Economic Issues

Crises, Finance and Agriculture

Economic Issues
Editions:PDF - First Edition
ISBN: 978-1-9997035-5-4
Size: 40.00 x 70.00 cm
Pages: 220

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INTRODUCTION

All researchers in the world have focused on how to solve recent economic problems in order to improve quality of our lives as well as wealth. To improve the quality of people’s lives, as an economist, we need to investigate economic issues deeply to understand how these problems occur in the current economic system. These investigations may lead to solutions to overcome many economic problems.

During this investigation, one of the most important impediments that prevents analyst to make a comprehensive analysis is the fact that economics has multi-dimensional and multi-disciplinary charateristics.

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When we think of subsections of economy, the most useful classification system was developed by “Journal of Economic Literature”, is widely known as Jel Classification System. (JEL Classification Codes Guide, 2017). According to this system, disciplines of economy are ranging from macro economics and monetary policy to financial economics, from agricultural and natural resource economics to labor and demographic economics.

Among them, economic crises are one of the most important topics amoung the economist. The most important issue regarding them is re-occurance of economic crisis. After the credit crisis of 1772, the Great Depression in 1929-39; the OPEC Oil Prie Shock in 1973, the Asian Crises in 1997 and Financial crises in 2007 -2008 (Bondarenko, Encyclopedia Britannica) are examples that shows almot every 20 years there has been  economic crises in the world. These have also been accepted as the most devastating financial crisis, which brings out the second problem- it took more than decade for things to return to normal. (Bondarenko, Encyclopedia Britannica)

Food and production are also essentials for sustaining of life, which reveals the importance of agriculture and agricultural economics. Agriculture economics is huge discipline itself and is mostly seen as related to the economics of development; however, agriculture economic should encompasees issues from invenstment in agriculture to land, outputs, and from price control to government subsidiaries. (Johnson, 2017)

Finance and a well based financial system are critical for a well functioning economy. According to Bailty and Elliot, “in addition to providing substantial employment, finance serves three main purposes: Credit provision, Liquidity provision and Risk management services” (2013) and it should have the right size to fulfill all these functions but at the same time avoid the interventionalist polices by the government.

In this edition, these three topics are preferred to be studied due to their importance, but not limited to these issues. This book contains multidiscipline topics in economics such as immigration of educated people, diversification of market, and economic development in macro and micro perpective, quality of life as a reflection of the fact that economics is closely related to other scientific braches such as politics, law, ethics, sociology and psychology. Each topic contains current issues in economics.

Within this framework, the “An Inquiry into Determinants of Brain Drain; Importance of Lingual Proximities” was prepared by Ahsan Shafique. In his study, he focused on preference pattern of immigrants in outwardly migrating and its underlying factors among which lingual proximities stand extrusive. This study found that developed countries are likely to get four or five times greater skilled workforce from countries which share a language with them at national, official or academic level. Increased openness causes economic growth which in turn heightens human capital flight further. However at higher levels of income growth this evidence is inconclusive. Moreover, countries with relatively larger area exhibit higher emigration rates of skilled workforce farther destinations and stretched distances deject skilled workers from emigrating.

The “The Regional Convergence-Divergence Effect of the Global Economic Crisis between Turkey and the European Union” was prepared by Yusuf Bayraktutan and Ömer Diler. Authors, in this study, began their analysis with referring to the Convergence hypothesis which claims that between the investigated units (nations, regions, provinces, sectors etc.), the relatively low income unit (poor) will have a higher growth performance and will converge to the high income unit (rich). Within this scope the expectation from candidate countries is to converge to the Union criteria. They investigated the convergence after the global economic crises between East Marmara Region (TR42) of Turkey (as a EU candidate country) and regions of developed countries of EU to find out whether the global economic crises is an advantage for East Marmara Region to converge with regions of developed countries of EU or not. Speaking in the scope of their analysis, they conclude that the crisis has been an advantage for both Turkey and the Eastern Marmara Region to catch up the European counterparts.

The “What Explains the Diversification Discount? An Empirical Examination” was prepared by Mehmet Nasih Tağ. In his study, the author investigates the conditions under which diversification creates shareholders’ value. According to the resource based view of the firm diversification creates value when it is motivated by exploiting potential economies of scope. Thus, higher relatedness in diversification, or lower firm diversity, is associated with value creation. The agency theory predicts that diversification is a symptom of incentive misalignment between the management and investors, and thus would likely destroy value to the extent that managers in diversified firms lack high-powered incentives. Thus, value creation in diversified firms would increase as the sensitivity of management pay to performance increases. The author tests these predictions on a sample of diversified firms. The results indicate that shareholders’ value in diversified firms is negatively related to firm diversity, and positively related to CEO’s compensation based on stock options.

In the chapter, entitled “Comparing EU Countries, Turkey and Macedonia via Clustering Analysis for Quality of Life Indicators”, Munise Tuba Aktaş focusing on the quality of life dimension of development. According to her, improvement of the phenomenon of development to include the quality of life resulted in an increase in the focus on the topic of quality of life especially in recent years. In this context, raising the quality of life is an important challenge for developing countries. Although increasing the income level is necessary to improve the quality of life, it is not sufficient for the developmental approach today. The phenomenon of quality of life includes better education, better nutrition, better healthcare, reduction of poverty, improving employment opportunities and work conditions, equality of opportunity, clean environment, expansion of economic freedoms and wealthy socio-cultural components. In the her study, EU member countries and candidate countries, Turkey and Macedonia, were subjected to clustering analysis based on 2013 data in terms of their quality of life indicators and the objective was to identify the similar countries. At the end, she found out that in terms of the quality life indicators, Turkey was found to be close to several Southern European countries rather than Bulgaria, Romania and Macedonia are in group of countries with very high human development.

In the eight chapter, Melike E. Bildirici and Fulya Özaksoy prepared the “Regional Development of Turkey by Microcredit System”. In their study, they focused on opportunities, provided by microcredit system to women such as new employment opportunities and economic value-added. Since 1970s, it is implemented by small and medium enterprises of developing countries as social and economic development strategy. The first aim of their study is to examine the impacts of microcredit usage to female labor force participation and regional development of Turkey for 2004-2016 period is analyzed by Panel data analysis. The second aim is to analyze the relationship between economic growth and female labor force participation rate and prove the inversed-U shaped pattern of this relationship, like ‘Kuznets Curve’. In this regard, TR4 region (Western Marmara) of NUTS 1 (Nomenclature of Territorial Units for Statistics) in Turkey which is designated by Turkish Statistical Institute, included Kocaeli and Bilecik provinces were considered. Empirical results of this paper demonstrate that female labor force has decisive role on the selected region’s economic, social well-being and their employment structures which is essential for sustainable and regional development of Turkey. They concluded, expressing that women’s increasing participation role on the economy is crucial for defusing financial and economic crisis and also, it has fundamental role on poverty alleviation. For achieving these purposes, it is necessary to promote new job opportunities by microcredit financial system is the most encouraging strategy for improving female’s role on the economy. Thus, empowering conditions of women have strategic importance for a global sustainable economic development models and it is necessary to promote microcredit system to encourage female labor force participation. Increasing benefits of this system enhances development of the country.

The “Training and Development Practices in Albanian Public Administration: A Case of Study” was prepared by Fabiola Rama and Desar Nanushi. In this study, author aims to determine the impact of training and development on public sector organizations taking into account five institutions of Albanian public administration. The research purpose is to define the role and impact of training and development on civil servants with emphasis on specialist, supervisory and management level and whether training has improved employees’ performance. To find out this, the author designed a questionnaire using closed and open-ended questions to collect primary data. After collecting the data by distributing the questionnaire to the sample institutions of Albanian public administration and processing them, the author concludes that training and development activities has not affected the performance of employees in these institutions.

The “Credit Constraints, Firm Exports And Financial Development: Evidence From Turkish Firms” was prepared by Moussa Ouedraogo. In this paper. he assess the impact of credits constraint on Turkish firms’exports. In doing so, data on 1344 Turkish firms has been retrieved from World Bank enterprise survey for the period of 2013.Credits constraint is measured based on the responses given by each firm. It is a self-reported measure of credits constraints. In order to solve endogeneity issues associated with this type of measure, he controls some unobserved variables such as productivity and some characteristic of the firms. Following this precondition, a recursive bivariate probit modelling is used to capture the relation between variables. Based on the results, he finds that a credit constrained firms have the probability to export reduced by approximatively 20%, others factors remained constant. The results therefore advocate for further flexibility in access to financial resources. More specifically, in the case of Turkey characterized by a huge depreciation of its currency, a reduction of credits constraint can help them face the increasing cost of imported good and facilitate penetration in the foreign market.

The “Do Agricultural Support Payments Raise Olive Oil Exports in Turkey?” was prepared by Halit Yanıkkaya and Zeynep Aktaş Koral. In this study, the authors empirically investigate the effects of agricultural support payments on Turkish olive oil exports for 2000 - 2014 period. It employs an aggregate export demand model by utilizing the OLS estimation method. Their study finds that although the estimated coefficients of all variables have expected signs, only domestic production and consumption of olive oil and world olive oil prices significantly affect Turkish olive oil exports. Agricultural supports payments implemented in Turkey are not effective to raise olive oil exports though. They concluded that the more domestic production and less consumption of olive oil and the higher world olive oil price, the more exports of olive oil.

In the last chapter – “Economic Efficiency of Common Property (Shamilat Land) in the Province of Khyber Pakhtunkhwa Pakistan: A Case Study of District Charsadda, Ansa Javed Khan and Sajjad Ahmad Jan and Ghazala Yasmeen look into the common ownership of agricultural land which has always been a source of socio, cultural, economic conflicts and other disputes. This study was conducted to explore the remedies of impediments of these divergences particularly in rural set-ups where the issue became more accentuated as common property (land) is majorly held by elite group of the area. They made an attempt to assess the quantum of lands under common ownership and are owned by different clans in the study area. They tried to find out the relationship between the issue and consequences of Shamilat or common property with the overall effects on land productivity. Their analysis, at the end, exhibited that common ownership upon lands is major problem causing inefficiency in production of agricultural land. The overall effects of the common property of the Shamilat owners have increased conflicts among the clans and within the clans. The unequal distribution of wealth among the clans led to social disequilibrium. The unequal distribution of land has also decreased the efficiency and output of land.

Economics issues have increased rapidly in recently. Some issues are important problems which its solution really hard. This book is included papers from microeconomics, macroeconomics as well as international economics and development of economics. All chapter of this book was presented in European Congress on Economic Issues: Unregistered “Youth” Employment: Impacts, Policies, Remedies, and Local Practices. According to the feedbacks from the conference, authors improved their presentation to publish in this book.  The expectancy of this book is that researchers may get new ideas, solutions and afflatus for their new studies. At the at, as editor, we would like to thank authors who sent their paper for publication in this book.

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References

Johnson,  D. Gale (2017) “Agricultural economics”, Encyclopedia Britannica, 5 June 2017, https://www.britannica.com/topic/agricultural-economics (accessed on 20.06.2017)

American Economic Association (2017) “JEL Classification Codes Guide”, https://www.aeaweb.org/jel/guide/jel.php, (accessed on 20.06.2017)

Bondarenko, Peter “5  of the World’s Most-Devastating Financial Crises”, Encyclopedia Britannica, https://www.britannica.com/list/5-of-the-worlds-most-devastating-financial-crises, (accessed on 20.06.2017)

Baily, Martin Neil and Elliott, Douglas J. (2013) “The Role of Finance in the Economy: Implications for Structural Reform of the Financial Sector”, Brookings Report, 11 July, https://www.brookings.edu/research/the-role-of-finance-in-the-economy-implications-for-structural-reform-of-the-financial-sector/ (accessed on 20.06.2017)