Pelin Varol İyidoğan - Academia.edu (original) (raw)

Papers by Pelin Varol İyidoğan

Economic Journal of Emerging Markets

Purpose ― The paper queries the impacts of income inequality on economic growth in selected advan... more Purpose ― The paper queries the impacts of income inequality on economic growth in selected advanced and emerging market economies by adopting nonlinearity and endogeneity. Methods ― This research analysis is based on a balanced panel from 1996 to 2018 and employs the dynamic panel threshold analysis after baseline estimations with the fixed-effect, system Generalized Method of Moments, and difference Generalized Method of Moments. Findings ― This study finds a nonlinearity between income inequality and economic growth. Income inequality has a significant threshold effect on the growth of both panels. Besides, the threshold effect of emerging market countries is higher than the level for advanced countries. This means emerging market economies are negatively affected above the estimated threshold value according to the advanced economies. Implication ― This paper supports that inequality may harm much more economic growth above a specific level. On the other hand, these distorting e...

Journal of Business, Economics and Finance, 2013

The aim of this study is to explore the relationship between budget deficit and the current accou... more The aim of this study is to explore the relationship between budget deficit and the current account deficit for Turkey over the period 19872005. Considering the structural breaks in the series, the stationarity analysis is employed by means of Zivot- Andrews unit root test. In the succeeding step of the methodology, by utilizing Toda Yamamato test, the causality relationship between the budget deficit and the current account deficit is examined. The empirical results indicate that current account deficit is a causing variable for the budget deficit in Turkish economy.

Journal of Economic Cooperation and Development, 2013

The aim of this study is to examine the causal relation between financial deepening and economic ... more The aim of this study is to examine the causal relation between financial deepening and economic growth by means of Smooth Transition Autoregressive (STAR) model-based Granger causality analysis applied to the monthly data of Turkey over the period 1998M1-2012M3. The results show that non-linear structure of the series should be considered as the evidence from linear and non-linear causality analysis differs. According to non-linear Granger causality analysis, the financial deepening is found to be causing variable for economic growth in Turkey.(ProQuest: ... denotes formulae omitted.)IntroductionThe financial deepening attributed to the development of financial markets has a crucial role in growth process since it provides the efficient allocation of accumulated savings to productive sectors. Though the contribution of finance on economic growth is theoretically postulated, the relation should be examined empirically due to the discrepancies in the regarding literature. According t...

The empowerment of women as a priority of economic development is a crucial issue for all economi... more The empowerment of women as a priority of economic development is a crucial issue for all economies, particularly for developing ones. Supporting employment is an inevitable aspect of women empowerment which enhances the socioeconomic conditions, nominately for the ones being a member of low-income households. As a developing country Turkey also tackles with the trouble of low labor force participation rate of women. More clearly, in 2018, the regarding rate was % 34 which is far more behind the developed economies. Furthermore, the rate of women entrepreneurship is low as well, that corresponds to around % 1.5 of employed women. Therefore, within the scope of gender equality, measures supporting the employment and entrepreneurship of women become the focus of economy and social policies. Regardingly, microcredit financing emerges as a policy solution for employment and other socio-economic struggle areas of women. In this context, this study aims to analyze the efficiency of microc...

Panoeconomicus, 2018

This study aims to examine the sustainability of current account deficits for Hungary, Poland, Cz... more This study aims to examine the sustainability of current account deficits for Hungary, Poland, Czech Republic and Turkey over the period 1998Q1:2014Q2, with a special attention to the Turkish case, by applying the theoretical model of Steven Husted (1992). The main motive for the choice of time span is that the period comprises the outcomes of two important crises Turkish economy experienced in 2001 and 2008. The empirical testing procedure of the sustainability is twofold so as to be linear and non-linear. Both linear and non-linear test results provide evidence that the current account deficit is unsustainable for Turkey, Poland and Czech Republic. On the other hand, linear and non-linear test results lead to a conflicting evidence for Hungary. We conclude that there is a need to reduce the current account deficit for the countries examined. Otherwise, a sharp adjustment may be inevitable.

Transylvanian Review of Administrative Sciences, 2017

We examine the relation between the government consumption expenditure and output growth volatili... more We examine the relation between the government consumption expenditure and output growth volatility in 57 low and middle income countries by using both static and dynamic panel methods. It seems that the results of these methods largely differ from each other. Contrary to some previous results reported in the literature, we present a strong evidence for a negative relation between government expenditure and volatility in low and middle income countries. We also conclude that the volatilities of government consumption, trade openness and investment are signifi cant in explaining the growth volatility. To have a more stable economy, policy makers in these countries should pay more attention to some issues. In this context, we think that a change in the tax and expenditure system in order to make automatic stabilizers work better would be helpful. Additionally, it is important to have a sound fi scal and monetary position to effectively carry out countercyclical policies when needed. Moreover, adopting and implementing clear and fl exible rule-based economic policies should be considered. Finally, improving the institutional structure and policy making capacity must be an ultimate aim to reduce the economic volatility.

Acta Oeconomica, 2017

It is suggested that international trade has a positive effect on the growth rate of economies. A... more It is suggested that international trade has a positive effect on the growth rate of economies. Although a vast literature has illustrated that open or more liberalised economies grow faster, the specific factors that promote this process have only recently begun to be investigated. We belive that there is a non-linear relationship between trade and growth, with the impact depending on a number of macroeconomic factors, i.e. the magnitude and even the direction of the effect of trade on economic performance might depend on other macroeconomic variables. Within this framework, our study aims to investigate the possible non-linearity in the trade-growth relationship, with a special focus on the financial deepening level for the selected Central and Eastern European (CEE) countries. Unlike the existing empirical literature on trade-growth nexus for the CEE economies, we utilise threshold regression techniques, where we allow the size and direction of the impact of trade on growth to di...

Prague Economic Papers, 2017

We examine the relationship between the government size and economic growth by usingthreshold reg... more We examine the relationship between the government size and economic growth by usingthreshold regression model and quarterly data over the period 1998:1–2015:1 for Turkey. Our results provide a strong evidence for the existence of a non-linear relationship. The estimated threshold levels, as a percentage of GDP, are 16.5 for the government total expenditures, 12.6 for consumption expenditures and 3.9 for investment expenditures. We find that an increase in the government size leads to a significant rise (decline) in economic growth rate when the government size is below (above) the threshold level, confirming the predictions of Armey curve. Our findings have a clear policy implication: since the realized government consumption and total expenditures are well above the estimated threshold levels, a reduction in the government size would boost the growth rate.

Procedia Economics and Finance, 2016

Domestic debt is an important tool of government finance for the economies which are vulnerable t... more Domestic debt is an important tool of government finance for the economies which are vulnerable to budget deficits arising from government expenditures exceeding revenues. This tool used for government fiscal policy is a determinant of macroeconomic stability due to the effects on growth, employment and investment variables. In this context, the analysis of domestic debt dynamics has a vital importance especially for developing economies. As a developing economy for Turkey, the deterioration of fiscal balance after 1990's has led to a consistent increase in domestic debt. Aftermath of 2001 crises, domestic debt was restrained by the fiscal discipline which came into prominence by "Transition to Strong Economic Program". In this regard, our study examines the structure of domestic debt process in Turkish economy over the period 1998-2015. Firstly, we investigate the linearity of the domestic debt series. Following the examination of non-linearity, we analyze the transition characteristics of domestic debt series by means of STAR (Smooth Transition Autoregressive) model.

Anadolu Üniversitesi Sosyal Bilimler Dergisi, 2014

The aim of the study is to explore the causality relationship between the budget balance and the ... more The aim of the study is to explore the causality relationship between the budget balance and the current account balance of Turkey. Differently from the literature, the causality relationship is examined by considering the volatility of the variables in question. Accordingly, the multivariate GARCH (MGARCH) methodology for modelling the volatility and 1987-2005 quarterly data of Turkey are utilized. Depending upon the results of the selection criterion and autocorrelation tests, constant conditional correlation (CCC) model is determined as the appropriate MGARCH model for the analysis. The results of the Granger causality test applied on the CCC model find no evidence that supports the effect of the budget deficit on the current account deficit. Contrarily, the current account balance is found to be influential both on the budget balance and the volatility of the budget balance. Therefore it should be considered that the policies regarding the current account balance affects the budget balance as well.

Romanian Journal of Economic Forecasting, 2014

The aim of our paper is to explore empirically the existence of the long-run relationship and the... more The aim of our paper is to explore empirically the existence of the long-run relationship and the direction of causality between the budget and current account deficits for some selected Central and Eastern European economies. Bulgaria, Latvia, Lithuania, Poland, Romania, Serbia and Slovenia are the sample countries. The empirical analysis hinges on the Pesaran, Shin, and Smith (2001) bounds testing approach to co-integration and Granger non-causality. No evidence in favor of twin deficits hypothesis has been obtained for the selected countries, except for Bulgaria, as the results support non-causality.

Journal of Business, Economics and Finance, 2014

Our paper aims to examine the sustainability of Turkish fiscal stance over the period 2006:1-2013... more Our paper aims to examine the sustainability of Turkish fiscal stance over the period 2006:1-2013:3. The long-run relationship between the tax revenues and the government expenditures are analyzed with regard to the framework of Hakkio and Rush (1991) by employing the bounds testing methodology of Pesaran, Shin and Smith (2001) which test the cointegration in terms of whether the series are I(0), I(1) or mutually cointegrated. To investigate the degree of fiscal sustainaibility, we estimate a long-run ARDL model. We find evidence of weak sustainability condition since the empirical results reveal the existence of cointegration relation though the long-run coefficient is found to be smaller than one.

Romanian Journal of Economic Forecasting, 2017

The aim of our study is twofold: i) we examine the effect of aging on public health expenditures;... more The aim of our study is twofold: i) we examine the effect of aging on public health expenditures; and ii) investigate the fiscal burden of the health expenditures over the period 1965-2012 for selected OECD countries. As empirical methodology, we perform nonlinear unit root test proposed by Kapetanios et al. (2003). Afterwards, we employ Seo (2006) cointegration test based on a threshold vector error correction model (TVECM). We find evidence supporting the impact of aging population on the public health expenditures, thus on the tax burden for all countries with the exception of Japan, Sweden and the US.

Problems and perspectives in management, 2017

The degree of integration to the international capital markets is a crucial issue for the economi... more The degree of integration to the international capital markets is a crucial issue for the economic policy implementations in developing countries. A major determinant of the degree of international capital mobility is the saving-investment association. The degree of capital mobility through the domestic saving-investment interaction is first analysed by Feldstein and Horioka (1980) in a sample of OECD countries and 1960-1974 period. The empirical results of the paper supporting the dependency of domestic investments on the domestic savings are not consistent with the high capital mobility in OECD countries. This conflict is defined in the related literature as “Feldstein-Horioka Puzzle”. In this study the validity of Feldstein-Horioka puzzle for Turkey is investigated by means of World Development Indicators (WDI) annual data from 1968 to 2008 and Pesaran et al. (2001) cointegration method.

The notion that countries' balance of payments accounts are subject to natural laws and follo... more The notion that countries' balance of payments accounts are subject to natural laws and follow a regular path goes back to the 19 th century. According to this theory, namely the balance of payments stages hypothesis, there is a causal and linear connection between the balance of payments stages and economic growth. This paper evaluates the validation of the said hypothesis by applying multiple comparison tests to three different samples. The increasing level of income for the first four stages in the 175- and the 62-country samples supports the stages hypothesis. The contrary situation observed after the fourth stage could be interpreted in favor of the non-linear structure of the variables related to the hypothesis. This interpretation should be done cautiously as the level of income increases at the last stage for G-7 countries.

Transylvanian review of administrative sciences, 2014

In the corruption literature, most of the studies indicate that corruption has adverse effects on... more In the corruption literature, most of the studies indicate that corruption has adverse effects on the investment environment and thus it diminishes foreign direct investment (FDI) inflows. However, regarding the so-called adverse effects between FDI and corruption, it is noticed that some studies reached to conclusions in the opposite direction. In this study, the causality relationship among corruption, political risk, industrial production index (as a proxy to gross domestic product) and FDI entrance variables for Turkey over the period 1992M01-2010M12 is analyzed by means of Pesaran, Shin and Smith (2001) bounds test approach of cointegration and error correction methods. As a result, it is found that corruption has distortive effects on FDI in Turkey both for short and long run periods and this indicates that ‘helping hand’ corruption does not exist in Turkey. In addition, in the long run, FDI increases with raising income. Contrary to the expectations, it is detected that incre...

The aim of this study is to investigate of the relationship between foreign direct investment and... more The aim of this study is to investigate of the relationship between foreign direct investment and women employment. Focusing on services sector with the highest rate of women employment, we empirically attest whether foreign direct investment creates job opportunities for women and decrease the gender inequality for women in terms of employment. Propensity Score Matching techniques and Difference-in-Difference techniques are employed to firm level data for Turkish services industry over 2003-2012. The results of the study suggest that foreign direct investment increase women employment and create good jobs for women.

Üniversite Eğitim ve Araştırma Hastane Döner Sermayelerinin Mali Performansı ve Risk Alanları - Financial Performance and Risk Areas of University Training and Research Hospital Revolving Funds, 2018

Öz: Döner sermayeli işletmeler mali yönetim sistemimiz ve kurumsal performans üzerin-deki etkiler... more Öz: Döner sermayeli işletmeler mali yönetim sistemimiz ve kurumsal performans üzerin-deki etkileri nedeniyle kamu maliyesi açısından önemli kurumsal yapılar haline gelmiştir. Çalışmamızda 42 üniversite döner sermaye hastanesinin gelir, gider, borç yapısı 2009-2015 dönemi için panel veri analiziyle incelenmektedir. Analiz sonuçları döner sermaye gelir ve gider yapısındaki değişimin, döner sermaye açıkları ve borçları üzerinde anlamlı bir etkisi olduğunu göstermektedir. Üniversite döner sermayelerinde hizmet sunumu sü-recinde gelirlerdeki artış yanında harcama yönetimini iyileştirmeye yönelik olmak üzere atılacak somut adımlar mali performansın iyileşmesine neden olacaktır. Mali yönetimin hastanelerde disiplinler arası çalışmalarla etkinlik odaklı olmak üzere iyileştirilmesi ve iç kontrol sisteminin kurumsallaşması mali performansın iyileşmesi ve sürdürülebilirlik açısından kaçınılmaz görülmektedir. Abstract: Revolving funds have become critical institutions in terms of public finance due to our financial management system and the effects on corporate performance. In our study, the revenue, expenditure and debt structure of 42 university revolving fund hospitals are analyzed by panel data analysis for 2009-2015 period. The results of the analysis show us that change in the structure in income and expenses is a significant on revolving fund deficits and debts. The concrete steps to be taken to improve expenditure management beside increasing revenues in the university revolving funds will result in improving financial performance. The improvement of the fiscal management system based on the efficiency in the hospitals through interdisciplinary studies and the establishment of an effective internal control system are inevitable for ensuring better fiscal performance and financial sustainability.