67 10 3494 https://omeka.ibu.edu.ba/files/original/44fc3f272eacf27b209ae9c1190823c6.pdf 60c88906d75418cc7c2f914f87783d98 PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Intrapreneurship in Small and Medium-Sized Enterprises Mehmet AYGÜN Assoc. Prof.,Yüzüncü Yıl University, Van, Turkey maygun@yyu.edu.tr Süleyman ĠÇ Dr. , Gaziantep University, Gaziantep, Turkey icsuleyman@yahoo.com Mehmet KIZILOĞLU Res. Assist., Gaziantep University, Gaziantep, Turkey kiziloglu20@hotmail.com Abstract: Begining from the second half of the 1980s the concept of intrapreneurship found an intense interest in the academic and business fields. It is seen that numerous academic studies which are related with intrapreneurship have been done during that time. Although intraprenurship is attempted to be defined in different ways, the most general sense of intrapreneurship is considered to be entrepreneurship within an existing organization. In this sense, intrapreneurship is regarded as individuals‘ being involved in the form of entrepreneurial activities within an existing organization. In this study, firstly we defined the concept of intrapreneurship then information about the requirements and dimensions of intrapreneurship, process of creating intrapreneursship, comparison of executives and intrapreneurship, motivation of intrapreneurship, differences of domestic and foreign entrepreneurs and intrapreneurship in SMEs. Finally we were measure intrapreneurship in SMEs by questionnaire at our last part of study. Key words : Intrapreneurship, Small and Medium-Sized Enterprise (SMEs) Introduction While the socio-economic development is realized, there takes place periods when societies alter themselves from top to bottom. The first period out of these having left its traces in the history of mankind is that connected prople to the domestic life and during which soil was accepted as the most valuable factor for production. This period marks the beginning of agricultural communities. The second of them is the transmission from agricultural community to industrial community, where mass production and consumption gained value and the concept of colonialism was dominant. The third one is information community marked by the transmission from industrial community to what is experienced today, when, besides classic production methods, information is conceptualized as the most essential factor for production and the capital of human is given more importance (Aygün, 2004). Together with the process of transmission to information community, the rising competition has made people working in organizations even more important. The businesses that want to get advantages in competition have started to allow their workers the oportunuties to elicit their creative features. The concept of Intrapreneurship has been given great interest since the second half of 1980‘s in academic and business fields. During the period, numerous academic studies have been carried out regarding the topic. In these studies having been carried out, the fact that intrapreneurship activity is a very important factor for the businesses to maintain their existence, grow and make profit was brought out (Jarna and Kaisu, 2003 : 1). In our study, primarily, intrapreneurship is theoretically discussed in detail. After mentioning about intrapreneurship in SMEs the methodology, data and versions are defined in practice part. In result part, the results of the survey are evaluated. Entrepreneurship, Administration And Intrapreneurship The concepts of entrepreneurship and intrapreneurship are used today to a great extent in the literature and discussions of administration (Luchsinger and Bagby 1987 : 10). The eminence of entrepreneurship and intrepreneurship began to increase in USA wih the interest in productivity. 217 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo The entrepreneur is defined as somebody who has an independent capacity and who can take over the risk of starting a fruitful activity and maintaining it (Luchsinger and Bagby 1987 : 10). Intrapreneurs are the creative individuals who have the entrepreneur soul within an instutition, who see the opportunities for innovation and catch it, and who not only innovate but also can turn their ideas and models into increase for their instutition‘s profits and competitive power. Pinchott defines entrepreneur as the dreamer who takes over the responsibility for each kind of creativity within an organization. An intrapreneur is a person who moves with a entrepreneural spirit in a big organization. Intrapreneurs are leaders in converting new ideas to realities (Parboteeah, 2000 : 48). They are action – focussed and goal – oriented. Whatever happens, they are ready to achieve their aims. They are not only good thinkers, but also planners. When face to face with a success, they present an optimist attitude. They regard unsuccess as a latency that is temporary. They do not blame people for their failure, but instead, they focus on how they can do better (Kuratko and Hodgetts, 2000 : 213). Pinchott states that intrapreneurs have their peculiar principles and puts forward 10 conditions related to an intrapreneur. These are (Kuratko and Hodgetts, 2000 : 14): 1- Coming to work in high excitement and willingness everyday, 2- Nobady‘s preventing their dreams, 3- Preparing projects for work despite their not being necessary, 4- Creating networks to help people, 5- Constructing team – spirit, 6- Curiosity for inventions, 7- Dedicatedness to work and honesty, 8- Being forgiving, 9- Being realists regarding goals, and 10- Having a strong vision. Although the concepts of entrepreneur and intrepreneur have similar qualities, there are nuances between them. The most important difference is that, the intrapreneur acts in an environment in an already present organization whereas the entrepreneur prepares his/ her environment for him/ herself. Another difference is that the entrepreneur takes over more risk than the intrapreneur. Failure might cause an entrepreneur to go bankrupt while the intrapreneur is an employee (Luchsinger and Bagby, 1987 : 12). The studies having been carried out put forward that the entrepreneurs foster a style that is more apt for entrepreneural administration than conventional administration. Actually, investigating the entrepreneur and conventional administrator profiles, the intrapreneur profile shows so many peculiarities that it might be considered as a third type. As an instance of such studies might be shown that of Gifford Pinchot III, which is very inclusive. The narrowed version of this wide analysis investigating the similarities and differences between conventional administration, entrepreneur and intrapreneur is presented in Table 2 (Berber, 2000 : 34-35). 218 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Main motivation factors Activity Conventional Administors Promotion and other conventional company rewards (buro general staff, power, etc.) Assigning rather than direct participation Careful Entrepreneurs Intrapreneurs Freedom, opportunity to be created and money Freedom and the ability to develop in terms of the company rewards Direct participation Direct participation instead of assigning Taking over reasonable risk Not focussed on the conventional company status symbols, willing freedom The tendency not to consider risky projects until being ready May persuade others to reach a dream Satisfies him/herself, customers and sponsors Generally family members that are entrepreneurs, small business owners Based on reciprocal relations in a hierarchy Both inner and outer conditions Solving problems within a system Status Focussed on status symbols Taking over reasonable risk Has no relationwith status symbols Mistake and failures The exertion to run away from mistake and failure Tackling mistakes and failures Decisions Generally in accord with his/her superiors Satisfies others Follows his/her dreams with his/her dreams Satisfies him/herself and customers Generally family members that are entrepreneurs, small business owners Mostly based reciprocal relation and respect Priorly technology and market Running away from the solution of huge problems by leaving them or restarting the solution Risk situation For whom Family background Relations with others Focussing Style to solve a problem Generally family members having worked in tremendous organizations Mostly hierarchical Intraorganizational relations Solving problems within a system Table 1: The Comparision of Conventional Administrator, Entrepreneur and Intrapreneur Profiles Source: Berber (2000 : 34) Intrapreneurs might, above all, be said to have a profile between entrepreneur and conventional administrator. As examples to this might be given; in terms of main motivation factors, intrapreneur‘s desire to pick up instutition‘s rewards as in conventional administrator within the frame of entrepreneur‘s freedom conception; intrapreneur‘s absorbing the direct participation in his/her entrepreneural identity instead of assigning people like a conventional administrator; intrapreneur‘s not running away from mistakes an failures contrary to entrereneur, but at the same time, his/her exertions not to let his/her company see them; intrapreneur‘s peference of reciprocal relations within conventional order of hierarchy. Moreover, while the intrapreneur has the tendency to present conventional administrator features like solving problems within the business system, contrary to a conventional administrator who considers opportunities carefully, acts like an entrepreneur by prefering the way of taking over reasonable risks (Berber, 2000). Intrapreneurship It is known that the concept of entrepreneurship was used for the first time by Richard Cantillon in the midst of the 16th century as an economical term. Contrary to this, we can say that the term, intrapreneurship is a new concept in the literature. Because, it has been put forward that the concept was first used by Ginford Pinchott in 1985. Although the concept is new, we may come across different concepts that corresponds to the same sense in the literature of enterpreneurship. The mostly used among these are Corporate Entrepreneurship, Internal Entrepreneurship, Corporate Venturing‘tir. Corporate Venturing is defined as creating new positions in an already existing organization while Corporate Venturing is defined as the creation of new jobs in an already existing organization for the purpose of taking competitive advantages out of new opportunities (Parboteeah, 2000 : 26). 219 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Even though it has been tried to be defined different ways (Parboteeah, 2000 : 26), Pinchott‘s definition is accepted as the default one in the literature (Kuratko; Hodgetts, 2000; Antoncic; Hisrich, 2000, 2001). To this definition, entrepreneurship is accepted as entepreneurship in an already existing organization. In this sense, entrepreneurship is referred to as the entreprising activities of the workers working in an already existing organization. After this definition by Pinchott, some other writers expanded the definition considering the occuring needs (Kuratko et al. 1990 : 49). Kuratko and Hodgetts (2000 : 95) expanded Pincott‘s definition as the process of starting a new organization or a reform by an individual or a group working in an already existing organization. Zahra (1991 : 260) defines the term as all the official or non-official activities carried our for the purpose of creating new jobs through renewing the products or processes; or developing market in an already existing organization. The Need for Intrepreneurship The concept of intraentrepreneurship became popular through the end of 1980, and since then, it has become a field that has attracted practitioners. Many factors have played roles for the development and expansion of the concept. Kuratko and Hodgetts (2000 : 96) connt some of them as follows: Rapid increase in the number of the existing and new competitors, Serious increases in the amount of ar-ge spendings, Some intelligent and bright people‘s leaving their organizations and becoming entrepreneurs of small businesses. International competition, The shrinking of fundamental organizations, Rapid changes in technology, The desire to make better effectiveness and production. Hisrich et al. (2005) put forward that the actions in the social, cultural and working levels raise the interest to the concept dramatically. It was mentioned that at the social level, the rise of the conception of ―doing what we have‖ was very effective. Hisrich et al. attract the attention towards the people having the heart for intrapreneurship and report that they they trust their abilities supposing that they have the tendency to create new things with what they have. These people want responsibility and need to get the feeling of freedom in their working environments. Unless there exists this freedom in the environment where they are, these people are disappointed. This might lead to their being less efficient and leaving the organization. Intrapreneurship is one of the measures to prevent these from occuring. The Dimensions of Intrapreneurship For the concept of Intrapreneurship to be perceived better, its dimensions must be defined well. Chang (1998 : 187) defines intrapreneurship as the innovations produced internally within the organization. Antoncic, (2000) carrying out researches in the field of intrapreneurship has summarized the literature in the table below. 220 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Authors Name of the concept Miller and Friesen (1983) Innovation Characteristic Dimensions New products Risk taking Proactivitivity Covin and Slevin (1986, 1991) Entrepreuneurial posture Risk taking Innovationism Guth and Ginsberg (1990) Corporate Entrepreneurship Proactivity Internal innovation or venturing Strategic renewal Zahra (1991, 1993a) Corporate Entrepreneurship Innovation and venturing Strategic renewal Lumpkin and Dess (1996) Entrepreneurship Orientation Authonomy Innovationism Risk taking Proacivity Knight (1997) Entrepreneurship Orientation Innovationism Proactivity Definitions The introduction of new products and productionservice technologies Being above the opponents Risk-taking via considering investment decisions and strategic actions Expanding the production renewal frequency and technological leadership Pioneering, aggression The birth of new jobs in an already existing organization The cycling of the key ideas in the organization The creation of new jobs via the market developments The re-defining of job concept and reorganization The independence of an individual or a team for acting Firm‘s supporting and maintaining new ideas Perception of unpredictability… The prospects of harm or negation out of the outcomes Joining new markets and seizing new opportunities The following of the new or creative problems with which the firm faces Anti-reactivity and being more agressive compared with the opponents Table 2 : The Classification of Intrapreneurship At The Organizational Level Source: Antoncic (2000) Given the studies that were carried out in the last years, the concept can be classified under seven dimensions. These are; (New Business Venturing), (2) Product and Service Innovativeness, (3) Process Innovativeness, (4) Self-Renewal, (5) Risk Taking, (6) Proactiveness and (7) Competitive Aggressiveness. New business enterprises or new business partnerships means the firm new jobs and its gains related to its already existing products and markets. New business enterprises are regarded as the most essential dimension of intrapreneurship due to the fact that they might result from the creation of new jobs in an organization by reason of the products and services of the organization being re-defined and new markets being improved. Rather than the new bbusiness enterprises, product/service innovativeness dimension means the business‘ innovation of their products and services due to technological change and development. Intrapreneurship consists of the methods and procedures of new product development, product improvement and new production. 221 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo What is meant by self-renewal is the transformation of the organization and the renewal of the key ideas that are a part of the organization that constitute it. This concept means strategic and organized change and it involves activities such as the redefining the concept of work and its reorganization (Antoncic and Hisrich 2000 : 498). In the broadest sense, risk- taking is defined as the chasing of the opportunities in a fast way and taking brave steps. Since Cantillon, who defines enterpreneurs as the people who take over the risks of profit and loss; risktaking has been regarded as the most essential concept of entrepreneur and entrepreneurship (by such scholars as Knight, Schumpeter and Mc Clelland). Risk- taking is a concept which takes place in the nature of all all the other dimensions. It is argued that risk- taking has a strong relation to the other dimensions. Furthermore, in recent studies, risk- taking has been spotted as a dimension of entrepreneurship or a peculiar characteristic of it in an organization (Anontic, 2000). Proactiveness expresses the presentation of a more aggressive attitude compared with other businesses. A proactive business shows tendency to take risks, and is brage and aggressive in terms of finding opportunities. The tendenct to compete with opponents is expressed within the dimension of competitive aggression. The two terms, proactiveness and competitive aggression are generally assigned the same meaning. Although it is regarded as partly true, while proactiveness refers to responding to the opportunities whereas competitive aggression refers to responding to treats. Stages of Creating Intraentrepreneurship The organizations that wish to sat up an intrapeneural environment must develop a procedure to realize this (Hisrich et al., 2005). Intrapreneurship, which is defined as an entrepreneurship activity in an already existing organization is composed of a 4-stage process. These stages are, in order, job idea, job plan, finding sponsor and team creation (Arıkan, 2003 : 188). Job Idea In order to start an intrapreneurship activity, constituting the job idea is prerequisite. The job idea does not always have to be an idea that the entrepreneur has him/herself developed. The job ideas that are gathered from variable sources like customers and colleagues might be turned into intrapreneurship activities. While, under some circumstances, a job idea might create the willingness to constitute an intrapreneurship, it might also be the willingness of a person for enterprise that directs him/her to look for a job idea. To construct a job idea, one of the essential sources of the entrepreneur is his/her colleagues. Meetings with the colleagues and idea developing methods such as brain storming are the means that might be taken advantage of in the search of the intrapreneurship idea. Job ideas might also pop up during the investigation of the organization‘s present functioning or with the decection of its deficencies. The researches that the firm has not carried out or practiced might give out new job ideas with teir new perspectives. Another important source is the technology the firm has. The technological fields where the firm is superior to the others might bring new and untried alternatives. Job Plan The entrepreneur that has made his/her mind to apply the job idea in the firm should act in a certain job plan for a successful intrapreneurship. He/she should clearly put forward the strategies and the aim of the job plan trial. The obstacles that might occur inside or outside the firm with regard to the implementation of the work plan should be detected and ways to overcome them should be improved. The existance of a good job plan is necessary in terms of defining the budget and the strategies of the intrapreneurship and to follow them during the practice stage. The budget and goals which have been constructed have great importance for the firm administratives to foster the intrapreneurship. The intrapreneurship goals, its structure, its risks and appropriateness for the structure of the firm which have been proposed raise the intrapreneurship proposal‘s chance to be accepted within the firm by being put forward together with the job plan. Finding Sponsor Choosing the right sponsor is one of the most eminent factors for the success of the enterprise. The intrapreneur should not take the full responsibility of the job idea that he/she is going to practice. Sponsors are needed within the firm to solve the problems if sources are to be created for the project. These sponsors might be less superior administrators that might help with the daily problems as well as the high- rank administrators who 222 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo may protect the firm from the main dangers. At this point, the function of the superior administration is essential. The commitment of the administration is one of the compulsory conditions for an entrepreneural activity‘s success. Team Creation and Administrating The idea for enterprise might be one‘s idea, but it is, most of the times, impossible. For this reason, the intrapreneur should construct the best team and direct, administrate his/ her team mates. SMEs in Turkey SMEs play a particularly important role in the Turkish economy, because of their number and because of the large share of the workforce involved. There is no universal definition of SME and the term covers a wide variety of definitions and measures. The most common definition in OECD countries is based on employment figures; correspondingly, an SME has less than 500 employees. The Eurostat definition used in 19 European countries refers to fewer than 250 employees, and it is currently the most widely accepted definition. Some countries use different definitions for manufacturing and services SMEs, with the latter usually defined to be smaller. Some countries distinguish between autonomous SMEs and those connected to a larger enterprise or group, or identify an SME in terms of management structure. In Turkey, the widely accepted definition points to those with 1 to 50 employees as ‗small‘ and those companies with 50 to 100 employees as ‗medium‘. In financial terms, an SME would have less than 15 million USD as revenue. Another criteria for an SME has been accepted as ―an SME should not be owned by a nonSME firm (or ownership should not exceed more than 25%.)‖. Other non-numeric, rather qualitative traits of an SME are adopted as: the owners are usually the managers, the management style is not hierarchic, usually it is a family business, not quoted on stock markets and most of the time they have financing constraints and find it difficult to trade abroad. (Gungen, 2010 ) SMEs constitute 99.6% of all the enterprises in the manufacturing industry, and accounts for 55.6% of the employment and contribute about 40 % to the GDP. Very large shares of SMEs are in the trade, crafts and industry sectors. The basic targets of SME policies are to increase the productivity of the sector, its share in total value added and its international competitiveness. (Country Partnership Strategy -Turkey: 2009-2010) SMEs are generally regarded as providing a friendlier environment where structures and process are and must remain simple, flexible and adaptable (Marchesnay, 1992; Gasse and Carrier, 1992; d‘Amboise and Muldowney, 1988) In SMEs, decision-making is highly centralised (Deeks, 1976; Charan, Hofer and Mahon, 1980; Welsh and White, 1981, MacMillan, 1975). The resulting structural flexibility is reinforced by the small number of hierarchical levels usually found in smaller organizations (Schöllhammer and Kuriloff, 1979; Robinson and Pearce II, 1984; MacMillan, 1975; Van Kirk and Noonan, 1982; Pearce II, Chapman and David, 1982) Potential intrapreneurs are usually very easy identified. In most cases, intrapreneurs quickly make themselves known by bringing their ambitions, idea or projects to the attention of their owner-managers. As a result, the logic governing their emergence tends to be one of matching or convergence rather than detection. This type of complementarity could even be regarded as a critical success factor for intrapreneurship in SMEs. While in large business the structures and systems often constitute important barriers to intrapreneurship, in SMEs the owner-managers themselves may become the main inhibitors or, conversely, the best catalysts in the process. In SMEs employees have easier Access to the entrepreneur or top management. Generally speaking, the intrapreneur-entrepreneur coupling seems at first glance to function more naturally and harmoniously, provided, however, that the intraprenur‘s compartmentalisation is not significant and where functions are rarely overspecialised. Therefore, in their view, promotion often provides an opportunity to extend their field of action, increase their autonomy and more closer to the owner-managers with whom they would like to share the innovative function in the firm. Result In this study, firstly the concept of entrepreneurship, management and intrapreneurship were defined and described the need of intrapreneurship. Then dimension of intrapreneurship explained. And also try to understand the position of the Small and Medium Sized Enterprises in Turkey and defined the intrapreneurship in Small and Medium Sized Enterprises. 223 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo In the part of application, we used a scale which done by Heoimonen and Korvela. We translated that scale to Turkish and applied this questionaire to 120 manager who work in the Small and Medium Sized Enterprises in Turkey. Questionaire include 7 factors which are Encouragement by management and organization, Individual Motivation, Transparency, openness and community, Individual Competence, Enabling working environment, Encouragement to innovations, Development. The result is that the level of intrapreneurship in Small and Medium Sized Enterprises in Turkey are so high and which is a consistent result at the literature. References Antoncic, B. and R. D. Hisrich (2000) ‗‘Intraprenurship Modeling in Transition Economies: A Comparision of Slovenia and United States‘‘, Jouranl of Developmental Enterpreneurship, 5, 1 , 21 Antoncic, Bostjan (2000). ‗‘Intraprenurship: Construct Refinement and An Integrative Model Development‘‘ , Doctoral Theses, Case Western Reserve University. Antontic, B. and R. D. Hisrich (2001). ‗‘Intraprenurship: Construct Refinement and Cross-Cultural Validation‘‘ , Journal of Business Venturing, 16, 495-527. Arıkan, Semra (2004). GiriĢimcilik, Siyasal Kitabevi Chang, Jane (1998). ‗‘Model of Corporate Entrepreneurship: Intrapreneurship and Exopreneurship‘‘, Borneo Review, 9, 2, 187-213 Güngen, Tulay (2010) ―E-Fınance for SMEs in Turkey‖ http://r0.unctad.org/ecommerce/event_docs/xmefinoct2001/gungen.pdf Hisrich ve diğerleri (2005). Entrepreneurship, Sixth Edition, McGraw-Hill Jarna, H. and K. Kaisu (2003). ‗‘How about measuring Intraprenurship‘‘. Kuratko D. F. And R. M. Hodgetts (2000) Entrepreneurship: A Contemorary Approach, Fifth Editon, South-Western Thomsan Learning. Kuratko ve diğerleri (19909. ‗‘Developing an Intrapreneurial Assetsment Instrument for an Effective Corporate Entrepreneurial Environment‘‘ Strategic Management Journal, 11, 5, 49-58 Lunchsinger V. and D. Ray Bagby (1987) ‗‘Entrepreneurship and Intrapreneurship: Behaviors, Comparisions, and Contrasts‘‘. Advanced Management Journal, 52, 3, 10-13 Porboteeah, K. Praveen (2000) ‗‘Choice of Type of Corporate Entrepreneurship: A Process Model‘‘, Academy of Entrepreneurship Journal, 6, 1, 28-46 Berber, Aykut (2000). ‗‘GiriĢimci ile Yönetici Profilinin KarĢılaĢtırılması ve GiriĢimcilikten Yöneticiliğe GeçiĢ Süreci‘‘, Ġ.Ü ĠĢletme Fakültesi Dergisi, C:29, 23-46. Country Partnership Strategy -Turkey: 2009-2010 www.tukkk.fi/pki/julkaisut/konferenssit/EISB2003/Heinonen_Korvela_EISB2003.pdf http://www.pinchot.com/MainPages/BooksArticles/Innovation 224 � 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. 161 Title A name given to the resource Intrapreneurship in Small and Medium-Sized Enterprises Author Author AYGÜN, Mehmet İÇ, Süleyman KIZILOĞLU, Mehmet Abstract A summary of the resource. Begining from the second half of the 1980s the concept of intrapreneurship found an intense interest in the academic and business fields. It is seen that numerous academic studies which are related with intrapreneurship have been done during that time. Although intraprenurship is attempted to be defined in different ways, the most general sense of intrapreneurship is considered to be entrepreneurship within an existing organization. In this sense, intrapreneurship is regarded as individuals‘ being involved in the form of entrepreneurial activities within an existing organization. In this study, firstly we defined the concept of intrapreneurship then information about the requirements and dimensions of intrapreneurship, process of creating intrapreneursship, comparison of executives and intrapreneurship, motivation of intrapreneurship, differences of domestic and foreign entrepreneurs and intrapreneurship in SMEs. Finally we were measure intrapreneurship in SMEs by questionnaire at our last part of study. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/3bbdc798e02681ee59eda1555251159e.pdf da08e04612bd4e3aa8f94a5116534d3a PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo The Relationship between the Religiosity and the Ethical Attitudes of Managers: An Empirical Study Muzaffer AYDEMĠR Associate Prof. Dr., Bilecik University, FEAS, Department of Business Administration muzaffer.aydemir@bilecik.edu.tr Özüm EĞĠLMEZ Research Assistant, Bilecik University, FEAS, Department of Business Administration Abstract: In this study, we aimed to explore the relationship between religiosity and business ethics. Two dimensions of religiosity – intrinsic an extrinsic- were studied. We mainly tested one hypothesis: whether ethical attitudes are affected by religiosity. However, we also explored the relationship between ethical attitudes, intrinsic and extrinsic religiosity and various demographic measures of the participants.In our study, we surveyed 510 managers and white-collar workers from 6 different organizations in Turkey. Our survey instruments have three parts. First part included 24-vignette ethics scale of Barnett and Brown (1994). Second part included 14-item religiosity scale of Allport and Ross (1967). Third part contained various demographic measures. Findings of the study show that intrinsic religiosity is partly and negatively correlated with ethical attitudes and extrinsic religiosity is positively related to the ethical attitudes. In other words, intrinsically motivated people are more prone to behave ethically than extrinsically motivated people are. Key Words: Religiosity, ethical attitudes, business ethics. Introduction Ethics has been one of the principal issues confronting businesses for many years. While they are responsible for maximizing long-term value for the shareholders, they are also expected to adequately monitor their employees‘ performance, and to enforce and adhere to certain ethical standards. Business ethics have been the subject of controversy and debate for many years among researchers and practitioners. Not surprisingly, frequent scandals have fostered considerable interest and scholarly work in the business ethics area. Recently, interest in this area was intensified due to widespread media accounts of outbreaks of ethical failing and questionable practices by corporations and corporate executives. Events such as the collapse of Enron, the destruction of documents at Arthur Andersen, questionable CEO compensation packages and other practices at Tyco, and charges of fraud at WorldCom have shaken public confidence in business world. In accordance with these ongoing discussions, scholars and practitioners are wondering what has to be done to assure ethical behaviors in the business environment. Some scholars debate whether religious belief should be an appropriate grounding for business ethics. Madigan (2005) criticizes the popular assumption that ―religion and morality are synonymous‖ and then he claims that this assumption is incomplete because religion is not the sole determinant of our morality. Calkins (2000) states that business ethic has recently neglected its religious traditions and become construed more narrowly as an applied philosophy and social science. Fort (1997) claims that rather than excluding religion from business ethics, business ethics ought to consider religion as a healthy ground. He claims that there is no good reason for us to restrict people from relying upon religion in making and justifying economic judgments. This means that theology ought to be a participant in debates about public matters, including business ethics. Theology‘s contributions will be as varied as the philosophical alternatives for business ethics. McMahon (1986) argues that religions make valuable contributions to business ethics. Religions‘ values, principles, and practices give sense of responsibility, and guidance to the people of business world. This current paper presents the results of a study that explored the roles of the managers‘ and the whitecollar workers‘ religiosity play in determining their ethical attitudes regarding questionable business practices. 247 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Literature Review Religion and Religiosity The impact of religion on our social and economic lives is an historical debate. Nowadays, some scholars pay closer attention to the subject and aim to explore the relationship between religious beliefs and business ethics. Meanwhile we should clarify what we mean by ―religion‖. As Bernardin (2006) noted that definition of religion should include God and/or supernatural, otherwise when we remove God, the supernatural, and specific beliefs from religion, what we have got but a secular activity by another name. Cornwall et al. (1986) examined the dimensions of religiosity and found six core and seven peripheral dimensions. Core dimensions of religiosity are traditional orthodoxy, spiritual commitment, religious behavior, particularistic orthodoxy, church commitment, religious participation. Peripheral dimensions are religious knowledge, religious experience, personal community relations, personal well-being, marital happiness, physical health, and spiritual well-being. Clark and Dawson (1996) highlighted the importance of the religiousness construct as an influence on ethical judgments and, possibly, on behavioral intentions. They stress that personal religiousness is a potential source of ethical norms, and consequently, an influence in ethical evaluations. Allport (1950) perceived religious motivation as differentiated by intrinsic religiosity and extrinsic religiosity. The ‗‗extrinsically motivated person ‗uses‘ his religion whereas the intrinsically motivated person ‗lives‘ his religion‘‘ (Allport and Ross, 1967: p. 434). In this study, we preferred and used Allport‘s classification. The Relationship between Religiosity and Ethical Attitudes Findings of the scientific researches about the relationship between religiosity and ethical attitudes generally show positive relationship. Some of researches and their findings can be summarized as follow: Religiosity is one of the factors that significantly influence values and ethical judgments (Huffman, 1988; Hunt and Vitell, 1993). For example, religiosity influences people‘s ethical and social responsibilities (Ibrahim et al., 2008). People who have high level of religiosity consider tax fraud less acceptable than who have low level of religiosity (Stack and Kposowa, 2006). In other words, religiosity has an influence both on human attitudes and behavior (Weaver and Agle, 2002). Religiosity is an important determinant of the ethical behavior. Religious beliefs provide an important basis for social integration and the prevention of deviant behavior (Stack and Kposowa, 2006). Nevertheless, other factors or the circumstances are also important. Therefore, affects of religiosity on people‘s ethical attitudes are situational (Saat et al., 2009) or high religiosity does not always mean high ethical values (Rashid and Ibrahim, 2008). Practicing religious beliefs or attending religious activities are positively related to the ethical attitudes. People who practiced their religion tend to consider themselves more ethically minded (Pahu and Kea, 2007); are less likely to cheat (Bloodgood et al., 2008), and are more likely to be honest (Perrin, 2000) than those who do not practice their religion. Some studies support the idea that religiosity in general has a positive impact on ethical attitudes. (Kennedy and Lawton, 1998; Singhapakdi et al., 2000; Siu et al., 2000; Conroy and Emerson, 2004). Some other studies focus on the relationship between dimensions of religiosity and ethical attitudes. These studies show that generally there are positive correlations between intrinsic religiosity and ethical attitudes. In other words, people who have higher intrinsic religiosity have more positive ethical attitudes than participants who have lower intrinsic religiosity. For example, Aydemir et al. (2009) found a statistically significant relationship between intrinsic religiosity and ethical attitudes of the participants. In several scientific studies, Vitell and his colleagues found that intrinsic religiosity was a determinant of ethical beliefs. In other words, an intrinsic religious orientation significantly explains one‘s ethical beliefs for the questionable business activities. As expected, the stronger a respondent‘s sense of intrinsic religiosity, the more likely he/she was to find various ‗‗questionable‘‘ business activities as wrong. (Vitell et al. 2005; Vitell and Muncy, 2005; Vitel et al. 2006; Vitell et al. 2007) As previous researches showed that there is a statistically significant relationship between religiosity and business ethics in general. Based upon the previously cited theoretical and empirical literature, we proposed the following hypotheses involving religiosity to test here: H1: There is a negative correlation between intrinsic religiosity of managers/white-collar employees and their ethical attitudes towards questionable marketing practices. H2: There is a negative correlation between intrinsic religiosity of managers/white-collar employees and their ethical attitudes towards questionable management practices. H3: There is a negative correlation between intrinsic religiosity of managers/white-collar employees and their ethical attitudes towards questionable management directives. 248 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo H4: There is a negative correlation between intrinsic religiosity of managers/white-collar and their ethical attitudes towards questionable independent actions in the workplace. H5: There is a positive correlation between extrinsic religiosity of managers/white-collar and their ethical attitudes towards questionable marketing practices. H6: There is a positive correlation between extrinsic religiosity of managers/white-collar and their ethical attitudes towards questionable management practices. H7: There is a positive correlation between extrinsic religiosity of managers/white-collar and their ethical attitudes towards questionable management directives. H8: There is a positive correlation between extrinsic religiosity of managers/white-collar and their ethical attitudes towards questionable independent actions in the workplace. employees employees employees employees employees Methodology This paper presents the results of a study that investigated the roles that managers / white-collar employees‘ religiosity play in determining their ethical attitudes regarding questionable business practices. Two dimensions of religiosity – intrinsic and extrinsic religiosity – were studied. Sample The data is collected from six organizations which are located in northwestern part of Turkey. Approximately 1000 questionnaire sent to the managers and white-collar workers in these organizations and 550 questionnaires returned. 510 of these questionnaires are used. Participants distribution is as follow: %25,3 employed by a state organization, %24,7 employed by a private education company, %16,1 employed by SMEs, %13,7 employed by a utility company, %10,6 employed by a manufacturing company, and %9,6 employed by a bank. 34.7% of the participants are in managerial position and 65.3% are in professional white-collar workers position. 45.9% of the sample was female and 54.1% of the sample was male. About 2.4% of the sample were younger than 20, 17.5% were between 21 and 25 years of age, 24.7% were between 26 and 30 years of age, 18.8% were in between 31 and 35, 13.3% were in between 36 and 40, 13.1% were between 41 and 45, 7.3% were between the ages of 46 and 50 and 2.9% were older 50; 3.1% had a high school degree, 25.1% had twoyear college degree, 17.1% had a university degree, 45.5% had MBA or PhD and 9.2% mentioned as other. 16.1% were working in a company with less than 10 employees, 24.7% were working in between 151 and 200 employees, 9.6% were in between 201 and 250 employees and a major as 49.6% were working in companies over 250 employees. As last demographic variable as marital status, 57.8% were married, 38.4% were single and 3.7% were divorced or widowed. Measures The survey consists of three parts. The first part included 24-vignette ethics scale of Barnett and Brown (1994), included employee theft, lying to customers, taking advantage of customers, using company services and whistleblowing among others. The second part included 14-item religiosity scale of Allport and Ross (1967). We used the adopted version of the scale by Vitell et al. (2007). The third part contained various demographic measures such as age, sex, marital status, educational level, occupational category and employed sector. The dependent construct in the analysis was managers‘/ white-collar employees‘ ethical attitudes as measured by the 24-vignette ethics scale of Barnett and Brown (1994). The respondents were asked to rate each vignette on a five-point scale from – strongly believe that it is unethical (1) to strongly believe that this is ethical (5). It is important for the readers to note that a low score on this scale indicates that managers / white-collar employees have stronger belief that these behaviors are wrong or more unacceptable. Overall reliability score of the ethics scale is 0.833. Extrinsic and intrinsic religiosities were measured by using the adopted version of Allport and Ross (1967), using a five-point Likert type scale anchored by ―1 = I strongly disagree‖ and 5 = I strongly agree‖. In the response format, higher scores indicate higher degree of religiousness. Overall reliability score of religiosity scale is 0.741. The intrinsic dimension has 8 items and is exemplified by items such as, ‗‗I try hard to live my life according to my religious beliefs.‘‘ This dimension exhibited a reliability of 0.771. The extrinsic dimension includes 6 items and has a reliability of 0.698. It is exemplified by items such as, ‗‗I go to religious services because it helps me make friends.‘‘ 249 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Results Religiosity scale has two dimensions; intrinsic religiosity and extrinsic religiosity. Reliability of coefficient (Cronbach‘s Alpha) of religiosity scale is 0,741. Ethics scale has four dimensions; marketing, management, employee following management directives and employees independent actions. Reliability coefficient (Cronbach‘s Alpha) of ethics scale is 0,833. Descriptive statistics of these dimensions are given in Table 1. Factors Intrinsic Religiosity Extrinsic Religiosity Mean 3,43 2,70 Std. Deviation C. Alpha 0,75 0,77 0,74 0,70 Factors Marketing Scenario Management Scenario Employee Following Management Directions Employees' Independent Actions Mean 2,20 1,70 1,97 1,76 Std. Deviation 0,54 0,66 0,72 0,67 C. Alpha 0,73 0,57 0,49 0,72 Table 1: Descriptive Statistics Correlation and multiple regression analysis were used to test the hypothesis. There is negative and statistically significant relationship between ―intrinsic religiosity‖ dimension and ―management‖ dimension and ―employee following management directives‖ dimension of ethics scale. These correlations mean that people who have high intrinsic religiosity consider questionable business practices more unethical than people who have low intrinsic religiosity. There is positive and statically significant relationship between extrinsic religiosity and all the dimensions of the ethics scale. These correlations mean that people who have high extrinsic religiosity consider questionable business practices more ethical than people who have low extrinsic religiosity. Results of the correlation analyses are given in Table 2. Marketing Scenario Management Scenario Employee Following Employees' Management Independent Directives Actions -0,034 (p = 0,440) -,090* (0,042) -,094* (0,034) -0,058 (0,191) ,160** ,246** ,130** (0,000) (0,000) (0,003) *Correlation is significant at the 0.05 level (2- tailed). **Correlation is significant at the 0.01 level (2- tailed). ,295** (0,000) Intrinsic Religiosity Extrinsic Religiosity Table 2: Correlation Results For Factors Multiple regression analysis was also used to analyze the data and test the hypothesis with intrinsic and extrinsic religiosity as the independent variables and the four dimensions of the ethics scale as the dependent variables. In order to examine the relation between the independent variable and each of the four dependent variables, four separate multiple regression analyses were conducted. The results of these multiple regression analyses appear in Table 3. According to the regression analysis, extrinsic religiosity positively explains the questionable marketing practices (beta 0,170), the questionable management practices (beta 0,266), the questionable management directives (beta 0,148), and the questionable independent actions (beta 0,311). Regression analysis show that intrinsic religiosity negatively explains the questionable management practices (beta -0,132) and questionable management directives (beta -0,117), and questionable independent actions (beta -0,106). It can be easily seen from the correlations and regressions tables that (although statistically significant) correlation coefficients, beta values and R2 values are low. This means that there are more important factors that affect ethical attitudes of the participants other than religiosity. This is the subject of another study. We can speculate that these factors might be personal such as personality, and personal motivations etc.; organizational factors such as culture, climate etc., and social, economical, and political factors etc. 250 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo According to the t-test and ANOVA, there are no statistically significant differences among participants‘ religiosity and ethical attitudes in terms of demographic measures, such as age, education, position etc.. Model (a) Dependent variable: marketing dimension Constant Intrinsic Religiosity Extrinsic Religiosity R² = 0,029 Adjusted R² = 0,025 Standardized beta -0,061 0,170 F- value = 7,640 Significance = 0,001 (b) Dependent variable: management d imension Constant Intrinsic Religiosity -0,132 Extrinsic Religiosity 0,266 R² = 0,077 F- value = 21,265 Adjusted R² = 0,074 Significance = 0,000 (c)D ependent variable: following directives Constant Intrinsic Religiosity Extrinsic Religiosity R² = 0,030 Adjusted R² = 0,026 -0,117 0,148 F- value = 7,857 Significance = 0,000 (d) Dependent variable: independent actions Constant Intrinsic Religiosity Extrinsic Religiosity R² = 0,098 Adjusted R² = 0,094 -0,106 0,311 F- value = 27,550 Significance = 0,000 t - value Significance 15,356 -1,369 3,830 0,000 0,172 0,000 9,280 -3,047 6,169 0,000 0,002 0,000 11,277 -2,636 3,335 0,000 0,009 0,001 8,363 -2,493 7,294 0,000 0,013 0,000 Table 3: Regression Analyses According to the correlation and regression analysis, we rejected hypothesis H1, and accepted hypothesis H2, H3, H5, H6, H7, H8, and partly accepted H4 (because, results of the regression analysis support this hypothesis). Conclusion In this study, we explored the relationship between religiosity and ethical attitudes of the managers / white-collar employees. The findings of the study show that there are significant and meaningful correlations between the dimensions of religiosity and attitudes towards questionable business practices. That is, an intrinsic religious orientation appears to explain, in part, one‘s attitude toward questionable business practices. People who have a stronger intrinsic religious orientation tend to be more likely to believe that questionable business activities were wrong or unethical. Furthermore, people who have stronger extrinsic religious orientation tend to be more likely to believe that questionable business activities were less unethical. It is perhaps not surprising that someone who has high extrinsic religious orientation might be inclined to support these kinds of activities. Our findings related to the intrinsic religiosity are consisted with the findings of Vitell et al. As expected, the stronger a respondent‘s sense of intrinsic religiosity, the more likely he/she was to find various ‗‗questionable‘‘ business activities as wrong. (Vitell et al. 2005; Vitell and Muncy, 2005; Vitel et al. 2006; Vitell et al. 2007) It is interesting to note that people who have high extrinsic religious orientation consider questionable business practices more acceptable than people who have low extrinsic religious orientation. As Allport (1967) put the word ―uses‖ to differentiate the intrinsic religiosity and extrinsic religiosity, extrinsically motivated 251 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo people approach religion as a tool or instrument to reach some personal goals, such as making friends etc. In other words, they are not sincere enough. We believe that this study is an important step toward understanding the relationship between religiosity and ethical attitudes of people in the workplaces. However, factors like personality, motives etc. should be included into the analysis. Because, correlation coefficients, R2 and beta values are low. Intrinsic and extrinsic religiosity are explaining only small amount of the managers/white-collar employees‘ ethical attitudes towards questionable business practices. In summary, the field of business ethics, religiosity, and the relationship between business ethics and religiosity require further empirical studies. References Allport, G. W. (1950). The Individual and Religion (Mac Millan, New York). Allport, G. W. and Ross, J. M. (1967). Personal Religious Orientation and Prejudice. Journal of Personality and Social Psychology, 5, 432-443. Aydemir, M.; Göksu, A.; Obralic, M. (2009), ―The Impacts of Religiosity on the Ethical Attitudes of the Prospective Managers‖, 1. 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Journal of Business Ethics 62(3), 267–275. Vitell, S. J.; Paolillo, J. G. P. and Singh, J. J. (2006). The Role of Money and Religiosity in Determining Consumers‘ Ethical Beliefs. Journal of Business Ethics, 64: 117-124. Vitell, S. J.; Singh, J. J. and Paolillo, J. (2007). Consumers‘ Ethical Beliefs: The Roles of Money, Religiosity and Attitude toward Business. Journal of Business Ethics, 73: 369-379. Weaver, G. R. and Agle, B. R. (2002). Religiosity and Ethical Behavior in Organizations: A Symbolic Interactionist Perspective. Academy of Management Review, 27(1), 77–98. 253 � 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. 169 Title A name given to the resource The Relationship between the Religiosity and the Ethical Attitudes of Managers: An Empirical Study Author Author AYDEMİR, Muzaffer EĞİLMEZ, Özüm Abstract A summary of the resource. In this study, we aimed to explore the relationship between religiosity and business ethics. Two dimensions of religiosity – intrinsic an extrinsic- were studied. We mainly tested one hypothesis: whether ethical attitudes are affected by religiosity. However, we also explored the relationship between ethical attitudes, intrinsic and extrinsic religiosity and various demographic measures of the participants.In our study, we surveyed 510 managers and white-collar workers from 6 different organizations in Turkey. Our survey instruments have three parts. First part included 24-vignette ethics scale of Barnett and Brown (1994). Second part included 14-item religiosity scale of Allport and Ross (1967). Third part contained various demographic measures. Findings of the study show that intrinsic religiosity is partly and negatively correlated with ethical attitudes and extrinsic religiosity is positively related to the ethical attitudes. In other words, intrinsically motivated people are more prone to behave ethically than extrinsically motivated people are. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/5507980b194d510cd69827dc5c5c4b05.pdf 1024e56f946c873ff6d183d7a7ef0b08 PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Strategic Sustainable Development and Creating Strategies from TOWS Matrix at KipaĢ Group Ġmran ASLAN The University of Erzincan, Turkey Business Administration Department imranaslan@gmail.com, iaslan@erzincan.edu.tr Ramazan BOZKURT The University of Erzincan, Turkey Business Administration Department rbozkurt@erzincan.edu.tr Abstract: The aim of this study is to develop new strategies for sustainable development of a group and to establish a holding from several companies by considering the regulations in the World Trade, recent developments in textile sector and raising conflicts among stakeholders. In this study, internal analysis of the group was carried out with interviews and surveys. To prepare external analysis, the economical situation of Turkey and the World was researched and categorized under standard PEST categories. Important problems were identified and then the purposes and objectives of the firm were determined by focusing on opportunities. Later, SWOT analysis of the group was prepared and most significant factors were chosen. In the light of these factors, TOWS matrix was prepared to combine external and internal factors of the enterprise in order to deploy strategies. New organization structure of the group was determined and presented based on these strategies. Introduction KipaĢ Group founded 26 years ago when the Turkish textile and apparel sector initiated continuing progress by joint-venture of two families and now employs more than 4000 workers in different sectors. KipaĢ Group, a leading institution within its sector and renown due to its professionalism, its expertise and its high quality standards, is a precious member of Turkish Textile Industry whereby it transformed a mere cotton yarn manufacturing plant over years into a fully-integrated textile manufacturing giant. The companies of the group which have benefited from incentives of Turkish Textile and apparel sector have been growing very rapidly. KipaĢ Group has been formalized by including numerous subsidiary companies through the reorganization of the group companies since 2005. It decided to change their management structure considering the recent developments in textile sector and raising conflicts among stakeholders due to the management system of the company. The removal of quotas and Chinese effects to world textile were the focus point of researches. The effects of removal of quotas to Turkish textile were assessed with the premature indicators of Turkey's total export and import. By taking account of enormity of the group and economical situation, the group was proposed to establish a holding. Theoretical Background The regulations in World Trade oblige the national wide companies to develop new strategies for their sustainability in the market. However, companies must be aware of their internal and external environments to identify their advantages and disadvantages in order to develop strategies. Self assessment, which is a structured internal process to identify strengths and weakness for improvement is used by companies for years. (Higgins, J. M. and Vincze, J. W., 1991, p.3) Strategies for sustainable development are used to initiate change by learning and continuous adaption rather than by challenging the existent institutions. Such approach has been named as step-by-step procedure. (Volkery, 2006, p.2048) Interaction between culture, structure and technology, the approaches optimization– improvement–renewal and the parties involved are three relevant dimensions of sustainable development.( L. Jansen, 2003, p.233) The change is unavoidable to keep competitiveness in today's global market. It is important to use right 120 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo methods to collect data against resistance and misunderstandings while doing changes. ( McLean, G. N. P., 2006) Deep changes occur in this era with unexpected results. (Diskienė D., et al., 2008, p.376 ) Each organization has a capability or ability initiating, managing and implementing large-scale changes in organization structure to improve organization ability for a quick adaptation, flexibility and innovation. There should be a trade-off between available assets of the firm and its continuous development requirements for firm-specific capabilities. (Yan, Y. , et al., 2009, p.53) Management systems of the firm use internal and external information to gain a better strategically competitive position in the market by providing outstanding services and products. (Phelan, Steven E., 2005) Many approaches and techniques are used for strategic management processes. It is not directed just a single functional area of group. All efforts are directed toward the mission and vision of the firm to find the best for the whole group. (Houben G.,et al., 1999, p.130; Dincer O., 2004; Ketelhohn W., 2006, p.307) Strategic management requires including both short-term and long-term perspective. Both a vision for the future of the organization and a focus on its present operating needs must be taken into account. (Gregory G., et al., 2005) Strategy defines ‗Where do you want to go?‘ and ‗How do you want to get there? Strategy manages the correlation between organization and changing environment. Internal and external factors effecting company are identified to form strategies. There should be a relationship between internal competences and values to firm‘s external environment. (Viljoen, J. and Dann, S., 2003, p.68) There is a challenge for the firms to find the ‗fit‘ what the firm does and what the environment requires. Moreover, it should be ready for the new environment that future may bring. This environment can be totally different and firm should evolve its capabilities and culture to tackle with new environment. ( Porter, et al., 2001, p.615) Managers may scan their environment and decide that there are major changes occurring in their business world to which they have to adapt. Or they might decide, through internal analysis, that they have the ability to develop a new way of doing business that will redefine the nature of the business they are in. If change is the order of the day, then two issues need to be addressed: external analysis and internal analysis. For a change of strategy to work, there must be alignment between internal capability and external opportunity. This is described as ‗strategic fit‘. (Tiwana, Amrit, 1999, p.126) SWOT (Strengths-Weaknesses-Opportunities-Threats) Analysis SWOT analysis is a tool for auditing an organization and commonly used for analysing internal and external environments in order to attain a systematic approach and support for decision making. If it is used correctly, it can provide a good basis for successful strategy formulation (Hsu-Hsi C. and Wen-Chih H. , 2006). It involves the design of the organizational structure and control systems necessary to implement the chosen strategy. SWOT analysis can be conducted before mission and goal statement. (Hax, A.C. and Majluf, N.S., 1991) SWOT identifies Strengths and Weakness and examines the Opportunities and Threats of an organization. SWOT analysis suggests that firms that use their internal strengths in exploiting environmental opportunities and neutralizing environmental threats, while avoiding internal weakness, are more likely to gain competitive advantages than other kinds of firms (Jay B and William H., 2007). SWOT analysis is drawn from external and internal environments of the organization to determine the strategic vision of the firm based on the analysis of shareholders. One can think of a well developed strategic vision in terms of probing opponents‘ weaknesses; withdrawing to consider how to act, given the knowledge of the opposition generated by such a probing; forcing opponents to stretch their resources; concentrating one‘s own resources to attack an opponent‘s exposed position; overwhelming selected markets or market segments; establishing a leadership position of dominance in certain markets; then regrouping one‘s resources, deciding where to make the next thrust; then expanding from the base thus created to dominate a broader area. The leading strategy is the best strategy geared towards radical change and creating a new vision in which the firm is a leader rather than a follower of trends set by others to help managers improve organizational effectiveness and corporate profitability. (El Sawy, et al., 1988, p.455-460) The coverage of the SWOT Analysis is determined by the firm‘s and competitors‘ resources. Major types of resources are financial, organizational, intellectual, informational, relational, legal, human resources and resources related with reputation. The coverage can be extended for management information, supply of raw materials and production process. However, these are more specific titles. In this study, we had also the opportunity to assess the management information, however, couldn‘t examined supply of raw materials and production process. The technicians of the organization could assess raw materials and production process in the project. There are several tools such as TOWS Matrix and PEST Analysis that are used in strategic management. Some of them are used as complementary to SWOT. 121 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo TOWS Matrix TOWS matrix is the essential completing tool. It enhances deploying strategies systemically considering the relations between Strengths, Weakness, Opportunities, and Threats. The consequences of the internal and external factors can be replaced in a matrix called TOWS Matrix is shown in Figure 1. TOWS matrix helps to systematically identify relationships between threats, opportunities, weaknesses and strengths, and offers a structure for generating strategies on the basis of these relationships. (Weihrich, H., 1982, p-45-66) External Opportunities (O) 1. 2. 3. SO Strategies that use strengths to maximize opportunities. TOWS Matrix Internal Strengths(S) 1. 2. 3. Internal Weaknesses (W) 1. 2. 3. 4. External Threats (T) 1. 2. 3. ST Strategies that use strengths to minimize threats. WO WT Strategies that minimize weaknesses by taking advantage of opportunities. Strategies that minimize weaknesses and avoid threats Figure 1: TOWS Matrix (Weihrich, H., 1982) PEST PEST analysis, which stands for Political-Economical-Social-Technological, is another complementary tool. Social environment is another concept that must be evaluated by PEST Analysis. The external environment of any organization can be analyzed by conducting a PEST analysis. External factors usually are beyond the firm's control and sometimes present themselves as threats. For this reason, some say that "PEST" is an appropriate term for these factors. However, changes in the external environment also create new opportunities and the letters sometimes are rearranged to construct the more optimistic term of STEP analysis. The organization‘s environment is made up from three factors known:  The internal environment: staff (or internal customers), office technology, wages, finance etc.  The micro - environment: the external customers, agents, distributors, suppliers, competitors etc.  The macro - environment: Social-cultural forces, Economic forces, Environmental forces, and Political (legal) forces. Macro-environment‘s components are known as STEP factors. (Dyson, Robert G., 2004, p.630-641) Strategic Development and SWOT Analysis The reorganization of the group was done after internal and external analyses of the firms and observations from surveys and interviews. From internal and external analysis, SWOT Analysis of the group was carried out. The details of project were explained to every person from top management during interviews. Everything must be planned well otherwise desired changes may be resisted and not accepted by persons. It was expected from them that they evaluate the firm objectively for such a critical project. Moreover, their political considerations were also taken into account. They were employed by both families. Thus, they support the family that employed them. Every family desired to get more control over the group. SWOT Analysis of KipaĢ In this part, strengths, weaknesses, opportunities and threats of KipaĢ group are presented in the light of the internal analysis and external analysis. The strengths and weaknesses stem from the interviews, observations and results of questionnaire, however, the opportunities and threats are drawn out from external analysis, especially from 122 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo SWOT analysis of Turkish textile & apparel industry and removal of quotas. The summary of SWOT Analysis of the group is shown in Figure 2. Figure 2: SWOT Analysis of KipaĢ Group Case Study- Application of the TOWS Matrix to KIPAĢ KipaĢ is a successful company having experienced in great difficulties, but then it has developed strategies that resulted in an excellent market position in the late 2010s. The TOWS Matrix shown in Figure 3 is focusing on the crucial period from late 2005 to 2010. The external threats and opportunities pertain mostly to the situation KipaĢ faced in textile sector. Weaknesses and Threats (WT) A company with great weaknesses often has to resort to a survival strategy. KipaĢ could have seriously considered the option of a joint operation with Asian firms. Another alternative would have been to make investments in Asian countries. Although in difficulties KipaĢ did not have to resort to a survival strategy because the company still had much strength. Consequently, a more appropriate strategy was to attempt to overcome the weaknesses and develop them into strengths. In other words, the direction was toward the strength-opportunity position (SO) in the matrix shown as Figure 3. Specifically, the strategy is to reduce the competitive threat by developing a more flexible new R&D department to products individualized textile products . Weaknesses and Opportunities (WO) The growing affluence of customers has resulted in customized products. Yet, KipaĢ have not had a special brand. Especially when considering big brands in EU such as Nike or Adidas, in long run kipaĢ should create a brand name for aimed markets. KipaĢ has many problems with its management system due to two families desires to get more control over the group, improvements in management systems and human resource department were enable them to establish a new management style in order to take more favorable decisions more quickly. In order to minimize the additional costs of logistics, E-business and Logistics departments were opened to decrease the inventors and increase their selling capabilities. Another weakness at KipaĢ was the increasing labor costs in Turkey when compared low labor cost countries in Asia. KipaĢ can increase the effectiveness of production or make production in low labor cities in Turkey. 123 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Figure 3: TOWS Matrix of KipaĢ Group 124 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Strengths and Threats (ST) One of the greatest threats to KipaĢ was removal of quotas. To overcome this threat, the qualities of the products have been improved against cheap and unqualified Chinas‘ products. To reduce the threats of removal of quotas, domestic market against china and others should be protected by decreasing textile production costs and governments should subsidize that. Moreover, Research and Development Department in domestic and foreign markets can avoid Chinese effects by producing more individualized products. Labor costs are so low in china. To meet this threat, Kipas has used its capital not only to make investments in Turkey, but also in low labor countries. This tactic which was congruent with its general strategy helped to improve the firm‘s market position. Strengths and Opportunities (SO) In general, successful firms build on their strengths to take advantage of opportunities. KipaĢ is no exception. Throughout this discussion KipaĢ 's strengths are shown in Figure 2. These strengths have enabled the company to open a new Opening Business Development and Planning Department. Eventually the same company's strengths enabled the firm to investments in GAP region and in energy sector providing many employment opportunities. In another tactical move, KipaĢ is expected to increase its market share in EU by using its experience in these markets and proximity of Turkey to EU. Organization Structure of KipaĢ After wide analysis, it showed that there was a need for change and this change must be started from top. Thus, the old organization structure of the Group was changed by taking into consideration the current needs and future expectations. The SWOT Analysis and TOWS Matrix were very helpful while designing the structure. It was not only the decision of project team to change the structure but the decision of two families. Both families must agree on new structure otherwise conflicts would start again. The main characteristic of the old organization of KipaĢ Group illustrated at Figure 4 was its dual headed structure. Every department and company was directly responsible to this structure and every decision must be made or approved by chairmen of the board. These decisions vary from very simple ones such as an official procurement to very extensive ones. Moreover, the single approve of a chairman was not enough to execute; both of the chairmen had to approve and sign any decision or document. There were many conflicts between families. There were two individuals, fiscal coordinator and an internal auditor, who was also directly related to chairmen. The major duty of fiscal coordinator was to assist in budget preparation and accounting support. The internal auditor was responsible for finding out any factors which conflict to benefits of the organization. These factors can be action, such as a theft, or worker, such as an insider. There were 6 functional departments in KipaĢ: Finance, Procurement, IT (Information Technology), Accounting, Sales and Personal Department as shown in Figure 4. ASSEMBLY Fiscal Coordinat or st OF PARTNERS nd 1 CHAIRMAN 2 CHAIRMAN FINANCE BOARD Internal Auditor BOARD ACCOUNTING PROCUREMEN T IT SALES Coordinat or PERSONNEL Coordinat or DEPARTMENT Kipaş Bozkurt Pera Apparel U.K. BOZ Denim Mills Kipaş Mipsan Erdem Teksan KEAŞ Text. Figure 4: The old organization structure 125 KAREN Kipaş Kipaş Ginning Insu- Agri. rance TOYMAR �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo In this part, the proposed organization structure shown in Figure 5 and the factors of SWOT analysis in Figure 2 how they affected new design is explained. New organization structure of new holding is designed regarding the outputs of assessment studies. Strategies deployed from TOWS Matrix analysis in Figure 3 of KipaĢ is directly used in this process. Figure 5: New Proposed Organization Structure of Holding Considering the financial and consequently political power of company, it is not so tough to venture in new sectors. Business Development and Planning is a critical directory that aims to integrate the strategic planning of the current business as well as evaluating the opportunities for the whole group to assure the sustainability of the Holding Group in international environment. Duties and responsibilities of each function were prepared. Each company has his own planning unit that deals with the operational planning which feeds the Holding with information. Yet, integrating all the operational plans is a necessity not only to improve the effectiveness of the tactical plans but also to prepare the basis for long-term strategic business plans. For example, denim production plans and Kipas textile production plans are separately prepared but exportation is handled by Vice President of External Business. Integration gives the possibility for using the spot or durable opportunities in exportation besides domestic sales. To perform business development, there is one planning engineer tracing the global business opportunities in all fields concerning Kipas Holding and informing the decision makers (President and 2 Vice Presidents). He prepares the feasibility reports before presentation. Once an opportunity is found realistic in the Board, the case is taken as a particular project to be run. Then, the Project Team is established to include the experts from the field to analyze the business in detail. This department handles the project until the project is started as: a) a new function of one of the companies b) a new company After that state, it is handled to the General Manager of the Company concerned (existing or new) to continue the operations. In fact, this function is performed by 1st Chairmen of Board. Business Development and Planning Department have significant responsibilities for enlargement in energy sector to value the new regulations and possible demand rise in this sector. 126 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo The lack of human resources was considered one of the most important problems of KipaĢ. Additionally, our observations resulted in a consensus on the majority of the inappropriate managers in company, especially, at the KahramanmaraĢ. To compensate this drawback, a robust human resources department is proposed for company. By this department, the company can also measure the performances of the workers, this was absent at that time. Creating a brand requires hard, intensive and lots of efforts. However, if the image of brand is set down, then the company can reach very high yield. The profit margin of the company can increase with creation of this high value added product. Firstly, the creation of brand requires a vigorous marketing department that would firstly decide the appropriate promotion process and then keep the sustainability of this brand. Moreover, to improve the attributes of product and use new technologies in an innovative way, the presence of Research and Development Department is fundamental. The quality concept of brand is developed by quality departments. Being at the right point at the right time would be run by E-business and Logistics departments. EU is an important market for KipaĢ and the foreign structure of KipaĢ would enhance the activities in this market. Moreover, with dismiss of quotas, new markets are emerging and the new players would place to these virgin markets. The shares created in this process would be very easy but after a while, when the markets reach steady state, to penetrate these markets would not be easy. On the other, the low labor cost countries are threats in this foggy weather. However, this structure enables KipaĢ differ from the companies of these countries by their service level and product quality. To evaluate these opportunities and eliminate this threat, the foreign part is strictly proposed The other threats for KipaĢ are increasing customer demands and improvements in competitors. The R&D (Research and Development) and Quality Departments could be effective to eliminate these threats. The R&D department focuses on not only the products but also the process and by developing processes of production the company increases its competitiveness. Quality department works with R&D concurrently for continuous improvement. This would enable to value KipaĢ‘s experience in the sector and turn its knowledge assets to added value. Conclusion Noticing the reactions and rapid increasing portion of China‘s in the market after removing 40 years quotas since 2005, the developed countries have been taking precautions and China respond to reactions with a little increase in tax of these sectors. Despite of these recent developments, it is impossible to turn to conditions before 2005 and the revolution in the sector initiated with new rules. Countries and companies have developed new strategies for the new game. SWOT analysis of KipaĢ Group mainly focused on textile and apparel sector. TOWS Matrix helps to deploy strategies while preparing new organization chart. A new organization structure was prepared to respond to highly competitive markets. It is clear that, China and other low labor cost Asian Countries, such as India, have been gained advantage in the market. However, these regulations would undisputedly increase the competitiveness and in this environment companies would attempt to differentiate by design. Particularly in clothing, the importance of time to market would ascend dramatically. Consequently, the importance of proximity to markets such as EU and North America would intensify, which is an important advantage for both Turkey and KipaĢ considering proximity to E.U. However, Turkish companies and KipaĢ are obliged to concentrate on quality and supply chain activities and establish robust R&D structures to create innovative products and design in short periods to turn over these opportunities to yield. The yields of vertical growth are uncontroversial and KipaĢ is a good instance of this. KipaĢ had all steps of supply chain of textile from cotton apparel. However, just last step of general supply chain was neglected by Kipas that was retailing. KipaĢ must concentrate on last and most value added part of chain. Creation of own brand is the most important step in this essence. In the light of the developments in EU journey of Turkey, as a strategy, KipaĢ can start its retailing activities in Western Europe, more value-added markets rather than domestic market. The company has the knowledge, culture and values to implement the aforementioned strategies and proposed organizing structure. References Dincer O. (2004). Strategy Management and Organization Policy, Beta Publication, Istanbul, Turkey. Diskienė D., Galinienė, B., Marčinskas, A. (2008), A strategic management model for economic development, Technological and Economic Development of Economy, 14, pp.375–387. 127 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Dyson, Robert G.( (2004)), Strategic development and SWOT analysis at the University of Warwick, European Journal of Operational Research, pp. 631–640. El Sawy, O.A. and Pauchant, T.C. (1988), Triggers, templates, and twitches in the tracking of emerging strategic issues, Strategic Management Journal, 7(2), pp. 455-474. Gregory G., G.T. Lumpkin and Marilyn L. Taylor (2005). Strategic Management, Second Edition, McGraw-Hill Irwin, New York, USA. Houben G., Lenie K., Vanhoof K. (1999). A knowledge-based SWOT-analysis system as an instrument for strategic planning in small and medium sized enterprises, Decision Support Systems, 26, pp.125–135. Hsu-Hsi Chang (2006), Wen-Chih Huang, Application of a quantification SWOT analytical method, Mathematical and Computer Modelling, 4, pp.158-169. Hax, A.C. and Majluf, N.S. (1991). The Strategy Concept and Process: A Pragmatic Approach, Prentice-Hall, London. Jay B Barney, William Hesterly (2007), Strategic Management and Competitive Advantage: Concepts Book Description, Prentice Hall, Texas, USA. Ketelhohn W. (2006), Strategic management practice in Latin America, Journal of Business Research, 59, pp.305-309 Jansen L.(2003). The challenge of sustainable development, Journal of Cleaner Production, 11, pp.231–245 McLean, G. N. P.(2006), Organizational Development: Principles, processes performance, Berrett- Koehler Publishers, Inc., . San Francisco, USA. M. Higgins, James and W. Vincze, Julian (2001). Strategic Management, The Dryden Press International Edition,Chicago,pp.347. Porter, Michael E. (1981) The Contributions of Industrial Organization to Strategic Management, The Academy of Management Review, Vol. 6, No. 4., pp. 609-620. Phelan S. E (2005). Strategic Management & Policy. Available from: ttp://faculty.unlv.edu/phelan/ [Accessed 10 April 2010] Tiwana, Amrit (1999). The Knowledge Management Toolkit, Prentice Hall, First Edition, USA pp.126. Viljoen, J. & Dann, S. (2003). Strategic Management, Prentice Hall, USA, pp.68. Volkery A., Swanson D., Bregha F. and Pinter L.(2006). Coordination, Challenges, and Innovations in 19 National Sustainable Development Strategies, World Development, Vol. 34, No. 12, pp. 2047–2063 Yan, Y. , Ding, Daniel and Mak, Simon(2009), The Impact of Business Investment on Capability Exploitation and Organizational Control in International Strategic Alliances, Journal of Change Management, 9: 1, pp. 49 -65. Weihrich, H. (1982), The TOWS Matrix: A tool for situational analysis, Long Range Planning, Vol. 15 No. 2, pp.45-66. 128 � 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. 197 Title A name given to the resource Strategic Sustainable Development and Creating Strategies from TOWS Matrix at KipaĢ Group Author Author ASLAN, İmran BOZKURT, Ramazan Abstract A summary of the resource. The aim of this study is to develop new strategies for sustainable development of a group and to establish a holding from several companies by considering the regulations in the World Trade, recent developments in textile sector and raising conflicts among stakeholders. In this study, internal analysis of the group was carried out with interviews and surveys. To prepare external analysis, the economical situation of Turkey and the World was researched and categorized under standard PEST categories. Important problems were identified and then the purposes and objectives of the firm were determined by focusing on opportunities. Later, SWOT analysis of the group was prepared and most significant factors were chosen. In the light of these factors, TOWS matrix was prepared to combine external and internal factors of the enterprise in order to deploy strategies. New organization structure of the group was determined and presented based on these strategies. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/bbe9bc9f43b68eea7645b1e3ff58fdbc.pdf 9230e0e8d2430c9e2429beb5e4542fc3 PDF Text Text Implementation of a Computer-Based Course on Moodle Özcan Asilkan, Ph.D. Department of Computer Engineering, Epoka University, Tirana, Albania oasilkan@epoka.edu.al Igli Hakrama Department of Computer Engineering, Epoka University, Tirana, Albania, ihakrama@epoka.edu.al Abdurrahman Çelebi Department of Computer Engineering, Epoka University, Tirana, Albania, acelebi@epoka.edu.al Abstract: Increasing popularity of Internet led to expectation of course materials and activities to be distributed and collected online. Many universities have already started to support the courses with the technology. But most of them are still lack of a structured, well designed Learning Management System. Therefore, instructors in these universities are still distributing course materials (like presentation files) to students at the end of their lectures and collecting assignments by email. This approach is open to many problems. Being aware of these problems, Epoka University started a pilot implementation of Moodle in 2010. This study presents experience of this implementation on a computer-based course (C Programming) which is aimed to be useful to the other education institutions. Introduction The recent advancements in Information and Communication Technologies (ICT), especially Internet, generated a need and an expectation of presenting courses online. It is becoming evident that on-line education will become an integral part of higher education in the foreseeable future (Nakos et al., 2002). Many universities have already started to offer on-line education, or simply “e-learning” which aims to eliminate the dependency to the traditional classrooms and/or improve the learning environment (Eastman & Swift, 2001). But most of them are still lack of a structured, well designed online Learning Management System (LMS). Therefore, instructors in these universities are still distributing course materials (like presentation files) to students at the end of their lectures and collecting assignments by email. This approach is open to many problems. For example, some students complain for not being supplied with the course materials and some claim that they have emailed the assignments which are not received by instructor. Being aware of the mentioned problems, Epoka University started a pilot implementation of Moodle, an Open-Source Free Learning Management System, in 2010. This study presents experience of the pilot implementation of Moodle on a computer-based course (C Programming), considering that this experience may be useful to the other education institutions. Open-Source Learning Management Systems Interest in open source has grown exponentially in the recent years. In mid January, 2005 a Google search of the phrase “open source” returned approximately 28.8 million webpage hits (Kapor, 2005). That number jumped significantly to 376 million when a similar search was conducted on October 12, 2006. There seems a high increasing interest in open source software (Pan and Bonk, 2007). Wikipedia defines Learning Management System (LMS) as “a software package, usually on a large scale (that scale is decreasing rapidly), that enables the management and delivery of learning content and resources to students.” The LMS allows students to register for online courses, delivering and tracking e-based 366 �learning courses, testing and much more. The tools used in LMS include email, chat groups, grade books and interactive quizzes. It is designed to manage the educational courses online to help the teachers and students with course administration (Cheung, 2006). Moodle LMS MOODLE (Modular Object-Oriented Dynamic Learning Environment) is an open source Learning Management System (LMS) created by Michael Dougiamas (http://dougiamas.com) to serve as an online interactive environment between educators and students. Sometimes it is referred to as a course management software or virtual learning environment. Moodle is defined on its official website as: “A course management system (CMS) – a free open source software system designed using sound pedagogical principles to help educators create effective online learning communities” (Moodle, 2010). Moodle is widespread all over the world in more than 200 countries with 50,000 registered installations according to the project website. Among them are the public educational institutions as universities and schools as well as private institutions (Wikipedia, 2010). Moodle presents the following advantages for acquiring as a learning management system (Goba, 2004). 1. 2. 3. 4. 5. Being free of charge without any advertisement. It allows full control of settings and editing. Its extensibility enables adding new functionalities by installing plug-ins called modules. Using as a content based web management leads to a modular object oriented dynamic learning environment. Online courses can be easily integrated and files may be archived and saved online. Providing collaborative medium where everybody can meet and communicate. Getting support and help easily. By clicking on the help symbol a pop up window opens offering help. Other advantages include easy installation on any platform, interfaces in more than 50 languages and extensibility by adding new modules created in PHP script. Moodle can run on any platform like Windows, Unix, Linux, Mac OS X which supports PHP. In order to implement Moodle some software requirement must be fulfilled. First a web server with PHP is needed. As a web server IIS (included in windows) or Apache (http://httpd.apache.org) can be used. The platform on which Moodle will run must support many types of database systems like mySQL or Oracle. The whole free Moodle software package (Moodle, PHP, MySQL and Apache) can be downloaded from the official website of Moodle. Implementation 1.8 version of Moodle was downloaded from the vendor’s official web site (http://download.moodle.org) and installed on a Windows server which runs MySQL Database Management System and Apache Web Server. After some server settings had been done, course categories were defined and some courses were created under these categories. We preferred to create the main categories as the name of the Faculties. Then under each faculty category, we created subcategories as the name of the Departments. The current faculties and departments of the Epoka University (the main and subcategories in Moodle) are as follows: 1. 2. Faculty Of Engineering And Architecture 3. Computer Engineering 4. Civil Engineering 5. Architecture Faculty Of Economics And Administrative Sciences 3. Economics 4. Banking and Finance 5. Business Administration 6. Political Science and International Relations Courses were created under related Faculty/Department categories. This approach led both instructors and students access their courses rapidly. To start using the Moodle, firstly, the accounts of course instructors (teachers) and all the student accounts in Epoka University were created by using a batch file. Thanks to its practicality, Moodle allows to create user accounts from a batch CVS file including some essential account information like username, 367 �password, email, first name, last name, etc. Then related system roles have been assigned to course creators and teachers using Site Administration panel which is only visible to Administrators. The related screen is shown in Figure 1. The other accounts are assigned “Student” role by default, eliminating to bother for assigning this role to a lot of users. Figure 1: Site Administration Panel of Moodle: Assigning roles in System Instructors started to customize their courses by editing the contents online. After they had informed the students during the classes about how to access the course by using their accounts, students started to benefit from accessing their course contents online. Figure 2 displays the main welcome page of the Epoka University Learning Management System, http://moodle.epoka.edu.al which was customized to display the categories, courses, latest news, calendar and online users, considering that these are the most useful items that should exist on the welcome page. Main page also includes a combo button on the upper right side to change the language. It includes a rich set of different languages. 368 �Figure 2: Main welcome page of Epoka University Learning Management System Both instructors and students can access their courses simply by clicking the related course name link. It will take them to the login screen as shown in Figure 3 (It is also possible to click on the login link on the upper right side of the page). Figure 3: Login screen This page allows users to login the course site with the owned account or as a guest. Moodle allows instructors to distribute a unique “enrollment key” of the course to all the class without the need to create accounts of all the students. This key has two benefits: First, anyone without an account can enroll the course as guest. Guest users can access all the course contents except interacting with activities like participating quizzes, submitting assignment, etc. The instructors that do not use such activities and just need to distribute online course materials to their students can highly benefit from enrollment key. They do not need to bother with the accounts of their students. Second, enrollment key prevents other users (including those who have the account in the system, like students of other classes), to access the course materials if they are not supplied with this key. Enrollment key functionality can be customized by the instructors in the Course Settings section in their administration panels. 369 �On the login page, there’s one more option allowing users (like students) to create their accounts by clicking “Create a new account” button on the page. After users create account, a confirmation mail is sent to the administrators to approve the new account. For some technical reasons, we didn’t prefer to allow this option for now and hid that button. In order to give an idea about the implementation of Moodle, we will enroll to a sample course, “CEN112 / C Programming”, with a test student user account (student000) and present the course contents with the perspective of a student. After entering username and password and login the first time, students will be asked for the enrollment key that their instructor has given for this course. After entering the correct enrollment key, the students will face the contents of the course as shown in Figure 4. Figure 4: Course Content Site Main page of the course includes major three parts. On the left side, there exist some panels like People (participant list), Activities (assignments, chats, forums, quizzes, resources, etc), Search, Administration and enrolled Courses. On the right side, there exist Latest News, Calendar, Upcoming events, Online Users and Messages specific to logged user. In the middle, the Course Outline is shown. Actually, almost all these parts can be customized by the instructor of the course, as the sample course page was already done. Throughout the following parts, we will have a more detailed look into some of the parts that we have implemented so far. We will skip items whose functions can easily be understood (like Search Forums) Left Part Left part of the course page includes several links that display different lists or events. Participants link displays the list of students enrolled the course. Assignments and Quizzes links display all the assignments (homework, project, etc.) or quizzes prepared by the instructor. Chats section display chat sessions defined by the instructor. Forums section allows students to discuss and cooperate during their studies and is an effective tool for the instructors to monitor their students’ work. Resources section allows students to upload files to in order to share with the others. Grades section allows students to see their grades earned from the evaluation of online quizzes and assignments. Profile section allows students to update their profiles like adding birth date, picture, etc. 370 �Right Part Latest News section serves like an information board containing the recent news entered by the instructor, for example the announcements of class hour change, new assignment, exam date, etc. Items in this section are located starting from the most recent one to the oldest one. By clicking, “more” under each news, full explanation can be accessed. Upcoming Events section displays future events (like scheduled chat sessions, quizzes, etc). The message section displays a list of new messages that logged user has received, with a link to detailed messages window. Middle Part In the middle of the main page, a description of the course was entered. Following the description, a link to all the files (ALL_FILES) was inserted to allow the students to see easily and to access directly the course materials. All the files used in the course have been saved under folders in a structured manner. After some experiments we have decided to use the following folder names: • • • • • • • • Assignments: Stores the files explaining the homeworks, projects, etc. Class_lists: Stores various lists of students, like attendance list, grade list, project list, etc. Lectures: Instructor’ s class presentation files Notes: Instructor’s class notes, Syllabus, Policy, etc.. Student_Files: Files uploaded by the students. Teacher_Files_Private: Private files of the teacher like exam questions. Videos: Video files eBooks: Electronic books Links to Syllabus and Policy of the course were also put on the front (main) page. Actually these files already exist inside some categories under ALL_FILES, but displaying the shortcuts to these critical files on the main page was considered to be useful so that students can easily see them. The major section of the middle part is Course Format. Moodle allows different course formats like topics format, weekly format, etc. We preferred to use weekly format and organized the course in 16 weeks with a clear start date and a finish date in each week. The course outline was distributed to related weeks including links to related lecture files and activities. Some activities are shown in figure 5. Figure 5: Sample activities in the week format In week 12 (26 April – 2 May), a Homework activity has been entered. Students can click this link to see the detailed explanation of the homework. After preparing their homework, they can upload the related files 371 �and input some explanation here. Hence, instructor can easily collect all the homeworks in this section and even evaluate them online. In week 13, a Quiz activity has been entered. Quiz becomes active on the date and time specified by the instructor, mostly during the practice hour in the computer laboratory. Students are expected to answer the questions in a limited time. If allowed by the instructor, they can also see correct answers, their grades, and instructor’s evaluation notes later by clicking the same activity. In week 14, a video resource has been entered. Student can watch the video uploaded by the teacher. In the last week, final exam date and an instructor note have been entered. Conclusion This study presented the implementation of an online course in Epoka University by using Moodle LMS. The great features of Moodle led to successful implementation of a web based course. The course allowed the students downloading course materials easily, being informed by the recent news, taking online quizzes, uploading assignments and sources, participating in forums, etc. On the other hand, it allowed instructors to easily distribute course materials, announcing assignments and collecting them, applying quizzes and evaluating them in an online environment without burdening the hassle of email traffic. This collaborative learning experience has been found very user friendly and efficient by the students and instructors. It encouraged collaboration among students and contributed much to the increasing participation of the students. As the interest in Moodle is rapidly growing within e-learning community, we highly suggest education institutions to use Moodle LMS in order to improve the total satisfaction of their students and instructors. References Cheung, B., Stewart, B., & McGreal, R. (2006, July) Going Mobile with MOODLE: First steps. IADIS International Conference Mobile Learning 2006. Dublin: International Association for the Development of the Information Society. Eastman, J. & Swift, C. (2001). New horizons in distance education: The online learner centered marketing class. Journal of Marketing Education, 23, (1), 25-34. Goba, Nimrod, Gareth (2004). Course Management Systems. Retrieved April, 2010 from http://www.edutools.info/static.jsp?pj=8&page=HOME Kapor, M. (2005). How is open source special? EDUCAUSE Review,40(2), 72-73. Moodle, (2010). Course Management System. Retrieved April, 2010 from http://moodle.org Nakos, G. E., Deis, M.H., & Jourdan, L. (2002). Students’ Perceptions of On-line Courses: An Exploratory Study. Turkish Journal of Online Distance Education (TOJDE), 3 (1). Pan, G. & Bonk, C.J, (2007). The Emergence of Open-Source Software in North America. International Review of Research in Open and Distance Learning, Volume 8, Number 3. Wikipedia. (2010). Moodle. Retrieved April, 2010 from http://de.wikipedia.org/wiki/Moodle. 372 � 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. 530 Title A name given to the resource Implementation of a Computer-Based Course on Moodle Author Author ASILKAN, Özcan Hakrama, Igli Çelebi, Abdurrahman Abstract A summary of the resource. Increasing popularity of Internet led to expectation of course materials and activities to be distributed and collected online. Many universities have already started to support the courses with the technology. But most of them are still lack of a structured, well designed Learning Management System. Therefore, instructors in these universities are still distributing course materials (like presentation files) to students at the end of their lectures and collecting assignments by email. This approach is open to many problems. Being aware of these problems, Epoka University started a pilot implementation of Moodle in 2010. This study presents experience of this implementation on a computer-based course (C Programming) which is aimed to be useful to the other education institutions. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed Q Science (General) https://omeka.ibu.edu.ba/files/original/6f7fbd72b0a3a619607ac62999ee3fb1.pdf 62cc6802b338b8d1e17b854ad0251817 PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo The Importance of Numerical Flexibility In Turkish Labor Market and Competition Policy M. Akif ARVAS Res. Assist.(PhD candidate), Economics, Hacettepe University, Ankara, Turkey aarvas@hacettepe.edu.tr Suleyman ĠÇ Dr., Department of Business, Gaziantep University, Gaziantep, Turkey icsuleyman@yahoo.com Mehmet AYGÜN Assoc. Prof., Department of Business, 100. Yıl University, Van, Turkey maygun@yyu.edu.tr Abstract: Numerical flexibility, which has been common since Atkinson (1984), can be defined as a situation where the number of staff and the number of hours worked can be increased or decreased depending on the demand for labour. Within the "flexible firm model", numerical flexibility is seen as being designed to facilitate a rapid adjustment in headcount, in line with short-term changes in the level of demand for labour so that the number employed equals the number required at any time. Based on Labour Law no 4857, Turkey has adopted this approach as a competition policy in order to provide flexibility into labor market and to promote the competition of Turkish firms. Therefore, in this study, flexibility-based tools are discussed and evaluated in terms of competition policy. Introduction The flexible firm model developed by Atkinson (1984) resulted from studies carried out on the changing nature of employment in the UK during the 1980s. Atkinson concluded that changes in technology, training costs, working time and labour supply were the factors influencing and driving change in UK employment policies and strategies. The changes in employment policies and strategies, Atkinson believed, resulted in the formation of two employee groups―the core and peripheral. The core group consisted of full-time permanent workers and the peripheral group consisted of part-time, temporary and contract workers ( collectively termed ―atypical‖ by Atkinson). Today, flexibility in labor market has been a new competition strategy for firms and there has been a significant growth in flexible or ―non-standard‖ forms of employment. Since laborforce is a variable factor of production and because of impossibility of perfect substitution of investment goods for laborforce using today‘s technology, forces dynamic conditions in goods and factor markets to have a more flexible structure in terms of employment forms of firms and restructuring the job schedule. Hence, flexibility in labor market as a competition strategy can be expressed in two ways; external flexibility and internal flexibility. External flexibility, which allows firms to adjust demand for labor to workload, and numerical flexibility which is called employment flexibility are strategic methods and policies for firms to harmonize to rapidly changing economic conjuncture. Firms who adjust the number employed to workload are defined as ―flexible firm‖ and together with core laborforce of these firms, they―depending on business conditions― employ other kinds of employment such as temporal worker, part-time worker and external service act, and peripheral labor (Felstead, 1999, p.10). Therefore, numerical flexibility will be obtained by firm from employment of peripheral laborforce. Numerical flexibility is defined an employment type which enables employment of part-time and temporary worker according to fixed-term non-standart employment contracts as well as full-time workers with open-ended employment contracts (Kutal, 2002, p.33). This aspect of numerical flexibility has been taken into consideration and 493 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo flexibility in competitive market economies means the required use of workers when needed (TĠSK, 1999, p.23). This definiton puts forward the importance of numerical flexibility to firms. On the other hand, it has been stated that the diffusion of flexible employment types helps developing countries to employ low-waged laborforce to accelerate their economic growth. Working hours flexibility known also as internal flexibility creates another dimension of labor market flexibility as a competition strategy. Flexibility in working hours, in case when normal work period does not response to labor supply and demand, is defined as flexibility in the period worked in response to a change in work load of employer and in workers‘ demand for income-leisure time―within normal working hours limits ( OECD, 1990, p.23-24). It is stated that working hours short-cut is a different application of working hours flexibility (Bosch, G, P. Dawkins and F. Michon, 1994, p. 25–27). This method enables firm to adjust its labor demand to a fluctuation in demand for its goods produced. According to the labor demand model, it is assumed that firm has to adjust its labor demand to a change in economic conditions ( Borjas, 1996, p.138). it is further assumed that working hours flexibility is a strategy in which firm aims to protect its competitive power accross firms (Kuzgun, 2005, p.34). Based on a OECD regulation in 1985, it is pointed out that flexible working hours constitutes the numerical aspect of laborforce flexibility and comes to the same manner with the flexibility in labor input costs (Bosch, G, P. Dawkins and F. Michon, 1994, p. 25). In the same point of view, flexibility in working hours gives an advantage to firm to give a quick response with a minimal input cost to fluctuations in demand in goods market. Further, while working hours flexibility allows firm to feasible use of laborforce in number and time needed ( Centel, 2002, p.239). On the other hand in terms of workers it means that ―...it is an aggrement between employer and employee so that working hours needs to be adjusted to employee‘s conditions‖ (Centel, 2002, p.243). 2. Flexibility in Turkish Labor Market As A Competition Strategy 2.1. Flexibility As a Firm’s Competition Strategy It has been seen that factors which determine managerial strategy of a firm are aggregated under the two headings as external and internal; across external factors the state of markets, competitive conditions, economic fluctuations and legal regulations are mentioned, as for internal factors the human source is pointed out (Ergin, 1992, p.50-56). In this respect, within the context of new Turkish Labor Law, regulation neccessity for numerical flexibility and flexible working hours constitutes the legal framework of firms‘ new competition policies. Within this framework, part-time working, on-call working, compensatory working, short working, temporary secondment and labor subcontractor applications are considered. Among these, though temporary working has been expensively applied in Turkish labor market, it had not been legaly arranged. On the contrary, on-call working, compensatory working and temporary secondment have found place within the new labor law context. In Turkey, the factor that improves the effectiveness of labor market flexibility on determining firm‘s competition strategy has been the legal permittance given to private employment aggencies to be established. In order to shorten the temporary unemployment period, importance is attached to the matching of unoccuppied jobs with the people looking for a job. Thus, the private employment agencies have been accepted as instruments of active employment policy for the improvement of the matching capability of the labour market besides the public employment institutions. ― The aim of the employment service is to enable employers to identify and employ workers who are equipped enough to perform their jobs, and to help individuals find their first jobs, change jobs during their career, and to find new jobs when they become unemployed.‖ (http://www.oas.org/udse/esponal/documentos/cancun/01developingefectivES-D,Fretwell-docum.pdf). As of April 2010, 277 private employment agencies have started to operate and they have been distributed among 19 provinces in Turkey. These provinces are Adana, Ankara, Antalya, Balıkesir, Bursa, Denizli, Diyarbakır, EskiĢehir, Gaziantep, Hatay, Ġstanbul, Ġzmir, Kayseri, Kocaeli, Konya, Muğla, Sakarya, Tekirdağ and Trabzon (http://statik.iskur.gov.tr/0252/iller/01T%c%3bcm%20Liste.pdf). Meanwhile, 126 of these private employment agencies have been closed and the licences of five agencies have been cancelled by ISKUR (http://www.iskur.gov.tr/loadExternalPage.aspx?uicode=statozeisthdamburodagi). These data show that private employment agencies in Turkey have created a new sector within the service sector. While there is no data on how many people are employed by private employment agencies in Turkey, it is supposed that they have created labor opportunities at a specific rate. The indirect contribution of private employment agencies appears at the stage of providing matching services. Structural unemployment is one of the features of the labor market in Turkey. It is considered that thanks to these agencies, the decrease in the period of looking for a job is a partial solution for the structural unemployment. It is possible to say that 1.5% of those applying to private employment agencies in Turkey are already engaged in a business (Kuzgun,2008:12). Life time of a firm is the outcoming factor and it is based on the economic activities in the effects on the employment level. It is observed that the fact that employment service is provided by private sector firms as well as public institutions has led to creation of a sub-sector within the service sector and to creation of new job opportunities. This sector has been accepted as 494 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo an emerging market by the EU countries and it is stated that new employment opportunities have been created for 1,3 million people in the European Union in this way and that this figure corresponds to 1,9% of total employment. (http://www.eurociett.org/fileadmin/templates/eurociett/docs /position_papers/EurociettPositionPaper_Lisbon_Staregy_March_2006.pdf) 2.2. The Reasons For Adoption of Flexibility in Labor Market As a Competition Strategy in Turkey These reasons can be classified into two sub-headings. 2.2.1. External Factors The first external factor is globalization and its effect on the decisions regarding productive organizations of firms in Turkey. The second is to adopt the flexible labor market approach as it did in EU in the adaptation process of Turkey to EU. 2.2.1.1. Globalization Since competition in domestic and international market has gained big importance, recent atypical or nonstandart job contracts are emerged as well as typical/standart or normally interpreted job relations and job contract concepts. It is pointed out that, in process of globalization, the effect of international trade on employment has been more improved ( Liemt, 1997: s.240). In terms of competition, in the short-run, benefiting from the nature of labor force being variable factor of production in order to enhance the competitive power , firms use peripheral labor force in which they employ labor force in accordance with the workload. In this regard, it is agreed that the types of PostFordist organizations has been recently appeared in developed and developing economies by the result of coercive nature of international trade (Felstead,1999, s.9). Taking into consideration further the fact that the pressure of globalization and competition leads firms to seek for reducing the costs, it is stated that flexibility in the general level of labor force costs is one aspect of flexibility in labor market ( Elliot, 1997, s.301). Notably in the stage of economic crisis, providing flexibility in adjusting the employment costs is critically important for competing firms. Furthermore, a relationship is constituted between the use of labor force and having a flexible position and, it is emphasized the importance of possessing a flexible structure during the crisis (Arıkboğa, 2001, s.54). In terms of Turkey, it is expressed that the flexibility in labor force has risen as a system driven by globalization (DPT, 2001b, p.38). 2.2.1.2. The Adaptation Process of Turkey to European Union (EU) According to Kuzgun (2004), another reason of introducing different types of flexible employment into the new Labor Law is the adaptation process of Turkey to EU and it plays an important role during this process. The same approach has also been followed in the Eight Five-Year Development Plan (DPT, 2001, p. 145). This adoption, globally, has proved the fact that the EU is influential in individualizing the work relationships by the case in Turkey. Besides that, together with some types of flexible employment, absence of legal regulations seemed to be a lack in Turkey. This lack is first put on the agenda in the project of improving employment and efficiency in labor markets. 2.2.2. Internal Factors These factors resource from the structural futures of Turkish economy and labour market. 2.2.2.1. The Ever-Growing Unemployment In the aftermath of World War II, the numerical flexibility concept in the labor market in industrialized economies is another factor in determining different types of flexible employment and subcontracting which enables labor market to become flexible. On the other hand, it has claimed that the oil crisis in the mid of 1970s had strengthened the relationship among flexible types of employment producing a new unemployment wave ( Tuncay, 1995, p.57) Therefore, a tie between widespreading flexible types of employment and unemployment is constructed and at the end of the 20th century, as types of flexible employment become widespread, so does the employment possibilities ( Felstad, 1999, p.3). Likewise the idea that holds that there is a linear correlation between flexibility and levels of unemployment rates and that reforms need to be done for a flexible labor market (Rodriguez, 2003, p.37) 495 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo runs parallel with the idea that maintains that reforms in job law which should make labor market more flexible in 2003 in Turkey comparing with the high level of unemployment rates. The reason of the ever-growing unemployment in Turkey is the long-lasting economic crisis as an influential factor stimulating unemployment ( Kazgan, 2002, p.19). Years Unemployment rate % Underemployment rate % Underutilisation rate % (Unemployment + Underemployment) 1995* 1999* 2008** 6.9 7.3 11 6.7 6.9 3,1 13.6 14.2 14,1 Source: * Obtained from 8th –Year Development Plan, DPT, p. 102, ** Obtained from Turkish Statistical Institute (TÜĠK) News Bulletin. Table 1: Changes in Unemployment and Underemployment rates in Turkish Labor Market (1995-2008) (15+ Age) As it can be seen from the Table 1, in the period of 2005-2008, as a consequence of effects of the global crisis and economic instability on Turkish economy, while unemployment rate was 6,9 % in 1995, it increased to 7.3% in 1999, and to 11% at the end of 2008. But, in contrast to realized rates of underemployment in 1995 and 1999―6.7% and 6.9%―, it decreased to 3.1% in 2008. Under these conditions, underutilisation rate of work force, which is the sum of unemployment rate plus underemployment rate, increased to 13.6 % and to 14.2 %, in 1995 and 1999 respectively, but in spite of a considerable decrease in 2008, it slightly decreased to 14.1 % at the end of 2008 ( due to increasing unemployment rates). 2.2.2.2. The Share of Service Sector in Total Employment It is stated that there is a linear correlation between flexibility and increasing share of service sector in total employment (Felstead, 1999, p.12). In Turkey, in the sectoral distribution of employment in urban areas, service sector ranks first and it is followed by industry and agriculture sectors. On the other hand, if we look at the long-run expectations of employment in Turkey, it is seen that service sector is leading sector which will create an employment capacity for labour suppliers (ĠġKUR, 2003, p.13). According to Household Work Force Survey results, in both 2008 and 2009, considerable part of employment is engaged in service sector. As of 2009, the share of service sector employment in total employment reached to 50 %. The economic crises has led industry sector to provide less employment comparing to the numbers of 2008 (Table 2). 2008 2009 Sectors Employment Share (%) Employment Share (%) 5016 23.7 5254 24.7 Agriculture 5682 26.8 5379 25.3 Industry 10495 49.5 10644 50.0 Service 21194 100 21277 100 TOTAL Source: http://bulten.tuik.gov.tr/PreHaberBultenleri.do?id=6198&tb_id=2, 19 April 2010 Table 2: Sectoral Distribution of Employment, 2008-2009 (in thousands, 15+ age) 2.2.2.3. The Share of Unregistered Employment in Total Employment Unregistered employment is generally keeping the workers away from awareness of the government, employing unskilled workers, violating the regulations such as minimum age level (child labour), minimum wage, overtime, workplace standards, health and security of workers. 496 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo It is generally agreed that, in Turkey, there is an informal economy as well as the informal one and an unregistered employment beside the registered. Today, it is obvious that one of the most challenging problems economies have faced is informal economy and unregistered employment (TUSIAD, 2002, p.96). In 2009, According to the latest published survey results, the ratio of persons who worked without any social security related to the main job inclined to 42.3 % with 1.5 percentage point increase. The share of persons who did not have any social security in agriculture increased from 84.5 % to 85.8 % and that in non-agriculture increased from 28.6 % to 28.7 % compared to the same period of the previous year (http://www.turkstat.gov.tr/PreHaberBultenleri.do?id=6229, 20 April 2010). By the expansion of types of flexible employment, employment of women, retired, young and handicapped labour force who are considered as secondary labour force have been increased, to participate in economic activities, in work place or at home. Besides that, it is observed that types of flexible employment are accumulated in product lines with low-demand of capital. For example, as a consequence of creating new job opportunities being restricted in Turkey, the labour force as unregistered are employed in product lines which do not require too much capital such as piece-rate wages system in return for producing at home (DPT, 2001a, p.46) Shifting production out of plant within the context of the organization of production means flexibility in organizing the job and provides an opportunity of reducing the production costs in terms of firm. Henceforth, flexibility in organization is seen by firm as a dominant competition strategy against its rivals (Ġġ KUR, 2003, p.35). In this respect, flexibility in production and in employment is an inevitable result of competition and is defined as realization of production out of plant employing outsider workers (TĠSK, 2004, p.34). Subcontractor application is another method to shift the production out of plant. The factors bringing about this application are changes in production process, expansion of small and medium-sized firms and the focus on privatization (Ekin, 2002, p.59). Since small and medium sized firms hold a near-position of subcontractor firm, they have a considerable share in total number of firms and in total employment and they emphasize the relationship between informal economy and firm size in Turkey. So, reshaping the subcontractor application within Labor Law carries considerable importance. Existence of small and medium-sized firms (SMEs) and shifting the production out of plant; are supported with the view of which classifies the capital system as dualist―primary and secondary― in acceptance of flexibility in labor market (Tai, 1994, p.16-17). When taking into consideration that subcontractor application enables firms to offset labor demand and to shift their production line into secondary sector, it would not be false to see the informal economy and subcontractor firms operating in this economy as secondary sector in Turkey. Furthermore, allowing for the operation of private employment agencies within this sector will speed up the tendency of firms towards the sector. In Turkey, basically, though subcontractor application became widespread in private sector, it also is becoming widespread in public sector. Among the reasons, decreasing the production costs in State Economic Enterprises (KĠT), willingness to work with problem-free worker groups and the thought in which easily privatizing the State Economic Enterprises are mentioned. Therefore, subcontracting is described the other way of privatization in public sector (Ekin, 2002, p.35). On the other hand, it is pointed out that subcontractor application is a key concept in international trade (Liemt, 1997, p.240). When looking at the examples of subcontractor applications in international field, it is observed that 32 percent of employers in excessively industrialized countries such as France, Germany and United Kingdom have shifted their own works to the subcontractors in the last three years and, in Turkey, the number of subcontractor employers and workers in the lines of business accounts for 15% of total labor force (Ekin, 2002, p.34) 2.2.2.4. Firm Size in Turkey Since small-sized firms have a more flexible structure, it possible to construct a relationship between flexibility in labor market and firm size. Firms having a flexible structure, in general, are small and medium sized. Owing to this structural feature, Firms in this size easily respond to changes in demand of goods and services. In this respect, the types of flexible employment as competition strategy are more important for these firms. According to the EU standards, firms employing 1 to 9 workers are defined as micro enterprise; and those employing 10 to 49 as macro enterprise (Kuruüzüm, 1998, p.37). But in Turkey, there is not a common standard on determining firm size taking number of workers employed as a basis. According to some determination, firms who employ 1 to 49 workers are considered small sized firms (http://www.kosgeb.gov.tr/kos.htm). Firms in this size, have a notably place in Turkish economy. In the same way, the abundance of small-sized firms in number is considered among structural features of Turkish economy (Bulutay, 1995, p.65). 497 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Size of Work Places (based on the Number of Compulsory Insured Person) 1-3 persons 4-6 persons 7-9 persons 10-19 persons 20-29 persons 30-49 persons 50-99 persons 100-499 persons 500-999 persons 1000+ persons TOTAL Number Compulsory Insured Person 1,228,315 855,295 613,074 1,198,952 699,524 898,516 848,127 1,753,236 408,122 371,805 8,874,966 of Share (%) 13.8 9.6 6.9 13.5 7.9 10.1 9.6 19.8 4.6 4.2 100 Source: www.ssk.gov.tr, Insured Person Statistics, January 2010, Table SS15, page 27, Table 3: Compulsory Insured Person Numbers According To Activity Branches and Work Place Size (4/a) According to Table 3, Firms, who employ 1-49 persons and defined as small sized in Turkey, account for 61 percent of total insured labor force. This founding shows, within the new Labor Law, the importance of arranging the types of flexible employment in terms of labor market in Turkey. Thus, in determining of employers‘ commitments, firm size is taken as basis and in general small firms have been legally protected ( Kuzgun, 2004, p.5-14). 2.2.2.5. Frequency of Cyclical Fluctuation In terms of firm, providing working hours to become more flexible during economic crises is crucial in relation with minimizing the labor costs. Because an anticipated crisis weakens the firms‘ adaptation and prevention mechanisms of cyclical fluctuations and threats firms‘ operational goals, values and predictions regarding sales and returns (Dinçer, 1998, p.385). The economic crises within the context of new Labor Law is accepted being one of the reasons of flexibilizing working hours and is arranged in scope of the article 65 in case of bringing short working in practice. In doing that, it is thought that cyclical and intense fluctuations experiencing in economic activities have been influential on this arrangement (Bulutay, 1995, p.87). In order to adopt a resolution for short working according to Labor Law, an economic crisis must be a general crises affecting the whole economy. By this approach, in paragraph (3) of article (3) in the act which regulates short working and the payment for short working, an economic crisis is defined as ―a situation in which events occurred in national and international economies give shock to the whole economy and establishments‖ (www.iskur.gov.tr/mydocu/mevzuat /yonetmelik45.html). A general economic crisis brings about changes in overall economic conditions in terms of firms. In this respect, it is argued that short working provides facilities to firms to cope with crisis and that short working during crisis is a key for feasible solutions in terms of firms (MESS, 1999, p.180). When analysing the demands for short working to Ministry of Labor and Social Security, as of 30 September 2004, it has seen that the whole demands have been made by firms operating in private sector, and that those firms according to the KOSGEB classification are mostly small and medium-sized (Kuzgun, 2005, p.45-46). According to Arıkboğa (2001), there is a relationship between the number of employees employed and firms‘ flexible structure and particularly in crisis period, flexibility is a feasible strategy. But, in arrangement of short working, firm size has not been taken a criterion (Kuzgun, 2005, p.47). This policy, regardless of how big firms are, is a result of the opinions to protect firms against economic crisis. While it has been aimed, by short working, to adjust firm‘s demand for labor to shrinking in the level of economic activities; the negative effects of employee‘s income loses caused by implementing of short working has been considered to be compensated by the payment for short working. The main determinant in employee‘s acquiring the rights of short working is the condition in that premium payment must be paid within the prescribed time limits. 498 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Conclusion Today, being connected to globalization, flexibility in labor market is adopted as a new competition strategy in terms of firm. By external and internal factors, the introduction of new regulations into the new Labor Law aiming at flexibilizing labor market has constituted the legal framework in determining firm‘s competition strategy in Turkey. The importance of new regulation based on numerical flexibility and flexibilizing labor market is vital in respect to determining competition policies. Labour market flexibility is seen as an important characteristic of a modern economy. Labor market flexibility decribes how labour markets function. A flexible and efficient labour market implies higher employment, and so an economy that is fairer (in terms of, for example, reducing social exclusion), as well as more competitive and more productive. It also implies an economy that is better able to adapt to the changing economic environment. External numerical flexibility refers to the adjustment of the labour intake, or the number of workers from the external market. This can be achieved by employing workers on temporary work or fixed-term contracts or through relaxed hiring and firing regulations or in other words relaxation of Employment Protection Legislation, where employers can hire and fire permanent employees according to the firms‘ needs. Internal numerical flexibility, sometimes known as working time flexibility or temporal flexibility. This flexibility achieved by adjusting working hours or schedules of workers already employed within the firm. This includes part-time, flexi time or flexible working hours/ shifts (including night shifts and weekend shifts), working time accounts, leaves such as parental leave, overtime. Arranging the both types of flexibility within the new Labor Law enables firms to determine their new competitive strategies. This arrangement, especially in private sector, will lead employment strategies based on the distinction between core and peripheral labor force to be emerged, and also will help this distinction to become common. Besides that, operations of private employment agencies and in general the demand for temporary employee by firms, both, will bring about a new expansion to the competition among rivals and will expand the application of the fixed-termed temporary working contracts. In this context, private employment agencies also will facilitate the applications of numerical flexibility as competition strategy. In the next stage, it is expected that expansion of flexibility would bring about a fragmented and more informal labor market in Turkey. References Arıkboğa, ġ. (2001). Business Management in Crises. Ġktisat Dergisi, Ġstanbul, p.410-411 Atkinson, J. (1984). Flexible manning – the way ahead. Institute of Employment Studies Bosch, G. (1994). Working Time in 14 Industrilies Countries. 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Yayın No:TUSĠAD-T/2002/12-354, Ġstanbul. www.iskur.gov.tr/mydocu/mevzuat /yonetmelik45.html, 2008 http://www.oas.org/udse/esponal/documentos/cancun/01developingefectivES-D,Fretwell-docum.pdf, 2008 500 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo http://www.kosgeb.gov.tr/kos.htm, 15 January 2009 http://www.eurociett.org/fileadmin/templates/eurociett/docs/position_papers/Eurociett_Position_Paper_Lisbon_Strategy_March_ 2006.pdf, 12 April 2010 http://www.iskur.gov.tr/loadExternalPage.aspx?uicode=statozeisthdamburodagi, 13 April 2010 http://statik.iskur.gov.tr/0252/iller/01-T%c%3bcm%20Liste.pdf, 15 April 2010 http://www.ssk.gov.tr, Insured Person Statistics, January 2010, Table SS15, page 27, 18 April 2010 http://bulten.tuik.gov.tr/PreHaberBultenleri.do?id=6198&tb_id=2, 19 April 2010 http://www.turkstat.gov.tr/PreHaberBultenleri.do?id=6229, 20 April 2010 501 � 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. 260 Title A name given to the resource The Importance of Numerical Flexibility In Turkish Labor Market and Competition Policy Author Author ARVAS, M. Akif İÇ, Suleyman AYGÜN, Mehmet Abstract A summary of the resource. Numerical flexibility, which has been common since Atkinson (1984), can be defined as a situation where the number of staff and the number of hours worked can be increased or decreased depending on the demand for labour. Within the "flexible firm model", numerical flexibility is seen as being designed to facilitate a rapid adjustment in headcount, in line with short-term changes in the level of demand for labour so that the number employed equals the number required at any time. Based on Labour Law no 4857, Turkey has adopted this approach as a competition policy in order to provide flexibility into labor market and to promote the competition of Turkish firms. Therefore, in this study, flexibility-based tools are discussed and evaluated in terms of competition policy. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/f73d81cfa82f6eaedb1e342c8c4d82d2.pdf f9c9c792df96a55082a8f24e9051cde4 PDF Text Text The Use Of Building Models As An Educational Material And Their Impact On Learning Ahmet C. APAY Department of Construction, Sakarya University, Adapazari, Turkey, aapay@sakarya.edu.tr Emine AYDIN Department of Construction, Sakarya University, Adapazari, Turkey, emineb@sakarya.edu.tr Tahir AKGUL Department of Construction, Sakarya University, Adapazari, Turkey, takgul@sakarya.edu.tr Ali GURBUZ k.aligurbuz@gmail.com Abstract: Materials are an indispensable component of education and teaching and used for supporting teaching during the teaching-learning process. Aids and materials are employed in an attempt to fulfill the objectives of the teaching process during education-teaching activities. In today’s rapidly-changing and developing world, individuals are not supposed to obtain information from one single source and memorize it; in contrast, the objective is to school the type of individuals who can know how to access to information, how to use it and how to come up with ways to overcome problems encountered. The use of teaching materials designed in accordance with the principles of teaching technologies is vitally important for enabling individuals to develop such skills. A fundamental factor in increasing the level of achievement in courses, in ensuring a decent educational system and in enabling students to experience an enduring learning process is to get students to like the subject to be taught. Otherwise, students will not be interested enough to get the input and no enduring learning process will take place no matter how well-versed and experienced an instructor is in his/her field. This paper is a study into the effects of the use of educational materials on the level of students’ achievement and interest in courses. Furthermore, it includes a comparison between the efficiency of material-aided instruction and teacher-centered instruction. The effect of these two methods on the level at which particular concepts related to a lesson are learned has been analyzed through the use of experimental design with pretest-posttest control group. Keywords: Building models, education and teaching, educational materials 1. Introduction As a term the model denotes to doing a smaller or bigger copy of an object in a determined scale. Today the model usage is widespread in many fields. The models to examine human body used in biology and medicine, the earth model which is a minimized copy of the Earth used in geography, in machine sector the models with changing scales from ½ to 1/25 according to their dimensions and details, earthquake models, dynamic models showing the flow of a stream, military models, ship models, car models, airplane models, architectural models, training models, topographic models, terrain models, urban models, park-garden models, people models, building models, interior models, and etc can be given as examples. In terms of building education, the term of model brings “architectural models” such as topographic, building, furnished building interior into mind. Material use in education is a rapidly spreading application in permanently developing and renewing Turkish education system. Oral narrative technique centred and teacher-centred education model which are implemented widely until recently has started to loose its validity today. Oral narrative technique should be implemented with other education methods and supported with other materials in the education place. [1] 2. The Importance of Material Use in Education 838 �Materials are indispensable parts of education and training in our age. In order to realize educational objectives, equipment and materials are used in all of education and training studies. Artificial and natural substances are named as material when they serve for a virtual or actual purpose. When it is associated with education “education material” is named as “course material” and it defines all of the living, non-living, practical and theoretical information and affluences regarding to that course. The conception of material includes virtual, actual, artificial and natural data or affluences which serve for a purpose. [2] Material is an efficient education tool. It is possible to define the education tool as an environment to provide information sharing between a communication channel (teacher) and receivers (students) [3]. In today’s rapidly changing and developing world, it is not expected that individuals to obtain the information from one source and memorize this information, on the contrary it is intended to raise individuals who know ways to achieve information, who use them and when faced with a problem who can create solution methods by using that information. The use of education material which is prepared in accordance with the principles of the education technologies has significance for teachers to design an active and interactive learning environment which is necessary for individuals to acquire these above features. [4] 3. Using Building Model As An Education Material Department of Building Education is a department that theoretical and applied courses are taught together. In theoretical courses in order to be helpful for the correlation with applied courses and in order to develop the three dimensional thinking abilities of students, the building model is preferred as the material in this research. The achievement and attitudes of students toward Technical Drawing are examined with the designed building model. Cross-sectioning of the building plan is one of the parts for students that they densely need to use three dimensional thinking powers. Through the expression via model technique it is expected that for students to develop their perception ability better and perform a more efficient learning. The research is conducted with 60 students in total, as 30 from control group and 30 from experiment group, who are chosen according to random sampling methodology among the 1st year students who take Technical Drawing course in 2008-2009 Spring semesters and from Department of Building Education at Sakarya University Faculty of Technical Education. In this research two different learning methods are applied randomly to these two categories. No information is given to students in experiment and control groups regarding whether they are in experiment or control group. The application is done in the duration of “Cross-sectioning of a plan” which is specified in the Course Curriculum. In order to give the necessary information to students and to test their learning regarding to this course, a housing project which is constituted of the ground floor and a normal floor is prepared. Since some factors are thought such that the students meet with this issue as first time and the course hours are limited, the project is designed so simple. In order to teach the “Cross-sectioning of a plan” in a best way, two section lines are passed with “A-A Section” code on X axis of floor plans and with ““B-B Section” code on Y axis of floor plans and it is given importance that the section lines to touch to the stairs, low floor, door-window frames (Figure 1). Figure 1. Floor Plans 3.1. Preparation of the Model To express the selected issue in a best way by the model it is planned to break into horizontal pieces from 2/3 length of the height of floor and vertical pieces from the places that the A-A and B-B section lines pass in order to show the floor plans as in the project (Figure2,3,4 and 5). Hence, in this way floor plans and section lines can be understood more clearly in terms of what they mean. 839 �Figure 2. The First Floor of the Model Figure 3. The First Normal Floor of the Model Figure 4. The A-A Section View of Model Figure 5. The B-B Section View of Model A greater scale is selected compared to a standard scale and 1/20 scale is preferred in order to make all class to see the model during the course hour and more importantly to enable permanent learning which is our main objective. 3.2. Research Design In this research it is attempted to determine the effects of Expression and Teaching Activity and TeacherCentred Education Activity on students’ success and students’ attitudes toward Technical Drawing courses. For this purpose an experimental design which is suitable to “pre-test and post-test” model with control group is used. Groups Control Pre-test AT AI Education Activity Teacher-centred Education Activity Post-test AT AI Experiment AT AI Model Aided Education Activity AT AI Table 1. Research Design with Pre-test/Post-test Control Group AT: Achievement Test, AI: Attitude Inventory As seen on Table 1, the topic of “Cross-sectioning of a plan” of Technical Drawing Course is taught by Teachercentred Education Activity for control group whereas it is taught by Model Aided Education Activity for experiment group. In the research, the effects of Teacher-centred Education Activity and Model Aided Education Activity are compared in terms of learning of “Cross-sectioning of a plan” of Technical Drawing Course. Before the application of two different education activities both for experiment and control groups the Achievement Test (AT) is applied firstly as pre-test to evaluate their pre-information level toward “Cross-sectioning of a plan” and then applied as post-test after courses of experiment and control groups. And again, in order to determine the pre-attitudes of students toward Technical Drawing Courses “Technical Drawing Attitude Inventory” is applied firstly as pre-test and then applied as post-test after courses of experiment and control groups before the application of two different education techniques both to experiment and control groups . 3.3. Variables of Research 3.3.1. The Achievement Test The Achievement Test (AT) is prepared under the control of field specialists. It is constituted of drawings and questions which are prepared according to the “Cross-sectioning of a plan” unit of the Technical Drawing Course Curriculum which is prepared by the Head of Department of Building Education at Sakarya University Faculty of Technical Education. The Achievement Test is implemented two times for two groups in the form of pre-test and post-test as being before the education and after the education. Before the education activity the pre-test is applied in order to evaluate the pre-information level of students regarding to “Cross-sectioning of a plan” and after the education activity the post-test is applied to reveal the effect of these two different activities on students to learn this issue. 3.3.2. Technical Drawing Attitude Inventory Fivefold Likert-type attitude inventory (I strongly agree, I agree, I neither agree nor disagree, I don’t agree, I strongly disagree) toward Technical Drawing which comprises of 12 items as being 6 of them positive and 6 of 840 �them negative statements in order to determine the approaches of students toward the Technical Drawing Course. The scale results are evaluated by scoring the positive questions as “I strongly agree” (5 points), “I agree” (4 points), “I neither agree nor disagree” (3 points), “I don’t agree” (2 points),“I strongly disagree”(1 point) and the negative questions as “I strongly agree” (1 point), “I agree” (2 points), “I neither agree nor disagree” (3 points), “I don’t agree” (4 points),“I strongly disagree”(5 points). The pre-test before the education and the post-test after the education are implemented to the experiment and control groups of “Technical Drawing Attitude Inventory”. (Technical Drawing Attitude Inventory is given in Appendix-B). 3.4. Course Teaching for Control Group The achievement test and attitude scales are applied as pre-test in order to determine students’ pre-information, skills and attitudes regarding to this issue. Teaching of this issue is started after one week. During the course oral narrative, written expression and question-answer methods are applied. The topic is transferred to students with the classical method as oral and written by using blackboards. The questions regarding to the incoherent parts are answered after lecturing and the lecture is ended with a last repetition. After the course “Technical Drawing Achievement Test” and “Technical Drawing Attitude Inventory” are applied as post-test and the results are recorded. 3.5. Course Teaching for Experiment Group Before one week from the course the achievement test and attitude inventory pre-test applications are applied in order to determine the pre-information, skills and attitudes of students regarding to this topic as in the control group. The prepared model material is used actively during the course and showing the details regarding to this issue on the model as three dimensional become useful for students to animate plans and sections in their minds regarding to this issue. After course by preserving same conditions with control group The Achievement Test and The Attitude Inventory are applied as post-test and the results are recorded. The results of pre-test and posttest Achievement Test and Attitude Inventory for Experiment and Control Groups are given in APPENDIX C-F. 3.6. Data analysis For independent groups the t-test is performed in SPSS 16.0 package programme in order to reveal whether there is a statistical difference among the experiment and control groups in terms of readiness regarding to this issue and attitudes toward courses such as Technical Drawing and occupational drawing. For dependent groups the ttest is performed in package programme in order to reveal the effect of two different education methods (Teacher-centred Education Activity and Model-Aided Education Activity) on success and attitudes toward “Technical Drawing Course, Cross-sectioning of a Plan”. One Factor Covariance Analysis (ANCOVA) is performed in order to compare the effects on learning of two different education activities after performing the educational activities and after bringing the pre-information and readiness level of students under control. ANCOVA is recommended in order to show the effectiveness of the applied experimental operation in experimental designs with pre-test and post-test control group. The ANCOVA test is defined as a “powerful technique which allows comparison among the groups by providing the statistically control of another variable or variables which are related to the dependent variable and named as common variable, besides the independent variable which is tested in a research to observe its effect. ” [5]. 3.7. Findings The findings which are obtained through testing the data of experiment and control groups are given in this section. The hypothesis statements which are to evaluate changes in the points of achievement and attitude points of groups are tested with t-test by using SPSS 16.0 (Statistical Package for Social Sciences for Personal Computers) package programme. Arithmetic mean, standard deviation and t-test results for independent groups according to AT pre-test points, which is done to reveal the pre-information of experiment and control groups regarding to the issue of “Cross-sectioning of a plan” of Technical Drawing Course and to determine the difference between groups in terms of pre-information regarding to the specified topic, are summarized on Table 2. Group N X S.S Experiment 30 18.50 11.08 Control 30 15.83 9.20 t p 1,014 0,315 N: Number of students, X: Arithmetic mean, S.S: standard deviation, t: tscore , p: significant coefficient 841 �Table 2. Arithmetic mean, standard deviation and t-test results of groups according to AT pre-test points On Table 2, according to AT pre-test results of experiment and control groups t=1,014, p=0,315 values are obtained. Since p-value is greater than the significance level of 0.05 there is no statistically significant difference between experiment and control groups in terms of pre-information regarding to the “Cross-sectioning of a plan” topic of Technical Drawing Course. Arithmetic mean, standard deviation and t-test results for independent groups which are obtained according to pre-test results are summarized on Table 3 with the aim of determining the attitudes of experiment and control groups toward the Technical Drawing Course before educational activity. Group N X S.S Experiment 30 3,67 0,59 Control 30 3,37 0,83 t p 1,386 0,171 N: Number of students, X: Arithmetic mean, S.S: standard deviation, t: tscore , p: significant coefficient Table 3. Arithmetic mean, standard deviation and t-test results of groups which are obtained by Technical Drawing Course Attitude Inventory pre-test points Arithmetic mean, standard deviation and t-test results, which are obtained according to the pre-test points of Attitude Inventory toward Technical Drawing Courses, are seen on Table 3. According to this, t=1,386, p=0,171 values are obtained from pre-test points of Attitude Inventory toward Technical Drawing courses of experiment and control groups. Since founded p–value is greater than the significance level of 0.05, there is no statistically significant difference between experiment and control groups in terms of their attitudes toward Technical Drawing course. Hypothesis- 1: Hypothesis Sentence: The model-aided education activity has no effect on students to gain information and skills regarding to the issue of “Cross-sectioning of a plan” of Technical Drawing Course. In order to test the hypothesis the t-test is performed for dependent groups. Test type N X S.S AT Pre-test 30 17,50 11,08 AT Post-test 30 79,83 19,32 t p -13,160 0,000 N: Number of students, X: Arithmetic mean, S.S: standard deviation, t: tscore , p: significant coefficient Table 4. Arithmetic mean, standard deviation and t-test results of experiment group according to AT pre-test and post-test points According to Table 4, the model-aided education activity has an effect on students to gain information and skills regarding to the issue of “Cross-sectioning of a plan” of Technical Drawing Course. A significant difference is found between the pre-test points and post-test points of experiment group with model-aided education activity. Hypothesis-2: Hypothesis Sentence: Teacher-centred education activity does not have an effect on students in terms of gaining information and skill regarding to the topic of “Cross-sectioning from a plan” of Technical Drawing Course. In order to test the hypothesis the t-test is performed for dependent groups. Test type n X S.S t p AT Pre-test 30 15,83 9,20 -13,521 0,000 AT Post-test 30 65,00 18,98 N: Number of students, X: Arithmetic mean, S.S: Standard deviation, t: t score , p: significant coefficient Table 5. Arithmetic mean, standard deviation and t-test results of control group according to AT pre-test and post-test points 842 �According to Table 5 teacher-centred education activity has an effect on attainment of information and skills by students regarding to the topic of “Cross-sectioning of a plan” of Technical Drawing Course. A difference is found among the pre-test and post-test points of control groups with teacher-centred education activity. Hypothesis-3: Hypothesis Sentence: There is no significant difference between the model-aided education technique and teacher-centred education activity for students in terms of gaining information and skills regarding to the topic of “Cross-sectioning of a plan” of Technical Drawing Course. Group Experiment Control N X S.S 30 79,83 19,31 30 65,00 18,98 F p 9,701 0,003 N: Number of students, X: Arithmetic mean, S.S: Standard deviation, F: analysis points , p: significant coefficient Table 6. The covariance analysis results of experiment and control groups according to the AT post-test points According to Table 6, when the AT pre-test results of students are brought under control, the following result is achieved that there is a significant difference between the teacher-centred education activity and model-aided education activity in terms of their effects on learning. According to AT post-test results, with their higher achievement average the difference is in favour of the experiment group. Hypothesis-4:Hypothesis Sentence: “There is no statistically significant difference between the students educated with model-aided education activity and students educated with teacher-centred education activity in terms of attitudes toward Technical Drawing course after the education”. Group Experiment Control N X S.S 30 3,89 0,53 30 3,83 0,64 t p -0,374 0,711 N: Number of students, X: Arithmetic mean, S.S: Standard deviation, t: t score , p: significant coefficient Table 7. Arithmetic mean, standard deviation and t-test results of groups according to Technical Drawing Attitude Inventory post-test points According to Table 7, there is a significance difference between the experiment and control groups in their attitudes toward Technical Drawing Course. According to this result, both model-aided education activity and teacher-centred education activity affect students in terms of developing positive attitudes toward Technical Drawing course. Although the difference between the average points of groups is not statistically significant, it is in favour of control group with model-aided education. 4. Conclusion And Suggestions In this research according to the t-test results of independent groups which is performed to evaluate the AT pretest results of experiment and control groups, a statistically significant difference is not found in pre-information of experiment and control groups intended to the concepts regarding with the “Cross-sectioning of a plan”. In the Achievement Test post-test covariance analysis (ANCOVA) which is applied by controlling the preinformation regarding to the topic of “Cross-sectioning of a plan” of Technical Drawing course of experiment and control group, a significant difference is founded between the teacher–centred education and model-aided teaching activity. With higher achievement average in terms of the Achievement Test post-test results this difference is in favour of the experiment group. This result shows that the students that are educated with modelaided education activity are more successful than the students that are educated with the teacher-centred education activity. It is observed that students learn better and become more successful in the classroom where the model material is used. 843 �According to the t-test results which are performed for independent groups as a result of the pre-test results of Technical Drawing Attitude Inventory, a statistically significant difference is not found in terms of pre-attitudes of experiment and control groups regarding to the Technical Drawing course. According to the Attitude Inventory post-test results which are applied after two different education activities performed by controlling the pre-attitudes of students toward Technical Drawing course, a positive transformation is determined in the attitudes of students toward this course after both of these education techniques. A significant difference is not found by obtaining group averages as 3.83 and 3.89 for two groups according to the post-test results of attitude inventory. However, the average pre-test points of control group with the teacher-centred education techniques increases from 3.67 to 3.83 whereas the average of experiment group with model-aided education technique increases from 3.37 to 3.89. The increase rates in averages can be evaluated as in favour of the model-aided education activity. Since models and other visual materials which are used in education and training meet the conditions of education by doing and living, they provide permanence and will be helpful to raise successful individuals. Reference BUYUKOZTURK, S. (2001). Pre-Experimental Designs finaltest Control Group Designs and data analysis, Pagem A data analysis, (pp. 1-3), Ankara, TURKEY. DEMĐRKUŞ, N., (1999). “Fen Bilgisi Öğretim Yöntemleri ve Uygulamalarının Verimli Hale Getirilmesi”, Symposium on Teacher Education and Contemporary Perspectives, D.E.U. Buca Faculty of Education Journal Special Issue (11) (pp. 414425), Izmir, TURKEY. DOĞDU, S., ARSLAN, Z., (1993). Applications of Educational Technology and Education Appliances, (pp.40), Ankara, , TURKEY. YALIN, H. Đ., (2001). Instructional Technology and Material Development, Nobel publishing, (pp. 82), Ankara, TURKEY. ZAMAN, S. (2006). “Mitoz ve Mayoz Bölünme Konusunda Geliştirilen Bilgisayar Destekli Biyoloji Öğretim Materyalinin Değerlendirilmesi” KTÜ Science Institute, (pp. 129-131). 844 � 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. 636 Title A name given to the resource The Use Of Building Models As An Educational Material And Their Impact On Learning Author Author APAY, Ahmet C. AYDIN, Emine AKGUL, Tahir GURBUZ, Ali Abstract A summary of the resource. Materials are an indispensable component of education and teaching and used for supporting teaching during the teaching-learning process. Aids and materials are employed in an attempt to fulfill the objectives of the teaching process during education-teaching activities. In today’s rapidly-changing and developing world, individuals are not supposed to obtain information from one single source and memorize it; in contrast, the objective is to school the type of individuals who can know how to access to information, how to use it and how to come up with ways to overcome problems encountered. The use of teaching materials designed in accordance with the principles of teaching technologies is vitally important for enabling individuals to develop such skills. A fundamental factor in increasing the level of achievement in courses, in ensuring a decent educational system and in enabling students to experience an enduring learning process is to get students to like the subject to be taught. Otherwise, students will not be interested enough to get the input and no enduring learning process will take place no matter how well-versed and experienced an instructor is in his/her field. This paper is a study into the effects of the use of educational materials on the level of students’ achievement and interest in courses. Furthermore, it includes a comparison between the efficiency of material-aided instruction and teacher-centered instruction. The effect of these two methods on the level at which particular concepts related to a lesson are learned has been analyzed through the use of experimental design with pretest-posttest control group. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed Q Science (General) https://omeka.ibu.edu.ba/files/original/0f78baa19bf43aa445565e41d1f7a80a.pdf 366c0eee3d0899801678f75a6a9fa6a4 PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo The Role of Public and Private Investment to Ensure Sustainable Macroeconomic Stability in Turkey Ömer Faruk ALTUNÇ Mugla University, Department of Economics, Mugla, Turkey ofaltunc@mu.edu.tr Bilge ġENTÜRK Mugla University, Department of Economics, Mugla, Turkey bilge.senturk@hotmail.com Abstract: Private investment plays a vital role to promote sustainable economic growth and to reduce poverty in developing countries. The idea of using private sector investments intensively to boost growth in Turkey has started to emerge after 1980s. Despite a sizeable empirical literature, the impact of public investment in the developing countries gives inconsistent results on whether it complements or crowds out private investment. This paper makes use of Blejer and Khan Model (1984) for Turkey over the 1980-2009 periods estimating the effect of public investment on private sector. We employed time series analysis in this study. Our findings support the hypothesis that GDP growth stimulates private investment while public investment and private investment are complementary. The other finding of the study is that credit constraint is an important determinant of private investments in Turkey. Keywords: Private investment, Blejer and Khan Model, Crowding out/in, ARDL model. Introduction Private investment plays a vital role on the process of growth in developing countries. Even though private investment represents a small component of aggregate demand compared to consumption expenditures, it determines the rate of physical capital accumulation. Therefore private investment is a significant determinant for the expansion of production capacity and long run economic growth (Chibber et al., 1992). Blejer and Khan (1984) emphasize that public investment crowds out private investment because the public sector uses the limited physical or financial resources which are necessary for the production of private sector and it produces good and services which can also be produced by the private sector. Besides, they emphasize that the way of borrowing, taxing and inflation to finance the public investments crowd out private investment. Instead, supplying the infrastructural public investment and public goods can complete the private investments. This kind of public investment can develop the private investment opportunities and increase capital productivity. The investment behaviour is analyzed by using formal models in developed economies such as ‗Accelerator model‘, ‗Tobin‘s q theory of investment‘, ‗Neoclassical flexible accelerator theory‘. Because of the institutional problems and data constraints in Turkey and also in other developing countries, application of these models on these countries is very difficult if not impossible. Sundararajan and Thakur (1980), Wai and Wong (1982) and Blejer and Khan (1984) tried to develop applicable investment models for developing countries. The empirical literature is developed on two approaches which depend on the relationship between private investment and public investment. The first approach is based on the crowding out effect in which public investment expenditure decreases private investment. The second approach is that private investment and public investment are complements (crowding in) rather than rival to each other. Grene and Villanueva (1984) and Seven and Solimano (1991) find out a complementary relationship between public and private investment in developing countries. For African Countries Oshikayo (1994) and for developing countries Blejer and Khan (1984) give empirical evidence for the complementary relationship only between infrastructural public investment and infrastructural private investment. Nazmi and Ramirez (1997) shows that public investment crowds out private investment in Mexico. For the period of 1963-1993, Ghali (1998) finds that public investment has a negative effect on private investment in the short run while it has both negative and positive effect on economic growth and private investment in the long run for the Tunisian economy. The study of Ahmed and Miller (1999) for the OECD countries shows there is a negative relationship between public and private investment however there is a positive relationship between private 111 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo investment and government expenditures on transportation and communication. Ghura and Godwin (2000) shows that public investment crowds in private investment in Sub-Saharan African countries and there is a negative relationship between public and private investment in Asian and Latin American countries. Narayan (2004) tests whether public investment crowds out private investment for Fijian Economy for the period of 1950-2001. He focuses on two different periods as a complementary relation between public and private investment for the period of 1950-1975 and a weak relationship between public and private investment for the period of 1976-2001. The empirical findings show that the results differ across countries. The studies on the same countries have different results. The empirical studies on Turkey have different findings for the crowding in and crowding out hypothesis. Ismihan at al. (2002) emphasize that after the 1970s the relationship between public and private investment has started to show no clear relationship. After 1980s, the crowding in effect of the investments has reversed by the macroeconomic inconsistency and the growth of financial deficit. Taban and Kara (2006) finds out there is not any complementary relationship between public and private investment for the period of 1989:1 and 2004:4. Moreover, they focus on the effect of domestic public borrowing which crowds out private investment. Simsek (2003) studies the effect of different kinds of government expenditure on private investment. His empirical findings for the period of 1970-2001 show that government expenditure has crowding out effect on private expenditure. Bilgili (2003) analyzes the short run and the long run effects of financial policy for the period of 19882003 and he reaches the supporting results for both the crowding in and crowding out hypothesis. Kustepeli (2005) tests both direct and indirect effects of the government expenditures between 1963 and 2000. The results indicate that the real government expenditures crowd in real private investment while the real budget deficit crowds out private investment. Yavuz (2005) found evidence that public investment crowds in private investment for the period of 1980-2003 in Turkey. In this study, based on the Blejer and Khan Model (1984), the effects of the infrastructural and noninfrastructural public investment on private investment for the period of 1980-2009 are investigated by employing the time series techniques. This study will fill an important gap in the literature because there has not been any study that takes into account the effects of the infrastructural and non-infrastructural public investment on private investment. Economic Model Blejer and Khan (1984) investigate the relationship between public and private investment in developing countries and also they focus on the determinants of these investment categories. The model has two important policy variables. The public investment and the banking credits for the private sector are considered in the model which is associated with private investments. The model enables us to see the effects of government expenditure on inflation, rise of wages and crowding out effect. One of the contributions of the model is that it categorizes the public investments by two types as infrastructural and non-infrastructural investments. Moreover, Blejer and Khan (1984) assume the private investment is affected by the public investment categories in different ways. The starting point of Blejer and Khan model for the partial adjustment gross investment model is, (1) PI   ( PI *t  PI t 1 ) or PI t  PI *t  (1   ) PI t 1 (2) PI shows the level of domestic private investment, PI* shows the required level of domestic private investment , t is the time period and β is adjusting coefficient (0    1). The actual capital stock, which affects β, adjusts required level and the actual level in t-1 period. When there is a nonstationary process, the required level of private investment will be, (3) PI *t  1  (1   ) LCS *t CP* represents the required capital stock which is associated with output level in the next periods. (4) CS *t  aYt Combining equations (1) and (4), we get, (5) PI t  a 1  (1   ) LYt  (1   ) PI t 1 For the estimation of such a functional structure, domestic private investment is the only data to be need. Blejer and Khan (1984) denote there are three important factors affecting private investment such as business cycle, the available credits for private sector and the level of public investment. The net effect of public investment on the private investment depends on the size of the crowding out effect and the complementary effect between public and private investment. Crowding out effect is measured by unexpected change in banking credits for the private sector 112 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo (UPC ) which is counted as the difference between the real value and the one-year lagged value of private investments. Adjusting coefficient, β, depends on public investment (GI) and the unexpected change in the banking credits for the private sector: (b UPCt  b2 GI t )   b0  1 ( PI t*  PI t 1 ) (6) Substituting (6) into equation (2) we get: (7) Following PI  b0 ( PI t*  PI t 1 )  b1UPC  b2GI t Blejer and Khan, it can be shown that: PI t  b0 aYt 1  (1   )Yt 2   b1UPC  b2GI t  b3 GI t  (1  b0 ) PI t 1 (8) The effects of public policies on private investment are found by estimating the coefficient of the credit to the private sector (b1) and public investment (b2 ve b3). Blejer and Khan (1984) suggest a method to estimate the component of infrastructural and non infrastructural public investment. Infrastructural investment is assumed as a long-run concept and it becomes a proper representative variable by modelling the expected public investment. (9) GI t  p0  p1GI t 1 Expected values represent the component of infrastructural long run investment and the residual values represent the component of non-infrastructural short run public investment. Therefore the equation is written by, PI t  b0 aYt 1  (1   )Yt 2   b1UPCt  b2 EGI t  b3 UGIt (1  b0 ) PI t 1 (10) Based on the equation 10, the equation 11 is used to estimate the short run and long run coefficients: (11) PI t  b0Yt 1  b1UPCt  b2 EGI t  b3UGI tb4 PI t 1  ut ECI and UGI is the expected and unexpected public investment respectively. The negative sign of b 3 shows the crowding out effect of UGI. This equation is estimated for Turkey using annual data for the period 1980-2009. The infrastructural investment data is gathered from SPO and the others such as GDP, GDP price deflator (1987=100) and the credits to the private sector are gathered from annual statistical reports of TurkStat. Method and Empirical Findings The time series method investigates the non-stationary characteristics of data. It is expected to have a stationary process to have a statistically significant relationship between the variables. If the mean and the variance of the series change in over time, these series are called as non-stationary or unit root series. In order to test the unit root in time series, Augmented Dickey Fuller (ADF) Test is the most common method in literature. The equation which has lagged values in the dependent variable can be formulated with an intercept and time trend as fallows: k yt    t  yt 1    j yt  j   t (12) j 1  is the difference operator, t is the time trend,  is the error term, yt is the series investigated and k is the lag number. ADF assumes that the error term are statistically independently distributed and it has a constant variance. Besides, it is important to select the lag numbers correctly for the power of the test and significance level of the parameters (Said and Dicky, 1984). ADF test depends on the estimation of the parameter  . If  is different from zero and statistically significant, then the hypothesis which shows the series has a non stationary process is rejected. Philips-Perron test (1988) has been developed to control the high frequency correlation and it does not give way to the limitation of the assumptions. Therefore Philips-Perron test (1984) is a complementary unit root test for the ADF test. PP test does not include enough lag values of the dependent variable in the model, so Newey-West estimator is performed to remove the autocorrelation problem in the model. As the absolute value of  in ADF test is greater than the absolute value of Mac-Kinnon critical values, the series has a non-stationary process (Altunc, 2008: 118). Table 1 presents the ADF and PP test results for each series: 113 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Variables LPRI ADF Test Intercept and Intercept Trend -1.31(0) -1.67(0) Phillips-Perron Test Intercept and Intercept Trend -1.56(3) -1.98(3) LGDP -1.15(0) -3.09(0) -1.17(3) -3.11(1) LPI -2.17(1) -3.05(1) -1.61(5) -1.97(5) UPI -3.34(2)** -3.66(3)** -3.23(5)** -3.68(5)** LPC -2.71(4) -2.48(4) -1.37(4) -1.07(7) DLPRI -5.02(0)* -4.91(0)* -5.02(2)* -4.91(2)* DLGDP -4.66(0)* -4.44(0)* -4.16(4)** -3.87(4)** DLPI -4.05(1)* -3.96(1)* -3.11(13)** -3.66(14)** DLPC -3.73(0)* -3.89(0)* -3.60(27)** -5.11(27)* McKinnon (1996) Critical Values Significant Level Intercept Intercept and Trend 1% -3.68 -4.32 5% -2.97 -3.58 10% -2.62 -3.22 Table 1: Unit Root Test Results L denotes the logarithm of the variables and D shows the first-difference operator. Figures in the parentheses from the ADF test results are the lag values which show there is not an autocorrelation according to SIC. But for the PP test, the numbers in the parenthesis are the optimal Newey-West lag values. ADF test results confirm that all variables excluding UPI are integrated of I(1). The results of ADF and PP test which are related to the noninfrastructural public expenditures (UPI) shows that non-infrastructural public expenditures are stationary and statistically significant in 5% confidence level is I(0). When some of the series are stationary at level and some of them are stationary at first difference level I(1), we can not apply on the traditional cointegration test. This problem can be removed by the autoregressive distributed lag model and the bound test approach which is developed by Paseran, Shin and Smith (2001) to observe the long run relationship between the variables. The cointegration method used here, the Autoregressive Distrubuted Lag (ARDL) method allows testing for a long-run relationship between variables of mixed order of integration (Paseran et al., 2001). There are many advantages of using ARDL model for testing the private investment model on Turkey. The main advantage of this method is that ARDL avoid the pre-testing problems in data. Bound test approach can be applied to studies that have a small size while Engle and Granger (1987) and Johansen (1988, 1995) methods of cointegration are not reliable for small sample sizes. Finally, the ECM, which is derived from ARDL by a linearly simple transformation way, integrates the short run and long run dynamics without losing long run information (Banerjee vd., 1993). As the error correction term in the ARDL model does not have restricted error corrections, the ARDL model is an unrestricted error correction model (UECM). In the UECM, these statistics are used for testing if the lagged values of the variables are statistically significant (Faras and Ghali, 2009; Paseran et al. 2001). The form of the model can be written in our adapted model as: 114 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo m m m m i 1 i 0 i 0 i 0 LPRI   0    1i LPRI t i    2i LGDPt i    3i LPI t i    4i UPI t i m    5i LPC t i   6 LPRI t 1   7 LGDPt 1   8 LPI t 1   9UPI t 1   10 LPC t 1 (12) i 0  ut The cointegration relationship in equation 12 is performed by testing the hypothesis of H 0 :  6   7  8   9  10  0 . The null hypothesis of no cointegration will be rejected if the calculated F-statistic is greater than the upper bound critical value. If the computed F-statistics is less than the lower bound critical value, then we cannot reject the null of cointegration. Finally, the result is inconclusive if the computed F-statistic falls within the lower and upper bound critical values (Gurgur ve Karaca, 2007: 19). In ARDL model, firstly the lag orders of the dependent and independent variables in equation (12) that is represented by ―m‖ must be determined by AIC and SIC criteria. The lag order which gives the smallest critical values is selected as the lag order of the model. If the selected model has autocorrelation, then the second smallest value is selected. If the autocorrelation problem still exists, the same process is applied until autocorrelation is removed (Karagol at al., 2007: 76). In this study, the maximum lag length of two is chosen in ARDL model because of the annual data and limited observations. m AIC SBC 2  BG 1 2 3 -7.503501 -8.407829 -9.937074* -5.809910 -5.504529 -5.824066* 5.877** 4.518*** 1.120 Table 2: Determining the Lag Order for ARDL Notes: m denotes the lag order.  BG is Breusch-Godfrey autocorrelation test statistic. The superscript **,*** indicate that there is an autocorrelation among residuals at the 5% ve 10% levels, respectively. 2 Table 2 shows that the smallest value is obtained when the lag order of 3 by considering both AIC and SBC. The problem of autocorrelation has been also removed in the same lag order. Therefore the private investment model is estimated at lag 3. The ARDL approach is applied to test whether there is a long run relationship between private investment and other variables which affects private investment. The F statistics which is counted for testing the fundamental hypothesis of the long run relationship between variables in the model has higher values than Paseran et al (2001) critical values. According to Narayan (2005), the existing critical values reported in Pesaran et al. (2001) cannot be used for small sample sizes because they are based on large sample sizes. Narayan (2005) provides a set of critical values for sample sizes ranging from 30 to 80 observations. Given the relatively small sample size in this study, we also compare the calculated F-statistics with the critical values from Narayan (2005). Both of them give the same result. k 3 F-statistic 6.45 Critical Bound‘s Value (%1) Lower Upper I(0) I(1) 4.29 5.61 Critical Bound‘s Value (%5) Lower Upper I(0) I(1) 3.23 4.35 Table 3: ARDL Bound Testing for Cointegration Analysis Note: k indicate the number of regressors in the model. The appropriate lag lengths are selected by SBC. Breusch-Godfrey autocorrelation test statistic (  BG ) is 2.327(0.17) when the lag order of three (m=3). So we cannot reject the null hypothesis and conclude that there is not autocorrelation in the model. Source of critical values: Paseran at al., 2001 and Narayan, 2005. 2 By using the SBC criteria, the optimal lag length is selected to estimate the long run parameters of the relationship between private investment, GDP, total infrastructural public investment and credit to private investment. We select 2 lags for the private investment (PRI), 3 lags for the credit to private investment (PC), 0 lag for the public investment, 2 lags for the GDP and unexpected public investment (UPI). The estimation results of ARDL model (2, 3, 0, 2, 2) and the results of the descriptive tests are given in Table 4: 115 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Regressor Coefficients Stand. Eror LPRI(-1) 1.586 0.240 LPRI(-2) 0.902 0.283 LPC 0.487 0.135 LPC(-1) 0.387 0.181 LPC(-2) -0.034 0.182 LPC(-3) -0.588 0.176 LPI 1.031 0.523 LGDP 6.120 1.958 LGDP(-1) 13.578 3.938 LGDP(-2) 13.163 4.091 UPI 0.146 0.138 UPI(-1) -0.117 0.109 UPI(-2) 0.194 0.061 C 12.832 3.124 R2=0.887 Rd2=0.764 F-stat=7.220(0.001) Breusch Godfrey LM Test (1)= 0.935(0.333) Ramsey Reset Test(1)=1.013(0.314) Jarque Bera Test(2)=1.473(0.479) White Test(1)=1.158(0.362) t-Stat 6.611 3.181 3.609 2.136 -0.187 -3.338 1.972 3.126 3.445 3.218 1.055 -1.064 3.208 4.108 Prob. 0.000 0.008 0.004 0.054 0.855 0.006 0.072 0.009 0.005 0.007 0.312 0.308 0.008 0.001 Table 4: Estimation Results of ARDL (2,3,0,2,2) Model The test statistics indicate that there is not any problem in the ARDL model. To complement this study it is important to investigate whether the long run relationship among variables are stable for the entire period of study. In other words, we have to test for parameter stability. The test results of CUSUM and CUSUMQ in which the stability of the parameters is observed indicate that the residuals are stays within the 5 percent critical bound and there is not a structural change in the model (Figure 1). Plot of Cumulative Sum of Recursive Residuals (CUSUM Test, 5% significance) Plot of Cumulative Sum of Squares of Recursive Residuals (CUSUMSQ) 1.5 15 10 1.0 5 0.5 0 -5 0.0 -10 -15 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 -0.5 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Figure 1: Plot of Cumulative Sum of Squares of Recursive Residuals (CUSUM, CUSUMSQ) The long run coefficients in ARDL model (2, 3, 0, 2, 2) and diagnostic tests are given in Table 5. Due to some of the variables in the model are non-stationary, the assumption of normal distribution is invalidated or we can not attain normal distributed standard errors. The inference based on t statistics, therefore, will not be valid anymore. This problem can be removed by calculating the asymptotic standard errors of the long run coefficients by delta method (Paseran and Paseran, 1997; Caglayan, 2006; Erden and Saglam, 2009). 116 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Regressor LPI LPC LGDP UPI C Long Run Coefficient 0.295 0.072 9.420 0.064 2.789 Standard Error 0.143 0.032 1.852 0.021 0.336 t-Stat 2.056*** 2.238** 5.085* 3.054* 8.301* Table 5: Estimated Long Run Coefficients using the ARDL (2,3,0,2,2) Note: *, **, and *** denote significant at 1, 5, and 10% levels, respectively. Table 5 shows that all variables are statistically significant and their long run coefficients are positive. The long run results show that GDP growth has a strong and statistically significant positive effect on private investment. Also there is a complementary relationship between private investment and both total infrastructural and noninfrastructural investment. Likewise there is a positive and significant relationship between bank credit to private sector and private investment. The short run relationship between variables is analyzed by error correction model based on ARDL. The model, m m m m i 1 i 0 i 0 i 0 LPRI t   0    1i LPRI t 1    2i LGDPt 1   LPI t 1   UPI t 1 m   LPC t 1  ECTt 1  u t i 0 (13) ECT represents the error-correction term. The coefficient of ECT, (λ), shows that the disequilibrium is corrected in the current year. The functionality of the error correction model depends on its negative and significant coefficient. The short run relationship based on Model (13) is shown in Table 6. Regressor ∆LPRIt-1 ∆LPC ∆LPCt-1 ∆LPCt-2 ∆LPI ∆LGDP ∆LGDPt-1 ∆UPI ∆UPIt-1 ECMt-1 ∆C R2=0.939 Coefficient 0.902 0.486 0.622 0.588 1.031 6.119 -13.163 0.146 -0.194 -1.488 12.832 Rd2=0.873 Standard Error t-Stat 0.283 3.181* 0.135 3.609* 0.121 5.140* 0.176 3.338* 0.523 1.972** 1.958 3.126* 4.090 -3.218* 0.138 1.055 0.061 -3.207* 0.471 -3.157* 3.024 4.243* F-stat(10,15)=18.438(0.000) Prob. 0.006 0.003 0.000 0.004 0.067 0.007 0.006 0.308 0.006 0.006 0.001 Table 6: ARDL (2,3,0,2,2) Error Correction Model Presentation The coefficient of error correction term (ECT t-1) is determined as -1,488. The sign of the error correction term is negative and statistically significant as expected. The coefficient of the error correction variable is greater than 1 and this shows the system tends to equilibrium path by diminishing and fluctuating at every turn (Erden ve Saglam, 2009: 29; Karagol vd., 2007: 78; Paseran ve Paseran, 1997: 404). When the short run coefficients are analyzed, we see that all variables are statistically significant excluding non-infrastructural public investment (∆UPI). Short run estimating results indicate that there is a complementary relationship between private investment and infrastructural public investment. 117 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Conclusions In this study, total private investment, total infrastructural and non-infrastructural public investment, real GDP growth and the relationship among all these variables are estimated for the short and the long run, based on the Blejer and Khan Model (1984). The long run coefficients of all variables are positive in the ARDL model. The long run results show that the private investment is stimulated by the total infrastructural and non-infrastructural public investment. The empirical findings support that both of two descriptions of investment do not crowd out private investment, on the contrary they both crowd in (complement) private investment. Besides, we reach that the growth in private sector credits and the growth in GDP affect the private investment positively in the long run. These empirical findings are contrary to the studies for Turkey (Taban ve Kara, 2001; Yavuz, 2001; Ismihan vd., 2002; Simsek, 2003; Bilgili, 2003) but support the results of the studies of Yavuz (2005) and Kustepeli (2005) on the relationship between public and private investment. Many of the variables excluding total non-infrastructural public investment in the short run ARDL model are statistically significant. The error correction term is negative and statistically significant and it shows there is an error correction mechanism. The lagged values of the private investment are positive and statistically significant and this finding supports the estimation results of Blejer and Khan Model (1984). The capital stock adjustment model implies that private investment adjusts the actual level of the capital investments to the optimal level. The other finding shows that in the short run there is a complementary relationship between private investment and current value of the total non-infrastructural public investment. The short run coefficient of total non-infrastructural public investment has a negative sign that means the non-infrastructural public investments crowd out the private investments in the short run. The sustainability of the private sector investment and contributions of the private sector investment on GDP are possible with selective government policies. 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Dergisi, 20(1), 269-284. . 119 � 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. 195 Title A name given to the resource The Role of Public and Private Investment to Ensure Sustainable Macroeconomic Stability in Turkey Author Author ALTUNÇ, Ömer Faruk ŞENTÜRK, Bilge Abstract A summary of the resource. Private investment plays a vital role to promote sustainable economic growth and to reduce poverty in developing countries. The idea of using private sector investments intensively to boost growth in Turkey has started to emerge after 1980s. Despite a sizeable empirical literature, the impact of public investment in the developing countries gives inconsistent results on whether it complements or crowds out private investment. This paper makes use of Blejer and Khan Model (1984) for Turkey over the 1980-2009 periods estimating the effect of public investment on private sector. We employed time series analysis in this study. Our findings support the hypothesis that GDP growth stimulates private investment while public investment and private investment are complementary. The other finding of the study is that credit constraint is an important determinant of private investments in Turkey. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/f84ffd0f35f1a9baea35b2284661b503.pdf dedac7ac1ba5317079e40339eb9c315e PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Overview of Human Capital In Turkey In The EU Process In Terms Of Education: An Analysis On The Axis Of Development Plans AyĢen ALTUN Dumlupinar University, Department of Economics,Turkey aysenaltun@mail.dumlupinar.edu.tr Ceren GĠDERLER ATALAY Dumlupinar University, Department of Administration ,Turkey giderler_ceren@hotmail.com Abstract: In the information age, countries that are considered to be developed owe their technological and economic advancement to their investments on human resources. Positive values that emphasize humane characters such as knowledge, skill, experience and dynamism are seen as human capital. These values, by ensuring more effective use of other factors used in production, increase the rationality in economic activities and enable the national economy to develop faster. Development plans have become much more important and necessary due to the multidimensional and rapid transformation, intensifying competition and increasing uncertainties. Turkey in the EU accession process attaches high importance to the human capital factor in its development plans due to the high density of young population it has. The aim of this study is to evaluate the human capital element in the framework of development plans which have been prepared by Turkey, a candidate of EU membership, from past to present. In this study, human capital element has been evaluated on the basis of the ―education sector‖ that is considerably important due to its positive impacts on the development process. As a result of the comparisons between the EU and Turkey, the necessary steps and suggestions to be followed by Turkey as regards to human capital establish the scope of this research. Introduction Achievement of a desired growth rate in a country is depended on the efficient use of all economic resources consisting of development and international competitiveness, physical capital and human capital. Countries that can use their human capital effectively and obtain sufficient quality for their human capital are regarded as advantageous countries in the global competition environment. As the physical capital in Turkey is limited, it has always been significant to adapt especially the unlimited source of human capital to the requirements of the economy. Therefore, it is of vital importance to evaluate the human capital aspect which is overemphasized in development plans in Turkey and to compare it with those in the EU. In this study, at the outset, "development plans" and ―human capital‖ concepts in Turkey are explained theoretically. Thereafter, the place of human capital is evaluated in the framework of all development plans and the human capital in Turkey and in the EU is compared in terms of ―education‖. Finally, some suggestions are made for Turkey. Development Plans in Turkey Turkey passed to planned period after 1960. Until the planned period, it had been aimed to achieve regional development in the leadership of State incentives and private sector via Ġzmir Economic Congress and Law for the Encouragement of Industry (Ergun, 2004, pp.72-74). However, due to the fact that the private sector could not make leadership because of undercapitalization revealed that this idea could not be realized. In the 1960s, regions were tried to be supported in the framework of the plans by taking into consideration the factors they already had in the beginning (Karluk, 2004, p.47). Nine Development Plans have been put into practice under the planning authority of State Planning Organisation. The most prominent characteristic of planning approach in Turkey is that it is mandatory for the public sector and instructive for the private sector. Development plans have objectives, such as ensuring capital accumulation, reaching a stable and high growth rate, mitigating the regional differences and integration with the world and improving human resources. The first plan of industrial policy is the First Five Year Development Plan (1963-1967) which is considered as the beginning of implementation of Etatism. It was expected to maintain an increase in consumption products and the signals of import substitution were given with this Plan. It was considered that the 323 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo import substitution would have to be carried out systematically by the State. In the First Five Year Development Plan, it was emphasized that the allocations of public investments had to be organised according to the regions in order to achieve equal opportunities and inter – regional balance in the country (I.BYKP, 1963, pp.57-58). Priority was attached to the national plan and the heavy industry in the Second Five Year Development Plan (1968-1972). The importance of using regional planning as an efficient instrument was highlighted (Dinler, 2001, p.194). Unlike the first two plans, the Third Five Year Development Plan (1973-1977) gave place to the development of priority regions for development instead of regional planning (Mengi and Algan, 2003, p.261). The long – term targets of this plan were improving the standards of living, industrialisation, decreasing the dependence on foreign resources, solving unemployment problem, and improving income distribution. The Fourth Five Year Development Plan (1979-1983) coincided with the foreign expansion period. It was decided that the rapid industrialisation would continue. It was aimed to increase exports in this plan which was in the transition period (IV.BYKP, 1979, pp.656-671 & Ekzen, 2009, p.48). It was determined to establish Organized Industrial Zones in the Fifth Five Year Development Plan (1985-1989). 16 regional development centres were designated. During this planning period, the strategy based on outward – oriented exportation manifested itself further (Özaslan and Akpınar, 2005, p.237). The Sixth Five Year Development Plan (1990-1994) and the plans in the aftermath period have been prepared under the influence of the EU as a result of the relations with the Union. The expression of regional planning gave its place to regional development in the Sixth Five Year Development Plan. The 16 regions in the Fifth Five Year Development Plan were left aside and regional planning was shifted to the priority regions for development. The main target of the plan was to increase welfare level in an independent and secure environment in line with the principles and fundamentals of open society and competitive economy (VI. BYKP, DPT, 1989, pp.318-358). The Seventh Five Year Development Plan (19962000) gave an extensive place to the adjustments concerning regional development, provincial planning and metropolitans under the title of achieving regional balances (VII. BYKP, 1995, pp. 170-184). This plan is the first plan prepared after joining the Customs Union. The Eighth Five Year Development Plan (2001-2005) envisaged a balance between development policies and regional development policies. The Plan was based on the principles of sustainability, inter – regional integration, achievement of social and economic balances, improvement of standards of living, equal opportunities, cultural development, and participation in the implementation of regional policies. Furthermore, the studies for the Provincial Development Plans, which are in harmony with the regional plans, were initiated on the basis of the provinces ( VIII. BYKP, 2000, pp.63-87). The Ninth Five Year Development Plan (2007-2013) coincided with a period during which multi - dimensional and rapid changes were experienced. The Plan has been prepared during the EU adaptation process as the main strategy document which will contribute to the membership process taking into account the characteristics of the transition period (IX. BYKP, 2008, p.16). The Concept of Human Capital Human capital is defined as the total of values such as experience, work experience, knowledge and skills of the individual participating in the production, in other words of the labour force. In the studies of Mincer, Becker, Nelson and Phelps (1996) and many other scholars, it is explained that human capital has an essential role for the economic development. This fundamental role has been more clearly explained in the researches carried out since 1980s and Lucas (1998) concluded that there is a positive relation between the long – term development and human capital. According to the model developed by Mankiw, Romer and Weil (1992), it is indicated that human capital is a much more important production factor than the physical capital and labour elements in the framework of the neoclassical thinking (Boughanmi, 2009, p.252). Theory of human capital focuses on the education concept basically and declares that education influences the experience, beliefs, perceptions and motivations of the human (Merwe, 2010, p.108). According to the development theory, human capital forms the fundamental element of development. The investments to be made in education, health and nutrition for developing the human capital affect the productivity at micro and macro levels and the earnings. Investments made into education at the state, firm and individual levels in line with the returns of education investments, which are more measurable than the other human capital investments and accepted as considerably significant due to their positive impacts on socio economic development process, is of vital importance (Tunç, 1998, p.83). The Place of Human Capital in Development Plans First Five Year Development Plan: The Plan accepted human capital as man power and attached the maintanence of growth rate to the qualified man power. It was specified that training qualified people could be enabled by giving priority to education and training. In this direction, the issues of human capital, employment and education were dealt with interdependently and concomitantly. Using human capital in the most productive manner possible was identified as the most important target by highlighting the fact that individuals should 324 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo benefit from possibilities of education according to their capabilities. Long - term projects were developed to achieve this target (I.BYKP, 1963). Second Five Year Development Plan: ―Human‖ factor appeared in the Plan as a significant element for economic development. As in the first plan, the Second Plan also dealt with human capital as a source of power and the issues of human capital,employment, education, science and research were discussed interdependtly and concomitantly. The aim was to put forward the best and most productive ways of using human capital resource to achieve economic and social targets and eliminate human capital bottleneck in the long – term. In this planning period, it was further emphasized that "human" is a quantitatively limited resource. Therefore, a working policy was determined in order to use this limited qualified human capital in a productive manner. In this Plan, programmes were prepared in order to solve the problems of inequal inter – sectoral distribution of human capital and incapacity of using human capital aptly as well as the problems concerning lack of qualified and quantified human capital in the medium and long – term. In these programmes, instruments such as the job evaluation technique, transfers, retraining, assignments, in-service training, incentive possibilities, opportunities, organisation and method units were used. Moreover, an extensive education policy was developed in order to generalize training with the aim of improving the quality of human capital. In this policy, several programmes were put into practice such as training the personnel having higher education diploma abroad and increasing the literacy rate in order to train qualified labour force (II.BYKP, 1968). Third Five Year Development Plan: During this planning period, even though the human capital reached the desired level in terms of quantity, it was not at the desired level in terms of quality and the proper usage. In the Plan, many targets like education, health, industrialisation targets were based on the human capital requirements. It was tried to provide consistency between fundamental policies such as employment, wages policy, research environment and working conditions in order to find solutions to the problem of qualified labour force migration. All the problems in the first two plans, except for the quantitative increase of "human capital" problem, continued. In this Plan, it was stated that it was necessary to train individuals sufficiently qualified to implement the technology transferred into the country. Besides, the main reasons of the problems appeared in the field of "human capital" were put forth and studies to eliminate these problems through some instruments like wages and employment policy, and new programmes were carried out (III.BYKP, 1972). Fourth Five Year Development Plan: During this planning period, the amount of human capital increase quantitavely. Yet, this increase did not create a balanced development between the levels. In this plan, priority was given to the training of qualified human capital needed for the use of technical assistance capacities. As long as the qualified human capital requirement needed by the economic and social development was fulfilled, technical assistance was transferred to the projects that would positively influence the social and economic development. In the Plan, appropriate and productive use of human capital in the employment and wages policies, and elimination of inter – sectoral and inter – regional disparities of human capital distribution were especially taken into account. Legal adjustments, especially for the compulsory working procedures of higher education graduates, were made in order to decrease inter – regional labour force disparities in the regions where qualified labour force was required. In the scope of the plan, taking care of the human health is at the forefront in order to assess the human capital in the most productive way possible (IV.BYKP, 1979). Fifth Five Year Development Plan: Projects to increase the employment rate of young human capital were prepared in the Plan. Human capital planning consistent with the macro - model and the employment distribution were prepared. In this planning period, the quantity of highly educated human capital increased to the desired level. It was given priority to the training of intermediate level technical human capital. The employment of qualified and experienced human capital in the sectors and the regions was enabled via the improvements in the wages policy and the working conditions. (V.BYKP, 1984). Sixth Five Year Development Plan: This Plan focused on the training of specialised labour force required in the field of information technology and it was decided to make a human capital planning which responded the qualified labour force need of the economy for the contunity of the growth. The requirement for taking necessary measures as the insufficiencies continued in the rational use of human capital resources was emphasized as well as the issues of making necessary adjustments to improve the cooperation between the universities, industrial vocational high schools and the industry so as to meet the qualified human capital requirements. It was mentioned that economic and social development could be ensured merely through well trained and educated human capital (VI.BYKP, 1989). Seventh Five Year Development Plan: The Plan covered the issues of improving the qualities of labour force according to the demand and making a coherent labour force market organisation in the policies related to employment and human resources, training of human capital that could internalize the national values, open to universal values, contribute to the information generation and use the information creatively since the well trained young population would be the greatest advantage for Turkey in the 2000s. It was mentioned in the plan that development of human resources was of vital importance for the institutional arrangements that could solve social problems, it was aimed to develop human resources through Structural Transformation Projects that would be realized in the plan at first, the economic and social development should be maintained, the social and 325 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo individual welfare level should be increased, and the natural and human resources should be used efficiently. In this framework, it was declared that well trained human resource increased the competitiveness of Turkey which was increasingly opening up to the world on the one hand, and on the other hand, it influenced the fact that Turkey could get a larger share from the added value created by the EU. According to the Plan, it was considered that investing in the human was the most productive way of investment and had a significant contribution for the rapid and sustainable economic growth and social development in Turkey having a young and dynamic population structure. Therefore, it was aimed at mobilizing all the possibilities that could be used in order to develop human resources in every period beginning from the pre - school period up to the post - retirement period as well as to develop and generalize the training of human capital in all age groups. It was overemphasized in this planning period that the most improtant sector was the education sector and it was also mentioned that well trained young population would be the most important advantage for increasing the competitiveness of Turkey and for her integration to the EU. The characteristics of well trained human capital were identified as having developed skills of thinking, perception, and problem solving; being open to the outside world, universal values and new ideas; having a developed personal responsibility feeling and developed social sensitivity; being prone to science and technology production; and having a high level of skills. In the Plan, it was referred that human capital was the most important resource of Turkey and therefore, the primary source of all kinds of breakthroughs was the human capital. The key role was given to human capital especially to increase the science and technology skills. In this respect, human capital was evaluated as an important strategic resource (VII.BYKP, 1995). Eighth Five Year Development Plan: The element of information society was particulary focused in the Plan and it was emphasized that the quality of the labour force was needed to be improved as the information was the most important production factor in the process of information society formation. Hence, it was indicated that the greatest contribution for the development of developing countries in the 21 st century would be investing in the human resources and improving the infrastructure. It was stated that the countries which could adapt to the rapid changes in the world, equip people with the qualities required by this new environment, access and produce information, and use this information would be effective and successful. Besides, the fundamental principle in the Plan was to improve human capital qualitatively, increase the living standards, and eliminate the disparities in these fields between the regions and the settlements. As mentioned in the preivous Plan, rapid development of the qualities of human capital which is one of the main elements of international competitiveness and particularly the improvement of cultural features maintained its importance in this Plan. Moreover, the Plan aimed the evaluation of human capital as a strategic resource and adjustment of human capital so that it would have problem solving and creative features (VIII.BYKP, 2000). Ninth Five Year Development Plan: When the fundamental principles of the Plan are regarded, it is observed that a human focused development and management conception forms the basis of the Plan. Hence, in order to train qualified human capital which is the most significant issue, it was stated in the Plan that educational possibilities should be extended, effective measures should be taken for traning the human resources required by new tasks and responsibilities, in this scope the number of especially qualified personnel should be increased in the public sector, and necessary measures should be taken for the continuous training of the existing personnel. During the planning period, it was decided to establish excellence centers at several universities in many strategical fields. Besides, the projects focused on training scientists and multi-partnered and interdisciplinary projects have been commenced to be supported respectively since 2002 and 2004. In 2005, ―Scientist Training and Development Programme‖ was initiated in the scope of ―Turkey Research Field Programme‖ implemented by TÜBĠTAK (The Scientific and Technological Research Council of Turkey). It was also mentioned in the Plan that there was a need for dealing with development agencies as an integrated regional development programme triggering local initiatives by benefiting from the common cooperation platform. In this scope, development of new policies to improve human resources was also drawn attention. It was also highlighted in the Plan that it was necessary to make an efficient human resources planning in the public institutions and authorities to achieve a competent level for the public staff, give sufficient in - service training to the public staff and achieve a desired level for the public staff in terms of knowledge and skills that would enable them to carry out their tasks productively. It was emphasized that the fact that the promotion issue of public employees had not been clearly and sufficiently defined in the legislation, there was not an effective awarding system in the public sector, and there was inequalities in the wages influenced the self – improvement of public employees negatively. "Investigator human capital" concept was touched upon in the Plan and referred that it was required to develop investigator human capital qualitatively and quantitatively and encourage investigator employment in the private sector. In this context, via the training programmes, it was aimed at training labour force that is prone to technology production and Research & Development. The other elements expressed about the human resources are as follows: in order to achieve social development; developing information systems about the labour force market, achieving a more flexible structure in the education and labour force market, training human capital demanded by the economy taking into consideration the life long training strategy in order to increase the employment level and the productivity of the labour force, training high – skilled, 326 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo productive and creative information age people having developed conception, perception and problem solving skills, open to new ideas, having personal responsibility feeling, contributing to the contemporary civilisation, prone to the use of science and technology and production, and appreciating art (IX.BYKP, 2006). Comparative Analysis of Human Capital in the EU and Turkey in terms of Education Human capital defines in the EU as the abilities, knowledge and skills embodied in people and acquired through education, training and experience. The European Council of Lisbon, by setting for the EU the overall goal to become the most competitive and dynamic knowledge based economy in the world, has set human capital at the heart of its development strategy (http://ec.europa.eu/). EU attaches great importance to ―education‖ so as to increase the human capital qualitatively. The cooperation in the filed of education between the EU and Member States came to agenda with Lisbon Strategy in 2000. Although there is not one single educational policy in the EU, there exists an exchange of opinions and implementations in this field between the member states. The opportunities offered by EU education programmes cover the introduction and implementation of new technologies in the education sector, exchange programmes, education opportunities abroad, and mutual recognition of diplomas. The education policy also covers the cadres of teachers, students, administrators in the education sector, academicians, and specialists. Thanks to her young population, Turkey will be a source for some part of the human capital needed by the EU. This can be achieved by developing human capital not only quantitatively but also qualitatively. Developing human capital qualitatively is possible through "education". The first introductory screening meeting of the Membership Negotiations, started in 2005 between Turkey and the EU, was realized under the Education and Culture Chapter. Furthermore, Turkey has signed "Culture 2000" programme of the EU in order to support the projects to be carried out in the field of education and culture. The EU negotiation process puts forward the human capital issue and offers opportunities for human capital development. It is indicated in the last development plans that the issues concerning the EU should be concentrated on especially in the higher education programmes in order to provide in – service training for the public staff and train the qualified human capital to be needed by Turkey during the EU integration process. Within the context of Bologna Process, significant works, particularly in the field of exchange of students and academic members, European Credit Transfer System and diploma supplement, have been carried our in the field of higher education. Increasing the number of graduates for the labour force and eliminating the education needs of children who are in need of special education as soon as possible are among the titles emphasized in the Progress Reports published by the EU for Turkey, Level of education Young workers (15-24) Low Medium High 3.4 5.8 1.2 Prime-age (25–54) and older workers (55–64)) 20.8 43.8 25.0 Table 1 : Highest education level attained in the EU, 2007 (share in total employment as %) Resource: Eurostat Table 1 presents the employment rates in terms of education levels in the EU compared with the total employment rates in the EU. If it is needed to evaluate the situation in Turkey within the same year, 63.2 % of the labour force is composed of the sub – medium level educated people and the illiterates. Moreover, 14.7 % of the labour force in Turkey consists of the college and faculty graduates. Again, in 2007, whereas the percantage of the population aged 25 to 64 having completed at least upper secondary education is 70.8 % in the EU 27, this rate is 25.8 % in Turkey. 327 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Years EU 27 Turkey 2000 2003 2006 2000 2003 2006 Public Expenditure on Education as % of GDP 4.88 5.14 5.04 2.59 2.96 2.86 Financial aid to Pupils and Students as % of Total Public Expenditure On Education 5.2 5.6 6.0 3.1 4.8 6.9 Ratio of Students to Teachers and Avarege Class Size 13,5 13,1 12,7 25.4 23.7 23.2 Table 2: Comparasion Avarage EU 27 and Turkey Resource: Eurostat Table 2 has been prepared to compare the EU and Turkey in terms of important ratios of education. While the public expenditure in Education in % of GDP was 4.88 in the EU in 2000, this rate increased to 5.04 in 2006. On the other hand, this rate was 2.59 in Turkey in 2000 and increased to 2.86 in 2006. While the highest rate among the EU countries belongs to Denmark, the lowest one belongs to Romania. Financial aid to Pupils and Students as % of Total Public Expenditure on Education in Turkey is at the average of the EU. It is seen that the amount of financial aid in Turkey increases by years. Denmark and Norway are the countries having the highest contribution rate whereas Poland and Switzerland have the lowest contribution rate. When the Ratio of Students to Teachers and Avarege Class Size is examined, it is observed that this rate which is considerably important for the qualified education owing to the lack of trainers in Turkey is over the EU average. The Member States of the EU float at the average of the EU in this ratio. Conclusions It has been emphasized in all the development plans in Turkey that human capital is of utmost importance and it is necessary to develop this capital. Thus, the education level of human capital has been improved in every passing planning period. Nevertheless, there are some shortcomings in the implementation; and the investments in the human capital and the budget share allocated to education services in Turkey still continue to be lower than the EU average. This situation creates an important problem in Turkey which requires high quality and high - skilled human capital. The starting of compulsory 8 – year education, the increase in the number of universities have been important steps in Turkey in terms of human capital accumulation and development. Turkey has a young population structure. Putting this young population through a high quality education and training system will not only meet the qualified labour force need of Turkey in the long term but also that of the EU which has a gradually aging population structure. In order to achieve this development, it is essential to ensure that low – income groups benefit from education services more by improving the quality and extensiveness of education services in Turkey. Otherwise, the EU will not regard this young population as a new source of blood for their economies, but as an unqualified unemployed army that will flood in their countries. Additionally, Turkey will not be able to have the capacity to compete in the EU market operating according to the free market conditions in the event of a potential full membership. The accession process to the EU offers some opportunities to develop the human capital in Turkey. Some of the more visible opportunities are the new financial resources that will be transferred from the EU for education services and the possibility of participating in the international academic exchange programmes. The opportunities, which are less visible but which have great importance for a permanent change, offered by the accession process are composed of the speed gained in the restructuring process of the ongoing education and the possibility of benefiting from the good examples implemented in Europe within this process. In conclusion, Turkey has not the same development level in terms of human capital compared with the EU countries. Turkey has to put into practice structural measures that will increase the quality of the human capital in order to catch up with the EU level. The investments made into human, especially in the "education", have to be increased and approximated to the level of the EU countries. In Turkey, the priorities in the allocation of resources have to be determined more rationally and more financial resources have to be allocated for education services from the budget. 328 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo References Boughanmi, A. (2009). Human Capital and Economic Growth. The Business Review, V.13, N.2. Dinler, Z.(2001). Bölgesel Ġktisat. Ekin Yayınları, Bursa. Birinci BeĢ Yıllık Kalkınma Planı 1963-1967, Onay Tarihi: 1963, DPT, Ankara. Ġkinci BeĢ Yıllık Kalkınma Planı 1968-1972, Onay Tarihi: 1968, DPT, Ankara. 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Siyasal Kitabevi, Ankara. Merwe, A. (2010). Does Human Capital Theory Explain The Value of Higher Education? A South African Case Study. American Journal of Business Education, V.3, N.1. Özaslan, M. & Akpınar R. (2005). Türkiye‘de Bölgesel GeliĢme Politikaları. I. Doğu Anadolu Sempozyumu, Elazığ. Tunç, M. (1998). Kalkınmada Ġnsan Sermayesi: Ġç Getiri Oranı YaklaĢımı ve Türkiye Uygulaması. Dokuz Eylül Üniversitesi Ġktisadi ve Ġdari Bilimler Dergisi, C.13, S.1. http://ec.europa.eu/social/main.jsp?catId=643&langId=en. (29.04.2010). http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database. (29.04.2010). 329 � 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. 187 Title A name given to the resource Overview of Human Capital In Turkey In The EU Process In Terms Of Education: An Analysis On The Axis Of Development Plans Author Author ALTUN, Ayşen GİDERLER ATALAY, Ceren Abstract A summary of the resource. In the information age, countries that are considered to be developed owe their technological and economic advancement to their investments on human resources. Positive values that emphasize humane characters such as knowledge, skill, experience and dynamism are seen as human capital. These values, by ensuring more effective use of other factors used in production, increase the rationality in economic activities and enable the national economy to develop faster. Development plans have become much more important and necessary due to the multidimensional and rapid transformation, intensifying competition and increasing uncertainties. Turkey in the EU accession process attaches high importance to the human capital factor in its development plans due to the high density of young population it has. The aim of this study is to evaluate the human capital element in the framework of development plans which have been prepared by Turkey, a candidate of EU membership, from past to present. In this study, human capital element has been evaluated on the basis of the ―education sector‖ that is considerably important due to its positive impacts on the development process. As a result of the comparisons between the EU and Turkey, the necessary steps and suggestions to be followed by Turkey as regards to human capital establish the scope of this research. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/451386186acadadcf15bb0923b0a879d.pdf e6e28e648170dffe611b7de85011b010 PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Regionalism Reality And Convergence Analysis In The European Union AyĢen ALTUN Dumlupinar University, Department of Economics,Turkey aysenaltun@dumlupinar.edu.tr Abstract: The countries in the EU have entered into an essential localisation and reconstruction period. In this process, regions have come to the forefront as one of the most important actors of the EU and have acquired an ever-mounting impact area in the decisionmaking processes. There are two reasons for regional development model has been evaluated on the axis of EU. Differences among the regions have increased due to the enlargement of the Union and this subject has become an aspect that is emphasized after each enlargement process. First of all, European Commission has followed a policy that has a forward effect in order to decrease the instabilities since 1987 and has increased the size of its intervention force. Whether the form of change in the convergence model can be drawn or not, it gives a number of signs about the efficiency of regional policy. Secondly, some changes have occurred in the understanding of regional policy which is the common policy of the EU in the process after 1990s and the understanding of ―new regionalism‖ has come forward. In this understanding, the term of ―region‖ has become essential and acquired a new dimension. Introduction New regionalism in EU is being organized ideally by localizing of socio-economic resolution process and putting a common policy into practice for sub-national theoretical frame. Along with this phenomenon, the EU regional policies have passed through a turning point searching more efficient strategies in an atmosphere of economic uncertainty and political change. Interregional convergence has come into prominence in this process. This study is crucial in terms of EU‘s having a new regional understanding after 1990s and giving importance to the phenomenon of ―convergence‖; showing whether the regions are in the process of ―convergence‖ or ―divergence‖ in this process and this situation‘s affecting the decisions of the EU about future. In the study, first of all the concept, the significance and kind of ―region‖ in the EU is mentioned, then differences in development levels of Union‘s regions are emphasized. Afterwards, theoretical frame of new regionalism and convergence are drawn and their importance for the EU is mentioned. And then, it is carried into practice. Convergence analysis that is carried for the EU regions covers the period between 1995 and 2005. Though studies have been carried out for 268 NUTS II regions in the EU, analyses have been made for 246 regions due to lack of data on some regions. 246 NUTS II regions are grouped into four different groups considering the enlargement processes of countries. In this study, basic data about the EU have been obtained from the official website www.eurostat.com. Conditional and absolute convergence analyses have been made using cross-section approach which is carried out by Barro and Salai Martin. Definition and Importance of the Region in the EU Definition of a region in the EU is an extremely sensitive issue in terms of regional policy. As the regional policy of the Union is a policy respecting country borders and not intervening in the area of political system within the nation – state, it is carried out through the ―region‖ definitions of the Member States (Brasche, 2001, p.14). In this respect, the ―region‖ in the EU is defined as the pieces of land similar to each other in terms of geographical, ecological, economic, cultural, ethnical and administrative perspectives. Regions are becoming more and more significant during the economic and political process of the EU. In the Preamble of the Rome Treaty establishing the EU and even before the Rome Treaty in the European Coal and Steel Community Agreement, the concept of region was drawn attention by envisaging provisions related to the 754 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo development of less developed regions and the elimination of inter – regional development disparities (http://www.hri.org). Furthermore, the establishment of Committee of the Regions by the Maastricht Treaty is a crucial step forward for the regional authorities to gain right to say in the EU decision – making process officially. Regions have turned into more important units as the interregional development disparities in the EU are becoming more apparent. In the EU, the regional backwardness or the development of the underdeveloped regions has not been coming into prominence, yet decreasing the interregional development disparities has been gaining importance. The importance of the ―Region‖ for the EU has resulted in the involvement of the regional authorities into the integration process. Classification of the Regions in the EU In the EU, the concept of region is defined by taking into consideration several criteria such as the areas dominated by a specific sector within the scope of new economic structuring, the areas bordered by a neighbouring country and affected by the economic activities of that neighbouring country, transit regions, regions influenced by the economic structure of a common settlement (Karluk, 2007, pp. 362-363). The regions are classified as normative and analytical regions. Normative regions reflect political will; their boundaries are fixed in terms of the remit of local authorities. This regions, the size of the region's population regarded as corresponding to the economically optimal use of the necessary resources to accomplish their tasks. Analytical (functional) region; are defined in terms of particular analytical requirements. They categorise areas according to specific geographical criteria such as altitude or soil type, or by economic and social criteria such as the homogeneity, complementarity or polarisation of regional economies (European Commission, 2007, p. 9). The regions in the EU are seperated into categories on the basis of administrative structures of the Member States as well as their economic situation, geographical location, etc (Scott, 2002, p.2). The regional classification system which is important for the regional policy and the regional instruments of the EU is the classification which is based on the functions and the structures (Commission of the European Comminities, 1985, p.2). In the EU, the regions are classified as Homogeneous Regions, Polarized Regions, Administrative Regions, Front Regions, Cross Border Regions, and Planning Regions according to their functions and structures. Homogeneous regions or uniform regions describe a unity consisted of bilevel and successive segments according to the selected criteria (urban population, per capita income, socio-economic characteristics of the population, etc.) (Erkal, 1990, p.17 & Berry, 1961, p. 278). Although it has been tried to have homogeneous regions while grouping NUTS regions that will be examined in the scope of the planning regions in the EU, for instance while grouping 11 sub – NUTS II regions in Belgium, heterogeneity can be possible among the regions. The unemployment rate in Région de Bruxelles-Capitale, a region in Belgium, is 17.6 %; whereas it is 4.2 % in Prov. Vlaams Brabant and 4.2 % in Prov. West-Vlaanderen. This heterogeneity rate is a lot more among the regions of different countries. Yet, the cities forming the regions are fairly homogeneous. Polorized regions are the regions which are clustered around an administrative center city, graded according to their sizes and functions, and manage their fundamental relations via the center city (Taneri, 1986, p.24). The more these regions exercise influence over their surrounding areas, the larger polarized regions they form. For example, Munich region in Germany and Manchester region in the United Kingdom are polarized regions in the EU. Administrative regions, dependent on the political central authority in the hierarchical decision – making process, are mostly formed in an artificial way. The county councils and municipalities in Sweden and cities in France can be given as examples of administrative regions (Mengi, 2001, p. 23). Front regions are usually economically the least developed parts of the countries they are located in. For example, Aland region in Finland and Northern Ireland, etc. (Karlsson, 2007, p.42). Cross – border regions are formed through cross border cooperation. Border regions are tried to be developed and less developed infrastructure is struggled to be improved through these regions. The very first region in this respect is Regio Basiliensis. The mentioned region covers Oberrhein in Switzerland, Alsace in France, and Baden in Germany (Karlsson, 2007, pp.44-47). Planning regions are determined for EU regional policy, funds and development agencies. For this purpose, the EU designates underdeveloped regions and areas facing structural difficulties through a classification system throughout the Union in order to decrease inter-regional development disparities (Moussis, 2004, p.230). This classification is the NUTS (The Nomenclature of Territorial Units for Statistics) classification system which is a unique and complete system dividing the territory of the EU to produce regional statistics for the EU (Casellas ve 755 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Galley, 1999, p.553). Regions in the NUTS classification system are general administrative units reflecting the limitations of the mandates of local and regional authorities in a specific region (European Commission, 2008, p. 204). The regions in the EU are clustered under NUTS I, NUTS II and NUTS III levels in terms of planning and incentives. Each EU country classifies NUTS regions themselves taking into account development levels and assistance requirements (http://ec.europa.eu/). NUTS subdivides each Member State into a whole number of regions at NUTS 1 level. Each of these is then subdivided into regions at NUTS level 2, and these in turn into regions at NUTS level 3. (European Commission, 2005, p.5). This 3 – level classification in the NUTS system is a regional classification as it covers the field management. Besides, there are NUTS IV and NUTS V levels which are the local units (LAU – Local Administrative Units). These units include the settlement administrations (http://ec.europa.eu/). New Regionalism in the EU Supporting the regions in the EU has always been on the agenda as of the establishment of the Union. The aim of the EU regional policy, supporting the economic integration, has been to ensure coherence of the regional policies among the member states and decrease the existing disparities by using several tools. In the recent two decades, a series of changes of conception has been experienced with regard to overcoming the problem of eliminating inter – regional development disparities and ensuring convergence between the regions. These changes have been reflected to the regional policies of the EU. ―New regionalism‖ concept, which has been developed upon the criticisms of the policies projecting regional policy in the top-down government regimes, has influenced the EU as well as the regional policies of many countries. The ―region‖ has become the first focus of political economy in the policy called ―new regionalism‖. The regions have begun transferring their institutional capacities (Batchler ve Yuill, 2001, p.10). According to this policy, inter-regional disparities will be alleviated by encouraging inter-regional competition. In tandem with this understanding, the EU addresses the inter-regional inequality problem more widely as a problem of regional development. New regionalism concept aims at revealing internal dynamics and improving local economy through its own dynamics. A regional identity is created in economic, political and cultural fields. This approach anticipates an understanding of bottom-to-top management in contrary to the former regional policies (Gren, 2002, p.81). Administration and authority are transferred from central government to regions. New regionalism gains more power with the authority granted to it. This authorization is the increase in the power or capacity to progress to the regional agenda. Part of this authorization is used for the purpose of ensuring the region and people to participate in the regional decision-making process constructively (http://www.munimall.net). Taking into consideration NUTS classification at the level of local authorities, new service areas and units has been established so as to increase effectiveness and decrease inter-regional development disparities. Thus, it is aimed at maintaining convergence. Differences and Convergence of the Regions in the EU There are serious disparities of development among the regions in the EU in terms of certain indicators such as gross domestic product (GDP) per capita, unemployment rate, education and health, the level of research and development activities, and infrastructure facilities. These disparities increase in parallel with the enlargement of the Union. Moreover, important problems of regional disparities still continue even in the founding member states. It is important whether regional policy will effectively boost the growth of underdeveloped regions and will improve convergence or not. Even though the calibration exercises tend to argue that regional transfer may boost growth, there are still some suspicions concerning the effectiveness of regional policy according to the results of econometric studies and case analyses. The question of whether the socio-economic development disparities among the countries and the regions will decrease in the course of time or not has an essential place in the economic literature. Variables which put forward economic and social disparities and structural dispairites, especially including the GDP per capita figures and GDP variation coefficients, can be used while determining these disparities. Whether these disparities increase or decrease can be explained via the convergence or divergence of examined regions or countries to and from each other. Convergence is a catchy concept, but one that organizes serious thinking in diverse areas ranging from economic growth, theoretical econometrics, finance, European politics and monetary union, regional planning and geography, up through but not ending at entertainment and multi-media technology, and the software industry. And, in practically every instance the term convergence is used with a different meaning (Quah, 1996, p.1). The concept of convergence which can be described as the alleviation of international or national disparities in certain economic 756 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo variables can be shortly expressed as showing a tendency to a single point and approaching to a more similar situation gradually (Gaynor and Karakitsos, 1997, p.24).Neoclassical growth model asserts that per-capita output across countries or regions converges when they have similar preferences, technology levels and institutional and legal systems (Brasili ve Gutierrez, 2004, p.2). Whether the growth rates of relatively poor countries or regions will reach to those of richer ones in the course of time or not is the convergence approach (Barro ve Sala-i Martin, 1992, p.223). In this approach uses two concepts:  convergence and  convergence. There is  convergence if poor economies tend to grow faster than wealty ones.  concept of convergence is often confused with an alternative definition of convergence, where that the dispersion of real per capita income across groups of economies tend to fall over time (Sala-i Martin, 1996, p. 1327). Two types of  convergence are used in the literature : absolute and condinitional. The difference between the absolute and conditional convergence is related to the assumption that whether the economies are in the same condition or not in terms of some factors like technology, institutional infrastructure, and savings ratio. Whilst these kinds of disparities among the regions or countries are overlooked in the absolute convergence, variables that will create these kinds of disparities between the economies are added to the model in the conditional convergence. Interregional Convergence Analysis in the EU In the study, a convergence analysis was performed to be able to understand whether inter – regional disparities in the EU are approaching to each other in time or not. The concept of convergence for the EU means that economic disparities between the member states of the Union are to be decreased in accordance with the fundamental aim of the Maastricht criteria and the economic performance levels of the countries are drawn closer to each other as far as possible on a higher common ground rather than a lower one (Dinan, 2005, p.426). Thereby, similarity of the economic coherence and macroeconomic indicators of the regions in the EU within the process was examined through the convergence analysis. In the study, the method followed by Barro and Sala-i Martin was utilized for the convergence analysis. Convergence analysis was carried out with horizontal cross section approach. The analysis was initiated for 268 NUTS II regions. However, as data could not be found for some regions, the analysis was peformed for 246 regions. At this point, 246 regions, consisting of 27 countries, were classified under 4 groups. The aim in this grouping was to form homogeneous groups since adding too many regions in the convergence analysis could lead to wrong and meaningless conclusions. The membership dates of the countries to the EU and the enlargement process was taken into consideration while doing this grouping. There were totally 109 regions from France, Germany, Belgium, Italy, the Netherlands and Luxembourg in the 1st group. A total of 38 regions from England, Denmark and Ireland were found in the 2nd group. There were totally 58 regions from Greece, Portugal, Spain, Austria, Sweden and Finland in the 3rd group. In the 4th group, there were a total of 41 regions from Greek Cypriot Administration of Southern Cyprus, Malta, Hungary, Poland, Slovakia, Latvia, Estonia, Lithuania, Czech Republic, Slovenia, Romania, and Bulgaria. These regions are NUTS II regions of the countries. In the analysis, the data set covered the period from 1995 to 2005. Analyses were carried out for the whole data set, in other words for 1995 – 2005 period, and for 2 sub – periods; 1995 – 2000 period and 2000 – 2005 period respectively. In this way, the convergence analysis between the regions has provided clearer results throughout the years. Absolute  convergence and Conditional  convergence and  convergence were respectively measured for the regions in the groups. Variables were also added to the model in the Conditional  convergence in order to reflect structural characteristics of the regions. Due to the data supply difficulties on the basis of the regions, merely the share of R & D expenditures in the GDP and unemployment rates were utilized. Dummy variable was used for the unemployment rates. It has been determined through these analyses whether the interregional disparities in the EU have the tendency of convergence or divergence and whether the EU regions display similar economic performances in time or not. In the  convergence measurement, convergence/ divergence analysis was carried out by forming 3 different models for each analysis period and for 4 different groups. The models of the convergence analysis are as follows: Yi ,t 1  e  T  1 log( )a Model 1 :  log( Yi ,t T )  u i ,t T Yi ,t T  T  757 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Yi ,t 1  e  T 1 log( )a Model 2 : T Yi ,t T  T Model 3 : Yi,t : Yi,t-T : T : Di,t : Ri,t : ui,t : Yi ,t 1  e  T 1 log( )a T Yi ,t T  T   log( Yi ,t T )  cDi ,t  u i ,t    log( Yi ,t T )  cDi ,t  dRi ,t  u i ,t  GDP per capita in the year t GDP per capita in the starting year Years passed through as of the starting year till the current year Duppy variable which takes the value of 1 if the unemployment rate of the region in the concerned year is lower than the average unemployment rate of the group, and which takes the value of 0 in other cases. The rate of R & D ependitures in the GDP in the concerned year Error term in the regression model  coefficient was derived through the linear least – squares method and the coefficient was calculated 1  e   t  b   T  formula. (Note: t statistics in brackets). by using Period Model 1  1995-2005 1995-2000 2000-2005 0,005 (-1,646) -0,051 (1,58) 0,004 (-1,084) R2 0,025 0,023 0,011 Model 2  c 0,008 0,004 (-2,403) (2,317) -0,009 -0,003 (2,048) (-1,315) 0,003 -0,002 (-0,674) (-0,706) Model 3 R2 0,072 0,038 0,015  c d 0,009 0,004 0,001 (-2,55) (2,39) (0,937) -0,009 -0,003 -0,001 (2,205) (-1,315) (-1,072) 0,004 -0,001 0,001 (-1,027) (-0,539) (1,725) R2 0,079 0,049 0,043 Table 1: Regression Results of the Regions in the 1st Group Regression results of 109 observations in the 1 st group during 1995 - 2005 period according to 3 models have been demonstrated in Table 1. When the  coefficient is examined in each 3 models with regard to the convergence, it is seen that the values obtained are positive and are meaningful by 5% in the 2 nd and the 3rd models. In the 2nd and the 3rd models, approximately 1% of convergence has been experienced per year during one decade. This convergence is a conditional one.  coefficient is not different from zero in the 1 st model during 1995 – 2000 period and it is not possible to mention about the convergence nor the divergence.  coefficient is meaningful by 5% in the 2nd and the 3rd models and there is a divergence. A divergence of approximately 1% per year has been experienced during 5 – year period. Although the  coefficient is positive for 2000 – 2005 period as in the whole period, it is not meaningful statistically. This result means that there is not convergence or divergence in the regions in respect of second sub – period. Variables give more meaningful results in the regions of the 1 st group in the long – term analysis. Period Model 1  1995-2005 1995-2000 2000-2005 -0,006 (0,809) -0,029 (3,998) 0,003 (-0,469) R2 0,018 0,308 0,006 Model 2  -0,006 (0,828) -0,028 (3,783) 0,003 (-0,471) c 0,003 (0,802) 0,001 (0,32) 0,002 (0,533) Model 3 R2 0,036 0,310 0,014  -0,006 (0,919) -0,030 (4,164) 0,002 (-0,381) c 0,003 (0,822) 0,005 (1,0806) 0,002 (0,567) Table 2: Regression Results of the Regions in the 2st Group 758 d -0,004 (-0,976) -0,01 (-1,721) -0,005 (-1,495) R2 0,062 0,365 0,075 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo In the 2nd group regions, when the results of each 3 models are examined for 38 observations during 1995 – 2005 period, it is indicated in Table 2 that none of the variables have a meaningful contribution statistically.  coefficients are negative for each of the 3 models during 1995 – 2000 period, yet all the variables are meaningful statistically, which is an evidence for divergence.  coefficient is meaningful by 1 % and there is a divergence of around 3 % during 5 – year period. Although the duppy variable could not add explicity to the model, R & D expenditures could add explicity to the model. During 2000 – 2005 period,  coefficients for each 3 models are positive and not different from zero. Here, point estimation cannot be an evidence for conditional convergence by demonstrating that the value is small and meaningless and that convergence of each region to its own steady – state income level has not been realized in distinct way. Period Model 1  1995-2005 1995-2000 2000-2005 0,012 (-2,66) 0,012 (-2,15) 0,023 (-4,236) Model 2 2 R 0,112 0,076 0,243  0,016 (-3,02) 0,015 (-2,544) 0,019 (-2,991) c 0,004 (1,39) 0,004 (1,371) -0,004 (-1,042) Model 3 2 R 0,142 0,107 0,257  0,0151 (-2,564) 0,015 (-2,232) 0,013 (-1,892) c 0,004 (1,376) 0,004 (1,365) -0,004 (-1,145) d 0,0001 (-0,0119) -0,001 (-0,0355) -0,002 (-1,541) R2 0,143 0,109 0,289 Table 3: Regression Results of the Regions in the 3st Group Table 3 presents the results of each 3 models for 58 observations in the 3rd group regions during 1995 – 2005 period. For this period,  coefficient is different from zero and meaningful statistically in the 1 st model. Besides, the fact that  coefficient is positive shows that there is convergence. It is observed that a convergence of 1.2 %, 1.6 % and 1.5 % was experienced in these 3 models respectively during this decade. The same results have been obtained for absolute convergence and conditional convergence. During 1995 – 2000 period, it is seen that the estimated  coefficient is positive and meaningful by 5 % for all the models. Absolute convergence and conditional convergence has been experienced by 1.2 % of and 1.5 % respectively during this 5 – year period. Yet, the variables added to the model are not explanatory variables. The findings of 2000 – 2005 period are in the same direction with the findings of the first sub – period. In the 1st and the 2nd model,  coefficient is different from zero and is at 1 % level; and it is at 10 % level in the 3rd model. It is seen that a convergence of 2.3 % was experienced per year in the 1st model during the 5 – year period. This convergence is an absolute one. It is observed that there is a convergence of 1.9 % and 1.3 % per year in the 2nd and 3rd models respectively. This situation proves the existence of both absolute and conditional convergence. The variables added to the model in this period are not explanatory variables. Period Model 1  1995-2005 1995-2000 2000-2005 0,002 (-0,295) -0,021 (3,215) 0,016 (-2,15) R2 0,002 0,210 0,106 Model 2  0,003 (-0,494) -0,026 (3,908) 0,020 (-2,736) c 0,004 (0,861) -0,014 (-2,142) 0,016 (2,53) Model 3 R2 0,021 0,295 0,235  0,009 (-1,365) -0,026 (3,182) 0,026 (-2,832) c 0,002 (0,466) -0,014 (-2,118) 0,014 (2,163) d 0,009 (1,696) 0,001 (0,141) 0,008 (1,043) R2 0,092 0,295 0,257 Table 4: Regression Results of the Regions in the 4st Group When the results of each 3 models for 41 observations in the 4 th group regions during 1995 – 2005 period have been analysed, it has been found out that  coefficient is positive, but not different from zero. In the 1995 2000 period,  coefficients are meaningful by 1 % and have negative values. It is seen that a divergence of 2.1 % per year is experienced in the 1st model during this 5 - year period. The same result has been obtained again by adding the variables and a divergence of 2.6 % has been experienced per year. Here, while the duppy variable is explanatory, the variable of R & D expenditure rate can not add explicity to the model. During 2000 – 2005 period,  coefficient is meaningful by 1 % in the 2nd and the 3rd models and by 5 % in the 1st model. It is observed that a convergence of 1.6 % has been experienced per year and this convergence is an absolute convergence. It is seen that a convergence of 2 % and 2.6 % per year has been experienced respectively in the 2 nd and the 3rd models, which is a conditional convergence. It is observed that while the duppy variable is explanatory, there is not a clear conditional convergence even a control variable for the R & D expenditures is added. An explanation of this result is that R & D expenditures do not differ so much among the regions and the fact that the share of R & D expenditures in the GDP is high does not have a great influence on the convergence. The regions in the 4 th group consist of the countries recently participated in the EU. Though a very strong divergence was identified among these regions 759 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo during 1995 – 2000 period, a very strong convergence was identified during 2000 – 2005 period. This is mainly affected by the fact that the EU accession processes of these countries coincided with the second sub – period. Graph 1: Growth Rates and Starting Year Logarithmic GDP per capita levels of the Regions in the 1st Group (1995-2005) Graph 2: Growth Rates and Starting Year Logarithmic GDP per capita levels of the Regions in the 2 st Group (1995-2005) Graph 3: Growth Rates and Starting Year Logarithmic GDP per capita levels of the Regions in the 3 st Group (1995-2005) Graph 4: Growth Rates and Starting Year Logarithmic GDP per capita levels of the Regions in the 4st Group (1995-2005) 760 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Standard deviation of GDP per capita figures is calculated and its fluctuation over time is examined for the measurement of  convergence.  convergence has the tendency to reveal  convergence. Although  convergence is necessary for  convergence, it is not an adequate condition. If there is  convergence in a region, it means that the income inequity is decreasing in that region and it is an evidence for the existence of a tendency for the equalization of income per capita. Table 5 presents the averages and the standard deviations of logarithmic GDP per capita of each group on the basis of years. It is seen in the 1 st group regions that the standard deviation expansion was growing and divergence was experienced in time during 1995 – 2000 sub-period. Yet, while the standard deviation of GDP per capita was 0.26 in 1995; it is observed that the standard deviation expansion did not grow over time in 2005, in other words divergence was not experienced, which confirms the existence of convergence. It is seen in the 2nd group regions that the expansion grew over time even if just a bit. It is possible to mention about the existence of convergence throughout all the periods for the 3 rd group regions. It is observed in the 4th group regions that the standard deviation expansion grew as of 1995 – 2000 period and declined during 2000 – 2005 period. It is possible to mention about the existence of convergence during that decade. There is not any differentiation between the results of  convergence and those of  convergence. On the basis of the results of convergence analyses, it can be stated that a convergence process was generally experienced among the regions in the EU during the examined period and that process was rather a slow one. the Regions in the the Regions in the the Regions in the The Regions in the 1st Group 2st Group 3st Group 4st Group Average Standard Standard Standard Standard Average Average Average Deviation Deviation Deviation Deviation 1995 9,73 0,26 9,64 0,21 9,53 0,28 8,81 0,40 1996 9,77 0,26 9,70 0,21 9,58 0,28 8,86 0,43 1997 9,81 0,26 9,77 0,22 9,64 0,27 8,92 0,44 1998 9,85 0,25 9,81 0,23 9,69 0,27 8,97 0,43 1999 9,90 0,26 9,85 0,23 9,75 0,27 9,01 0,45 2000 9,95 0,26 9,93 0,24 9,80 0,28 9,08 0,44 2001 9,98 0,26 9,97 0,24 9,84 0,27 9,14 0,44 2002 10,01 0,25 10,01 0,24 9,89 0,26 9,20 0,44 2003 10,01 0,26 10,04 0,24 9,91 0,26 9,25 0,42 2004 10,04 0,26 10,10 0,24 9,95 0,27 9,32 0,42 2005 10,07 0,26 10,11 0,24 9,99 0,26 9,39 0,42 Table 5: Average and Standard Deviation of Logarithmic GDP per capita for each group in terms of years Conclusion Whether the socio - economic development disparities will decrease in the EU regions in the course of time or not is an important subject. Particularly GDP per capita figures and GDP variation coefficients, and variables revealing economic and social disparities and structural disparities may be utilised in order to determine this. Whether these disparities are increasing or decreasing can be explained through the convergence or divergence of the examined regions or countries to/from each other. The concept of convergence for the EU means that economic disparities between the member states and the regions of the Union is decreased and their economic performance levels are drawn closer to each other as far as possible on a higher common ground rather than a lower one. Along with the impact of new regionalism concept, it is becoming more important that inter – regional development disparities are eliminated by improving the growth rates of under-developed regions effectively and ensuring convergence. During 1995 – 2005 period, a convergence process, albeit a slow one, was experienced in the regions of the EU. After 1990s, the changes in the regional policies and the new formations in the EU have started to achieve the objectives. However, the convergence results have been evaluated separately for each group. For instance, in the 4 th group regions consisting of the very recent members of the EU, although it has been determined that there was a strong divergence during 1995 – 2000 period, it has been found out that there was a strong convergence during 2000 – 2005 period which coincides with their EU accession processes. On the basis of the results of convergence 761 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo analyses, it can be stated that a convergence process was generally experienced among the regions in the EU during the examined period and that process was rather a slow one. Whether the socio - economic development disparities will decrease in the EU regions in the course of time or not is an important subject. Particularly GDP per capita figures and GDP variation coefficients, and variables revealing economic and social disparities and structural disparities may be utilised in order to determine this. Whether these disparities are increasing or decreasing can be explained through the convergence or divergence of the examined regions or countries to/from each other. The concept of convergence for the EU means that economic disparities between the member states and the regions of the Union is decreased and their economic performance levels are drawn closer to each other as far as possible on a higher common ground rather than a lower one. Along with the impact of new regionalism concept, it is becoming more important that inter – regional development disparities are eliminated by improving the growth rates of under-developed regions effectively and ensuring convergence. During 1995 – 2005 period, a convergence process, albeit a slow one, was experienced in the regions of the EU. After 1990s, the changes in the regional policies and the new formations in the EU have started to achieve the objectives. However, the convergence results have been evaluated separately for each group. For instance, in the 4 th group regions consisting of the very recent members of the EU, although it has been determined that there was a strong divergence during 1995 – 2000 period, it has been found out that there was a strong convergence during 2000 – 2005 period which coincides with their EU accession processes. On the basis of the results of convergence analyses, it can be stated that a convergence process was generally experienced among the regions in the EU during the examined period and that process was rather a slow one. References Barro, R.J. & Sala-i- Martin, X. (1992). Convergence. Journal of Political Economy, Vol.100, No:2. Batchler, J. & Yuill, D. (2001). Policies and Strategies for Regional Development: A Shift in Paradigm?. Regional and Industrial Policy Research Paper, Number: 46, European Policies Research Centre, University of Strachclyde, UK, August. Berry, B. J. (1961). A Method for Deriving Multi-Factor Uniform Regions. Polish Geographical, 1961. Brasche, U. (2001). Avrupa Birliği‘nin Bölgesel Politikası ve Türkiye‘nin Uyumu. Ġstanbul, ĠKV Yayınları. Brasili, C. & Gutierrez, L. (2004). Regional Convergence Across European Union. Econpapers. Casellas, A. & Galley, C. C. (1999). Regional Definitions in the European Union: A Question of Disparities?. Regional Studies, Vol. 33, 6 Aug. Commission of the European Communities. (1985). The Region of Europe. Document, OFUPEC, Luxembourg. Dinan, D. (2005). Avrupa Birliği Ansiklopedisi. Trans.: Hale Akay, Kitap Yayınevi, Ġstanbul. Erkal, M. (1990). Bölge Açısından Az GeliĢmiĢlik. Der Yayınları, Ġstanbul. European Commission. (2005). European Regional and Urban Statistics. Reference Guide, Eurostat Methods and Nomenclature, Luxembourg. European Commission. (2007). Regions in the European Union, Nomenclature of Territorial Units for Statistics, NUTS 2006/EU27. Eurostat Methodologies and Working Papers, Luxembourg. European Commission. (2008). Key Figures on Europe. Eurostat Pocketbooks, Luxembourg. Gaynor, K. B. – Karakitsos, E. (1997). Economic Convergence in a Multispeed Europe. St. Martin‘s Pres, New York. 762 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Gren, J.(2002). New Regionalism and West Sweden: Change in The Regionalism Paradigm. Regional and Federal Studies, Vol.12, No.3. Karluk, R.(2007). Avrupa Birliği ve Türkiye. 9. Baskı, Beta Yayınları, Ġstanbul. Karlsson, I. (2007). Bölgeler Avrupası. Çev.: Turhan Kayaoğlu, Ġstanbul Bilgi Üniversitesi Yayınları, Ġstanbul. Quah, D. T. (1996). Twin peaks: Growth and Convergence in Models of Distribution Dynamics. Economic Journals, Centre for Economic Performance Discussion Paper No:280. Mengi, A. (2001). Avrupa Birliği‘nde Bölge, Bölge Planlaması ve Türkiye. GAP Dergisi, Sayı:15. Moussis, N. (2004). Avrupa Birliği Politikalarına GiriĢ Rehberi. Trans.: Ahmet Fethi, Mega Yayınları, Ġstanbul, Sala-i Martin, X. (1996). Regional Cohesion: Evidence and Theories of Regional Growth and Convergence. European Economic Review, 40. Scott, A. (2002). Constitutional Regions and the European Union. Richard Commission on the Powers and Electoral Arrangements of the NAW, University of Wales at Aberystwyth. Taneri, E. (1986). Bölge Planlama. Yıldız Üniversitesi Yayınları, Sayı:186, Ġstanbul. http://www.hri.org/docs/Rome57/Rome57.txt. http://ec.europa.eu/com/eurostat/ramon/nuts/home_regions_en.html. http://www.munimall.net/eos/2002/wallis_regionalism.nclk. ‗The New Regionalism‘. Allan Wallis . 763 � 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. 230 Title A name given to the resource Regionalism Reality And Convergence Analysis In The European Union Author Author ALTUN, Ayşen Abstract A summary of the resource. The countries in the EU have entered into an essential localisation and reconstruction period. In this process, regions have come to the forefront as one of the most important actors of the EU and have acquired an ever-mounting impact area in the decisionmaking processes. There are two reasons for regional development model has been evaluated on the axis of EU. Differences among the regions have increased due to the enlargement of the Union and this subject has become an aspect that is emphasized after each enlargement process. First of all, European Commission has followed a policy that has a forward effect in order to decrease the instabilities since 1987 and has increased the size of its intervention force. Whether the form of change in the convergence model can be drawn or not, it gives a number of signs about the efficiency of regional policy. Secondly, some changes have occurred in the understanding of regional policy which is the common policy of the EU in the process after 1990s and the understanding of ―new regionalism‖ has come forward. In this understanding, the term of ―region‖ has become essential and acquired a new dimension. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory https://omeka.ibu.edu.ba/files/original/bf923b9fd40bcdf388a6e52a68f04f73.pdf 24996345aff8bb328f86c88405bd45cb PDF Text Text 2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Analysis of Human Development in Balkan Countries: A Comparison of West and Middle Europe Countries Hüseyin ALTAY Assist. Prof. Dr., Bilecik University, Faculty of Economics and Administrative Sciences, Department of Economics, Bilecik, TURKEY, Phone: +90 228 212 42 96 (ext.120) huseyin.altay@bilecik.edu.tr Ali ġEN Assist. Prof. Dr., Dumlupinar University, Faculty of Economics and Administrative Sciences, Department of Economics, Kutahya, TURKEY, Phone: +90 274 265 20 31 (ext.2108) Fax: +90 274 265 21 97 alisen@dumlupinar.edu.tr Abstract: Since the beginning of 1990s, Balkan countries have significantly been changing as social, economic and politic structure. However, these countries have important differences in terms of human development indicators. Some countries in Balkans have low GDP levels. However, same countries replace between High Level Development countries in Human Development Index (prepared by UNDP). The aim of this paper is to investigate in terms of human development of Balkan countries that are not being member of EU countries. In scope of this aim, we will compare with three country groups related to human development. These groups are currently EU members countries (exclude Balkan countries), currently Balkan countries that are member of EU and other Balkan countries. As a result, this paper will have determined whether or not suitable for full membership to EU of Balkan countries. Key Words: Balkan Countries, Human Development Index, European Union Countries. Introduction For the first time, ―development‖ concept emerged after nation-states (Balanuye and Halıcı, 2006). It was based on a need for some structural and qualitative improvements in developing countries (ġan, 2005). The same concept as a branch of development economics, for the first time, was used after Great Depression. Especially, development economics took more of an interest in 1940s. Since World War II, development concept has usually been examined economically. In balanced and unbalanced development theories, neo-liberal approaches and dependence theories, development problem was seen as a part of production process. Thus, proposals concerning solution also have focused how production factors could be obtained and how they could be used in production process (Yavilioğlu, 2002). Because development and growth is examined together, in measurement of development is also used indicators related to economic growth. If a country has a positive growth rate in its GDP and its growth rate is stable, it is accepted as a development country. Raising per capita income is other development indicator (Mıhçı, 1996). Gross national product (GNP) or gross domestic product (GDP) were originally created as indicators of total economic output for macroeconomic stabilization policy and were therefore not meant to be indicators of well-being. On the other hand, it is certainly true that policy makers, the media and the public alike seem to equate GNP/GDP with well-being. In international comparison as well, it is thought of the countries with a high GNP/GDP as not only the rich, but also the well-off countries. However, because income is just one of the components of well-being, GNP/GDP have long since been criticized as misleading and deficient indicators of well-being (Neumayer 2004). Not only does development concept describe rising in GDP, but it has important effects on social and economic life, including education, health (Demiral, 2007). However, even if some countries are described as developed economically, they also have very problems. Thus, there is a need for a relationship between economic growth and human development (Demir, 2006). The fact that development is only described as an economic concept means that human factor is highly not considered. Development is based on fact of ―human development‖ (UNDP, 147 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo 2002). Most economics accept that GDP by itself is useful in measuring ―economic development‖ but it is inadequate to understand a nation‘s social and cultural level (Piana, 2001). Therefore, it is defined development as not only a rising in GDP and a diminishing in poverty but also a multidimensional process bringing about an important change in social behaviors and structures and national institutions (Açıkgöz, Kök, Ġspir, 2008). Development states improvement process of life quality of all people. Here, there are three facts in appearance of development that have equal importance. First is an improvement in life quality of people, so that their incomes increase, their education, health conditions improve. Second is an increase in self-confidence and merit of people with developing social, cultural, political and economic structure. Finally, changing in their preference opportunities of people increased their independences, and diversity of goods and services(Günsoy, 2005). What are factors that affect affirmatively human lifetime? How do people live on healthier? How do they prevent more efficient from illness? How do they enrich their thinking world? The kinds of questions are based on human life regarding development (Mıhçı, 1996). The first author is Amartya Sen, who has examined this subject on this base. According to Sen, there is human being in the base of all activities. Thus, development is to be based on their liberties, achievements and capabilities (Anand and Sen, 1994). People will be able to obtain a higher quality lifetime through better education and health system. Higher capacities create more liberty life standard. More liberty people are more productive. In other words, there are subjects regarding people‘s life quality in Sen‘s approach. Therefore, not being monetary issues have more priority than monetary ones do. Having higher growth rate is inadequate to be development for a country. Furthermore, there is a need for being known what development process are. Today, development is not about economic performance alone, but most importantly about people and their wellbeing (Jahan, 2005). Thus, in period that was discussed approaches regarding development, Human Development Report was published by UNDP, focusing Sen‘s capability and functioning approach (Baliamoune and Lutz, 2004). Aim of the reports, which was firstly prepared by Mahbub ul Haq‘s team in 1990, puts human being in national and global policies and attracts attention of international development environments to importance of life quality. Now, governments, non-governmental organizations, academicians and media for the purpose of comparison of countries‘ development levels (Gürses, 2009) use the reports. The concept of human development emphasized that (Jahan, 2005): • Development is about enlarging people‘s choices by enhancing their functionings and capabilities. • Development is of the people, for the people and by the people. The first refers to human capital formation and human resources development through nutrition, health and education. Development for the people stresses that the benefits of economic growth must be translated into lives of people. Development by the people means that people must be able to influence the process, which affects their lives. • Development must be woven around people, and not people around development Measure of Human Development Index The HDI is a summary measure of human development. It measures the average achievements in a country in three basic dimensions of human development (UNDP, 2005): • A long and healthy life, as measured by life expectancy at birth. • Knowledge, as measured by the adult literacy rate (with two-thirds weight) and the combined rimary, secondary and tertiary gross enrolment ratio (with one-third weight). • A decent standard of living, as measured by GDP per capita in purchasing power parity (PPP) terms in US dollars. 148 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo A long and Healthy life DIMENSION Knowledge Adult literacy rate Life expectancy At birth INDICATOR Adult literacy index Gross enrolment ratio (GER) GER index Education index Life expectancy index DIMENSION INDEX A decent standart of living GDP per capita PPP US GDP index HUMAN DEVELOPMENT INDEX (HDI) Figure 1: Formation of Human Development Report. Source: UNDP (2005) Human Development Report Before the HDI itself is calculated, an index needs to be created for each of these dimensions. To calculate these indices—the life expectancy, education and GDP indices—minimum and maximum values (goalposts) are chosen for each underlying indicator. Performance in each dimension is expressed as a value between 0 and 1 by applying the following general formula: Dimension Index= actualvalu e  min value max value  min value The HDI is then calculated as a simple average of the dimension indices. The box at right illustrates the calculation of the HDI for a sample country. Indicator Life expectancy at birth (years) Adult literacy rate (%) Combined gross enrolment ratio (%) GDP percapita (PPP US$) Maximum Minumum Value Value 85 25 100 0 100 0 40.000 100 Table 1: Goalposts for calculating the HDI Source: UNDP (2005) Human Development Report i) Life Expectancy Index: The life expectancy index measures the relative achievement of a country in life expectancy at birth. Life Ecpectancy Index= LE  25 85  25 149 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo ii) Education Index: The education index measures a country‘s relative achievement in both adult literacy and combined primary, secondary and tertiary gross enrolment. First, an index for adult literacy and one for combined gross enrolment are calculated. Then these two indices are combined to create the education index, with two-thirds weight given to adult literacy and one-third weight to combined gross enrolment. Education Index= 2 1 *ALI+ *GEI 3 3 Adult Literacy Index (ALI) = ALR  0 100  0 Gross Enrollment Index (GEI) = CGER  0 100  0 iii) GDP Index: The GDP index is calculated using adjusted GDP per capita (PPP US$). In the HDI income serves as a surrogate for all the dimensions of human development not reflected in a long and healthy life and in knowledge. Income is adjusted because achieving a respectable level of human development does not require unlimited income. Accordingly, the logarithm of income is used. GDP Index= log( GDPpc)  log(100) log( 40.000)  log(100) HDI Index=1/3(Life Expectancy Index) + 1/3 (Education Index) + 1/3 (GDP Index) Human Development Index (HDI) values ranges between 0 and 1. 0 value shows the lowest degree of HDI. 1 value shows the highest degree of HDI. HDI includes in three groups of countries regarding their development levels. If a country‘s HDI value is between 0 and 0.499, it has Low Human Development; if a country‘s HDI value is between 0.500 and 0.799, it has Medium Human Development; if a country‘s HDI value is between 0.800 and 1, it has High Human Development (Ünal, 2008). Human Development in Balkan Countries In the 20th century, Balkan countries had partly different processes of development. Since 1981, Greece has been a member of EU. In addition, it is an insider of Euro zone and Western European Union (WEU). Slovenia joined EU in 2004. Bulgaria and Romania were insiders of EU in 2007. Although Turkey applied for membership of EU, it was able to start membership negotiations in 2005. In 2005, Croatia and Macedonia were members of EU. On the other hand, Bosnia and Herzegovina, Montenegro and Serbia have applied to membership of EU. This paper intends to examine Balkan countries‘ human development levels in process of membership of EU. The countries are three groups that are EU members, Balkan countries in EU and Balkan countries in process of EU membership. Balkan countries will compare with EU (15), and other EU (10) members that were accepted membership in 200431. The paper analyzes sub-indexes in HDI and examines countries‘ HDI as a whole. It is used data from Human Development Reports (2000-2007) by published UNDP. 31 EU (15): Germany (1957), France (1957), Belgium (1957), Italy (1957), Luxemburg (1957), Netherland (1957), Denmark (1973), Ireland (1973), Ġngiltere (1973), Greece (1981), Spain (1986), Portugal (1986), Sweden (1995), Austria (1995), Finland (1995), EU (10): Cyprus, Czech Republic, Estonia, Hungary, Lithuania, Latvia, Malta, Poland, Slovak Republic, Slovenia: (2004) EU (2): Romania, Bulgaria: (2007) Balkan Countries: Greece, Slovenia, Bulgaria, Romania, Albania, Bosnia and Herzegovina, Montenegro, Serbia, Macedonia, Croatia, Turkey 150 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Figure 2: Life Expectancy Index 2000-2007 Greece has the highest Life Expectancy Index. Slovenia, Croatia and Albania follow Slovenia Bulgaria and Romania have rather low LIE values. Within Balkan countries, which are non-member EU, Croatia has the highest value. Turkey is at last rank regarding same value. Figure 3: Education Index 2000-2007 According to Education Index, the highest value belongs to Slovenia, whose value is above of average of EU‘s one. Greece Education Index follows Slovenia‘s one. Turkey has the lowest value of Education Index 151 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Figure 4: GDP Index 2000-2007 According to GDP Index, Greece has the highest value. Slovenia is in second rank. Both counties place above of average of EU (10) countries, whose value is o.844. Within non-member EU countries, Croatia has the highest GDP Index value. Albania has GDP Index value. Figure 5: Human Development Index 2000-2007 Greece has the highest Human Development Index value. Although Greece is above of average of EU‘s (10), it is below of average of EU‘s (15). Slovenia has second high value. Within non-member EU countries, Croatia is a country that has the highest HDI. Montenegro and Serbia follow Slovenia. Moreover, in 2007, levels of these countries‘ HDI were higher than Romania‘s and Bulgaria‘s ones. Turkey has lower value than Macedonia, Bosnia and Herzegovina and Albania do. 152 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo Figure 6: Human Development Index 2000-2007, All Countries According to Human Development Index results for all countries, Sweden has the highest value regarding 2000-2007 averages. Respectively, Netherland, Ireland, Belgium, Luxemburg, Finland, France, Austria, Denmark, England, Spain and Germany (EU 15) follow Sweden. Within EU (15) Greece has only better HDI level than Portugal does. Within countries that have been member of EU since 2004, Slovenia has the highest HDI value so that its value is higher than Portugal‘s. Romania and Bulgaria, which have been EU member since 2007, have lower HDI degree than Croatia, Montenegro and Serbia, which have not been EU member yet. Macedonia, Bosnia and Herzegovina, Albania and Turkey are last ranks. Concluding Remarks From 2000 to 2007 in Human Development reports, respectively, Greece, Slovenia, Croatia, Montenegro, Serbia, Bulgaria, Romania and Macedonia have high HDI values. Bosnia and Herzegovina, Albania and Turkey have medium HDI values. Greece is below of EU (15) average HDI. Slovenia has a HDI value that is higher than EU (10) average. Romania and Bulgaria, which have been EU members since 2007, have lower HDI than Croatia, Montenegro and Serbia, which have not been EU members yet. Within non-member EU Balkan countries, Croatia is an outstanding country. Croatia has high values of three sub-indexes of HDI. Although Albania and Bosnia and Herzegovina have high values in Life Expectancy Index, their values of Education Index and GDP Index are rather low. Thus, the countries‘ HDI values are also low. There is a similar situation for Turkey, whose GDP Index value is quite high. However, because of low values of Education Index and Life Expectancy Index, Turkey is in last rank regarding HDI. According HDI values, Balkan countries are two groups: first group includes the countries that are Croatia, Montenegro, Serbia and Macedonia, which have high HDI; second group is Bosnia and Herzegovina, Albania and Turkey that have medium HDI. 153 �2nd International Symposium on Sustainable Development, June 8-9 2010, Sarajevo References Açıkgöz, B.& Tarı, R. & Ġspir, S. (2008). Hypothesis Tests Aimed at Globalization Pre-assumption: Experience of Selected Countries on Poverty (1997-2003). Süleyman Demirel Üniversitesi Ġktisadi ve Ġdari Bilimler Fakültesi Dergisi, C:13, S:1, (pp. 351-376). Anand, S.& Sen, A. K. (1994). Human Development Index: Methodology and Measurement. Human development report office occasional papers. 26.04.2010 from Web site: http://hdr.undp.org/en/media/Anand_and_Sen_HDI.pdf . Balanuye, Ç. & Halıcı, E. (2006). Sürdürülebilir GeliĢme Beyin Göçü ve BiliĢim, Felsefi Bir Perspektif. Elektronik Sosyal Bilimler Dergisi. www.e-sosder.com. ISSN: 1304-278, C.5, S.18, (pp. 22-29). Baliamoune, M.L. (2004). On the Measurement of Human Well-being, Fuzzy Set Theory and Sen‘s Capability Approach. United Nation University, World Institute for Development Economic Research (WIDER). Research Paper No: 2004\16. Demir, S. (2006). BirleĢmiĢ Milletler Kalkınma Programı Ġnsani GeliĢme Endeksi ve Türkiye Açısından Değerlendirme. DPT. Ankara. Demiral, M. (2007). Türkiye‘de Sosyal Sermaye Kapsamında Sivil Toplum KuruluĢlarının Sürdürülebilir Sosyo-ekonomik Kalkınma Sürecindeki Rolü. Akademik BakıĢ E-Dergisi. ISSN: 1694-528X, S.13. Günsoy, G. (2005). Ġnsani GeliĢme Kavramı ve Sağlıklı YaĢam Hakkı. Zonguldak Karaelmas Üniversitesi Sosyal Bilimler Dergisi. Cilt 1, Sayı 2, (pp. 35-52). Gürses, D. (2009). Human Development and Turkey. Balıkesir Üniversitesi Sosyal Bilimler Dergisi, Cilt 12, Sayı 21, (pp.339350). Jahan, S. (2005). Measuring Human Development: Evolution of the Human Development Index. http://hdr.undp.org/en/media/Jahan_HDI.pdf. Mıhçı, H. (1996). Kalkınma: Bir Terim Neyi Anlatır? Ekonomik YaklaĢım. Cilt 7, Sayı 23, (pp.65-86). Neumayer, E. (2004). Sustainability and Well-being Indicator. United Nation University World Institute for Development Economic Research (WIDER), Research Paper No: 2004\23. Piana, V. (2001). Gross Domestıc Product Retrieved, 26.04.2010 from Web site: http://www.economicswebinstitute.org/glossary/gdp.htm. Sen, Amartya K. (2004). Özgürlükle Kalkınma. Ayrıntı Yayınları. Ġstanbul. ġan, M. (2005). Kalkınma Planlamasında Bilgi Yönetimi ve Devlet Planlama TeĢkilatı Ġçin Kurumsal Bilgi Politikası Modeli. DPT, 2687, Ankara. UNDP. (2002). Human Development Report. http://hdr.undp.org/en/statistics. UNDP. (2003). Human Development Report, http://hdr.undp.org/en/statistics UNDP. (2004). Human Development Report. http://hdr.undp.org/en/statistics UNDP. (2005). Human Development Report. http://hdr.undp.org/en/statistics UNDP. (2006). Human Development Report. http://hdr.undp.org/en/statistics UNDP. (2007-2008). Human Development Report. http://hdr.undp.org/en/statistics UNDP (2009), Human Development Report, http://hdr.undp.org/en/statistics Ünal, Ç. (2008). Regionall Differencess in Turkey by Human Development Index. Coğrafi Bilimler Dergisi. Cilt 6, Sayı:2, (pp.89-113). Yavilioğlu, C. (2002). The Semantic History of Consept of the Development an its Conceptual Origins. Cumhuriyet Üniversitesi Ġktisadi ve Ġdari Bilimler Dergisi. C.3, S.1, (pp.59-77). 154 � 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. 201 Title A name given to the resource Analysis of Human Development in Balkan Countries: A Comparison of West and Middle Europe Countries Author Author ALTAY, Hüseyin ŞEN, Ali Abstract A summary of the resource. Since the beginning of 1990s, Balkan countries have significantly been changing as social, economic and politic structure. However, these countries have important differences in terms of human development indicators. Some countries in Balkans have low GDP levels. However, same countries replace between High Level Development countries in Human Development Index (prepared by UNDP). The aim of this paper is to investigate in terms of human development of Balkan countries that are not being member of EU countries. In scope of this aim, we will compare with three country groups related to human development. These groups are currently EU members countries (exclude Balkan countries), currently Balkan countries that are member of EU and other Balkan countries. As a result, this paper will have determined whether or not suitable for full membership to EU of Balkan countries. Date A point or period of time associated with an event in the lifecycle of the resource 2010-06 Keywords Keywords. Conference or Workshop Item PeerReviewed HB Economic Theory