult world”3 in the course of the play, is terrorized by his mother to destroy a house by fire. A young boy dies in the fire, and with his friends, Joe and his friends decide to escape. They carry with them an outsider, a hurt man, who is the father of the boy who passed away in the fire. He kills them separately; until lastly, only Joe is left, to face the future lonely saying “I’ve got everything. I’m the last person in the world. I must find someone”.4 Dealing with specifically a children’s journey which starts from any modern city, and bringing play’s central character Joe’s journey into a “post-apocalyptic world”5, The Children is an essential play. It summarizes Bond’s views about children, and how adults are behaving them, and not making a warm address for them in the world. The division between self discovery and self-creativity is a vital issue to understand the message of The Children. By the closing stages of the play Joe is the only one alive and he leaves the stage purposefully, as if to begin a new phase of his journey. The young people’s journey, for Bond, is “like the map of ancient rite of passagethe very ancient journey that all humans have had to go on since we first wanted to understand ourselves and take responsibility for our world.”6 In this sense: The play does not describe the journey in an abstract way, but creates the experience of the journey through the intense concentration, which is the secret of drama…The young people who go on the journey in The Children, are the only ones who can save themselves-helped perhaps by adults who have also made journey and learnt to replace revenge with justice, anger with care.7 1 Edward Bond, in, Ian Stuart, Edward Bond .Letters 4, Amsteldijk, Harwodd Academic Publishers, 1998, p. 118. 2 Helen Nicholson, “Acting, Creativity and Social Justice: Edward Bond’s The Children, Research in Drama Education, Vol.8, No.1, 2003, p. 11. 3 A.g.e., p.17. 4 Edward Bond, The Children, Methuen, London, 2000, p. 52. 5 David Allen, “The Children”, in, Edward Bond and the Dramatic Child, Edward Bond’s plays for young people, p. 149. 6 Edward Bond, “Words about The Children”, In. Programme for the Classworks Theatre production, 2000. 7 A.g.y.. 169 �The extreme situations in which the children are placed in the play lead them to ask fundamental questions about who they are and what they would like to become. Although the situations are inherited from the adult world, the young people have to find ways of living without losing the sense of justice, their radical innocence, which they had taken for granted in their own world.1 Living among the grim realities of the world such as violence, social isolation and abuse, children would learn and experience this process by playing themselves, acting their stories, and understanding of themselves in relation to the world. This crucial point is what Bond wants to do with Theatre in Education, as he points out as such, “Education should enable children to search for meaning so that they may bear witness to life. The psyche is a dramatizing structure and cultures are in a wide sense theatres.”2 In this sense, by exploring the imaginative world of the children, and drawing attention to the moral corruption and their search for meaning through the Theatre in Education movement, the play reflects a profound discussion to educators: How to live morally in an amoral world? How to be human? How can we create a humane society? To consume or not to consume! In the light of these vital questions it is possible to find reasonable and rational answers from Edward Bond’s Big Brum 25th birthday-speech and message: Drama is self creativity. It teaches nothing. Instead it confronts human creativity with its own needs. It does not prepare children to enter society; it prepares them to enter more fully into their humanness. It is not interested in citizenship but in the Promethean self, in the rightful discontent of being human. It is not involved in self-expression, which is a flabby cliché, but in the creation of shared humanness. How else can young people survive even the memory of what many of their elders did in the last century? Or leave a world more innocent than the one they entered? Perhaps those elders learnt to accept injustices and contradictions. Drama confronts young people with situations in which that injustice has seeped down into their own lives, or which they can easily foresee in the future. At that age such things are unacceptable. And if at that age drama ignites the self’s creativity by respecting it and trusting its strength, then society will be less able to destroy it later. We will have given it for ever the indomitable power of youth. In time it may make civilization young again.3 In Bond's evaluation of contemporary world, everyone must be aware of where and in which circumstances he is living and what possible facilities he gains. Not only adults but also children are included in this critical process. Children have a right to know the world they're in, and who they are. The writer points out that handling the case of children must be the first and primary step towards achieving this essential purpose. The most significant deduction one could possibly make out from The Children is that, there is always a positive hope for creating a good future and the search for justice because each human infant starts life with radical innocence. References Allen, David. (2005). “The Children”, in, Edward Bond and the Dramatic Child, Edward Bond’s plays for young people, edited by David Davis, Trentham Books, UK and Sterling, USA. Bond, Edward. (1978). Plays: Two, London, Eyre Methuen. Bond, Edward. (1994).“The Importance of Belgrade TIE”,in, SCYPT Journal, 27, pp. 36–38. Bond, Edward. (1997). Eleven Vests and Tuesday, London:Methuen. Bond, Edward. (1998). in, Ian Stuart, Edward Bond .Letters 4, Amsteldijk, Harwodd Academic Publishers. Bond, Edward. (2000). The Children, London:Methuen. 1 Nicholson, “Acting, Creativity and Social Justice: Edward Bond’s The Children, p. 20. 2 Edward Bond, Eleven Vests and Tuesday, Methuen, London, 1997, p. 91. 3 Edward Bond, “Young Civilization”, http://www.bigbrum.org.uk/, May 2007. 170 �Bond, Edward. (2000). Selections from the Notebooks of Edward Bond, Volume One, Ed. Ian Stuart, Methuen, London. Bond, Edward. (2000). The Hidden Plot: notes on theatre and the state, London:Methuen. Bond, Edward. (2000). “Words about The Children”, In. Programme for the Classworks Theatre production. Cooper, Chris. (2005). “Edward Bond and the Big Brum Plays”, in, Edward Bond and the Dramatic Child Edward Bond’s plays for young people, edited by David Davis, Trentham Books, UK and Sterling, USA. Coult, Tony. (2005). “Building the Common Future”, in, Edward Bond and the Dramatic Child, Edward Bond’s plays for young people, edited by David Davis, Trentham Books, UK and Sterling, USA. Davis, David. (2005). Edward Bond and the Dramatic Child, Edward Bond’s plays for young people, Trentham Books, UK and Sterling, USA. Gillham, Geoff . (1994).“The Value of Theatre in Education”, in, SCYPT Journal, 27. Nicholson, Helen. (2003). “Acting, Creativity and Social Justice: Edward Bond’s The Children, Research in Drama Education, Vol.8, No.1. 171 � 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. 382 Title A name given to the resource Edward Bond’s Play for Children: Education for Sustainable Development and the Need for Theatre in Education Author Author TAKKAÇ, Mehmet BİÇER, Ahmet Gökhan Abstract A summary of the resource. Education for sustainable development is a process that gives much importance to create a better, safer and a just world. It emphasizes the need for a new vision of education system. Learning for sustainable development, critical thinking, and problem solving should be the main concepts of this process and also the main principles of Theatre in Education movement. Edward Bond, one of the most innovative voices of modern British drama and a leading dramatist who writes for Theatre in Education movement, believes that theatre has a social, political and moral purpose. For this reason he writes plays for educational contexts. His greatest aim to write plays for young people is to enable children to understand themselves, the political society around them and to create a just society. His play The Children (2001) shows a bleak vision of future for children in an unjust society. This paper examines young people’s isolation in a technologised society and shows Bond’s concepts of Theatre in Education movement for a 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/6a1a08dacbb4d77d34deefcf098f7846.pdf 7e03030d32bf88f0be7212cf45a48985 PDF Text Text Edward Bond’s Play for Children: Education for Sustainable Development and the Need for Theatre in Education Mehmet TAKKAÇ Ataturk University, Erzurum, Turkey takkac@atauni.edu.tr Ahmet Gökhan BİÇER Kafkas University, Kars, Turkey gokhanbicer@hotmail.com Abstract: Education for sustainable development is a process that gives much importance to create a better, safer and a just world. It emphasizes the need for a new vision of education system. Learning for sustainable development, critical thinking, and problem solving should be the main concepts of this process and also the main principles of Theatre in Education movement. Edward Bond, one of the most innovative voices of modern British drama and a leading dramatist who writes for Theatre in Education movement, believes that theatre has a social, political and moral purpose. For this reason he writes plays for educational contexts. His greatest aim to write plays for young people is to enable children to understand themselves, the political society around them and to create a just society. His play The Children (2001) shows a bleak vision of future for children in an unjust society. This paper examines young people’s isolation in a technologised society and shows Bond’s concepts of Theatre in Education movement for a sustainable development. The importance of drama is that it may directly confront radical innocence and the need for humanness…Real events (in war, sickness, triumph) may also confront the relationship between imagination and reason, but reality tends to be subordinated to ideology…Drama is…created to circumvent this.1 The work of Edward Bond is a crystallization of the major concerns of British theatre during the past forty five years. From his plays in the sixties, to his most recent works, dialectics of violence, politics, revolution, justice, imagination, and children have been continually present on his stage. His early plays echo the ideas of the post-war British society and general aspects of universal issues, and his most recent plays, especially after the collapse of socialism, he addresses the fate of children and the world of education. During the past four decades Bond has developed his own form of theatre which he has termed the ‘Rational Theatre’. In his essay ‘The Rational Theatre’ Bond argues the function of literature and art in society. For him art must include these two features below: Firstly, rational objectivity, the expression of the need for interpretation, meaning, order…That is for a justice that isn’t fulfilled in the existing social order. Doing this it tends to humanize society, make society truly self-conscious instead of selfidentified. This is a truly moral function. But, secondly, it also includes a misinterpretation of experience, and this misinterpretation has a historical class 1 Edward Bond, The Hidden Plot: notes on theatre and the state, Methuen, London, 2000, p. 181. 113 �origin. It distorts the first function, because it is dictated by the needs of the ruling class and its problems in running the structure it imposes on society.2 In a Bondian sense, art must deal with the conflict between ideal justice and a wrong interpretation of this justice by ruling class. He maintains that it is artist’s duty to illustrate the need for justice in the world and artist cannot be inactive about this conflict. Regarding art as a political instrument which must develop a human consciousness, Bond believes that art has also a vital moral function: Art is…not only evidence of the moral autonomy of individuals but also the fact that they can achieve moral sovereignty only under a good government or in struggling to create such a government. Art, it hardly needs saying, can’t create a good society on its own, but it is a necessary part of its creation. It produces its interpretations of experience as technological and scientific development makes them possible; this development is the foundation of human consciousness.3 For creating this human consciousness Bond has taken a particular interest in dramatizing the hopes and anxieties of children and their isolation from the corrupting culture of adults. Of course there are playwrights-aplenty who can create powerful images of corrupt and dangerous modernity, inimical to humanity and justice. What Bond presents in addition is a built-in set of tools with which to do more than be shocked or confirmed in our anger and suffering. These are the tools of education and they are present in the plays because the writer has always been fired by the processes by which children learn and fail to learn.4 To overcome this negative process, which he thinks is a barrier for change, he offers Theatre in Education as an effective tool. Bond regards Theatre in Education as fundamental to young people’s development and education for a sustainable development. For him, “Theatre in education is the most valuable cultural institution the country has”5 and “TIE∗ lets children come to know themselves and their world and their relation to it. That is the only way that they can know who they are and accept responsibility for themselves. TIE is carrying out the injunction of the Greeks, who founded the basis of democracy and theatre: as they said ‘know yourself- otherwise you are a mere consumer of time, space, air and fodder’ to humans.6 2 Edward Bond, Plays: Two, London, Eyre Methuen, 1978, p. xiii. 3 A.g.e., p. xiv. 4 Tony Coult, “Building the Common Future”, in, Edward Bond and the Dramatic Child, Edward Bond’s plays for young people, edited by David Davis, Trentham Books, UK and Sterling, USA, 2005, p. 11. 5 Edward Bond, Selections from the Notebooks of Edward Bond, Volume One, Ed. Ian Stuart, Methuen, London, 2000, p. 58. ∗ Theatre in Education 6 Edward Bond, “The Importance of Belgrade TIE”,in, SCYPT Journal, 27,1994, pp. 36–38. 114 �Being aware of his responsibility as an artist to his society, Edward Bond doesn’t close his eyes, ears and hearts to the social and political events of the world that effect young people. His childhood experience of the Second World War and the weak post-war peace have been transformed into the intense imagery to write brilliant plays for children to defeat injustices which shape the modern societies. For this reason he has constructed a bridge between art and education. Affected by the disappointment of conventional theatres in Britain, he only writes for school children, students, and works with Big Brum Theatre in Education Company in Birmingham. His aim with the collaboration of this company is to use theatre as a tool for learning. In Theatre in Education learning is not instrumental but conceptual, because it uses the power of theatre to resonate with our own lives in order to reach new social understandings about the world we inhabit, to explore the human condition and behavior so that it can be integrated into young people’s minds and make them morally more human, as Bond says, allowing them to know themselves.7 Like Bond, believing in the indispensability of Theatre in Education as a factor of supreme significance in the social lives and education of children, Gillham thinks: And, because such things concern the processes of social and human interactions, the domain particularly of drama and theatre in education, real understanding is a process of coming to understand: we cannot ‘give’ someone our understanding. Real understanding is felt. Only if the understanding is felt can it be integrated into children’s minds, or anyone’s. Resonance is the starting point of the integration process. The resonance of something engages us powerfully; that is, affectively. But, significantly, it also engages us indirectly with that which it resonates. Resonance is not authoritarian; yet it’s an offer you cannot refuse.8 Bond believes that theatre has a strong communal, political and an ethical function, and he is interested in drama which encourages young people to question the world around them and invites to imagine how it might be different. He explains his understanding of this issue as follows: TIE does not cure or punish. It does the only moral-and practically useful- thing that can be done to bewilderment and violence. It turns it to creativity. It does not stop at helping the disaffected to understand themselves and others, vital though that is. I t gives them the only reward creativity can give-the ability to change. That is something that cure and punishment could never do.9 A fundamental figure in much of Bond’s work has been the child as an element revealing the correlation between past and present. The Children, written for Manor Community College and performed by the students of this college deals with children’s feelings of social isolation through a central dramatic question: What would 7 Chris Cooper, “Edward Bond and the Big Brum Plays”, in, Edward Bond and the Dramatic Child, p.50. 8 Geoff Gillham, “The Value of Theatre in Education”, in, SCYPT Journal, 27, 1994, p.5. 9 Edward Bond, in, Ian Stuart, Edward Bond .Letters 4, Amsteldijk, Harwodd Academic Publishers, 1998, p. 118. 115 �Medea’s children say if they were allowed to speak? Using the familiar Bondian tool of exploring contemporary social questions through mythic stories, The Children broke the silence of children whose only words were cries for help as they were sent to their deaths. This powerful dramatic symbol presents insights into the politics of childhood, making the division between the worlds of children and adults painfully noticeable to a contemporary audience. In addition to interrogating the ethical seriousness of its content, the act of performing the play would also offer this particular group of people a very public voice in a city where they felt ignored and undermined.10 In The Children Joe, who “marks the difference between self-discovery and self-creativity, and carries with him the experiences and attitudes of his friends into the adult world”11, is terrorized by his mother to destroy a house by fire. A young boy dies in the fire, and Joe and his friends decide to escape. They carry with them an outsider, a hurt man, who is the father of the boy killed in the fire. The outsider kills them separately; until only Joe is left, to face the future lonely saying “I’ve got everything. I’m the last person in the world. I must find someone”.12 Dealing with specifically a children’s journey which starts from any modern city, and bringing play’s central character Joe’s journey into a “post-apocalyptic world”13, The Children is an essential play. It summarizes Bond’s views about children, and how adults are behaving them, and not making a warm address for them in the world. The division between self discovery and self-creativity is a vital issue to understand the message of The Children. At the end of the play Joe is the only one alive and he leaves the stage purposefully, as if to begin a new phase of his journey. The young people’s journey, for Bond, is “like the map of ancient rite of passage- the very ancient journey that all humans have had to go on since we first wanted to understand ourselves and take responsibility for our world.”14 In this sense: The play does not describe the journey in an abstract way, but creates the experience of the journey through the intense concentration, which is the secret of drama…The young people who go on the journey in The Children, are the only ones who can save themselves-helped perhaps by adults who have also made journey and learnt to replace revenge with justice, anger with care.15 The extreme situations in which the children are placed in the play lead them to ask fundamental questions about who they are and what they would like to become. Although the situations are inherited from the 10 Helen Nicholson, “Acting, Creativity and Social Justice: Edward Bond’s The Children, Research in Drama Education, Vol.8, No.1, 2003, p. 11. 11 A.g.e., p.17. 12 Edward Bond, The Children, Methuen, London, 2000, p. 52. 13 David Allen, “The Children”, in, Edward Bond and the Dramatic Child, Edward Bond’s plays for young people, p. 149. 14 Edward Bond, “Words about The Children”, In. Programme for the Classworks Theatre production, 2000. 15 A.g.y.. 116 �adult world, the young people have to find ways of living without losing the sense of justice, their radical innocence, which they have taken for granted in their own world.16 Living among the grim realities of the world such as violence, social isolation and abuse, children would learn and experience this process by playing themselves, acting their stories, and understanding of themselves in relation to the world. This crucial point is what Bond wants to do with Theatre in Education, as he points out: “Education should enable children to search for meaning so that they may bear witness to life. The psyche is a dramatizing structure and cultures are in a wide sense theatres.”17 In this sense, by exploring the imaginative world of the children, and drawing attention to the moral corruption and their search for meaning through the Theatre in Education movement, the play reflects a profound discussion to educators: How to live morally in an amoral world? How to be human? How can we create a humane society? To consume or not to consume! In the light of these vital questions it is possible to find reasonable and rational answers from Edward Bond’s Big Brum 25th birthday-speech and message: Drama is self creativity. It teaches nothing. Instead it confronts human creativity with its own needs. It does not prepare children to enter society; it prepares them to enter more fully into their humanness. It is not interested in citizenship but in the Promethean self, in the rightful discontent of being human. It is not involved in selfexpression, which is a flabby cliché, but in the creation of shared humanness. How else can young people survive even the memory of what many of their elders did in the last century? Or leave a world more innocent than the one they entered? Perhaps those elders learnt to accept injustices and contradictions. Drama confronts young people with situations in which that injustice has seeped down into their own lives, or which they can easily foresee in the future. At that age such things are unacceptable. And if at that age drama ignites the self’s creativity by respecting it and trusting its strength, then society will be less able to destroy it later. We will have given it for ever the indomitable power of youth. In time it may make civilization young again.18 In Bond's evaluation of contemporary world, everyone must be aware of where and in which circumstances he is living and what possible facilities he gains. Not only adults but also children are included in this critical process. Children have a right to know the world they're in, and who they are. The writer points out that handling the case of children must be the first and primary step towards achieving this essential purpose. The most significant deduction one could possibly make out from The Children is that, there is always a hope for creating a good future and the search for justice because each human infant starts life with radical innocence. 16 Nicholson, “Acting, Creativity and Social Justice: Edward Bond’s The Children, p. 20. 17 Edward Bond, Eleven Vests and Tuesday, Methuen, London, 1997, p. 91. 18 Edward Bond, “Young Civilization”, http://www.bigbrum.org.uk/, May 2007. 117 �References Allen, David. (2005). “The Children”, in, Edward Bond and the Dramatic Child, Edward Bond’s plays for young people, edited by David Davis, Trentham Books, UK and Sterling, USA. Bond, Edward. (1978). Plays: Two, London, Eyre Methuen. Bond, Edward. (1994).“The Importance of Belgrade TIE”,in, SCYPT Journal, 27, pp. 36–38. Bond, Edward. (1997). Eleven Vests and Tuesday, London:Methuen. Bond, Edward. (1998). in, Ian Stuart, Edward Bond .Letters 4, Amsteldijk, Harwodd Academic Publishers. Bond, Edward. (2000). The Children, London:Methuen. Bond, Edward. (2000). Selections from the Notebooks of Edward Bond, Volume One, Ed. Ian Stuart, Methuen, London. Bond, Edward. (2000). The Hidden Plot: notes on theatre and the state, London:Methuen. Bond, Edward. (2000). “Words about The Children”, In. Programme for the Classworks Theatre production. Cooper, Chris. (2005). “Edward Bond and the Big Brum Plays”, in, Edward Bond and the Dramatic Child Edward Bond’s plays for young people, edited by David Davis, Trentham Books, UK and Sterling, USA. Coult, Tony. (2005). “Building the Common Future”, in, Edward Bond and the Dramatic Child, Edward Bond’s plays for young people, edited by David Davis, Trentham Books, UK and Sterling, USA. Davis, David. (2005). Edward Bond and the Dramatic Child, Edward Bond’s plays for young people, Trentham Books, UK and Sterling, USA. Gillham, Geoff . (1994).“The Value of Theatre in Education”, in, SCYPT Journal, 27. Nicholson, Helen. (2003). “Acting, Creativity and Social Justice: Edward Bond’s The Children, Research in Drama Education, Vol.8, No.1. 118 � 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. 660 Title A name given to the resource Edward Bond’s Play for Children: Education for Sustainable Development and the Need for Theatre in Education Author Author TAKKAÇ, Mehmet BİÇER, Ahmet Gökhan Abstract A summary of the resource. Education for sustainable development is a process that gives much importance to create a better, safer and a just world. It emphasizes the need for a new vision of education system. Learning for sustainable development, critical thinking, and problem solving should be the main concepts of this process and also the main principles of Theatre in Education movement. Edward Bond, one of the most innovative voices of modern British drama and a leading dramatist who writes for Theatre in Education movement, believes that theatre has a social, political and moral purpose. For this reason he writes plays for educational contexts. His greatest aim to write plays for young people is to enable children to understand themselves, the political society around them and to create a just society. His play The Children (2001) shows a bleak vision of future for children in an unjust society. This paper examines young people’s isolation in a technologised society and shows Bond’s concepts of Theatre in Education movement for a 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/5c2c50941c589517ed371d2bbf279e2b.pdf 06342da3ee622e88b57dc1acc0e3331b PDF Text Text 1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Market Dominance and Competitiveness in Banking Sector and an Analysis of Turkish Banking Sector with Comparison to EU Banking Sector Basak TANINMIŞ YÜCEMEMĐŞ Assist.Prof.Dr., The School of Banking and Insurance, Banking Department, Marmara University, Turkey, basakyuce@marmara.edu.tr Erişah ARICAN Prof.Dr., The School of Banking and Insurance, Banking Department, Marmara University, Turkey, erisaharican@marmara.edu.tr Abstract: It is of vital importance for the finance sector and its pioneering child, the banking sector, to boost and maintain competitiveness and market domination in a globalizing world. In the Turkish banking sector, a significant progress has been made with respect to making legal and institutional arrangements for regulatory and supervision authorities and implementing and auditing decisions taken within the context of harmonization with the EU. Due to increasing competition and rapid technological developments in the banking sector, financial products and services have been diversified and new strategies and policies have been implemented and rate of inflow of foreign capital has gathered momentum. It is noteworthy that the Turkish banking sector has an oligopolistic structure and it has ratios similar to the banking ratios of the developing countries that are EU members. Moreover, it is obvious that the Turkish banking system is more robust than transition economies. Keywords: Banking, EU, competitiveness Introduction Competition is the focal point of free market economy while competitiveness is an essential mechanism for boosting efficiency, effectiveness and social welfare. In addition, securing market dominance plays an important role in ensuring lucrativeness of businesses. The study focuses on the factors affecting competitiveness and market dominance of the banking sector that has entered international markets upon financial liberation and runs a structural comparative analysis between the Turkish banking sector and the banking sectors of the selected EU members countries grouped according to their economic development. 1. Theoretical Framework for Competitiveness and Market Dominance 1.1. Concepts of Competitiveness and Market Dominance and Factors Affecting Them In economic terms, competition can be defined as the ideal environment in which economic activities pursued by any person or firm are not restricted by other persons or firms and can been conducted in an effective manner. Competition is an endeavor for survival and maintaining and improving one's existence and it entails adopting a strategic mindset and adopting certain strategic analyses and conscious application rules. The ability of firms to influence the market and market prices is reliant on the level of competition in that market (Lipsey, Steiner&Purvis 1987). The higher is competition in a particular market, the less is the likelihood of individual firms to have any affect on that market and the prices that originate in that market. While price competition is the evident form of competition, non-price competition has come to be used more effectively today. In price competition, firms compete with each other by making discounts in the price of their products through several methods --monetary wages, profit, efficiency, changes in exchange rates, etc. In nonprice competition or product competition, firms try to distinguish their products from competing products on the basis of quality of the product or other services for consumption of the product(Kılınç 2008&Erkan 1987). For creating a good environment for competition, the following criteria must be fulfilled: • Entries to, and exits from, the market should be free. 64 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo • • • • • Firms should be free in conducting their trade and making deals. There should be an effective monetary system in place. Markets should be transparent. Buyers and sellers should have thorough knowledge of the market. Restrictions on trade should be abolished. Buyers and seller should act rationally to maximize their profits(Lachman 1999). Competition naturally gives rise to the concept of competitiveness. Competitiveness is a comparative measure and it specifies the position of sectors and countries with respect to each other. Competitiveness can be defined from two perspectives: at micro (firms and sectors) and macro (country) levels. In the former case, competitiveness signifies the ability of a firm to produce its products at lower costs and for lower prices compared to its rivals in the national or global markets; it also implies that this firm is capable of producing better quality and more attractive products and it can produce new products at lower costs and perform better in international trade. In the latter case, competitiveness refers to the ability of a county to compete with other countries with respect to quality and prices of its products, maintain a good balance of foreign trade, increase production, income and efficiency and improve living standards and employment in the country(Aktan&Vural 2004). There are two basic factors that affect competitiveness of firms: efficiency and cost advantage. In a sense, efficiency means obtaining higher output with lower input. In this regard, competitiveness can be defined as the ability to increase efficiency. Cost advantage is the ability to minimize the costs related to a product or service without degrading --or even by improving-- its quality. For Porter (1990), countries obtain competitiveness by using their resources optimally(Ucal & Gürsoy 2008). When the process of competitiveness is taken into consideration in transition from traditional economy to new economy, one can discern that competitiveness relies first on large production and low cost and then on product and market expansion, on quality and speed, and finally on value creation(Özkara1997 &Aktan and Vural 2004). 1.2. Competitiveness and Market Dominance in Banking Sector The finance sector and the banking sector need to boost and maintain competitiveness on a global scale in order to increase welfare. Market shares of banks (sector's rate of concentration) and barriers to market entry show the level of market power. The banks having monopolistic power in the banking sector will create loans in fewer numbers but with higher interest rates and with an immense volume while offering lower interest rates to deposits. This will in turn disrupt flow of capital to efficient areas, undermining capital accumulation and adversely affecting economic growth. Moreover, high volume loans will decrease portfolio diversification with added risk of crippling the financial structure of the bank. On the other hand, in a banking sector characterized by intense competition, interest rates will be lower for loans and higher for deposits, lowering capital costs and boosting economic growth. In oligopolistic markets, banks take into consideration possible reactions from other banks in deciding their interest rates, commission and other fees. Due to lack of communication in oligopolistic markets, prices are set more according to attitudes of rivals than those of customers(Tunay, Uzuner &Yiğit 1998). Increased competition leads to decrease in the number of reliable borrowers per bank, which in turn urges banks to conduct more thorough examination into loan applications. Banks tend to finance long maturity loans with short maturity deposits, thereby experiencing liquidity problems. Banks can avoid high credit risks only by maintaining more equity capital, applying capital adequacy requirements, using credit derivatives, decreasing interest risks, implementing low loan portfolios and using other risk minimizing measures. In the end, social welfare may deteriorate. Barriers to entry to the banking sector, cartel agreements and recently increased number of mergers and takeovers restrict competition. Measures that aim to create fair competition conditions in the banking sector are listed as follows: • Auditing authorities must be independent. • Entries to and exits from the sector must be free in order ensure that the number of the banks operating in the banking sector are optimal(Scoot & Dunkelberg 2008). • Objective criteria must be set view to preventing unfair competition by restricting entries to the sector -or mergers or acquisitions-- that might lead to creation of big bank groups. • Comprehensive legal arrangements -which encompass the entire financial sector, not only a banking law- must be implemented to ensure harmonization with the globalizing world(Scoot & Dunkelberg 2008). Neven's study (1999) showed that liberalizations that have been going on since 1980s have made a considerably salient impact on competition (Neven & Roller 1999). Recently, banks have started to operate under intense competition from non-sector financial organizations and financial markets due to the increased liberalization and integration of the world's financial markets. Increased competition has urged banks to engage 65 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo in insurance, private banking and asset management and other non-interest bearing operations (Hainz 2003). Banks are trying to adapt to the rapidly changing competitive environment through internal growth or merger and acquisition strategies with a view to benefiting from economies of scale. Many banks are seeking ways to diversify their income sources(Goddard, Molyneux, Wilson &Tavakoli 2007). However, when done between medium and big sized banks, mergers generally do not serve to increase efficiency because these banks are already making savings with their scales. In order to secure increase from scale savings, small banks should merge. Bikker and Haaf assumed that small scale banks operate on at local level while big banks are more competitive than other banks at the international level and medium sized banks can maintain a medium level of competition(Bikker & Haaf 2002). Moreover, the number of banks is treated as an indicator of competition level. Increase in competition at the banking sector leads to decreased cooperation(Hainz 2003). The banks having big market shares obtain noncompetitive income(De Jonghe & Vennet 2008). For Dick, in particular, big banks secure market dominance by seizing demand surplus through quality intensive services(Dick 2007). Any increase in market share results in a fall in brokering costs(Maudos & De Guevara 2007).Stability was found to be higher in the banking systems with higher concentration rates and fewer restrictive regulations. Thus, reasonable competition is preferred(Berger, Klapper & Aris 2008). When the European banking system having a strong structure is examined, it can be observed that recent technological developments, financial liberalization, ongoing economic and regulatory integration and impact of Euro transition have increased competition and effectiveness. On the other hand, since bank mergers and acquisitions decrease the number of rivals, this may have negative effects with respect to market domination(De Jonghe & Vennet 2008). 2. Structural and Comparative Analysis of Banking Sectors of Selected EU Countries vis-à-vis Turkey 2.1. Developments, Competitiveness and Market Domination in the Turkish Banking Sector in the Post2001 Crisis Era Post-2001 crisis recovery in the Turkish economy, increased economic stability, and the implemented anti-inflation program have positively affected the banking sector. Moreover, restructuring of the banking system has ensured that major structural problems which in the past created crises in the sector can be overcome. With consolidation and positive economic developments that occurred thanks to restructuring, the banking system has started to grow and reshaped its balance sheet structure. With increased demand for loans, the share of loans within assets has increased, and the share of securities portfolio with lower liquidity, and financial structure has been reinforced, and profitability performance has improved. As the Turkish banking sector has a big potential for growth and Turkey's EU membership process has accelerated, foreign capital has started to show increased interest in the sector and the direct investments by foreign investors in the Turkish banks and other financial organizations have increased. The banking law (dated 2006) that regulates and directly affects banking activities has been harmonized with the EU legislation to a great extent. New arrangements have been made with respect to determination of institutional management rules for banks and measurement of liquidity adequacy(TBB 2007). The year 2007 was a busy year for political and economic developments both in the country and in the international markets. With adverse developments around the world, no remarkable progress was seen in Turkey's EU membership process. 2.1.1. Market Structure in the Turkish Banking Sector In the banking sector where a rapid process of consolidation was seen with acquired and closed down banks after 2000, the number of banks dropped down to 49 in December 2008. The number of branches continued to increase. The branch and employee numbers have decreased in the period 2000-2003 due to the structuring schemes, but started to increase afterwards. Table 1. Bank and Branch Numbers 2001 2002 2003 2004 Bank Branch Bank Branch Bank Branch Bank Branch 61 6,908 54 6,106 50 5,966 48 6,106 Total 2005 2006 2007 Sep. 2008 Bank Branch Bank Branch Bank Branch Bank Branch 47 6,247 46 6,849 50 8,040 49 9,036 Total Source: Derived from the Turkish Banks Association (TBB), (May 2008), Bankalarımız 2007, and the TBB, (September 2008), 3 Aylık Banka Bilgileri Raporu. 66 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Table 2. Overall Structure and Efficiency Indicators of the Banking Sector Deposits/Employee Employee Employee Total Assets Total Loans Total Deposits Numbers (thousand Numbers/Bank Years Numbers (thousand TL) (thousand TL) (thousand TL) TL) Numbers 137,495 216,507,617 57,341,438 147,520,532 1,073 2254 2001 118,329 212,675,488 56,370,271 142,387,988 1,203 2958 2002 123,249 249,749,773 69,990,148 160,812,250 1,305 2465 2003 127,163 306,451,565 103,241,145 197,393,862 1,552 2649 2004 132,258 381,639,902 148,641,794 244,633,655 1,850 2814 2005 150,793 484,857,262 218,063,925 312,832,244 2,075 3278 2006 167,760 561,171,879 280,453,091 356,983,744 2,128 3355 2007 170,425 655,434,000 356,096,000 418,839,000 2,458 3478 Sep2008 Source: Derived from TBB, (May 2008), Bankalarımız 2007, and the TBB, (September 2008), 3 Aylık Banka Bilgileri Raporu. The total assets in the balance sheet of the banking sector increased to TL 655 billion ($565 billion) in September 2008 with a 16.8 percent increase. Increase in corporate and consumer loans supported growth in total assets(TBB 2008). Total credits in the banking sector reached TL 356 billion by the end of 2008, with the share of loans within total assets being 54.3 percent. The credit volume which was low to scale in the banking sector was a factor that reduced risk in the crisis period (Bilgin 2009). 26.4 percent of the total assets in the banking sector consist of securities. Since they are risk-free and liquid assets, the sector mainly prefer domestic government bonds (BDDK 2008). Table 3. Balance Sheet Structure of Banking System (%) 2001 2002 2003 2004 2005 2006 2007 Sep2008 na Assets in TL/Total Assets 53.6 60.7 63.2 67.7 66.2 71.2 71.9 na 49.6 56.7 59.9 64.3 62.4 66.7 66.8 Liabilities in TL/Total Liabilities na 42.1 50.7 55.2 63.2 61.6 65.1 66.0 Deposits in TL/Total Deposits na 42.4 53.7 63.5 70.5 72.7 74.9 74.0 Credits in TL/Total Credits 68.9 67.0 64.4 64.4 63.9 64.5 63.6 63.9 Total Deposits/Total Assets 10.5 8.4 8.2 9.0 11.0 11.7 10.5 10.9 Credits Received/Total Assets Source: Derived from TBB, (May 2008), Bankalarımız 2007-2006-2005-2004-2003-2002-2001, and the TBB, (September 2008), 3 Aylık Banka Bilgileri Raporu. The share of credits within total assets increased, due to falling interest rates after 2005, to 54.3 percent and the public sector borrowing requirement decreased, which caused the rate of conversion of deposits to credits to increase (85 percent), thereby boosting the contribution of the banking sector to the non-financial sector. Not only interest rates, but also creation of suitable maturity conditions were influential in this. Nonaccruing (delinquent) loans decreased in the post-2001 crisis restructuring process, but they started to increase slowly --particularly with respect to consumer and commercial credits-- due to economic uncertainties in 2008. Table 4. Asset Quality of Banks (%) 2001 2002 2003 2004 2005 2006 2007 Sep2008 35.0 40.5 42.8 40.4 36.0 34.7 31.3 28.7 Financial Assets (Net)/Total Assets 21.9 26.5 28.0 33.7 38.6 45.0 50.0 54.3 Total Credits/Total Assets 31.8 39.6 43.5 52.3 60.4 69.7 78.6 85.0 Total Credits/Total Deposits 19.9 6.6 1.4 0.7 0.5 0.3 0.4 0.5 Delinquent Credits (Net)/Total Credits 13.3 23.5 27.2 29.8 31.2 33.3 32.6 Consumer Credits/Total Credits Source: Derived from TBB, (May 2008), Bankalarımız 2007-2006-2005-2004-2003-2002-2001, and the TBB, (September 2008), 3 Aylık Banka Bilgileri Raporu. When the liquidity structure of the sector is examined, it can be seen that the share of liquid assets within total assets decreased over the years to 29.4 percent. This implies that the banks still choose to direct short term liabilities they assume not to liquid assets, but to the assets with lower liquidity. Table 5. Liquidities of Banks (%) 2001 2002 2003 2004 2005 2006 2007 Sep.2008 32.0 34.3 38.8 37.4 39.9 39.6 37.1 29.4 Liquid Assets/Total Assets na 75.1 80.5 84.3 74.8 65.3 62.4 47.6 Liquid Assets/Short Term Liabilities na 12.9 19.0 17.6 22.7 21.3 23.1 17.9 Liquid Assets in TL/Total Assets Source: Derived from TBB, (May 2008), Bankalarımız 2007-2006-2005-2004-2003-2002-2001, and the TBB, (September 2008), 3 Aylık Banka Bilgileri Raporu. 67 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Despite the rapid growth of equity, the capital adequacy ratio (Equity/Value at Credit + Market + Operational Risk) deteriorated. This was attributable to the inclusion of operational risk to the capital adequacy calculation as well as the growth in trade volume. The capital adequacy standard ratio decreased from 30.9 percent in 2003 to 17.7 percent in 2008. The net balance sheet position/equity ratio was -15.9 percent in 2008 (TBB 2008). Table 6. Capital Adequacy of Banks (%) 2001 2002 2003 2004 2005 2006 2007 Sep.2008 na 24.2 30.9 28.8 24.2 22.0 19.1 17.7 Equity/(value at credit + market + operational risk) 9.0 12.1 14.2 15.0 13.5 12.0 13.1 12.2 Equity/Total Assets na -6.3 -2.5 -4.5 -5.1 -13.5 -14.0 -15.9 Net Balance Sheet Position/Equity Source: Derived from TBB, (May 2008), Bankalarımız 2007-2006-2005-2004-2003-2002-2001, and the TBB, (September 2008), 3 Aylık Banka Bilgileri Raporu. 2.1.2. Concentration and Market Domination in the Turkish Banking Sector Due to the financial crises of November 2000 and February 2001, the ensuing restructuring of the banking sector and the unfavorable market conditions, many banks had to leave the sector, which created a hard-to-bear burden for the state because of the unlimited guarantees provided for deposits. As a result, the banking sector saw many changes, particularly stemming from consolidation efforts through mergers, and the share of the banks which are considered as large scale because of the deposits they command increased. As an explanation for this change, customer tendency toward opting for depositing money to big sized banks during a financial crisis as well as changes in the market shares of banks are suggested. In short, market dominance by big players increased. Consequently, there has been a rapid increase in concentration with respect to assets, credits and deposits since 2000 (Yayla 2007). When concentration and market dominance in the Turkish banking sector where the seven largest banks are the leaders and which has an oligopolistic structure are examined, one can see that the share in sector assets of the seven banks which are largest according to total assets was 62 percent in 2008 while the sector share of the ten largest banks was 85 percent. The share of the five banks which are largest according to deposits was 64 percent while the share of the ten largest banks was 83 percent. There was a drop in concentration for the ten largest banks. There was no change in concentration for the five largest banks in terms of credits while the concentration for the ten largest banks rose to 89 percent (TBB Sep 2008 & TBB May 2008). Table 7. Concentration in the Turkish Banking Sector (%) 2001 2002 2003 2004 2005 2006 2007 2008 Five Largest Banks 56 58 60 60 63 63 62 62 Total Assets 55 61 62 64 66 64 64 64 Total Deposits 49 55 54 48 56 58 57 57 Total Credits Ten Largest Banks 80 81 82 84 85 86 85 85 Total Assets 81 86 86 88 89 90 89 83 Total Deposits 80 74 75 77 80 93 83 89 Total Credits Source: Derived from TBB, (May 2008), Bankalarımız 2007-2006-2005-2004-2003-2002-2001, and the TBB, (September 2008), 3 Aylık Banka Bilgileri Raporu. The following Herfindahl-Hirschman Index (HHI) was used to study the market structure of the Turkish banking sector on performance and explain the concentration in the sector. Herfindahl-Hirschman Index Herfindahl-Hirschman Index (HHI) is used to measure the market concentration as part of a market structure analysis. It is defined as the sum of the squares of the market shares of all firms (banks) (Bikker 2004). If the total of market shares is expressed as 100, the HHI ranges between 0 and 10,000. Thus, - 0 - 199 (full competition market, 51 or more banks having equal market shares) - 200 - 999 (weak oligopolistic, 11 - 50 banks having equal market shares) - 1,000 - 1,799 (strong oligopolistic, 6 - 10 banks having equal market shares) - 1,800 - 10,000 (monopolistic, 1 - 5 banks having equal market shares) (Yetim & Gülhan 2005). 68 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Table 8. HHI Values (All Sector) 2001 2002 2003 2004 2005 2006 2007 Sep.2008 809.1 865.4 928.6 937.4 966.6 959.5 938.5 937.26 Total Assets 762.2 740.8 737.2 744.5 798.4 858.5 849.3 854.64 Total Credits 817.7 960.2 1041 1117.5 1093.2 1072.2 1063.9 1052.22 Total Deposits Source: Derived from TBB, (May 2008), Bankalarımız 2007-2006-2005-2004-2003-2002-2001, and the TBB, (September 2008), 3 Aylık Banka Bilgileri Raporu. According to the calculations, the asset and credit concentration in the Turkish banking sector were considerably close to each other while there was a greater concentration in deposits. The highest HHI value was 1,117.5 observed in the deposits market in 2004. With respect to assets and credits, the sector's HHI value was found to be below 1,000 in the period 2001-2008 examined, which implies concentration toward a strong oligopolistic structure. It was unconcentrated in terms of deposits until 2002, after which moderate concentration was observed. In this regard, the Turkish banking sector shifted toward a strong oligopolistic structure in terms of assets and credits through mergers and acquisitions. Table 9. HHI Values for Asset Sizes (Five Largest and Ten Largest Banks) 2001 2002 2003 2004 2005 2006 2007 Sep.2008 668.5 733.7 793.7 771.7 820.7 809.3 785.4 781.4 Five Largest Banks Total Assets 790.1 846.6 911.7 920.2 952.7 941.7 920.5 920 Ten Largest Banks 583.1 627.1 593.7 579.3 646,4 683.2 659.7 662.5 Five Largest Banks Total Credits Ten Largest Banks 646 685.8 677.8 701.4 768,3 828.2 821.8 828.5 683.4 827.9 882.1 914.2 919 894.9 883.7 857.9 Five Largest Banks Total Deposits Ten Largest Banks 805.6 948.7 1028.9 1106 1082.4 1039.9 1048.2 1038.7 Source: Derived from TBB, (May 2008), Bankalarımız 2007-2006-2005-2004-2003-2002-2001, and the TBB, (September 2008), 3 Aylık Banka Bilgileri Raporu. When the sector was examined with respect to five and ten largest banks, the situation was similar to the overall situation. Customers tend to opt for bigger banks in which they have confidence while smaller banks act more aggressive in the credit market to boost their market share. It can be said that smaller banks offer higher interest rates and take higher credit risks in order to secure higher amounts of deposits. This can be regarded as a behavior with some ethical risks. On the other hand, the reason why bigger banks have lower shares in the credit market is that the big banks operating in Turkey tend to keep domestic government bonds with zero risk in their portfolios. 2.1.3. Proposals for Increasing Effectiveness and Competitiveness in the Turkish Banking Sector The following table contains a SWOT analysis that may serve for better understanding the Turkish banking sector and its competitiveness, and the strengths, weaknesses, opportunities, and threats involved in the sector were depicted. Table 10. SWOT Analysis for the Turkish Banking Sector Threats Weaknesses - Restricted guarantee for deposits - Lack of qualified personnel - Increased transparency toward clients - Technological inadequacy - Lower interest rates and margins - Lack of funds for R&D - Non-banking competition - High costs - New technical standards - Low effectiveness and efficiency - Problems in adapting to changes in legislation - Inadequacy of competitiveness - Economic and financial uncertainty - Insufficient product and service diversification - Crisis periods and decreased effectiveness in the sector - Lack of independent audit - Increased interest from foreign banks - Insufficient transparency - Concentration Opportunities Strengths - Less restrictive controls on prices and products - Multiple technology products - Developing alternative resource creation - Increased risk, credit and liquidity management - Easer access to market - Larger local market - Increased client base knowledge - Easier cross-border entry - Confidence and prestige increase - Improved capability for attracting deposits - Young and dynamic population 69 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo - More non-price competition - Products and services with high value added - Cooperation and partnerships - Multiple technology products - High quality - Improvement of the sector - Restructuring of the public, private and Savings Deposit Insurance Fund (TMSF) controlled banks - Decreased restrictions to market entry and transition from oligopolistic competition to competitive environment thanks to legal arrangements, technological and information technology developments - Inflow of foreign capital - Rising rates of conversion of deposits to credits - Increased quality in product and service provision - Banks' finding new sources of income and adopting cost minimizing strategies and introducing organizational changes for expanding their customers' base and credit portfolios - Improved credit volume and more efficient use of resources Source: The SWOT analysis was made based on the assessments done within the context of the study. 2.2. Overall Structure of the EU Banking Sector, and its Competitiveness and Market Domination Globalization and financial liberalization in the world have triggered a fundamental change in the financial system in the EU. The integration of the financial system within the EU started, making markets homogeneous, fostering mergers among financial intermediaries, and resulting in new products and techniques. The Economic and Monetary Union (EMU) (January 1, 1999) accelerated the integration process in the financial system. Boundaries between national financial markets have largely lost importance (Yücememiş 2005). Due to the structural harmonization with the EMU interest rates, the profit margins and net interest margins of the banks in the EU have gradually decreased as was the case in Turkey. Thus, income structures of banks shifted away from interest incomes toward non-interest incomes. Today, big finance groups in Europe essential fail to secure a very rapid growth and high rates of profitability housing finance, consumer credits, credit cards and other areas in their respective countries because of the competitive pressures, market saturation, difficulties in increasing assets and decreasing incomes in domestic markets. This urges them to seek alternative markets and the countries whose finance groups that enter international markets become strong with respect to capital and earn experience at the international level. The next step for the European countries is to attain economies of scale with their operations, diversify their products, disperse risk, minimize costs and improve quality of their services. Increased competition in the EU finance sector has made it compulsory for firms to boost their effectiveness and efficiency. To maintain financial stability, effective supervision has emerged as an essential requirement. In addition, the sector should be able to satisfy customer demands, provide information and consultation services to customers, adapt to technological changes, and develop marketing strategies in order to attain stability (Yücememiş 2005). 2.2.1. EU Member Countries with Developed Economies Germany, Austria, Belgium, the Netherlands, Italy, France and the UK were picked for analysis from the EU member countries with developed countries. When the following tables are examined, one can see that concentration rates increased in these countries with developed economies through mergers and acquisitions, which led to serious structural changes with respect to new strategic moves. When the banks from the EU member countries acquire or merge with the banks in other countries, this leads to an increase in the overall assets within the union. Although there is not a big difference between the number of banks and branches in Italy and those in France, its asset size was almost half of France's. Table 11. Total Assets of the Banking System of Selected Developed EU Member Countries (€ million) 2001 2002 2003 2004 2005 2006 2007 6,268,700 6,370,194 6,393,503 6,584,388 6,826,534 7,120,805 7,562,431 Germany 554,528 586,459 635,348 721,159 789,770 890,747 573,384 Austria 776,173 774,330 828,557 914,391 1,055,270 1,121,905 1,297,788 Belgium 1,265,906 1,356,397 1,473,939 1,677,583 1,695,325 1,873,129 2,195,020 Netherlands 1,851,990 2,024,156 2,125,366 2,275,628 2,509,436 2,793,436 3,331,830 Italy 3,768,943 3,831,610 3,998,554 4,419,045 5,073,388 5,728,127 6,682,335 France 5,829,766 5,853,959 6,288,193 7,085,205 8,526,509 9,868,683 10,093,134 UK TURKEY (million TL) 216,507 212,675 249,749 306,451 381,639 484,857 561,171 Source: Compiled from European Central Bank, October 2006, EU Banking Structures and European Central Bank, October 2008, EU Banking Structures. 70 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Table 12. Concentration Index (HHI) of the Banking System of Selected Developed EU Member Countries (By Asset Size) 2001 2002 2003 2004 2005 2006 2007 158 163 173 178 174 178 183 Germany 561 618 557 552 560 534 527 Austria 1,587 1,905 2,063 2,102 2,112 2,041 2,079 Belgium 1,762 1,788 1,744 1,726 1,796 1,822 1,928 Netherlands 270 240 230 230 220 330 260 Italy 551 597 623 758 726 679 606 France 282 307 347 376 399 394 449 UK TURKEY 809.1 865.4 928.6 937.4 966.6 959.5 938.5 Source: Compiled from European Central Bank, October 2006, EU Banking Structures and European Central Bank, October 2008, EU Banking Structures. A comparison between developed countries and Turkey reveals that Turkey lags considerably behind these countries in terms of bank and branch numbers as well as total asset size. Moreover, it can be asserted that according to the concentration index, Turkish banking sector has moved toward the strong oligopolistic position and that it has lower rates of conversion of total deposits to credits compared to these countries. 2.2.2. Developing EU Member Countries Spain, Greece, Portugal and Finland were picked from among the developing EU member countries. It was found that in these countries, the number of banks decreased while the number of branches increased. This can be explained by the fact that with membership to the EU, mergers and acquisitions with the banks from other countries increased, thereby boosting concentration. This is also obvious from the increase in the total asset size. Table 13. Total Assets of the Banking System of Selected Developing EU Member Countries (€ million) 2001 2002 2003 2004 2005 2006 2007 1,247,998 1,342,492 1,502,861 1,717,364 2,149,456 2,515,527 2,945,262 Spain 202,736 201,608 213,171 230,454 281,066 315,081 383,293 Greece 298,428 310,370 348,691 345,378 360,190 397,123 440,144 Portugal 163,416 165,661 185,846 212,427 234,520 255,055 287,716 Finland TURKEY (million TL) 216,507 212,675 249,749 306,451 381,639 484,857 561,171 Source: Compiled from European Central Bank, October 2006, EU Banking Structures and European Central Bank, October 2008, EU Banking Structures. Table 14. Concentration Index (HHI) of the Banking System of Selected Developing EU Member Countries (By Asset Size) 2001 2002 2003 2004 2005 2006 2007 532 513 506 482 487 442 459 Spain 1,113 1,164 1,130 1,070 1,096 1,101 1,096 Greece 991 963 1,043 1,093 1,154 1,134 1,097 Portugal 2,240 2,050 2,420 2,680 2,730 2,560 2,540 Finland TURKEY 809.1 865.4 928.6 937.4 966.6 959.5 938.5 Source: Compiled from European Central Bank, October 2006, EU Banking Structures and European Central Bank, October 2008, EU Banking Structures. When these figures are compared with the figures related to the Turkish banking sector, it can be seen that the number of banks is lower than those in these countries while the number of branches is higher thanks to mergers with foreign banks. With respect to total assets, total deposits and total credits in the banking sector, there is no significant difference between these countries and Turkey. For this reason, it can be suggested that Turkey, being a candidate country, has economic structure similar to this group of countries and the harmonization of its banking sector can be considered as sufficient. 2.2.3. EU Member Countries with Transition Economy The Czech Republic, Hungary, Romania, Bulgaria, Poland and Estonia were selected from the EU member countries with transition economy. While these countries have different development levels and economic volumes, their banking sectors showed growth after they joined the union, as seen in the tables. Particularly in the Czech Republic and Hungary, economic development level was higher and banking sector 71 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo had investments in international markets before the 2008 crisis, and this boosted mergers and acquisitions with the banks in other countries and the number of banks decreased while the number of branches increased. In other countries, particularly in Estonia, the number of banks and branches quickly increased, which can be regarded as an economic advantage of being a member of the union. Table 15. Total Assets of the Banking System of Selected EU Member Countries with Transition Economy (€ million) 2001 2002 2003 2004 2005 2006 2007 78,188 79,232 78,004 87,104 100,902 114,878 140,004 Czech Republic 38,433 43,564 54,769 64,970 78,289 93,679 108,504 Hungary na na 15,000 23,200 35,400 51,911 72,095 Romania 13,224 17,447 22,302 31,238 na na 9,254 Bulgaria 116,044 112,174 141,571 163,421 189,739 236,008 133,476 Poland 4,372 5,221 6,314 8,586 11,876 15,326 20,603 Estonia TURKEY (million TL) 216,507 212,675 249,749 306,451 381,639 484,857 561,171 Source: Compiled from European Central Bank, October 2006, EU Banking Structures and European Central Bank, October 2008, EU Banking Structures. Table 16. Concentration Index (HHI) of the Banking System of Selected EU Member Countries with Transition Economy (By Asset Size) 2001 2002 2003 2004 2005 2006 2007 1,263 1,199 1,187 1,103 1,155 1,104 1,100 Czech Republic 856 783 798 795 823 839 892 Hungary na na 1,251 1,111 1,115 1,165 1,041 Romania na na na 721 698 707 833 Bulgaria 821 792 754 692 650 599 640 Poland 4,067 4,028 3,943 3,887 4,039 3,593 3,410 Estonia TURKEY 809.1 865.4 928.6 937.4 966.6 959.5 938.5 Source: Compiled from European Central Bank, October 2006, EU Banking Structures and European Central Bank, October 2008, EU Banking Structures. Comparison of these figures with the figures related to the Turkish banking sector indicates that there is no significant difference with respect the number of banks, but the number of branches is higher in Turkey thanks to mergers with foreign banks. In terms of total asset size, total deposits and total credits, Turkey is out in the lead ahead of the EU member countries with transition economies, and in this respect, it can regarded as ready for membership to the EU. As for the HHI, it can be seen that the Turkish banking sector is shifting toward the strong oligopolistic structure as regards the economic and sector size in Turkey. Conclusion Today, non-price competition has increased. Competitiveness can only be ensured via rise in efficiency, and income obtained from this increase may boost welfare in the country. Securing a competitive edge and/or increasing competitiveness will depend on effective and rational competition strategies developed. Increased market dominance results in increased concentration, which in turn decreases level of competition in the markets. Competition among banks undermines market power of banks, causing a decline in their profit margins. Under the increased competitive pressures from the non-sector financial organizations and markets, banks are urged to engage in insurance, private banking and asset management and other non-interest bearing operations. They try to adapt to the rapidly changing competitive environment through internal growth or merger and acquisition strategies. Despite the fluctuations and increased risk in international markets, the Turkish banking sector has managed to boost corporate and consumer loans. The public sector borrowing requirement has decreased, creating proper maturity and interest conditions and causing the rate of conversion of deposits to credits to increase, thereby boosting the contribution of the banking sector to the non-financial sector. Moreover, the Turkish banking sector has acted cautiously, preserving its profitability and increasing its non-interest income. Competition in the sector has led to a drop in cost and made resource distribution more effective and boosted efficiency and effectiveness. According to the Herfindahl-Hirschman (HHI), the concentration in the Turkish banking sector implies a strong oligopolistic structure where big banks are dominant in the market. However, in parallel to efforts for restructuring and integration with international markets, large scale institutional changes as well as changes to the products and services provided have been introduced. In this regard, the Turkish banking sector can be regarded as one of the most well-prepared sectors for harmonization with the EU, particularly with respect to openness to competition and legal arrangement. Nevertheless, on a global scale, the 72 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Turkish banking sector is still small in terms of volume of assets, deposits and credits. The competitive environment in the sector fosters innovation and quality. Due to change in its assets and liabilities structure, the sector will continue to be vulnerable to liquidity, exchange and interest rate related risk. However, the Banking Regulation and Supervision Agency (BDDK) regularly issued guiding notices and explanations for the sector in 2008, and the sector seems to be capable of cautiously acting by the lesson it learned in the 2001 crisis. Yet, the Turkish banking sector may feel the heat from the high level of debts by non-financial economy and limited borrowing opportunities. If public authorities may implement policies for increasing production by bringing relief to non-financial sector and for warding off the pressure on the financial sector, this may result in a slight increase in economic performance and growth rate in 2009. References Aktan, C.A. and Vural, Đ.Y.(2004) Rekabet Gücü ve Rekabet Stratejileri, Publication no 254, Ankara: TĐSK Yayını. BDDK.(Sep. 2008).Finansal Piyasalar Raporu.No:11. Bikker, J. A. (2004).Competition and Efficiency in a Unified European Banking Market, Edward Elgar, Cheltenham. Bikker, J.A. and Haaf, K., (2002) Competition, Concentration and Their Relationship: An Empirical Analysis of The Banking Industry, Journal of Banking & Finance, Vol. 26, p. 2191-2214. Bilgin, T. (10.02.2009).Türk Bankacılık Sistemi 2008 Sonuçları ve 2009 Beklentileri, Text of Speech. De Jonghe, o., Vennet, R.V., (2008), Competition Versus Efficiency: What Drives Franchise Values in European Banking? Journal of Banking & Finance, Vol 32, Issue 9, pp. 1820-1835. Dick,A.A., (2007) Market Size, Service Quality And Competition in Banking, Journal of Money Credit and Banking, Vol. 39, pp. 49-81. Goddard, J., Molyneux, P., Wilson, J.O.S. and Tavakoli,M. (2007) European Banking: An Overview, Journal Of Banking & Finance, Vol. 31, pp. 1911-1935. Hainz,C. (2003), Bank Competition And Credit Markets in Transition Economies, Journal of Comparative Economics, Vol. 31, pp. 223-245. Kılınç, N., Yeni Ekonomi: Piyasa, Rekabet Ve Ar-Ge,, 1-15, http://paribus.tr.googlepages.com/kilinc.doc, accessed on 1.08.2008; and Erkan,H. (1987) Sosyal Piyasa Ekonomisi, Đzmir: Silm Ofset. Lachmann, W. (1999), The Development Dimension of Competition Law and Policy., UNCTAD Series on Issues in Competition Law and Policy. New York and Geneva: United Nations. Lipsey, R. G., Steiner, P. O. and Purvis, D. D.(1978) Economics, 8th Ed., New York: Harper & Row. Maudos, J. and De Guevara, J.F., (2007), The Cost of Market Power in Banking: Social Welfare Loss vs. Cost Efficiency, Journal of Banking and Finance, Vol. 31, pp. 2103-2107. Neven, D. and Roller, L.H. (1999), An Aggregate Structural Model of Competition in The European Banking Industry,” International Journal of Industrial Organization, Vol. 17, pp. 1059-1074. Özkara, B.(1997) Rekabet Modellerinin Değişimi ve Sanayi Đşletmelerinde Bir Araştırma, Çukurova University, ĐĐBF Dergisi, Vol. 7, Issue 1, pp. 47-71. Scott, J. and Dunkelberg, W.C., (May 2008) Competition for Small Firm Banking Business: Lender Actions, Market Structure, Worldbank Conference,pp.1-48. TBB,(May 2002,2003,2004,2005,2006,2007,2008). Bankalarımız 2001,2002,2003,2004,2005,2006,2007. TBB.(Sep 2008). 3 Aylık Banka Bilgileri Raporu. Tunay, K.B., Uzuner, M.T. and Yiğit,A. (1998) Ticari Bankalarda Kaynak Yönetimi, 1. b., Istanbul: Beta Yayınevi. Ucal, M. and Gürsoy, B. (2008) Đşletmelerde Rekabet Stratejileri ve Geleceğe Yönelik Politikalar, http://www.ikademi.com/stratejik-yonetim/760-isletmelerde-rekabet-stratejileri-ve-gelecege-yonelik-politikalar.html, accessed on 18.01.2008. Yayla,M.(2007). Türk Bankacılık Sektöründe Yoğunlaşma ve Rekabet: 1995-2005, Bankacılık ve Finansal Piyasalar, Vol. 1, Issue 1, BDDK, pp. 48- 51. Yetim, S. and Gülhan, O.(2005). Avrupa Birliği Tam Üyelik Sürecinde Türk Bankacılık Sektörü, Ankara: Xerox Doküman Merkezi. Yücememiş, B.T. (2005). Parasal Birlik, Avrupa Merkez Bankası ve Türkiye’ye Yansımaları, 1. b, Istanbul: Derin Yayınları. 73 � 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. 142 Title A name given to the resource Market Dominance and Competitiveness in Banking Sector and an Analysis of Turkish Banking Sector with Comparison to EU Banking Sector Author Author TANINMIS YÜCEMEMiS, Basak ARICAN, Erisah Abstract A summary of the resource. It is of vital importance for the finance sector and its pioneering child, the banking sector, to boost and maintain competitiveness and market domination in a globalizing world. In the Turkish banking sector, a significant progress has been made with respect to making legal and institutional arrangements for regulatory and supervision authorities and implementing and auditing decisions taken within the context of harmonization with the EU. Due to increasing competition and rapid technological developments in the banking sector, financial products and services have been diversified and new strategies and policies have been implemented and rate of inflow of foreign capital has gathered momentum. It is noteworthy that the Turkish banking sector has an oligopolistic structure and it has ratios similar to the banking ratios of the developing countries that are EU members. Moreover, it is obvious that the Turkish banking system is more robust than transition economies. 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 HB Economic Theory https://omeka.ibu.edu.ba/files/original/91186382ddc39da61233fdedfb7b8f5e.pdf 2ef4ec349ec07acb7a37c10240cf3980 PDF Text Text 1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Assesment of Cultural Aspects of Hofstede with Socio-Economical Factors in new Product Acceptance Ercan TAŞKIN Assist. Prof. Dr., Institute of Social Sciences, Dumlupinar University, Turkey Hasaan ÖZYAŞAR Economic Science Expert H. Yelda ŞENER Ph. D. candidate, Dumlupinar University, Turkey Abstract: Enterprises should be able to know and appreciate different cultural environments in order to be successful in international marketing. Companies in international marketing should form their marketing activities by taking different cultural characteristics of different countries into account. They should also perform the necessary adaptations to different cultures in such activities as product, pricing, decision of distribution channel and promotion. On the other hand, in adapting marketing activities to different cultures, Hofstede’s study about cultural dimensions including avoiding uncertainties, individualism, power distance and masculinity has guided many related researches. In this study, assessing Hofstede’s cultural dimensions in terms of such products as internet, PCs and cell phones, and such socio economical factors including GDP, urbanisation and literacy, the effect of these factors on the acceptance of new products were analysed. The data were then interpreted with regression analysis. Key Words: New product, international marketing, culture Aim & Importance of the Research The aim of the research is to explain the factors affecting the acceptance rates of new products introduced to international markets, to determine the environmental factors from these and to reveal from these environmental factors how and to what extent cultural dimensions affect the acceptance rates. As competition increases in internal market, many of the companies go for external markets. Many companies like Daimler-Chrysler and Unilever try to overcome the shrinkage in internal markets by going for markets overseas. However, even the companies which are very successful in their own internal markets might fail in international markets. In the 1990s, many big firms like Kellogs, Mercedes Benz and Whirlpool made many high-cost mistakes while introducing their products to new markets.(Tellefsen, 1999) Avoiding these kinds of mistakes is possible by analysing the cultural and socio-economical structure of the target countries seriously and introducing such products that are appropriate for this structure or making the required adaptation on the products to adapt it to this structure. Most of the scientific studies in Turkey are unfortunately by no means at the level of being practicable or directive. In this study, it was tried to provide a guide of analysis for enterprises, which introduce new products to international markets, to enable them to make the required adaptations about cultural factors especially by showing them the effect of uncontrollable external environment on the acceptance rate of new products. At this point, with our regression equation, companies which will introduce new products to international markets or which will make important changes on the current product will be able to predict the amount of demand in each of the 80 countries. Development of Hypotheses Literature scanning was conducted about the subject and depending on the studies hypotheses were developed about the environmental factors thought to affect the acceptance rate of new product. Table 1 summarizes the findings about how which factors affect the acceptance rate of new product in the studies carried out on different products and different countries at different times. Depending on this and other studies in the literature, the following hypotheses and the model shown in Figure 1 were developed about the factors thought to affect the acceptance rate of new product. 404 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Table 1. Factors Affecting Acceptance of New Products Study carried out by Power Avoiding Individualism Masculinity GNP Urbanization Literacy Distance Uncertainity Sean Dwyer, hani (-) (-) (-) (+) mesak, maxwell hsu Luis E. Boone (+) (+) (+) Yvonne Van (-) (-) (+) (-) Everdingen, Eric Waarts Dipak Jain, Suvit (-) (+) Maesincee Sangeeta Singh (-) (-) (+) (+) Debabrata Talukdar, (+) (+) (+) Sudhir Kale, Andrew Ainsslie Kallol Bagchi, P. (-) (-) (+) (-) Hart, M. Peterson Lawrance Rhyne, M., (-) (-) (+) (+) Teagarden, W. Panhuyzen Chol Lee (+) (+) (+) Jan Steenkamp, F. (-) (+) (+) Hofstede, M. Wedel Gerard Tellis, S. (-) (+) (+) (+) Stremersch, E. Yin Michael Lynn, Betsy (-) (+) (+) Gelb Janell Tovnsend, Ş. (-) (-) (+) (+) Yenyurt Hypotheses about Cultural Dimensions The cultural structure of a social system affects the acceptance rate of innovations by either facilitating or complicating the dissemination of innovations. Countries open to innovations have different cultural characteristics than those close to innovations. (Lee,1990) Researches have shown that culture of a country has a significant effect on its people’s acceptance rate of new products.(Tellis,2003) The most common culture classification in international marketing was developed by Hofstede. Cultural dimensions of Hofstede and the scores he developed for these dimensions have been used to provide a theoretical base for inter-cultural studies and to support the hypotheses. (Soares,2007) In measuring international consumer innovation and acceptance and dissemination of innovations, cultural dimensions of Hofstede have been used in many studies. (Waarts, Everdingen, 2005) Avoiding Uncertainity According to Hosfstede, avoiding uncertainity denotes the timidity level of people of a culture when encountering unknown or uncertain situations. In societies where avoiding uncertainity is common, people face uncertain and complex situations with anxiety. Members of such societies lower their stress level by laying down some rules that will help them see ahead. In societies where avoiding uncertainity is uncommon, people consequences of uncertainity is already accepted. Members of such societies perpetually want changes in their lives.( Dwyer S., Mesak H., Hsu M,2005) As a result, there is a negative relation between avoiding uncertainity and acceptance of new product. In countries where avoiding uncertainity is common, the acceptance rate of new product will be low, while in others where avoiding uncertainity is uncommon, the acceptance rate of new product will be high. In the light of these opinions; H1: There is a significant and negative relation between the dimension of avoiding uncertainity and acceptance rate of new product. Individualism 405 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Individualism-socialism is the basic cultural variable dimension of inter-cultural studies.(Aaker, Maheswaran,1997) The dimension of individualism is about the dominance level of the wishes of the group on the wishes of the individual. In individualist cultures, ties between individuals are weak and people are primarily interested in themselves and their close folks. In socialist cultures, on the other hand, there are strong group ties of loyalty and trust. Whereas there is a conscious of “we” in socialist cultures, in individualist cultures it is replaced by conscious of “I”. (Hofstede,1983) in countries where individualism is common, people are eager to try the new product earlier than the other members. (Lynn, Gelb, 1996)After all, we can say that in cultures where individualism is common, the acceptance rate of new product will be high and vice versa. In the light of these opinions; H2: There is a significant and positive relation between the dimension of individualism and acceptance rate of new product. Power Distance The meaning of power distance is whether power is distributed equally among the members of a society or not. In some national and local cultures, inequalities might appear in power distance. In societies where power distance is high, power is in the hands of a small group. Those without power are dependent on those with power. According to Hofstede, the hierarchical pyramid in the organizations is high in societies where power distance is high; centralism and formalism stand out and upward communication is low. (Çerik,1998) In a research on centralism and formalism, it was determined that in organizations where centralism and formalism is at a high level, the acceptance level of innovations is low.( Zmud,1982)Hofstede stated that in practice, there is a negative relation between power distance and individualism dimension. In countries where power distance is high, individualism is low; however, in countries where power distance is low, individualism is high.( Jain D, Maesincee,2005) Depending on our previous hypothesis on individualism dimension, we can say that in cultures where power distance is high, the acceptance rate of new products will be low and vice versa. In the light of these opinions; H3: There is a significant and negative relation between the dimension of power distance and acceptance rate of new product. Masculinity This dimension of culture is based on the relations between genders. In societies where masculine values are dominant, the roles are separated with bold lines between genders. Such masculine values as success and efficient use of power form the outstanding elements of culture. In societies where feminine values are dominant, the differences in roles between genders are few. ( Aydemir M., Demirci,2006) The common values in societies showing masuculinity character are success, competition, and struggle, winning and being powerful. On the other hand, the common values in societies showing feminine characterare cooperation, service, life quality and warm relations between individuals. (Çerik,1998) Hofstede believed that while the individuals in masculine societies believe in the philosophy of “living to work”, those in feminine societies belive in the philosophy of “working to live”. (Hofstede,1997) Focusing on ambition, competition, tangible values and performance is a characteristic of masculine culture. In organizations of masculine cultures, it is important to appreciate and favour performance, to educate and improve individuals. These characteristics are, at the same time, the characteristics of innovative organizations. Rogers, who have done extensive researches on the diseemination of new products, state that there is a positive relation between success motivation and innovation.(Waarts, Everdingen, 2005) Depending on these ideas we can say that in cultures where masculinity is high, the acceptance rate of new products will be high too and vice versa. In the light of these opinions; H4: There is a significant and positive relation between the dimension of masculinity and acceptance rate of new product. Hypotheses about Socio-economical Dimensions Acceptance and dissemination of new proıducts and ideas are affected by socio-economical factors, social interaction moulds and cultural interaction.(Ganesh,1998) There is a close relation between socioeconomical structure and innovation. Social characteristics of those who accept innovations earlier show that they are more educated, have higher statues, are better off and have wider influence.(Everest ,1995) 406 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo GNP The researches have shown that wealth has an important effect on the acceptance rate of new product in a country. For wealthy people, the cost of the new product forms only a little of their income. Therefore, they can take the risk to accept a new product. After all, risk is an important concept in the process of accepting innovations. ( Dickerson,Gentry ,1983) In the light of these opinions; H5: There is a significant and positive relation between the dimension of GNP and acceptance rate of new product. Urbanization Urbanization causes a decrease in traditional values and appearance of modern life styles by bringing the consumers of different cultures together. Modern production techniques, mass communication tools and consumption-oriented life style cause appearance of new consumption moulds and thus acceptance of new products rapidly. ( Hill, Stıll,1984) When people live and work, information and experience disseminate among individuals more rapidly. Cities where a large number of people live together involve convenient conditions for the application and development of new ideas and products. (Lambooy,2002) In the light of these opinions; H6: There is a significant and positive relation between the dimension of urbanization and acceptance rate of new product. Literacy Education open people’s minds and thus facilitates disseamination of new ideas. At the same time, it makes people sensitive about the importance of technology in personal development.(Tellis G., Stremersch,2003) Everest Rogers, who developed the theory of dissemination of innovations, determined that a positive relation between innovation and attitudes towards education was found in %73 of the researches having been carried out on the characteristics that determine the acceptance rates of innovations. Those who accept innovations earlier have a higher literacy rate than those who accept innovation later. (Rogers,1995) In the light of these opinions; H7: There is a significant and positive relation between the dimension of literacy and acceptance rate of new product. Research Model Figure 1 shows the model developed for the research. On this model, not only the direction of relations is shown but also dependent and independent variables are presented. In the research, the independent variables are power distance, individualism, masculinity and avoiding uncertainty, all of which constitute cultural dimensions, and GNP per capita, urbainzation rates and literacy for individuals above 15 years of age are control variables, all of which constitute socio-economical dimensions. Scope & Limitations of the Research In the research the aim was to analyse the effect of cultural dimensions which are among the factors affecting the acceptance rate of new product, and therefore, product-focsed factors and other environmental factors were not included into the scope of the research. Only the such socio-economical factors as GNP per capita, urbanization and literacy- which Hofstede suggested using as control variables while doing research about cultural dimensions- were used as control variables. As in all national cultural studies, this study also considers cultural borders as national borders. However, cultural homogeneity does not appear with political borders. Every country might include different cultural groups who socially stand out or lag behind. At this point, our study didn’t take sub-cultures into consideration. 407 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Independent Variables (Cultural Dimensions) - Avoiding Uncertainity Dependent Variables (Acceptance rates of New Products) - Internet H1 - PCs - Individuality H2 - Cell Phones - Power Distance H3 -Masculinity H4 Control Vriables (Socio-economical Dimensions) H5 - per capita GNP H6 H7 - Urbanization - Literacy Figure 1. Research Model Method The differences in the acceptance rates of new products among 80 countries were tried to be explained through cultural dimensions and such socio-economical factors as GNP per capita, urbanization and literacy were included into the model as control variables. While trying to explain a case with cultural variables, this type of socio-economical variables should be checked and included into the scope of research. (Tomasz, Kendall,1999) Hofstede also said that if, in a study, certain factors like economical and biological variables can explain a case, using cultural dimensions is not necessary and when they are used as a variables, such factors as GNP per capita should be used as an additional control variable. (Bagchi, Hart, Peterson,2004) Sampling The sampling is composed of 80 countries for which Hofstede developed scores about cultural dimensions. Data Collection The research was completely done by using secondary data. While determining the cultural dimensions of the countries, dimensions and scores calculated for these countries about these dimensions which the Dutch scientist Hofstede had developed by conducting 120.000 surveys in 80 countries were used. Hofstede’s study about cultural dimensions forms a theoretical base in researching the effect of cultural differences on the dissemination and acceptance of innovations.(Straub,1997) In order to measure the acceptance of new products, the study used the usage rates of cell phones, PCs and Internet as new products in the population of 80 countries. In 2004 “International Telecommunication Union” provided the numbers (http://www.itu.int/ITU-D/icteye/Indicators/WTI_Technotes.pdf., 14/01/2007) of Internet connection determined electronically by “Internet Software Concortium” according to the country code, of cell phones determined through subscriber number and of PCs determined through rgular surveys and different resources. The control variable- GNP per capita in 2004, urbanization and literacy of individuals above the age of 15- was provided by World Bank. 408 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Statistical Methods Regression analysis is used to analyse whether there is relation between two or more variables, if any, its direction and strength, and what kind of a change other variables change when one of the variables have a certain unit of change.(http://www.toraks.org.tr/mse-ppt-pdf/Kenan_KOSE3.pdf., 20/02/2007) Because we aimed to determine whether there is relation between cultural dimensions and the acceptance rate of new products and the direction of this relation, we also used regression analysis. Firstly, we analysed how cultural dimensions affect the acceptance rate of new products with multipl-regression method. Then, after including the control variables into the model as done in similar studies in the literature, we analysed how cultural dimensions affect the acceptance rate of new products with hierarchical regression method. Findings In order to form a more descriptive model and to make more accurate predictions, after checking socioeconomical dimensions, in order to determine what kind of an effect cultural dimensions have, as done in similar studies in the literature, ‘Hierarchical Regression Model’ was applied. In this way, socio-economical factors were kept under control; in other words, in order to determine what kind of an effect cultural dimensions have when socio-economical factors have the same level in all the observation units, socio-economical control variables were added to hierarchical regression model in the first step and then cultural dimensions were added. Table 2 shows the findings about hierarchical regression model. Table 2. Findings about Hierarchical Regression Model Model Internet PCs Cell Phones Ayarlanmış F Significance Modulated F Significance Modulated F Significance R2 Level R2 Level R2 Level 1.Step %43,5 18,964 0,000 %50,9 24,141 0,000 %55,3 29,864 0,000 2.Step %70,7 25,178 0,000 %79,6 38,247 0,000 %64,3 19,013 0,000 Table 2 shows the results about the appropriateness and importance of hierarchical regression model. Analysing F values, it can be seen that the model is important in explaining the relation between independent variables and the acceptance rate of new products. (Internet; F=25,178, p<0,001, PCs; F=38,247, p<0,001, Cell Phones; F=19,013, p<0,001). Analysing the values of R2 coefficient, which denotes how much of the change in dependent variable is explained by independent variables and which is a measure of consistency of the model, it can be seen that the model has a high coefficient in explaining the change in the dependent variable. (Internet; R2= %70,7, PCs; R2=%79,6, Cell Phone; R2= %64,3). This shows that the model explains %70,6 of the change in acceptance rate of internet dependent variable in international markets. The remaining %29,3 can be explained by other factors not included into the model and thought to be product-centred. For PCs, the model explains %79,6 of the total change and the remaining %20,4 can be explained by other factors thought to be about the characteristics of the computer itself. Similarly, for cell phones, the model explains %64,3 of the total change and the remaining %35,7 are explained by other factors. Findings about Culturel Dimensions In the hierarchical regression analysis, in the first step, socio-economical variables were put into the model while in the second step cultural dimensions were included and what kind of change cultural dimensions experienced after socio-economical factors were checked was analysed. As seen in Table 2, values of R2 caused a change of %27,7 for internet, of %28,6 for PCs and of %10,7 for cell phones in the second stage when cultural model was included into the model. In other words, after checking the socio-economical factors, the cultural dimensions explain %27,7 of the change in the acceptance rate of internet in the international market, %28,6 of PCs and %10,7 of cell phones. (p<0,001). This shows that cultural dimensions have a strong effect on the acceptance rate of new products. Table 3 presents the analyses results that show the effects of each independent variable in the model. Tablo 3 also shows β coefficients and p values of each independent variable as a result of hierarchical regression analysis. β Coefficient is defined as a curve and it shows the change in the dependent variable when the independent variable increases one unit. (http://analiz.ibsyazilim.com/egitim/kk.html.,04/03/2007) Some of the β coefficients in the Table are positive while some are negative, which show the direction of the relation.( Çatı, Yılmaz,2002) P values give information 409 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo about whether there is a statistically significant relation between the dependent and independent variables. In social sciences, it is accepted that there is a statistically significant relation when the p value is smaller than 0,05. Table 3. Results of Hierarchical Regression Model Internet 1. Step 2. Step β Coefficient 0,278 0,320 0,304 0,103 0,244 0,242 -0,256 GNP Urbanization Literacy GNP Urbanization Literacy Avoiding Uncertainity Individualism 0,380 Power -0,125 Distance Masculinity -0,139 PCs 0,004 0,005 0,009 0,151 0,006 0,006 0,001 β Coefficient 0,458 0,347 0,161 0,272 0,288 0,099 -0,233 0,000 0,155 0,047 P Value Cell Phones 0,000 0,001 0,140 0,000 0,000 0,177 0,000 β Coefficient 0,330 0,281 0,395 0,222 0,190 0,309 -0,005 0,000 0,006 0,000 0,006 0,050 0,002 0,953 0,295 -0,249 0,001 0,002 0,304 -0,121 0,005 0,215 -0,093 0,124 -0,001 0,994 P Value P Value Findings about Avoiding Uncertainity As a result of the analyses, when the p values (Internet p=0,001, PCs p=0,000, cell phone p=0,953) are analysed, it can be seen that there is a statistically significant relation between the acceptance rates of Internet and PCs in international markets and the dimension of avoiding uncertainity, but no significant relation for cell phones. When the β values (Internet β= -0,256, PCs β= -0,233, cell phone β= -0,005) are analysed, it can be seen that the relation between avoiding uncertainity and dependent variables is negative. These results support our H1 hypothesis except for cell phones. The fact that there isn’t a significant relationship for cell phones might be because relative advantages of cell phones- which are among product-centred characteristics- are very much. In the periods when cell phones first entered the Turkish market the sales rose rapidly. Analysing this consumption tendency, it can be argued that the idea that possessing a cell phone gives a status made the product a symbol of status, which caused such a rapid acceptance rate of this product.(Gegez,2003) This rapid acceptance rate decreased the uncertainity rate we analysed in 2004. Findings about Individualism The dimension of individualism was determined to be the factor with the biggest effect on the acceptance rate of the new product. Analysing the p values (Internet p=0,000, PCs p=0,001, cell phones p=0,005), it can be seen that there is a statistically significant relation between the acceptance rates of Internet and PCs in international markets and the dimension of individualism. When the β values (Internet β= 0,380, PCs β=0,295 cell phones β=0,304) are analysed, it can be seen that the relation between individualism and dependent variables is positive. These results support our H2 hypothesis strongly. Findings about Power Distance As a result of hierarchical regression, when the p values for the dimension of power distance (Internet p=0,155 PCs p=0,002, cell phones p=0,215) are analysed, it can be seen that there is a statistically significant and strong relation between the acceptance rate of PCs in international markets and the dimension of power distance, but no important relation for Internet and cell phones at all. When the β values (Internet β= -0,125, PCs β= -0,249, cell phones β= -0,121) it can be seen that the relation between the dimension of power distance and dependent variables is negative. These results partly support our H3 hypothesis through PCs. The reason why there isn’t a strong relation for Internet and cell phone as foreseen might be due to product-centred factors. While forming our hypothesis about power distance, depending on the literature, we said that in societies in which power distance is high centralization and formalization will be high, that in organizations in which centralization is high, top management won’t be aware of operational problems and the top management won’t be able to put the innovations into use to solve these problems. However, Internet and cel phones have a characteristic to ease communication between senior and junior management. Due to these characteristics, they are such products that decrease power distance. 410 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Findings about Masculinity When p values about masculinity dimension (Internet p=0,047 PCs p=0,124, cell phones p=0,994) are analysed, it can be seen that there isn’t a statistically significant relation between the acceptance rates of PCs and cell phones and masculinity dimension, but there is just a little relation for Internet. Contrary to what we foresaw, the β values (Internet β= -0,139, PCs β= -0,093, cell phone β= -0,001) have negative values for all dependent variables. These results do not support our H4 hypothesis for the three dependent variables. According to Hofstede, in societies whose masculinity level is low, what is small and slow is nice; however, in societies whose masculinity level is high, the opposite is true. The products in our research are generally both small and fast. Due to such complexity about the products, it can be argued that there is no relation between masculinity dimension and acceptance rate. Findings about Socio-economical Dimensions As seen in Table 1, when the F values of the first step in which socio-economical factors were included into the model as independent factors are analysed, it is seen that the first model is an important model in explaining the relation between socio-economical variables and acceptance rates of new products. (Internet; F=18.964, p=0,000, PCs; F=21.141, p=0,000, Cell Phones; F=29.864, p=0,000). When R2 values, which denote how much of the change in dependent variable is explained by independent variables and which is a measure of consistency of the model, are analysed, the following is found: for Internet R2= %43,5, for PCs R2=%50,9, and for Cell Phones R2= %55,3; that is, such socio-economical factors as GNP, urbanization and literacy explain %43,5 of Internet’s, %50,9 of PCs’ and %55,3 of cell phone’s acceptance rate in international markets. Findings about GNP When we analyse the p values to measure the relation between GNP and the new product, it can be seen that in the first step, during which only socio-economical factors were put into the model, p values for Internet is p=0,000, for computer is p=0,000, and for cell phones it is p=0,000. That is to say that, for the three products, there is a strong relation between GNP and acceptance rates of the products. In the second step, during which cultural dimensions were put into the model, p values for Internet is p=0,151, for PCs is p=0,000, and for cell phones it is p=0,006, which means that when cultural dimensions were included into the model, the explainability of the change in GNP did not exist for Internet and decreased for the other two products. When the β values are analysed, it is seen that the relation is positive. These results support our H5 hypothesis. Findings about Urbanization When we analyse the p values to measure the relation between urbanization rates and acceptance rates of new products, in the first step in which only socio-economical factors were put into the model, the following are seen: p=0,005 for Internet, p=0,001 for PCs and p=0,006 for cell phones. That is, for the three products there is a strong relation between GNP and acceptance rates of these products. In the second step in which cultural dimensions were included into the model, the following p values were found: p=0,006 for Internet, p=0,000 for PCs, p=0,050 for cell phones. That is, when cultural dimensions were included into the model, the explainability of the independent variable urbanization decreased a little but did not disappear. When the β values are analysed, it can be seen the the relation is positive. These results support our H6 hypothesis strongly. Findings about Literacy When we analysed the p values to measure the relation between GNP per capita and the new product, in the first step in which only socio-economical factors were put into the model, the following are seen: p=0,009 for Internet, p=0,140 for PCs and p=0,000 for cell phones. That is, there is strong relation between the acceptance rates of these products and Internet and cell phones but there is no significant relation between PCs. In the second step in which cultural dimensions were included into the model, the following p values were found: p=0,006 for Internet, p=0,177 for PCs and p=0,002 for cell phones. That is, when cultural dimensions were included into the model, there wasn’t an important change in the explainability of the rate of urbanization. When the β values are analysed, it can be seen the the relation is positive. These results support our H7 hypothesis except for PCs. 411 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Result & Suggestions In our research on 3 products in 80 countries, it was shown that socio-economical factors and cultural dimensions have significant effects on the acceptance rates of new products in international markets. In general, in countries where GNP, urbanization and literacy rates and individualism scores are high and in those where avoiding uncertainity and power distance scores are low, the acceptance rates of new products are higher. In the analysis, during which the effects of socio-economical control variables were checked, it was found that the strongest effect on the acceptance rate of new products was caused by individualism dimension and urbanization rates. This was followed by literacy rates, avoiding uncertainity and power distance dimensions respectively; however, no relation was found between masculinity dimension and the acceptance rate of new products. Another important result of the research is about the notion of globalisation. In the literature, contrary to the thesis that globalisation eliminates cultural dimensions and drags the world into a one-cultured structure, it was determined that cultural factors were still important determiners in 2004. Presentation of new products is one of the most complicated decisions international marketing managers come up against. Cultural differences in international markets are another important factor that increases this complexity and affects all its dimensions. Understanding the factors that affect the acceptance of new products enables international marketing managers to predict the demand level they will get in the target market and to make the required adaptations on the product according to the characteristics of ther market. The results can help the companies that will introduce new products to international markets in presentation tactics. It will be a successful presentation tactic to introduce the new products to such markets that will accept them easily due to high rates of individualism and urbanization because the extensive acceptance rates in these markets will decrease uncertainity about the product for the customers in other markets and thus enabling them to be accepted more easily in other markets. The research is a sort of guide for international marketing managers in marketing tactics for new products. Especially in efforts for sustainability of the market it will yield effective results if adaptations are done in accordance with these results. For example, in countries where individualism level is low and level of power distance is high, international marketing managers can delegate their efforts for sustainability of the market to opinion leaders because the effect of opinion leaders on group members is more in such societies. The products and ideas opinion leaders accept are adopted by other members. In societies where avoiding uncertainity and power distance levels are low and individualism level is high, according to our findings, the acceptance rates of new products are high. Therefore, in such markets, emphasizing the innovation and difference of the product will attract the customers’ attention. On the other hand, in societies where avoiding uncertainity is high, since people give importance to factors decreasing risks applications like warranties, aftersales service, product samples must be emphasized as a part of such a tactic that increases acceptance in such societies. References Aaker, J. L., Maheswaran, D. (1997). “The Effect Of Cultural Orientation On Persuasion”, Journal Of Consumer Research, V:24, p. 315. Aydemir M., Demirci M. K. (2006). Đşletmelerin Küreselleşme Stratejileri ve Kobi Örnekleminde Bir Uygulama, Ankara, Gazi Kitabevi, p. 33. Bagchi K., Hart, P., Peterson, M. F. (2004). National Culture And Information Technology Product Adoption” Journal Of Global Information Technology Management, V:7 I:4, p. 29. Çatı, K., Yılmaz, A. (2002). “Hastaların Hastane Hizmetlerinin Kalitesini Algılama Düzeylerinin Araştırma”, Pazarlama Dünyası Dergisi, Sayı: 2002-4, Temmuz-Ağustos 2002, p. 49. Ölçümüne Yönelik Bir Çerik, S. (1998). 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International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Ganesh, J- (1998). “Convering Trends Within The European Union: Insights From An Analaysis Of Diffusion Patterns”, Journal Of International Marketing, v: 6, ı:4, p. 36. Gegez, E., Arslan, M., Cengiz, E., Uydaci, M. (2003). Uluslararası Pazarlama Çevresi, Đstanbul, Der Yayınları, p. 124. Hill, J.S., Stıll, R. R. (1984). “Effects Of Urbanization On Multinational Product Planning: Markets In Lesser-Developed Countries”, Columbia Journal Of World Business, Summer 1984, p. 63. Hofstede, G. (1997). Cultures And Organizations: Software Of The Mind, McGraw Hill Inc., p. 96. Hofstede, G. (1983). “The Cultural Relativity Of Organizational Practices And Theories”, Journal Of International Business Studies, V:14 I:2, p. 79. Lambooy, J. G. (2002). “Knowledge And Urban Economic Development: An Evolutionary Perspective”, Urban Studies, v:39, ı: 5, p. 1029. Lynn, M., Gelb, B. D. 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(1999). “A Framework For Culture Assessment”, Journal Of International Business Studies, v:30, ı:4, p. 784. Waarts, E., Van Everdingen, Y. (2005). “The Effect Of National Culture On The Adoption Status Of Innovations: An Empirical Study Of Firms Across Europe”, European Management Journal, V: 23 I:6, p. 603. Zmud, R. (1982). “Diffusion Of Modern Software Practices: Influence Of Centralization And Formalization”, Management Science, v:28, ı:12, p. 1429. http://analiz.ibsyazilim.com/egitim/kk.html., (04/03/2007) http://www.itu.int/ITU-D/icteye/Indicators/WTI_Technotes.pdf., (14/01/2007) http://www.toraks.org.tr/mse-ppt-pdf/Kenan_KOSE3.pdf., (20/02/2007) 413 � 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. 283 Title A name given to the resource Assesment of Cultural Aspects of Hofstede with Socio-Economical Factors in new Product Acceptance Author Author TASKIN, Ercan ÖZYASAR, Hasan SENER, H. Yelda Abstract A summary of the resource. Enterprises should be able to know and appreciate different cultural environments in order to be successful in international marketing. Companies in international marketing should form their marketing activities by taking different cultural characteristics of different countries into account. They should also perform the necessary adaptations to different cultures in such activities as product, pricing, decision of distribution channel and promotion. On the other hand, in adapting marketing activities to different cultures, Hofstede’s study about cultural dimensions including avoiding uncertainties, individualism, power distance and masculinity has guided many related researches. In this study, assessing Hofstede’s cultural dimensions in terms of such products as internet, PCs and cell phones, and such socio economical factors including GDP, urbanisation and literacy, the effect of these factors on the acceptance of new products were analysed. The data were then interpreted with regression analysis. 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 HB Economic Theory https://omeka.ibu.edu.ba/files/original/adc08177e1d0ded8239273645e2170f0.pdf 1595dd6bfc4ebddba1c692a8fb7583f5 PDF Text Text 1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo A Research Survey on People who has not Fire Insurance Kamil TAŞKIN Researcher, The Faculty of Economics and Administrative Sciences, Sakarya University, Turkey, ktaskin@sakarya.edu.tr Recep YILMAZ Lecturer, Karasu Vacationaly School, Sakarya University, Turkey, rcyilmaz@sakarya.edu.tr Fatih Burak GÜMÜŞ Researcher, The Faculty of Economics and Administrative Sciences, Sakarya University, Turkey, fbgumus@sakarya.edu.tr Abstract: Fire Insurance Usage in Turkey is very small stage now. Turkish people often use the other insurance types like car, earthquake, and asset. The reasons why this situation has not been researched up to now. In our study, we prepared a survey which measuring the reasons of less usage levels of fire insurance. We applied to the survey nearly to 170 people which not use fire insurance policy. After the survey, we entered the data into spss program. We applied some tests and we got some results about fire insurance less usage level in Turkey. Keywords: Insurance, fire, survey, tests Introduction: Real estate investments are a very cost-effective investments for businesses and legal entities. These costs make up 3 basis. Property of the land value, property value and environment value. In case of sudden disaster, (fire, earthquake, flood, etc..) land value does not lose its value, but houses will lose their value for the owner. Housing and office prices are high today, the people who have suffered from damage will force the resources to bringing back. The insurance sector developed insurance policies to minimize the risk like fire, accident, earthquake. Today, housing and dwelling fire insurance have been developed in case of the tangible damage for the property to protect the owners of builts. Although fire insurance based on historical areas, this type of insurance has not been developed at Turkey. This study focus on the reason why the fire insurance branch has not been expanded all over the country. Insurance Sector In World: In economic terms, insurance refers to the pooling mechanism used to reduce the downside of risk (Masci and Tejerina; 2006;1). The insurance industry forms an integral part of the global financial market, with insurance companies being significant institutional investors. In recent decades, the insurance sector, like other financial services, has grown in economic importance (Hussels, Ward, Zurbzuegg; 2005, 258-259) Twenty years ago, banks and insurance companies maximized the size of their balance sheets: banks accumulated assets in search of a larger market share, and the insurance industry was mostly liability driven. Recent years, risk has increasingly transferred from banks to nonbank institutions such as insurers, mutual funds, pension funds and hedge funds ( Hausler; 2004,1). Insurance sector has been increasing its huge economic and strategical power. In many countries insurance sector has more improved structure and economic power than banking sector (Ünal,1994,46). At table 1 shows the Premium production of developed countries and turkey. As table 1,developed countries has a huge percentage in total Premium production. Only USA produced excess to 1 trillion dollars. This means the giant size amount of funds which could be effected to economies. 321 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Table1 : Premium Production In World In 2003. Billion Dolar Countries % USA 1.117.944 35,41 Japan 472.820 20,62 United Kingdom 254.363 8,63 Germany 170.137 5,77 France 161.483 5,48 Sweden 39,876 1,35 Turkey 3,316 0,11 (www.swissre.com) Insurance firm has more affect on economic structure. The biggest insurance firm is the Citigroup and it has 1.4 trillion asset structures. The first 100 firm have asset changing between 1.100 and 243 billion dollar (Oskay, 2005; 64). Insurance Sector in Turkey In Turkey insurance sector has not been developed in comparison with developed country. For example, European Union Countries produced 1.1 trillion US dollar insurance premium in 2004. The same year, England become the country which the most piled insurance premium with 294 billion US Dollars (www.tsrb.org.tr). In 2003, USA produced 1.117,944 billion US dollar. 322 124 201 369 671 1.427 2.602 5.272 11.099 20.471 40.807 82.689 182.635 354.669 623.522 1.144.889 1.600.478 2.355.308 3.300.858 4.271.629 5.042.403 6.236.143 Fire insurance premiums to the total rate (%) Amount of fire insurance premiums collected Years 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Quantity of collected insurance premiums Table 2: All And Fire Insurance Premium Production 33 54 93 167 283 408 781 1.792 3.785 7.043 13.870 27.469 49.104 100.971 165.252 284.233 419.531 529.173 655.711 733.046 1.192.800 27,01 26,70 25,33 24,92 19,81 15,68 14,82 16,14 18,49 17,26 16,77 15,04 13,85 16,19 14,43 17,76 17,81 16,53 15,35 14,54 19,13 7.052.563 1.105.287 www.hazine.gov.tr 15,67 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Table 2 shows that total and fire insurance Premium production in accordant to years. Sector is incline to improve but this inclination is a bit slow. Foreign investors and professional management shortage is the biggest problems in Turkey’s Sector. Survey Research Our survey research have been put into practise in Marmara region and along april and may in this year. Survey have been filled by 170 participants nearly. Aim of this study is to measure of the reason why less level fire insurance and knowlodge level of the participants about fire insurance and fire measurments. There is no academic research to measure to inclination of not being made fire insurance. This is the first and ongoing academic research on this topic. In Turkey, although insurance sector is incline to develop but either insurance capacity or fire insurance production is very low level. In Table 1 and Table 2, this situation are being appeared clearly below. 194% 176% 184% 140% 147% 136% 133% 118% 124% 113% Percentage Of Increase level Of Fire Insurance Year 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Percentage Of Increase level Of Total Premium Table 3: Amount Of Total And Fire Insurance Premium In Turkey As Graphic 250% 200% 150% 100% 179% 206% 164% 172% 148% 126% 124% 112% 163% 93% 50% 0% 1998 1999 2000 2001 2002 Percentage Of Increase level Of Total Premium 2003 2004 2005 2006 2007 Percentage Of Increase level Of Fire Insurance In accordant to these table, Turkey produced 7,05 billion US Dolar and the percent 15,67 of this produced premium is fire insurance. Total premium level and fire insurance level are increasing inclination but this inclination is very slow and inadequate. Table 2 shows that percentage of increase level of total premium and percentage of increase level of fire insurance. Comparation with England, Turkey’s total premium level is very small, nearly 1,5 percentage of England’s premium production. Educational degree Mountly income Gen der Table 4: Participant’s Gender, Mounthly Income And Educational Degree Frequency Percent Man 114 70,80 Woman 47 29,20 333 - 666 $ 36 22,36 667 - 999 $ 52 32,30 1000 - 1333 $ 36 22,36 1334 - 2000 $ 24 14,91 2001 - 2666 $ 7 4,35 2667 and over $ 6 3,73 Primary School 19 11,80 Secondary School 24 14,91 High School 53 32,92 Associate Degree 7 4,35 B.A. 49 30,43 Master and over Degree 6 3,73 323 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Upper table shows the participants pecularities. Striking point of this table that is the participants’ income level. % 55 of participants has income below 1.000 US dollar. This is the most important reason about less level of fire insurance demand. The more income level increase, people are incline to spend their funds to insure their goods. This is the reason why is the insurance sector more strong and effective on economy at developed countries at the same time. At these countries, people have more income in accordance to undeveveloped countries’ people and spend their income to getting valuable goods and insure them. In our country, people reasonable wages and they are incline to spend this income to essential poverty. 1 2 3 4 5 6 7 8 9 Table 5: Why Do You Not Use The Fire Insurance ? Frequency Why Do You Not Use The Fire Insurance? Nobody offered me to fire insurance 62 A low probability of fire out 54 I have no information about this type of insurance 53 I'm getting my own measures 50 I have no enough income to spent to premium of fire insurance. 49 Premium amounts, too much 48 Fire insurance to do was continually postponed 26 I have no confidence in the insurance sector 24 I've done before, never satisfied 8 Percent 38,5% 33,5% 32,9% 31,1% 30,4% 29,8% 16,1% 14,9% 5,0% If we take a look at table 4, it is obvious that the most striking result is weakness of marketing. Agencies and insurance firms think about this topic. If marketing operation is accelerated, it is probable that fire insurance branch may be extended. 62 participants and 53 participants declared that we had not enough information about fire insurance and its benefits. A huge percent of participants declared that fire out probability is very small. In accordance to other risk (desiases accident...), fire out probability may be seen as very small probability but expand speed and damage of fire could be very effective and mortal. The other result of this table is existence of high premium prices and having income level weakness. Table 6: During your life, have you ever eyewitnesses very close to any fire around your house? Frequency Percent 52 32,30 Yes 108 67,08 No The reason why the people who has not fire insurance policy could be that they have never seen a fire around their houses. % 67 of participants have not been eyewitnesses to fire. This is a psychological result. The people are incline to focusing on things effected them. As a result, It is clear that marketing and enlightment studies must be increased by the firm. In point of result of fire, fire always has a big risk. Table 7: Are you owner of house which you sit in? Frequency Percent Yes No 110 49 69,32 30,43 110 participants have own houses. The others have not own houses and tenant of their house. Whereas % 69 of participants have own houses, they are not interested in make fire insurance. 324 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Table 8: How many people do you know who have fire insurance around you? Frequency Percent No have 1 person 2-3 person 4-5 person 6-7 person 8 and over 91 22 39 6 1 1 56,52 13,66 24,22 3,73 0,62 0,62 Small percentage of fire insurance is appeared at this table again. % 56 of participants has no identified to people has fire insurance. Table 9: Do you know the risks are covered by fire insurance policy in detail? Frequency Percent Yes No 10 149 6,21 92,55 Participants have neither knowledge fire insurance nor coverage of fire insurance policy. Whereas fire insurance has different some coverage like thunder and exploit. Table 10: Do you have the measures which of the followings related to the fire in your home available? Frequency Percent Fire extinguisher 71 1 41 % 30 2 Fire escape 18 % 16 3 Fire alarm 9% 4 4 Sand bucket 2% Fire Cabinet 8 5 5,0 % 0 6 Fire Ball 0% No one 41 7 25 % Most preferred equipment is fire extinguisher in the case of fire in accordance to answers. Fire alarm, cabinet and escape are not affected to extinguish to fire. These measurements are helpful to after fire occurred. % 25 of participant has no any measurements about fire. This is the most important result shows that disregarders of fire risks of this table. Table 11 : Have you enough information about fire protection? Frequency Percent 59 36,65 Yes 100 62,11 No % 62 of participants have no enough information about protection of fire. Although communication possibilities are very widen, this high percentage shows that communication possibilities are not used usefully. Booklets, tv and radio programs must be used for enlighment to people to protect from fire and precautions before the fire occurred. 325 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Table 12: Cross table of "income" and "Why do you not use the fire insurance?" Cross table used for comparing with income level and the reasons not to do fire insurance. In accordance to the Table 11, the participants who have not reasonable income are getting their own measures and they find to Premium price are very high. Medium level incomed participants have less confidence to insurance sector. The more income is higher, measurements against to fire decreaser and the reason of high premium price decreaser. Conclusions: As Turkish Insurance sector has lots of problem, fire insurance branch has some obstacles and problems. Although fire risk and its results’ fatality is big, lots of participants ignore to fire insurance. As survey fire insurance branches 3 main problems; 1. The biggest problem is weak income level. Turkish per capita income is incline to increase but it is not enough for improvng to insurance sector. The people has huge income incline to spend their funds to precious goods. As a result precious goods need to be insured. 2. Marketing deficiency is the other big problem. Most of participants declared that they had no knowledge about sector and had not get any fire insurance proposal from agencies. 3. Not to understand of fire risk and its result. It is a bit connected with educational level. References Hussels Stephanie; Ward Damian; Zurbruegg Ralf ; “Stimulating The Demand For Insurance” Risk Management and Insurance Review, 2005, Volume. 8, No. 2, 257-278 Targan, Ünal ; “ Türk Sigortacılık Sektörünün Ekonomik Đşleyişi ve Fon Oluşturma Kapasitesi; ĐTO Publishing, Đstanbul 1994 “Avrupa Birliğinde Sigorta Sektörünün Vergilendirilmesi” http:/www.tsrsb.org.tr Oskay; Suna; “Küresel Sigorta Piyasalarında Türk Sigorta Piyasasının Rekabet Gücü” 2005 http://www.soksay.com/econet/downloads/K%C3%BCreSig.pdf Hausler, Gerd ; “Risk Transfer and the Insurance Industry”; Contributions from the 31st General Assembly of the Geneva Association, June 2004 Masci Pietro; Tejerina Louis . ; “Insurance Market Development in Latin America and the Caribbean” http://199.79.166.188/sds/doc/FINALIN SURANCEPAPER _Masci_Tejerina.pdf www.swissre.com 326 � 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. 236 Title A name given to the resource A Research Survey on People who has not Fire Insurance Author Author TASKIN, Kamil YILMAZ, Recep GÜMÜS, Fatih Burak Abstract A summary of the resource. Fire Insurance Usage in Turkey is very small stage now. Turkish people often use the other insurance types like car, earthquake, and asset. The reasons why this situation has not been researched up to now. In our study, we prepared a survey which measuring the reasons of less usage levels of fire insurance. We applied to the survey nearly to 170 people which not use fire insurance policy. After the survey, we entered the data into spss program. We applied some tests and we got some results about fire insurance less usage level in Turkey. 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 HB Economic Theory https://omeka.ibu.edu.ba/files/original/752c8f814db27b34f1861c7890b3aedf.pdf 3306ce1e3d72374c638706fa27097e78 PDF Text Text 1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Relation between Real Effective Exchange Rate And IMKB -100 Index (Istanbul Stock Exchange) Yusuf TOPAL Faculty of Economic and Administrative Sciences Afyon Kocatepe University, Türkiye ytopal75@hotmail.com Ali AKGÜN Faculty of Economic and Administrative Sciences Selçuk University, Türkiye akgunali@hotmail.com Abstract: Stock exchange is a market where long-term investment instruments are purchased and sold such as share certificates, bonds etc. Stock exchange market is divided into two; developed and emerging stock markets. Developed stock markets are financial markets with a great depth which display activity in industrialized countries and constitute international financial market. Emerging stock markets are the stock exchange markets with a shallow depth which display activity in developing countries. Istanbul Stock Exchange has a rather important place among these stock exchange markets. Emergence of the new capital markets, increase in financial liberalization and expansion of flexible exchange rate regimes caused an increase in the examination of exchange rate and stock exchange market. Developing economies that gradually abolished control on exchange rate, paved the way for international investments and portfolio diversification. Today, it’s seen that savers basically directs the funds in their hands to three instruments for the purpose of investment. They are interest, foreign exchange and stock exchange market. Investors who are the savers attempts to increase their returns in the maximum rate with the portfolios they constituted from among these three instruments. When the literature is examined, it’s seen that there are many studies which examined relation between interest and stock exchange market from among these financial instruments. Result from these studies is that there is a negative, that is, an inverse relation between stock exchange market indices and interest rates. And purpose of this study is to see whether or not there is any long-term relation between real efefctive exchange rate and IMKB-100 index (Istanbul Stock Exchange), if any, to determine the direction of this relation. In this study, three-month data of real effective exchange rate (REDK) and IMKB-100 index for 1990-2005 periods have been used. Starting point of study is the year 1990. Its reason is to test presence of long term relation between real effective exchange rate (REDK) and IMKB-100 index by using long-term data that we could reach. Data sets used in study are the values of indices and were received from Central Bank Electronic Data Distribution, Republic of Turkey (EVDS). Long-term relation was examined and empirical findings were proved by using Johansen-Juselius co-integration test (JJ). As a result of examination above, it was ensued that ther was a long-term positive relation between real effective exchange rate (REDK) and IMKB-100 index (Istanbul Stock Exchange). Keywords: Exchange rate, ISE Introduction Stock Exchange is a market where long term investments like stocks, bonds are bought and sold. Thanks to stock exchange the people’s savings are attracted to firms as capitals. In this way, capital is expanded to the base of the society. The firms which have a achieved a certain level of size and which are registered to stock exchange meet their long term fund needs by exporting shares and bonds which have better conditions than bank loans. The diffusion of shares to the base in particular realized through stock exchange. As for debt capital, bonds more alluring than long term bank loans both in terms of interest rates and of payment and of due date. In this way, by means of stock exchange both the volume of capital markets enlarges and the long term fund request from banks relieves. In addition, stock exchange has the following important functions like providing liquidity, being an economic indicator, diffusing the property to the base, and creating source for funds. Stock exchanges are divided into two as developed and emerging stock markets. Developed stock exchanges are financial markets of great depth which are active in developed countries and which create international financial market. Emerging stock exchanges are shallow markets which display activity in developing countries. One of the most important characteristic features of these stock markets is that they are 299 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo easily affected from many parameters and thus having unstable yields for investors. Sometimes, these stocks can perform very well, and sometimes they can cause investors loose a fortune. Istanbul Stock Exchange holds an important place among these kind of stock exchanges. Stock exchanges function as the barometer of economic, social and politic life in all the countries of the world. Changes, developments and problems in economic, social and political life are immediately reflected in stock exchange. The changes in national economic lives and indicators and international economic data have important direct effects on stock exchange and even causes great fluctuations. International economic data affect and direct emerging stock exchanges at least as much as changes in national economies. Real effective foreign exchange currency became common in 1970s with the introduction of floating exchange rate. As floating exchange rates became more common, the multisided changes in rate of exchange have become more important in terms of trade competitiveness. The change in the value of a currency with regard to other certain currencies is the indicator of both the change in foreign currency market and in competitive power of trade. This is the nominal effective rate. However, as the inflation rate of the countries experience is different, the nominal effective rate is inadequate in indicating trade competition power. If the value currency of the country loose is so that it can compensate for the difference between the inflation rate in a given country and the inflation rate, it means that real currency remains the same. In other words, there is no change in trade competition power, which stems from currency change. The real increase or decrease in effective currencies is used as indicators of change in foreign exchange market and competitive power. To obtain real value from nominal value, the foreign exchange rate is regulated in accordance with the difference between the inflation rate of a given country and the world. In the first part of this study, the literature review on the studies examining the relation between foreign exchange rates and foreign exchange is provided. The second part of the study includes three main headings; methodology, purpose, method and findings. Finally, the conclusion is given. Literature Review With the emergence of new capital markets, and with the increase in financial liberation and flexible currency regime, the number studies into the nature of the relation between foreign exchange rate and stock exchange increased. The developing economies that are gradually lifting the control over foreign exchange have opened the way to international investments and portfolio diversity. Also, the countries that adopted a more flexible currency regime have increased the floating in foreign exchange markets. Classical theory of economy suggests that there is a relation between stock and foreign exchange. For example; according to free currency, it is a well known fact that international competition and trade balances are affected from money movements. Besides, this situation has an important effect on the countries real outputs which determine the current and future cash flow of the firms and share prices (Dornbush and Fisher, 1980). Movements in share prices can also affect foreign exchange rate. According to monetarist model, equity capital can affect money demand and foreign exchange rate movements (Gavin,1989). In the previous studies which mostly examined the foreign exchange and shares markets in the US have found various results. For example, Aggarwal found out that the revaluation in US dollar affected share prices positively. On the contrary, Soenen and Hennigar found a negative relation during the years 1980-1986 they took into consideration. Roll who used daily data between 1988 and 1991 found a positive relation between the two markets. On the other hand, Chow et al. who made use of monthly data in the period between 1977 and 1989 didn’t find any relation between the two markets. Apart from these studies, Bahmani-Oskooee and Sohrabian were the first to use the congregation test in their examination of the relation between the two markets. They made use of the monthly data between 1973 and 1988 and found out that there was a dual relation between the two effective foreign exchange rate and S&P 500 index in the short term. Ajayi and Mougoue who used the data of eight industrialized countries of the period between 1985 and 1991 found significant relations. To make it clear, they found that there was a negative relation in short term and a positive relation in long term and that shocks in foreign exchange rates have a negative effect on share markets. Abdalla and Murinde who studied the relation between foreign exchange rate and share market by making use of data between 1985 and 1994 four Asian countries found that there wasn’t any relation in Pakistan and Korea and that there was a relation between these two markets in India and Philippines but these relations were not in the same direction. Muhammed and Rasheed who studied four southern Asian countries by using monthly data between 1994 and 2000 found no relation in Pakistan and India, whether in short or in long terms. In a study, Phylaktis and Ravazzolo (2000) who examined the performances between foreign exchange rate and share prices between 1980 and 1998 in Pacific region countries found a positive relation between the two markets. Amare and Mohsin (2000) studied the relation between foreign exchange rate and share markets in nine Asian countries. In their study, they studied the monthly data between January, 1980 and June, 1998 by making use of co-integration technique. As result of their study, they found a long term relation only in Singapore and Philippines. Murinde and Poshakwale found a relation between share prices and exchange rates 300 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo before Euro and after Euro period in Hungary, Czech Republic and Poland. The result of this study indicated that before Euro there was a one sided relation only in Hungary and that there was s strong dual relation in Czech Republic and Poland. Gupta, Chevaliler and Sayekt who studied the relation between foreign exchange rate, share market and interest rates in Jakarta economy found a weak one sided relation between foreign exchange rate and share prices. Kim K. found a negative relation between S&P 500 index and real foreign exchange rate. Stavarek studied the relation between foreign exchange rate and stock exchange rate in four older European Union members and in four new members and in the US. According to the data obtained in this study, there was a stronger relation between foreign exchange rate and share prices in older EU members and in the US -whose capital markets are developed- compared to the new members of EU. Besides, this study proved that mostly there is a direct and one-sided relation between these two markets. Finally, in similar studies, it was concluded that real effective foreign exchange rate is more suitable than nominal effective foreign exchange rate. Methodology Aim Today, saving accounts owners direct the funds they have to three main instruments for investments purposes. These are interest, foreign exchange and stock exchange. The investors try to increase their income to maximum by means of portfolio they compose of these three main instruments of investment. Funds can spare more space to one of these three instruments in accordance with circumstances in global and national economy. When the literature was reviewed, it is seen that there are many studies examining the relation between interest and stock exchange. The common result of these studies is that there is a negative- that is a reverse- relation between stock exchange rate and foreign exchange rate. The main aim of this study is to determine whether there is a long term relation between real effective foreign exchange rate and IMKB-100 index and if there exists what is the direction of this relation. Data In this study, three months data of real effective foreign exchange rate (REFER) and IMKB-100 index between 1990-2005. The study started in 1990. The reason to start this study so early is to test the existence of a long term relation between REFER and IMKB 100 index by making use of the oldest data available. The data set was the index values taken from the Electronic Data Distribution System of Turkish Central Bank. The econometric analysis of the study was performed by using EViews 4.1 software. Method After the article published by Engel and Granger, especially in the 1990, there happened important developments in time literature serial. Accordingly, many macroeconomic time serials have a trend and this situation can lead to fake regression results (artificially increased and invalid test statistics) (Charemza ve Deadman, 1997). There were many methods suggested as a solution for this. It was suggested that stochastic trend can be eliminated by taking the difference of the variables but this method can lead to the loss of valuable long term information. The solution came with the co-integration analysis suggested by Engel and Granger. According to this, even if the variables include trends, the error term which expresses the deviations in long term is fixed-that is to say its variance and mean doesn’t change in time, there is a real economic causality relation between variables. In this case, the variables in the regression are called co-integrated. Co-integration analysis has become an affective method which is used in the testing of theory of economy and in the prevention of dummy regression results in the regression and modeling of the economic variables. Thanks to co-integration analysis which was introduced to the literature in 1980s time serial econometric and in the testing of economy theory. The benefits of co-integration concept to the literature and the areas of application can be examined under the following items; a) The removing of dummy regression results in regression analysis,1 b) It is used as a new and effective modeling which provides the testing of long and short term economic variables together and econometric assessment c) It is regarded as a pre-test before econometric assessment phase and d) Its making long terms economic relations that is the testing of economy theory 1 The existence of the koentegre relationship between variables at the same time also guarantees the existence of causality relationships(Engel and Granger, 1987). Researches indicate that the majority of the time series of macroeconomic contains trends (see Nelson and Plosser, 1982). Therefore, researchers who have applied researches should take this into consideration. 301 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo In this study, firstly the stable levels of the variables are to be determined (Dickey ve Fuller, 1979). If the mean and the variance of a time serial doesn’t change as time goes by and the common variance between two terms is dependent on the distance between two terms but not on the terms it was calculated then it is called stable (Gujarati 1999: 713). If a Y1 time serial whose mean, variance and common variance are the same as the ones in Equality 1 is stable, these three values will be the same whenever they are measured in a given time period. E (Y1 ) = µ var(Y1 ) = E (Y1 − µ ) 2 = σ 2 (1) y1 = E [(Y1 − µ )(Yl +k − µ )] Putting the serials into equalities without meeting stability conditions, makes some relations which are not existent in reality seem to exist (Granger and Newbold, 1979: 111-120). Accordingly, the stability tests of the serials used in this study were performed by making use of “Enlarged Dickey-Fuller” test. To implement this test, the estimations were made according to regression number (2) for each serial used in the study. k ∆Y 1= a + yTrend + pYt −l + ∑ δ 1 ∆Yt −i + ε 1 (2) t −l ∆Y = (Y − Y ) t t t − l . The fixed term α shows Trend time or In equalities, ∆ shows circular difference and ε general tendency variable and shows the leftover of the model. EDF test’s achievement of robust results depends on estimated regression equality’s being freed from auto regression problem. The removing of auto regression problem in this equality makes the first circle difference of the dependent variable “k” necessary to be included into the model as an explanatory variable for lag in term. The lag length which is expressed as “k” in the equality was determined by Akaike by using AIC (Akaike Information Criterion) method. EDF tests whether p=0 or not in the regression estimated above. If H0 hypothesis (p=0) is rejected, it is determined that Y variable is stable at its original level, but if it is accepted it means that Y variable is not stable. Till one can find the stability of a time serial which is not stable at its original level, these procedures are repeated for the first, second and if necessary for the third term difference. By comparing the EDF-t statistics of the equalities whose lag length are determined with McKinnon (1990) critical values, it is determined whether the variable is stable at the level it was tested. In this study, to determine the long term effect of real effective foreign exchange index on IMKB 100 index, the co-integration test developed by Johansen-Juselius (1992) was used. Johansen-Juselius (JJ) cointegration technique is composed of the unstable serial differences and the assessment of VAR (Vector Auto Regression) which includes their levels. Suppose that there are two series which are not stable at their levels ( X and Y). In this case, on the condition that there is a vector including Z, X, Y series, the VAR model created for JJ assessment will be like the following equality (3); ∆Zt = Γi∆Zt-1 + …+ Γk-1∆Zt-k+1 + Π∆Zt-k + εt (3) Here, Γi (i = l, 2, k-1) Zt expresses the parameter matrix of the variables which express the lag of the vector’s first difference; and II expresses the parameter matrix of the levels of the variables, and ε expresses the leftover values of VAR model. As ΠZ matrix include direct combinations pertaining to the levels of the variables in Z vector, it possible to get information about the long term features of the model by examining this matrix. In the determination of the lag term number in the VAR model “Akaike Information Criterion” was used. The Cointegration relations between the variables which are examined to have long term relations were assessed with the help of two test statistics. One of them was “Trace”, the other was "Maximum Eigenvalue Test" statistics. The Trace test examines the rank of the Π matrix (the coefficient matrix of vector which include the level values of the variables) and tests the hypothesis H0 whether the rank of the matrix is equal or smaller than r. The maximum eigenvlaue test statistics test the H0 hypothesis which expresses that co-integrate vector is r against its alternative hypothesis which states that the vector is r+1. The critical values of both these tests are given by Johansen and Juselius. If II the rank of II matrix is zero, it is concluded that the variables composing Z matrix are not co-integrated to each other, that is, they do not cooperate in the long run. If the rank of the same matrix is at least “one”, it is concluded that the two variables in Z matrix cooperate in the long run. The long term relation between two variables which have one co-integration relation will be like in the following equality (4). The X and Y in the equality shows dependent and expressive variables, β shows the parameters of the variables and ε shows the faulty term. 302 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo β1 X 1 + β 2Y1 + ε 1 = 0 (4) Findings As Co-integration equalities require the using of unstable series and the stable variables of error correction equalities, each data series is firstly examined for the possible level of difference stability. The unit root test results are given in Table 1 and Table 2. Table 1 and Table 2 give us the EDF results of IMKB 100 and REFEC (real effective foreign exchange currency). When the critical importance of providing stagnancy is considered, a variable can only be decided to be stagnant if it passes EDF test (Darrat, 2002). As it can be seen in Table 1 and Table 2, EDF test statistics absolute values being greater that absolute values of significance level 1%, 5% and 10% shows that the series are stagnant at 1st level. In technical terms, both IMKB 10 index and REFEC are (1). As the twp series are stagnant at 1st level, to investigate the long term relation Johansen –Julieus co-integration test can be implemented. Table 1: EDF unit root test (ĐMKB) t-values -5,106309 EDF Test Values %1 -2,602794 Critical Values %5 -1,946161 %10 -1,613398 Table 2: EDF unit root tests (REDK) t-values -8,253956 EDF Test Values %1 -2,602794 Critical Values %5 -1,946161 %10 -1,613398 Prob. 0,0000 Prob. 0,0000 As the variables are stagnant at the same level, we can do co-integration test by using Johansen-Juselius methodology. As JJ co-integration test is very sensitive to the choosing of lag length, the first phase in this test is to find an appropriate lag structure. In order to find appropriate lag structure, a VAR model would be useful. If the lag time is very short the model will be deficient and if the lag time is too long then the slackness level will be decreased. For both Schwartz and Akaike information criterion the lag time for the examined VAR model is ( VAR=1). Lag 0 1 2 3 4 5 Table 3: VAR Analysis AIC 28.54575 25.11201* 25.14519 25.15760 25.19282 25.20785 6 25.16170 *: The Lag number according to the characters chosen Lag: Lag number AIC: Akaike Information Criterion SC 28.61680 25.32516* 25.50043 25.65495 25.83227 25.98940 26.08535 SC: Schwarz Information Criteria As it can be seen in Table3, Schwarz and Akaike information criteria 1 lag was suggested. For the last time, Table 4 and Table 5 indicate that there is at least one long term relation between Trace Test and Max Eigenvalue, and real effective foreign Exchange value and IMKB 100 index. At this point, Trace Test value and Max Eigenvalue test being higher than critical value of 5% significance level reveal that there is a long term relation between REFEC and IMKB 100 index. 303 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo None* At most 1 Table 4: Trace Test Trace Critical Test value (0,05) 21,54963 15,49471 3,687484 3,841466 None* At most 1 Table 5: Maximum Eigenvalue Test Max. Critical Eigenvalue Test value (0,05) 17,86215 14,26460 3,687484 3,841466 Prob. 0,0054 0,0548 Prob. 0,0129 0,0548 Table 6: Normal Co-integration Coefficients REFEC IMKB 1,000000 -0,001686 Standard Deviation (0,00029) From the values in Table 6, it can be concluded that there is a positive long term relation between REFEC and IMKB-100 index. Conclusion In this study we have examined whether there is long term relation between real effective foreign exchange currency and IMKB-100 index and its way. While examining the existence of long term relation between a real effective foreign exchange and IMKB-100 index, co-integration method was used. In the creation of our data set, the electronic data distribution system of Turkish Central Bank was used. Our data set covers the period between 1990: 01 and 2005: 04. The analysis was carried out by using three-month length data sets. “Johansen-Juselius Test” was used as Cointegration method. The stagnancy of the variables was first tested by using EDF unit root tests and it was decided that the series are stagnant and that it was decided that “Johansen-Juselius Co-integration Test” (JJ) could be performed. As the Johansen-Juesluis Co-integration Test is sensitive to lag length, VAR analysis was used to find appropriate length and it was seen that the lag length is (1) according to both Akaike and Schwartz. Finally, the trace test and Maximum Eigenvalue tests were performed, and it was concluded that there is a long term relation between the two variables just as in other studies in the literature. It was seen that this is a positive relation, in other words, the increases in real effective foreign exchange currency or any decrease in real effective foreign exchange currency lead to a decrease in IMKB-100 index. References Abdalla, I. S. A., Murinde, V. (1997) “Exchange Rate and Stock Price Interactions in Emerging Financial Markets: Evidence on India, Korea, Pakistan, and Philippines”, Applied Financial Economics, 7, 25-35. Aggarwal, R. 1981, "Exchange Rates and Stock Prices: A Study of the US Capital Markets under Floating Exchange Rates", Akron Business and Economic Review,s. 7-12. Ajayi, R.A., Mougoue, M. (1996) “On the Dynamic Relation between Stock Prices and Exchange Rates”, Journal of Financial Research, 19, 193-207. Akaike, H. (1969). “Fitting Auto Regressions for Predictions”. Annals of the Institute Statistical Mathematics (21): 243-247. Amare, T., and MOHSĐN M., (2000) “Stock Prices and Exchange Rates in leading Asian Economies: Short Run Versus Long Run Dynamics.” Singapore Economic Review 45: 2, 165-181. Bahmani-Oskooee, M., Sohrabian, A. (1992) “Stock Prices and the Effective Exchange Rate of the Dollar”, Applied Economics, 24, 459-64. Charemza, W.W. ve D. Deadman (1997) New Directions in Econometric Practice, 2. Baskı, Edward Elgar Yayınevi, Đngiltere. Chow, E.H., W.Y. Lee and M.S. Solt, 1997, "The Exchange Rate Risk Exposure of Asset Returns", Journal of Business, 70, 105-123. 304 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Darrat, A.F. (2002), Budget Balance Through Spending Cuts or Tax Adjustments? Contemporary Economic Policy, V.20, N.3, 221-233. Dickey, D. A. and W. A. Fuller (1979). “Distribution of the Estimators for Autoregressive Time Series with a Unit Root”. Journal of the American Statistical Association (74): 427-431. Dickey, D. A. and W. A. Fuller (1981). “Likelihood Ratio Statistics and Autoregressive Time Series with a Unit Root”. Econometrica (49): 1057-1072. Dornbush, R. and S. Fisher, 1980, “Exchange Rates and the Current Account”, American Economic Review, 70, 960-971. Engle, R.F. ve C.W.J. Granger (1987) “Cointegration and error correction: representation, estimation and testing”, Econometrica, 55, 251-76. Gavin, M., 1989, "The Stock Market and exchange Rate Dynamics", Journal of International Money and Finance, 8, 181-200. Granger, C. W. J. and P. Newbold (1979). “Spurious in Econometrics”, Journal of Economics (2): 111-120. Gujarati, D. N. (1999). Temel Ekonometri (Çeviri: Ü Şenesen, G. G. Şenesen), Đstanbul: Literatür. Gupta, Jyoti P., Chevalier, A. and Sa yekt, F., "The Causality Between Interest Rate, Exchange Rate and Stock Price in Emerging Markets: The Case of the Jakarta Stock Exchange" (undated). EFMA 2000 Athens. Available at SSRN: http://ssrn.com/abstract=251253 Johansen, S. and K. Juselius, 1990, "Maximum Likelihood Estimation and Inference on Cointegration with Applications to the Demand for Money", Oxford Bulletin of Economics and Statistics 52, 169-210. Kim, K. (2003), Dollar exchange rate and stock price: evidence from multivariate cointegration and error correction model, Review of Financial Economics, Volume 12, Number 3, 2003 , pp. 301-313(13) Mckinnon, J. G. (1990). “Critical Values for Co-integration Tests”. UC San Diego Discussion Paper, 90-4. Muhammad, N., Rasheed, A. (2003) “Stock Prices and Exchange Rates: Are they Related? Evidence from South Asian Countries”, Paper presented at the 18th Annual General Meeting and Conference of the Pakistan Society of Development Economists on January 2003. Access fromhttp://www.pide.org.pk/PSDE/Stock%20Prices%20and%20Exchange%20Rates.pdf Murinde, V., Poshakwale, S., "Exchange Rate and Stock Price Interactions in European Emerging Financial Markets Before and After the Euro" (January 2004). EFMA 2004 Basel Meetings Paper. Available at SSRN: http://ssrn.com/abstract=493543 Phylaktis K. and Ravazzolo F. (2000), “Stock Prices and Exchange Rate Dynamics”, Paper presented at the EFMA 2000 Meeting in Athens, www.cass.city.ac.uk/emg/workingpapers/stock prices and exchange.pdf erişim tarihi:23/06/2007 ROLL, R., 1992, "Industrial Structure and the Comparative Behaviour of International Stock Market Indices", Journal of Finance, 47, 3-41. Soenen, L.A. and E.S. Hennigar, 1988, "An Analysis of Exchange Rates and Stock Prices - The US Experience between 1980 and 1986", Akron Business and Economic Review, (Winter), 7-16. Stavarek, D, (2004), “Comparison of financial markets development in the Czech Republic and in the European Union”, The paper was prepared due to support of the Grant Agency of the Czech Republi,. Project No. GAČR 402/02/1408 http://129.3.20.41/eps/fin/papers/0406/0406006.pdf erişim tarihi:23/06/2007 305 � 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. 229 Title A name given to the resource Relation between Real Effective Exchange Rate And IMKB -100 Index (Istanbul Stock Exchange) Author Author TOPAL, Yusuf AKGÜN, Ali Abstract A summary of the resource. Stock exchange is a market where long-term investment instruments are purchased and sold such as share certificates, bonds etc. Stock exchange market is divided into two; developed and emerging stock markets. Developed stock markets are financial markets with a great depth which display activity in industrialized countries and constitute international financial market. Emerging stock markets are the stock exchange markets with a shallow depth which display activity in developing countries. Istanbul Stock Exchange has a rather important place among these stock exchange markets. Emergence of the new capital markets, increase in financial liberalization and expansion of flexible exchange rate regimes caused an increase in the examination of exchange rate and stock exchange market. Developing economies that gradually abolished control on exchange rate, paved the way for international investments and portfolio diversification. Today, it’s seen that savers basically directs the funds in their hands to three instruments for the purpose of investment. They are interest, foreign exchange and stock exchange market. Investors who are the savers attempts to increase their returns in the maximum rate with the portfolios they constituted from among these three instruments. When the literature is examined, it’s seen that there are many studies which examined relation between interest and stock exchange market from among these financial instruments. Result from these studies is that there is a negative, that is, an inverse relation between stock exchange market indices and interest rates. And purpose of this study is to see whether or not there is any long-term relation between real efefctive exchange rate and IMKB-100 index (Istanbul Stock Exchange), if any, to determine the direction of this relation. In this study, three-month data of real effective exchange rate (REDK) and IMKB-100 index for 1990-2005 periods have been used. Starting point of study is the year 1990. Its reason is to test presence of long term relation between real effective exchange rate (REDK) and IMKB-100 index by using long-term data that we could reach. Data sets used in study are the values of indices and were received from Central Bank Electronic Data Distribution, Republic of Turkey (EVDS). Long-term relation was examined and empirical findings were proved by using Johansen-Juselius co-integration test (JJ). As a result of examination above, it was ensued that ther was a long-term positive relation between real effective exchange rate (REDK) and IMKB-100 index (Istanbul Stock Exchange). 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 HB Economic Theory https://omeka.ibu.edu.ba/files/original/c0c0e02a13082395b44f606a971ea9d0.pdf f25e90f42bece44f598dbdc50b12b2d8 PDF Text Text 1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo The Perceptions of Individual Internet Users about E-Finance Applications Yusuf TOPAL Assist. Prof. Dr., Afyon Kocatepe University-TURKEY ytopal75@hotmail.com Cantürk KAYAHAN Assist. Prof. Dr., Afyon Kocatepe University-TURKEY ckayahan@aku.edu.tr Abstract: The Global Integration process, new regulations and the developments in the technology of internet have changed the nature and the structure of the financial services on a large scale. The fact that financial services have been carried out by using electronic communication and calculation has originated new field called e-finance. As a result of this, financial service suppliers have entered into a more active competition process in order to gain new customers. Technology, globalization, regulations, entrepreneurship, capital and competition have become the main components of the e-finance revolution. E-finance has focused on three main access fields. These are the access of electronic payments, the activities of the financial service activities and financial market activities. These services are used intensely by two sectors as individual and institutional. Institutional users are the companies and the other public and private sector firms. The individual users have also started to be important as at least the institutional users due to the increase of the competition. Therefore, the determination of the expectations, preferences, and advantageous components, which are the factors that incline internet users to e-finance, is very important for the financial institutions In conclusion, for the purpose of determining individuals’ perceptions about e-finance transactions, a face to face public survey has been conducted with the internet users and the results of this public survey have been tested in SPSS 11.5 programme in this study. Keywords: Perception, e-finance, internet Introduction The world is changing and developing very fast .Especially, the rapid developments in the information and the communication technologies have caused important structural changes in the financial system of many countries. The concept of change caused transforming by differentiating people and societies with the effects it has created . Technological change is continuously renewed in itself, but it has taken the entire world under its effect thanks to the internet technology. Internet has a process that was established for military purposes at the beginning and then that has taken the entire world under its effect. The developments in the technology of the internet have also changed the dimension and the operational format of the financial transactions. Thus, the prefix “e” which is very important in the e-world and which comes in front of each concept, has originated a new fact which is called e-finance with the beginning of the financial transactions on the internet. In this study, it has been aimed to find out the views and perceptions of individual internet users about the e-finance applications In this context, internet, e-finance concepts and development processes have been evaluated in the first part of the study; numerical determinations belonging to the e-finance outlook the World and Turkey have been carried out in the second part of the study. In the last part of the study, a face to face survey has been conducted with the people from different branches of business working in public sector in Turkey and One-way analysis of variance (Anova) has been tested in the SPSS 11.5 statistical programme to find out whether there is any difference in the perception of the e-finance transaction according to the individuals and their occupations. In addition, individuals’ perception levels about e-finance applications have been shown with the concentration maps. 1. Internet and e-Finance The worldwide and ever-growing global computer network is defined as internet (Akar and Kayahan, 2007:5). In this network, the communication among the computers is provided through high capacity telephone wires by means of a common language called internet protocol (Transmission Control Protocol/Internet Protocol) and there is no central authority that directs, manages and controls the communication in the internet 291 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo environment. In addition to this, the importance of the internet today has arised from the common and easy access advantages stated below (Kınık, 2002: 2). • Providing common and immediate communication , • Providing low-cost communication, • Enabling interactive communication, • Allowing electronic links to other information • Not being able to control the communication from a certain central • Providing a flexible communication environment The history of the internet dates back to the access of the telegraph the patent of which was taken out by Cooke and Wheatstone in 1836.Another important development is the origination of the “Transatlantic Cable” which was laid from one side of the Atlantic Ocean to its other side between the years 1858-1866. The 1 origin of the internet has started with the activation of the ARPANET by DoD (U.S. Department of Defense).People started to communicate throughout a network in 1971. In this period, there were fifteen nodes 2 3 (15 node (23 host ) )in ARPANET.In 1973 the first international connection has occurred between University College of London and Royal Radar Establishment. In 1990s the number of hosts have become 300.000. In 1993 the revolution of www started and the access of internet started financially and also among the banks.1999s are the years in which the online banking transactions developed rapidly. Today, internet is the indispensable or the meaning of the life, shortly it is everything of the life. E-finance has not actually originated with the invention of the internet. In fact the first e-finance application dates back to the money transfer carried out to the far places by Western Union Corporation. Western Union applied the first consumer spending card in 1914.By the year 2006, this company achieved 147 million money transfer from consumer to consumer and 249 million money transfer from consumer to enterprise (Shahrokhi, 2008: 367). E-finance is defined as the provision of financial services by using electronic communication and computations (Allen, McAndrews ve Strahan, 2001: 5).In another definition e-finance can be defined as scatter of financial services by means of internet or online. E-finance operations mainly covers online intermediation ,insurance trade, banking and other financial activities (Shahrokhi, 2008: 366).In fact, e-finance applications are subheading of electronic trade applications. E-trade is the access of digital data processing technology and electronic communications to create ,to transform and to redefine relations in trade transactions in order to create value between two or more enterprises and between the individuals and enterprises(Andam, 2003: 32).As it can be seen in its definition, the concept and the applications of e-trade also covers the applications of e-finance. The main factors that formed the e-finance revolution have been stated to be technology, globalization, regulations, entrepreneurship, capital and competition by Shahrokhi (2008: 367). These factors are affected intensively by the fund providers, users, regulators, investors and the other components in the markets. The sector is divided into five categories in the e-finance model. These are: 1-Business to business (B2B), 2-Business to Consumer (B2C) 3-Consumer to consumer (C2C), 4-Technical infrastructure support for the e-Finance platform 5-Institutional and regulatory environment factor that facilitate growth of e-commerce and e-finance According to the categories and the contents given above ,it is seen that B2B includes reduction of application costs, unmediated or electronic intermediation, electronic transactions, integrated customer solutions and electronic fund system.B2C includes financial intermediation or online applications by means of portals ,ebanking or online banking, personal finance or wealth management and insurance fields.C2C includes online transactions and transactions cycle .In terms of technical infrastructure for the support of the e-finance platform, the relation between the financial services provided by financial technology partners and technology and service solutions has been shown in Table 1. As seen in the table, the developments in the –e-finance field have increased the competition while decreasing the financial service costs (Claessens, Glaessner ve Klingebiel, 2001: 7). As a result of this, there has been a more intensive competition, transaction speed and quality increase among the financial service suppliers. 1 Đnternet’in çıkış noktası, ABD Savunma Bakanlığı bünyesindeki “Đleri Araştırma Projeleri Ajansı” (ARPA – Advanced Research Projects Agency) nın 1969 yılında kurduğu ARPANET ağıdır. 1 The starting point of the internet is the network ARPANET established in 1969 by Advanced Research Projects Agency (ARPA) within the structure of USA Ministry of Defence 2 a connection point or a device that is connected as a component a computer network 3 The word meaning of “host” is to provide housing for. In fact its meaning in the world of internet is just this. In other words , it means a company which hosts websites on the Internet . 292 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Table 1. The Realtoin Network fo Financial Technology Partners Resource: Shahrokhi, 2008: 378. Finally, all governments even most of the market managers need to regulate and control the financial sector for the reasons of competition, anti-trust relations, consumer protection, safety and accuracymaintainability. They need to analyze the last changes in the financial services and whether the existent applications are sufficient and they also need to analyze whether the traditional reasons are valid for regulation and control and in which fields the importance of competition policy and consumer protection has increased (Yörük, 2002. 11). Thus e-finance applications can be provided in more secure and more quality manner. 2. The Outlook of E-finance in the World and in Turkey Internet technology is certainly one of the primary components that are effective on the financial system change. Therefore, when we look at the scatter of the world internet access in Figure 1,before looking at the e-finance access rates, it is seen that Asia Region comes first with 41,2 %.Europe follows this region with 24,6 % and North America region comes after with 15,7 %. Figure 1. World Internet Users by World Regions Resource: www.internetworldstats.com/stats.htm (09.05.2009). It is seen that Turkey ranks number thirteen in terms of the internet users’ number with 26.500.000 people by the year 2008 when we look at the world internet statistics given in the Table 2. Turkey comes after Germany, England, France and Italy among the European countries. However, as this table has been prepared according to the population, some of the European countries have not been included. While Turkey is in the front ranks among the countries of which the number of users increasing between the period of 2000-2008, the leading countries in terms of users’ number according to the population are Canada, Australia, Japan, America, South Korea, Germany and Spain respectively. In addition, Pakistan, Iran, Turkey, India, Indonesia and China are the most noticeable countries in terms of the number of users between the period of 2000-2008. Among the countries and regions that are not seen in this table because of their population but that display the best performance, Iceland ranks first with its population of 299 thousand and the access rate of 86.3 % . Sweden which has 9.1 million population and 7 million active internet users is in the front ranks with the rate of 75,6 % and New Zealand which has 4.2 million population and 3.2 million internet users is also in the front ranks with the rate 74.9 %. In addition, it should be stated that the internet access rates of the countries like Portugal, Holland, Denmark, Hong Kong and Luxembourg are also much above most of the other countries. 293 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Table 2. 20 Countries Using the Internet Most in the World Country or Region 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 China United States Japan India Germany Brazil United Kingdom France Korea, South Italy Russia Canada Turkey Spain Indonesia Mexico Iran Vietnam Pakistan Australia Internet Users 253,000,000 220,141,969 94,000,000 60,000,000 52,533,914 50,000,000 41,817,847 36,153,327 34,820,000 34,708,144 32,700,000 28,000,000 26,500,000 25,623,329 25,000,000 23,700,000 23,000,000 20,159,615 17,500,000 16,355,388 Penetration (Population) 19.0 % 72.5 % 73.8 % 5.2 % 63.8 % 26.1 % 68.6 % 58.1 % 70.7 % 59.7 % 23.2 % 84.3 % 36.9 % 63.3 % 10.5 % 21.6 % 34.9 % 23.4 % 10.4 % 79.4 % % of World Users 17.3 % 15.0 % 6.4 % 4.1 % 3.6 % 3.4 % 2.9 % 2.5 % 2.4 % 2.4 % 2.2 % 1.9 % 1.8 % 1.8 % 1.7 % 1.6 % 1.6 % 1.4 % 1.2 % 1.1 % Population 1,330,044,605 303,824,646 127,288,419 1,147,995,898 82,369,548 191,908,598 60,943,912 62,177,676 49,232,844 58,145,321 140,702,094 33,212,696 71,892,807 40,491,051 237,512,355 109,955,400 65,875,223 86,116,559 167,762,040 20,600,856 User Growth (2000-2008) 1,024.4 % 130.9 % 99.7 % 1,100.0 % 118.9 % 900.0 % 171.5 % 325.3 % 82.9 % 162.9 % 954.8 % 120.5 % 1,225.0 % 375.6 % 1,150.0 % 773.8 % 9,100.0 % 9,979.8 % 12,969.5 % 147.8 % Resource: http://www.internetworldstats.com/stats.htm (09.05.2009) When an evaluation has been carried out according to the statistic of Banks Association of Turkey about the access of internet for the field of e-finance, it is seen that the number of retail customers registered for internet banking and “ logged in” at least once is 11.222.126 by December 2008. The total number of customers “logged in” at least once in one-year period is 5.946.652.The number of customers using internet banking has been given in the Table 3.As it is seen from the table, from 2006 to 2008 although it is a very short time like two years, increases that reached the double in the number of users were seen .Therefore, it is expected that the rates will increase in the following years. The statistics of internet banking belonging to the data of March 2009 published by the Banks Association of Turkey support this expectation Table 3. Number of Customers Using Internet Banking According to the Years Number of retail customers Active (A) (that logged in at least once in the last three-month period) Registered (B) (that logged in at least once) Registered (C)(that logged in at least once in one-year period) Active(A) / Registered(B) Customer rate(percent) Number of Instuitional Customer Active (A) (that logged in at least once in the last three-month period) Registered (B) (that logged in at least once) Registered (C)(that logged in at least once in one-year period) Active(A) / Registered(B) Customer rate(percent) Number of Total Customer Active (A) (that logged in at least once in the last three-month period) Registered (B) (that logged in at least once) Registered (C)(that logged in at least once in one-year period) Active(A) / Registered(B) Customer rate(percent) December 2006 December 2007 December 2008 March 2009 2.605.673 3.795.627 4.613.670 4.838.000 15.510.826 17 8.908.956 4.920.907 43 11.222.126 11.793.000 5.946.652 6.344.000 41 41 380.390 478.737 555.459 581.000 812.314 1.131.302 588.211 1.358.545 687.737 1.459.000 710.000 47 42 41 40 2.986.063 4.274.364 5.169.129 5.419.000 16.323.140 10.040.258 5.509.118 43 12.580.671 13.252.000 6.634.389 7.054.000 41 41 18 Resource: BAT (TBB). According to the data of Banks Association of Turkey, the total number of financial transactions excluding the investment transactions carried out by using the internet banking is 57.942 thousand and the amount is 136.680 million TRY in the period of October-December 2008. The money transfer transactions covering EFT(electronic 294 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo fond transfer),money order and foreign exchange transfer comprise 84 % of the financial transaction volume excluding the investment transactions. Items Table 4 . The Outlook of Turkey’s Financial Transactions in Internet Banking December 2007 September 2008 December 2008 Number of Volume of Number of Volume of Number of Volume of transactions transactions transactions transactions transactions transactions (Thousand) (Million TRY) (Thousand) (Million TRY) (Thousand) (Million TRY) Money transfers Payments Credit card transactions Other financial transactions Total Resource: BAT 29.335 15.393 5.352 1.131 112.693 3.400 3.486 7.851 31.114 18.828 6.143 1.619 127.408 4.720 4.421 14.406 29.718 20.578 6.050 1.596 115.218 4.626 4.165 12.671 51.211 127.431 57.705 150.954 57.942 136.680 The total number of financial transactions performed by using the internet banking excluding the investment transactions increased by 6.731 compared to the same period of the year before and increased by 237 compared to the previous three-month period. While the total volume of transactions was increasing by 9.249 million TRY, it decreased by 14.274 million TRY compared to the previous three-month period. 3. The Perceptions of Individual Internet Users About E-Finance Application 3.1. The Aim and Content Of The Research In this study, it has been aimed to to determine the choices, expectations and perceptions of individual internet users’ who work in different duties and positions in public. The questionnaire was performed face to face on the public employees within the content of the study in Afyonkarahisar City. The first part of the questionnaire consists of the questions about the individual information of employees. Additionally, there are also some questions about work position and e-finance applications in public. In the last part, it is required from the employees to evaluate the e-finance applications with five point likert type questions.. In the evaluation of the results, aggregation and one-way variance analysis were performed by using SPSS 11.5 statistical programme. 3.2. The Findings and The Comments Of The Research It has been determined that Cronbach alpha reliability study supplies 0.8261 data reliability before mentioning the evaluations on research data. The results obtained from the formed frequency tables are summarized as follow: According to data, it has been determined that 57.7 % of those who filled the questionnaire is female and 42.3 % of them is male. It is seen that great majority of subjects are in the young and middle age group. According to data 38 % of them is in 25-35 age group, 32 % of them is in 35-45 age group and 15 % is in 45 and over 45 age group. The summarized results about the occupational and the educational states of those who filled the questionnaire are given in Table 5. It is understood that those who filled the questionnaire are predominantly civil servant and they have bachelor degree. These results show that this study aims at more conscious and educated audiences as it is proper for the aim of the study. On the other hand, it predominantly is determined that those who choose the other part in occupational choice are the academics. 295 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo Table 5. Occupation and Education Status of the Participants Occupation Frequency Percent ( % ) worker 18 8,0 Civil servant 127 56,4 Director 37 16,4 Top Director 3 1,3 Retired 3 1,3 Other 37 16,4 Total 225 100,0 Education Status Frequency Percent ( % ) Primary school 2 ,9 Secondary School 30 13,3 Associate Degree 36 16,0 Licence 99 44,0 Master Degree 58 25,8 Total 225 100,0 Findings about personal internet access and its aims have been shown in Table 6. Accordingly, 99 % of the participants have stated that they connect to the internet. Furthermore, it has been found out that a large proportion as 70% of them connect to the internet everyday and above 90 % of them connect to the internet once a week. In terms of the internet access aim, it is concluded that large majority of them as 51,6 % use internet for the purpose of receiving news. The access of internet for the purpose of receiving news was also in the first rank with a large proportion as 76 % in the internet access study carried out by Turkish Statistical Institute(TSI) throughout Turkey. Therefore, it is understood that the result of this study is in harmony with the results throughout Turkey. The access of internet for the purpose of research has become in the second rank. The fact that there have been academician based participants in the study can be concluded to be one of the reasons of this choice to be effective. When we look at the other aims of the access, it is concluded that financial purposes like banking transactions bill payments comes after respectively. This result is an important indicator of that efinance access frequency is supported by public based individual users. Table 6. The Frequency and Purposes of Internet . Access of Internet Frequency Yes 223 No 2 Total 225 Frequency ıf Internet Access Frequency Everyday 159 Every three days 28 Once a week 20 Forthnightly 8 Once a month 9 Total 224 The Purpose of the Internet Frequency Access News 116 Game 4 Bill Payment 4 Bankacılık işlemleri 17 Messenger 7 Research 59 Exchange and fund pursuit 1 Others 17 Total 225 Percent ( % ) 99,1 ,9 100,0 Percent ( % ) 70,7 12,4 8,9 3,6 3,6 99,1 Percent ( % ) 51,6 1,8 4,8 10,6 3,1 20,2 ,4 7,6 100,0 The questions in the 5 point likert scale have been prepared to determine the assessments of the participants in the survey study about e-finance applications clearly, and they have been ranged from “1 most 296 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo important” to “5 have no importance” and between minimum 1 and maximum 5 values. The meaning of these values are: “2” important , “3” no difference “4” less important. The values on which that participants concentrated and the average and standard deviation values are shown in Table 7.According to this, it is concluded that the concreation among the participants is in the zones numbered 2 and 1 in terms of the necessity of internet for its contribution to financial transactions, payments, banking transactions and shopping while the concentration is in the zones numbered 1 and 2 respectively in terms of the use of time. Consequently, it has been determined that the necessity of internet in terms of financial transactions is perceived to be important by individual users on the concentration map prepared for perception level of e-finance transactions. Table 7. The Concentration Map for the Perception Level of E-finance Transaction Propositions The necessity of internet for financial transactions today The necessity of internet for payments The necessity and contribution of internet for banking transactions The necessity and contribution of internet for shopping The necessity and contribution of internet for the use of time N Average S.Deviation 1 2 3 4 5 225 1,7911 0,86907 74 115 19 11 6 225 2,1467 1,09821 60 116 22 10 17 225 2,0933 1,09185 70 105 22 15 13 225 2,2756 1,14353 54 109 24 22 16 225 1,7644 0,93187 105 87 20 7 6 One-way variance analysis has been carried out in Table 8 for the purpose of determining whether there is a meaningful difference among the individual internet users according to different occupations. Accordingly, it has been found out that there is 0,05 difference in the significance level among the individual internet users in terms of the first and third questions , but there is no significant difference in terms of the other three questions. Table 8. The Results of One-Way Analysis of Variance (Differences in Perceptions of E-finance according to Individual Participants’ Occupations ) Sum of Squares df Mean Square F ANOVA The necessity of the internet for financial transactions 2 The necessity of the internet for payments 3. The necessity of the internet for banking transactions 4. The necessity of the internet in terms of its contribution to shopping 5. The necessity of the internet in terms of the access of time Between Groups 7,119 5 1,424 Within Groups 162,063 219 ,740 Total 169,182 224 Between Groups 8,387 5 1,677 Within Groups 261,773 219 1,195 Total 270,160 224 Between Groups 19,354 5 3,871 Within Groups 247,686 219 1,131 Total 267,040 224 Between Groups 12,134 5 2,427 Within Groups 280,781 219 1,282 Total Between Groups 292,916 224 4,665 5 ,933 ,867 Within Groups 189,850 219 Total 194,516 224 Sig. 2,124 ,011 1,403 ,224 3,422 ,005 1,893 ,097 1,076 ,374 General Evaluation and the Result The study carried out forms an important substructure in terms of perceptions and awareness of the individuals in different occupations about e-finance applications. In addition, the differences among the perceptions of e-finance in terms of occupations can also be determined. Accordingly, the effectiveness of better banking, insurance or other online financial transactions and the closeness of them to consumers can show disparity. Today the more effective working of banking transactions depends on electronic substructure to be formed. In contemporary banking, e-finance applications and its transformation will multiply the efficiency; will lead to decrease in the general management expenses; will increase the financial security; will make the financial management activities more efficient; will become a bridge between rural and urban areas by facilitating the 297 �1. International Symposium on Sustainable Development, June 9-10 2009, Sarajevo communication; will form new and different job opportunities; will raise the ability of money access by increasing savings and therefore will provide the increase of general economic performance. Electronic operations and internet access in Turkey and in the world have been evaluated in the study. Especially in recent years crucial discrepancies have been seen in Turkey in the access of internet. This state has also affected the efinance operation in the same way. It is seen that e-finance operations are largely perceived by the individuals and there have been individual awareness in terms of e-finance applications on the concentration map which is formed for the purpose of determining perception levels in the study. Therefore, it is expected that these applications will continue by increasing in progressive times. In addition, financial institutions, which perform efinance transactions, will be able to decide how they can approach to their costumers and how they can fulfill their costumers’ choices and expectations by looking at this studies. In the study, one-way variance analysis is carried out in order to determine whether there is difference between the individual occupations and the perception of e-finance applications. In this analysis, it has been determined that there are differences at the significance level of 00.5, between the necessity of internet in terms of financial operations and the necessity of internet in terms of banking operations. It is thought that this difference results from individual internet users’ occupational variety. In conclusion, performing the financial transactions by means of internet technology, which is accepted as e-finance revolution, will be one of the most important market developments in the future as it is today. Besides these developments, providing consumers’ allegiance depends on the formation of financial info and technological substructure in the direction of consumers’ needs and expectations. The success is very close for the financial institutions that can achieve this process. References Akar E. & Kayahan C., (2007), Elektronik Ticaret ve Elektronik Đş: uygulamalar, Modeller ve Stratejiler, Nobel Yayınevi, Ankara. Allen, F., McAndrews, J. & Stratran, P. (2002), ‘‘E-finance: an introduction’’, Journal of Financial Services Research, Vol. 22 Nos. 1-2, pp. 5-27. Andam Zorayda Ruth, (2003), E-Commerce and E-Business, May, e-ASEAN Task Force UNDP-APDIP, www.apdip.net/publications/iespprimers/eprimer-ecom.pdf (06.03.2007) Claessens S., Glaessner T. & Klingebiel D., (2001), E-Finance in Emerging markets: Is Leapfrogging Possible ?, Financial sector Discussion paper, No: 7, The World Bank. Kınık T., (2002), Elektronik Finansın Gelişimi Karşısında Aracı Kuruluşlar, SPK Yeterlilik Etüdü, Ankara. Shahrokhi M., (2008), E-finance: status, innovations, resources and future challenges, www.emeraldinsight.com/03074358.htm(09.05.20099. Yörük N., (2002), E-Finans: Finansal Görünümün Yeniden Biçimlenmesi, http://www.bilgiyonetimi.org/cm/pages/mkl_gos.php?nt=230(08.06.2005). http://www.internetworldstats.com/stats.htm (09.05.2009) http://www.tbb.org.tr/(09.05.2009). http://www.pcnedir.com/tag/arpanet/(09.05.2009) 298 � 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. 228 Title A name given to the resource The Perceptions of Individual Internet Users about E-Finance Applications Author Author TOPAL, Yusuf KAYAHAN, Cantürk Abstract A summary of the resource. The Global Integration process, new regulations and the developments in the technology of internet have changed the nature and the structure of the financial services on a large scale. The fact that financial services have been carried out by using electronic communication and calculation has originated new field called e-finance. As a result of this, financial service suppliers have entered into a more active competition process in order to gain new customers. Technology, globalization, regulations, entrepreneurship, capital and competition have become the main components of the e-finance revolution. E-finance has focused on three main access fields. These are the access of electronic payments, the activities of the financial service activities and financial market activities. These services are used intensely by two sectors as individual and institutional. Institutional users are the companies and the other public and private sector firms. The individual users have also started to be important as at least the institutional users due to the increase of the competition. Therefore, the determination of the expectations, preferences, and advantageous components, which are the factors that incline internet users to e-finance, is very important for the financial institutions In conclusion, for the purpose of determining individuals’ perceptions about e-finance transactions, a face to face public survey has been conducted with the internet users and the results of this public survey have been tested in SPSS 11.5 programme in this study. 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 HB Economic Theory https://omeka.ibu.edu.ba/files/original/febe1083c1b6cea2a9e518fda4ec4a0f.pdf 4c8d33a8a06e5cb0e7bc0c646e32c8cf PDF Text Text 1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo Local Forage Ecotypes and Their Importance in Turkey M ustafa Tan Atatürk University Faculty ofAgriculture Department of Field Crops, Erzurum-TURKEY mustan@atauni.edu.tr Zeynep Dumlu Atatürk University Faculty ofAgriculture Department of Field Crops, Erzurum-TURKEY Abstract: Although not convenient for the modern agriculture, local ecotypes are of importance for being breeding materials since their genetic variations are diverse. Turkey is a rich country in the number of forage ecotypes. Cultivation history of especially alfalfa, common vetch, sainfoin, forage pea, chickling vetch and bitter vetch dates back to very ancient times. However, these genotypes are facing to extinct today and their importance has begun to be realized in the respect of sustainable and organic crop yielding as well as due to the increased global warming and water shortage threats. This paper was prepared to summarize some information about local forage ecotypes in Turkey and to mention about their importance. Introduction Forms which have been grown forlong periodsin a certain area and gained characteristics unique to them are termed to be local ecotypes. These forms can also be called local populations or ecotypes and have adapted to the ecology of the area where they are grown. Their yielding may be low because of undeveloped genetic capacity; however,their resistance to disease and harmful insects and adaptation ability are considerably high. Local ecotypes are plant forms which are prevalentin the areas where they are grown; their culture can go back to very ancienttimes and they can be formed by the mixtures of differenttypes (Açıkgöz 2001). Local ecotypes representthe genetic diversity of a country together with wild species. However, with the development of high yielding bred cultivars local species have losttheir significance and have faced extinction threat in many regions all over the world. This threat is so big that today local ecotypes of several vitally important plants,such as wheat,are beginning to disappear. With the green revolution,they were largely eroded being replaced with the newly developed cultural species in the countries e.g. India, Pakistan, Iran and Iraq. Local species are not convenient for modern agriculture. They can not pass maturity stage timely and their yielding capacity islow. (Tosun et al. 1978) found in their study, where they carried out experiments over local alfalfa ecotypestaken from Erzurum, Ağrı and Kayseriand the cultivars with foreign origin thatforeign cultivars had 30 % more yielding rate than the ecotypes. Today, developed plant breeding techniques have shown their effects on local species adversely and caused these genotypes to extinct. However, these forms whose significance will certainly be realized in the future should absolutely be conserved. Perhaps,there may be a time inthe future when plant breeder will back to native species and local populations will be needed to regain genes carrying some plant characteristics which have been lost. There are already a number of bred cultural species forms from local ones.In bred species, genetic variation istoo uniform to develop new varieties. Conservation of local plantsis beginning to gain importance today. However,there is a great controversy on how this effort can be achieved. Regional genetic materials in many countries have been taken under conservation through gene banks. Although this method is costly and time consuming,itguarantees the success. Under the control of gene banks, local species can be conserved and they are sometimes planted in order to maintain their vitality. In addition to conservational aims, these registered genotypes can easily be sent to differentregions in orderto perform various aims (Şengül 2009). Another way to conserve local genotypes is to take these species under protection where they are grown and to encourage their cultivation. Such efforts are carried out for both plant and animal materials in the countries where they are cultured. 1 �1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo Livestock breeding is an important occupancy in many parts of Turkey. Cultivation of forage species has gained importance in the areas where livestock breeding is extensive. However, the number of forage species under cultivation is not much. The most cultivated forage species in Turkey is alfalfa (Medicago sativa L.), which is followed by common vetch (Vicia sativa L.), sainfoin (Onobrychis sativa L.) and silage maize (Zea mays L.). In addition to these species, cultivation of bitter vetch (Vicia ervilia L. Willd.), chickling vetch (Lathyrus sp.), fodder beet (Beta vulgaris var. rapa), Hungarian vetch (Vicia pannonica Crantz.), sorghum (Sorghum sp.) and red clover (Trifolium pratense L.) species are performed to a lesser degree. Majority of these forage species are bred species and in especially the western part of the country, where developed agricultural and livestock techniques are applied, almost all ofthese species are bred forms. Local species are more prevalent in mountainous areas of Black Sea, Middle Anatolia and Southeast Anatolia regions, where mechanised cultivation techniques areless developed.In the following parts ofthe paper summarized information tried to be given aboutthese local ecotypes. Alfalfa (Medicago sativa L.) Local alfalfa ecotypes in Turkey are divided into four categories; Eastern Anatolia (including Erzurum, Ağrı and Van), Kayseri, Karaağaç and Bayındır. Local alfalfa speciesin Turkey arethe forms whose rosettes are horizontal in autumn (Gençkan 1983). Eastern Anatolia ecotype can develop semi-horizontally and is considerably resistant to both cold and arid conditions. Stems are thin and branched abundantly. Its leaves are narrow and like a long spear. Its flower colour is dark purplish (Elçi 2005). Eastern Anatolia alfalfa begins growing in spring late and endsits growth earlyin entering winter.Itcan be cuttwice orthricein one season and it gives the highest yielding rate atthe first cutting.It has a very large longevity and can yield crop for 20 to 30 years. A new alfalfa variety, Savaş, which is more suitable to be grown in the region, has been derived from these local ecotypes through selection.(Şengül 2003) reported in his study on the genotypes of Eastern Anatolia alfalfathatits plant characteristics have greatly changed. Local alfalfa ecotypes of Kayseri and Karaağaç are the forms which can develop vertically and conveniently to the conditions of Middle Anatolia. Flower colour of Kayseri population is brighter than that of Eastern Anatolia alfalfa.Its development stages can require long vegetation period. Kayseri ecotype is sensitive to leave disease and its regeneration is slower and they are not uniform. This ecotype is more prevalent in Middle Anatolia and its passage regions. Kayseri and Karaağaç alfalfa ecotypes have long life-span,though not longer than that of Eastern Anatolia ecotypes (Soya et al. 1997). Local alfalfa ecotype of Turkey, which is convenient to country’s coastal regions, is Bayındır. It is prevalent in the west of Anatolia and Aegean Region. It has a long development period and can be cut many times.Itslongevity is shorterthan that of other ecotypes. Sainfoin (Onobrychis sativa L.) Sainfoin is an important forage species which can widely grow in the arid regions of Turkey. It is cultivated in the Middle and especially the Eastern parts of Anatolia and their local populations are given the names ofthe cities, wherethey are grown. The cities of Erzincan, Kars, Ağrı, Van, Erzurum and Ardahan are the places where sainfoin is grown much. Com mon name for allofthese speciesis Erzincan ecotype. The reason for local sainfoin ecotypes to grow more widely in Eastern regions of Turkey is that Eastern Anatolia region is included in the genetic source areas of Onobrychis species. This species is considerably resistant to aridity and cold conditions. It can be cut once or twice depending on the seasonal rainfall. Life-span of this vertically growing ecotype is 4 to 6 years. Its growth is slower in the sowing year and in this period it develops only rosettes and can sometimes form flowers. Flower corollas are pink. Common Vetch (Vicia sativa L.) Com mon vetch is among the species grown for both its hay and seeds in Turkey since ancient times. Therefore, Anatolia has local common vetch forms almostin allregions. However,these local plants have been eroded from their cultivated areas, in especially the western parts, where modern cultivation techniques are employed. Local common vetch populations are more prevalentin the Eastern part ofthe country. As is known, origin of common vetch is Southwest Asia and Mediterranean Region, which is why itslocal ecotypes have been very wide in the country since very early times. 2 �1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo Plant and seed characteristics of local common vetch species can show great diversity. Plant forms are generally climbing;it has smallleaves with tendril. Flower colour is pink, violent or yellowish-green or brown. Its seeds are round-like and flat like a lentil; colours of seeds can be grey, yellowish, brown or black. Many of the cultured species have been bred form these local species through selection. According to (Gençkan 1983), common vetches cultivated in Turkey have been derived from the subspecies of Vicia sativa subsp. obovata. It was also reported that forms of these subspecies are grown in both Anatolia and Thrace (Uluocak 1984). (Açıkgöz 2001) stated that com mon vetches have been grown in Anatolian soils since very ancient times and seeds ofthis species were encountered in the excavations belonging to 5000 to 7000 B.C. (Avcı 1994) found in his study, where he used four bred com mon vetch species,two lines and six local ecotypes taken from eastern parts of Turkey, that weight of 1000 seed was lower in local ecotypes than that of bred genotypes and length of maturity stages was largerinthe formerthan latter while some local ecotypes could give equal hay and seed yielding with bred forms. Bitter Vetch (Vicia ervilia Willd.) Cultivation of this plantin Turkey goes back to 5000 to 6000 B.C. Itis a short(20 to 40 cm length) and vertically developing species and very resistant to arid conditions. Its flowers are whitish yellow and seeds are brown. They are grown to produce grain feed. Bitter vetch is cultivated in Aegean, Mediterranean, Middle and Southeast Anatolia Regions of Turkey. Itis very difficultto harvest this species mechanically since it is short and it has lower pod very close to the ground. Therefore, seeds have to be picked up manually. This difficulty causes the cultivation this speciesto reduce consistently. Forinstance, during 1970s this species was sown in an area of 70.000 ha, however,thisrate was reduced to 2.000 ha in 2000s. In orderto prevent bitter vetch cultivation form disappearance, Ankara University Agriculture Faculty has begun to conduct studies. Local bitter vetch samples collected from allregions of Turkey were characterised and taken under protection. Form these collected populations, lines and varieties that are more yielding and convenientto machinery cultivation were developed (Ekiz & Özkaynak 1984). Chickling Vetch (Lathyrus sativus L.) It is a species which began to be grown in Turkey in early ages. Stems are clearly flanked (angled). Leaves have 1 or 2 leaflets and long tendrils; and are spear-like in shape. Flowers are whitish-blue. This species is grown locallyinthe mountainous areasin Southeast Anatoliaregion of Turkey to produce grains or hay. Seeds of local species are greyish. It is known with the local name cılban where it is cultivated in Turkey. It is L. sativus species that is cultivated the most,though hairy vetch (L. hirsitus L.) is grown relatively low (Uluocak 1984). Local species of this plant have been collected and studies began to be carried out to develop culture species from these collected forms (Karadağ 1999). Total sowing area of this species is 600 ha in statistics in Turkey (Anonymous 2005). Forage Pea (Pisum arvense L.) This speciesis a forage plant grown mostly forits seeds.Itis an annual; 40 to 80 cm height and climbing stems; broad leaved; and with dark flowers and seeds. Local ecotypes of forage pea are known with the local name of külür in the Northeast of Turkey. These populations are extensively grown in the eastern Anatolian cities of Bayburt, Kars and especially Ardahan. Since it prefers humid and cool climatic conditions, it is cultivated more in the mentioned region. Cultivation oflocalforage pea ecotypes decreases consistently.It has a sowing area of nearly 3.800 ha (Anonymous 2005). The largest difference oflocal ecotypes from cultured forms isthatlocal ones have dark flowers and seeds.Itsflowers and seeds are violetin colour.In orderto protectlocal ecotypes ofthis plantin Turkey,(Tan et al. 2009) began to conduct studies.In the scope of these studies,totally 61 genotypes collected from north-eastern Anatolia were taken under conservation and theircharacteristics were defined and registered. In addition it was found as the consequence of these studies that hay and seed yielding rates of local forage pea ecotypes were 270 to 854 kg/da and 51 to 254 kg/da respectively. Since its genetic variation is very high, lengths of plant and its development period and lodge degree of the materials are very different. 3 �1st International Syposium on Sustainable Development, June 9-10 2009, Sarajevo References Açıkgöz, E. (2001). Forage Plants. Uludağ Univ. Güçlendirme Vakfı Publication No: 182. Bursa, Turkey. Anonymous (2005). Statistics of Agriculture-2005. T.C. Prime Ministry Statistic Institution, Ankara, Turkey. Avcı, M. (1994). A study on the yield and adaptation of species, lines, and populations of some common vetch. Atatürk Univ. Agriculture Fac., Natural and Applied Sciences Institution, Department of Field Crops, Ms. Thesis, Erzurum, Turkey. Ekiz, H. & Özkaynak, I. (1984). A study on the important morphologic, biologic and cultural characteristics of bitter vetch (Vicia ervilia (L.) Willd.) grown in Turkey. Ankara Univ. Natural and Applied Sciences Institution Publication No: TB. 5, Ankara, Turkey. Elçi, Ş. (2005). Legume and Grass Forages. T.C. Ministry of Agriculture and Rural Affairs, Ankara, Turkey, 486 p. Gençkan, S. (1983). Cultivation of Forages. Aegean Univ. Publication. Bornova, Đzmir, Turkey. Karadağ, Y. (1999). A study on the sitologic, morphologic, biologic and cultural characteristics of some chickling vetch (Lathyrus sp) lines. GOPU, Natural and Applied Sciences Institution. Ph.D. Thesis, Tokat, Turkey. Şengül,S., Tahtacıoğlu, L. & Mermer, A. (2003). Determination of the species and lines of alfalfa (Medicago sativa L) convenient to the conditions in Eastern Anatolia Region. Journal of Atatürk Univ. Agriculture Fac., 34 (4), 321-325, Erzurum, Turkey. Şengül, S. (2009). A study on the determination of some morphologic characteristics of alfalfa ecotypes collected from different parts of Turkey. Journal of Alınteri, Atatürk Univ. Agriculture Fac. Erzurum, Turkey (in press). Soya, H., Avcıoğlu, R. & Geren H. (1997). Forages. Hasad Publication, Istanbul, 223 p. Tan, M., Koç, A., Çomaklı, B. & Elkoca, E. (2009). Development of hay and seed type lines from field pea populations grown in some cities of East Anatolia. Third Development Report of TUBITAK Research Project No: TOVAG-107O134. Atatürk Univ. Agriculture Fac., Erzurum, Turkey. Tosun, F., Manga I., Altın M. & Serin Y. (1978). Adaptation and micro yielding experiments of legumes and forages (unpublished), Atatürk Univ. Agriculture Fac., Erzurum, Turkey. Uluocak, N. (1984). Important Natural Rangeland Plants in Turkey for Soil Protection and Forage Quality. II. Legumes. I.U. Forest Fac., Istanbul, Turkey, 159 p. 4 � 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. 460 Title A name given to the resource Local Forage Ecotypes and Their Importance in Turkey Author Author Tan, Mustafa Dumlu, Zeynep Abstract A summary of the resource. Although not convenient for the modern agriculture, local ecotypes are of importance for being breeding materials since their genetic variations are diverse. Turkey is a rich country in the number of forage ecotypes. Cultivation history of especially alfalfa, common vetch, sainfoin, forage pea, chickling vetch and bitter vetch dates back to very ancient times. However, these genotypes are facing to extinct today and their importance has begun to be realized in the respect of sustainable and organic crop yielding as well as due to the increased global warming and water shortage threats. This paper was prepared to summarize some information about local forage ecotypes in Turkey and to mention about their importance. Date A point or period of time associated with an event in the lifecycle of the resource 2009-06 Keywords Keywords. Conference or Workshop Item PeerReviewed Q Science (General)