Financial and Economic Issues in Emerging Markets
Financial and Economic Issues in Emerging Markets
Contributor(s): Tuğrul Kandemir (Editor), Mehmet Fatih Buğan (Editor)
Subject(s): Energy and Environmental Studies, Environmental and Energy policy, International relations/trade, Economic development, Financial Markets, Tourism, ICT Information and Communications Technologies, Socio-Economic Research, Transport / Logistics
Published by: Özgür Yayın Dağıtım Ltd. Şti.
Keywords: financial markets; risk; return; exchange rate; stock market; emerging markets; economic growth; energy; logistics;
Summary/Abstract: The world is experiencing a severe change and transformation in every field with the effect of globalization that emerged in the last quarter of the 20th century. These changes make themselves felt primarily in the economic area. In particular, the globalization and liberalization of financial markets bring along a series of changes, opportunities, and risks in both economies and financial systems worldwide. Owing to the effect of economic globalization, and the emergence of complex and dynamic financial transactions that significantly redound the uncertainties, notedly in emerging markets, have gradually increased market participants’ financial risks. This process has augmented the efforts of banks, non-bank financial institutions, institutional investors, and companies to search for methods and tools to better control the risks they face by applying complex strategies to hedging. To this end, parallel to the development of new financial instruments and markets that led to the emergence of complex and dynamic financial transactions, risk measurement and management techniques have also significantly changed. The global risks that have recently arisen from different sources like health, energy, food, climate, military, politics, etc., are more evident in the economic area. Many studies have been conducted in the academic literature to measure and understand the economic impacts of these global risks based on different sources and to develop solutions. This study, titled “Economic and Financial Issues in Emerging Markets,” is the product of such an effort. This study contains fifteen chapters written by twentynine academicians and experts in their fields. The book includes mainly theoretical and applied studies on risk, return, exchange rate, stock market, emerging markets, economic growth, energy, and logistics.
- E-ISBN-13: 978-975-447-415-2
- Print-ISBN-13: 978-975-447-414-5
- Page Count: 366
- Publication Year: 2022
- Language: Turkish, English
Hisse Senedi Fiyatları ile Döviz Kuru Arasındaki Nedensellik İlişkisi
Hisse Senedi Fiyatları ile Döviz Kuru Arasındaki Nedensellik İlişkisi
(Causal Relationship between Share Prices and Exchange Rate)
- Author(s):Yunus Yılmaz, Yıldız Yıldız
- Language:Turkish
- Subject(s):Economic history, International relations/trade, Transformation Period (1990 - 2010), Present Times (2010 - today), Financial Markets
- Page Range:1-19
- No. of Pages:19
- Keywords:Exchange Rate; Share Prices; BIST Trade Index;
- Summary/Abstract:In this study, it is aimed to investigate the relationship between the dollar rate and the BIST Trade Index by using the data for the 2003:01-2022:03 periods. For this purpose, ARDL bounds test was applied for the cointegration relationship between the variables and then Granger causality test was applied for the causality relationship between the variables. As a result of the analysis, a cointegration relationship was found between the variables. In addition, according to the results of the causality test, a one-way Granger causality relationship was determined from the exchange rate to the BIST Trade Index. As a result of the analysis, it has been determined that there is a long-term relationship between the BIST Trade Index and the USD rate. In the short term, it was determined that an increase in exchange rates negatively affected the relevant BIST sector index. In this context, it is thought that the volatility in exchange rates may affect the costs, and accordingly, the profitability may be affected and it will be reflected in the stocks. As a result of the causality test, it has been revealed that the goods market theory, in which it is asserted that the local currency, which appreciates, harms the exporters, so that such company shares will become relatively less desirable, is valid.
E7 Ülkelerinde Döviz Kuru ile Borsa Getirileri Arasındaki İlişki
E7 Ülkelerinde Döviz Kuru ile Borsa Getirileri Arasındaki İlişki
(Relationship Between Exchange Rate and Stock Returns in E7 Countries)
- Author(s):İbrahim Yenigün, Şükriye Gül Reis
- Language:Turkish
- Subject(s):International relations/trade, Financial Markets
- Page Range:21-47
- No. of Pages:27
- Keywords:Exchange Rate; market indices; E7 Countries;
- Summary/Abstract:In this study, it was examined whether there is a relationship between exchange rates and market indices in E7 countries. As it is known, countries are classified according to their level of development and economic status: least developed countries, less developed countries, developing countries and developed countries. The countries used in this research, which are included in the literature as E7 (Emerging 7) are among the developing countries when their development levels and economies are examined, and they are the countries with the best economy among the developing countries. These countries are: India, Indonesia, China, Turkey, Brazil, Russia and Mexico. In the study using weekly data for the period 01.01.2010-28.02.2021; As the exchange rate, the US Dollar rate of the countries and the market indices with the highest trading volume of the countries were used. In order to reveal the relationship between exchange rates and market indices in these countries, VAR (Vector Autoregressive Model) analysis, Granger causality analysis and impulse response analysis were applied. The results obtained from the analyzes show that there is a relationship between the exchange rate and the stock market in countries other than Brazil and India, generally the cause from the exchange rate to the stock market in Mexico, while in other countries (China, Russia, Turkey and Indonesia) there is a relationship between the exchange rate and the stock market. It turns out that there is correct causality.
Faiz Oranı, Ülke Kredi Riski ve Döviz Kurunun Turizm Hisselerine Etkisi: Gelişmekte Olan Ülke Türkiye Örneği (Borsa İstanbul Turizm Endeksinde Bir Uygulama)
Faiz Oranı, Ülke Kredi Riski ve Döviz Kurunun Turizm Hisselerine Etkisi: Gelişmekte Olan Ülke Türkiye Örneği (Borsa İstanbul Turizm Endeksinde Bir Uygulama)
(The Effect of Interest Rate, Country Credit Risk and Exchange Rate on Tourism Stocks: The Case of Developing Country Turkey (An Application in Borsa Istanbul Tourism Index))
- Author(s):Fatih Günay
- Language:Turkish
- Subject(s):Business Economy / Management, International relations/trade, Financial Markets, Tourism
- Page Range:49-78
- No. of Pages:30
- Keywords:economics; financial markets; Exchange Rate; toursim stocks;
- Summary/Abstract:Although technological developments facilitate access to information, the rapidly accessible information has become one of the determining factors in the movements of economic and financial markets. Such that the effects of the disclosed information on financial and capital markets can be instantaneous, and the impact of the relevant information on financial assets is observed for a certain period of time, either directly or indirectly. In the study, the benchmark interest (Turkey 2-year government bond rate) from macroeconomic factors, the 5-year credit default swap premium (Credit Default Swap – CDS) which is Turkey's credit risk indicator, and the euro exchange rate, the common currency of the European Union, which covers the main markets of the tourism sector. Besides, it is examined the relations between the US dollar and tourism sector stocks, which are highly influential and essential in terms of the real economy and financial markets. In line with the purpose, in the study, long and short-term relationships were examined with cointegration and causality analyses in monthly observations, and the effects of variables on the tourism index were tried to be determined by impact-response analysis and variance decomposition test. In this study, in which the relations of the Borsa İstanbul Tourism index with the interest rate, CDS premium, euro rate and dollar rate are examined in monthly observations, it can be said that the stocks of tourism enterprises are affected by macroeconomic factors, sector and business-specific conditions other than the tested macroeconomic conditions. Tourism stocks are weakly related to the interest rate and country risk premium, as well as the euro and dollar exchange rates. Considering that the tourism sector, which has a long return on investment, is affected by many events, it can be stated that these results are appropriate with the investor risk-return expectation.
The Volatility Spillover Effects Among Six Major Asian Sovereign CDS Markets
The Volatility Spillover Effects Among Six Major Asian Sovereign CDS Markets
(The Volatility Spillover Effects Among Six Major Asian Sovereign CDS Markets)
- Author(s):Hüseyin Özdemir
- Language:English
- Subject(s):Economic history, Transformation Period (1990 - 2010), Present Times (2010 - today), Financial Markets
- Page Range:79-100
- No. of Pages:22
- Keywords:CDS market; Asia; volatility spillover;
- Summary/Abstract:This study examines the volatility spillover indexes among the 5-year maturity credit default swaps of six major Asian countries (China, Indonesia, Korea, Malaysia, Thailand, and Vietnam) from June 2008 to August 2022. We find that China, Indonesia, and Vietnam are net receivers of the spillovers, whereas South Korea, Malaysia, and Thailand are net transmitters of volatility in the Asian CDS market. Further, the total volatility spillover index is around 79%, suggesting a very high level of connectedness among these Asian CDS markets and implying high systemic risk among markets. Moreover, our empirical finding provides strong evidence that the total spillover index can be used as an early warning of the rise of uncertainty in South Korea and China, especially during crisis periods. The fact that volatility can be transmitted between CDS markets shows that an increase in volatility in one credit swap market is a clear sign of an increase in volatility in other sovereign CDS markets.
Determinants of Overall Risk-Taking and Financial Risk Tolerance: Experimental Evidence from Turkey
Determinants of Overall Risk-Taking and Financial Risk Tolerance: Experimental Evidence from Turkey
(Determinants of Overall Risk-Taking and Financial Risk Tolerance: Experimental Evidence from Turkey)
- Author(s):Hüseyin Burgazoğlu, Salih Ülev, Mervan Selçuk
- Language:English
- Subject(s):Business Economy / Management, Micro-Economics, Financial Markets, Socio-Economic Research
- Page Range:101-128
- No. of Pages:28
- Keywords:Turkey; Risk-Taking; Financial Risk Tolerance;
- Summary/Abstract:This study aims to investigate the relationship between demographic characteristics and overall risk-taking levels, and financial risk tolerance. Using the microdata set of 15,041 respondents, we examine the factors influencing the level of individuals’ overall risk-taking level and financial risk tolerance for Turkey. Although many studies investigate the effect of demographic parameters on risk tolerance for different countries, there is no study that examines the determinants of risk tolerance using comprehensive data that represent the whole Turkish population. The study’s main contribution is the representation of the population of Turkey because the sample covers 89% of the total households in Turkey and the participants are the decision-makers in their households. The findings demonstrate that while gender, marital status, and ability to plan for the future affect individuals’ overall risk-taking level and financial risk tolerance, education only affects financial tolerance. There is a weak but significant negative relationship between age and overall risk-taking level and financial risk tolerance.
Are Countries’ R&D Expenditures Effective on Financial Development and Economic Growth?: An Application on Some Countries in the Developing Economies Class in Europe
Are Countries’ R&D Expenditures Effective on Financial Development and Economic Growth?: An Application on Some Countries in the Developing Economies Class in Europe
(Are Countries’ R&D Expenditures Effective on Financial Development and Economic Growth?: An Application on Some Countries in the Developing Economies Class in Europe)
- Author(s):Nazan Güngör Karyağdi, Ahmet Şit, Yunus Yılmaz
- Language:English
- Subject(s):Developing nations, Economic development, Financial Markets
- Page Range:129-148
- No. of Pages:20
- Keywords:Europe; Economic Growth; Financial Development; Developing Economies;
- Summary/Abstract:The aim of this study is to investigate the relationship between countries' R&D expenditures and financial development and economic growth. For this purpose, annual data for the period 2003-2020 of 7 countries in the Developing Economies Class in Europe were used. As dependent variables, stock market indices and growth rates, which represent the highest share in countries representing financial development, and the share of countries' R&D expenditures in GDP are used as independent variables. As a method, Westerlund cointegration test, AMG and MGE coefficient estimators were used. As a result of the cointegration test, it is seen that there is a cointegrated relationship between the variables in the long run. As a result of coefficient estimators, positive impact of R&D expenditures on financial development in Hungary, Turkey, Romania and Ukraine; It is seen that it has a negative effect in Russia, Bulgaria and Poland. In addition, it was concluded that R&D expenditures had a positive effect on growth in Bulgaria, Poland, Turkey and Hungary.
Investigation of the Relationship of Unemployment Rates, Net Foreign Direct Capital Investments and Gross Domestic Increasing Rate with ARDL and Toda Yamamoto Tests: Turkey (1991-2020)
Investigation of the Relationship of Unemployment Rates, Net Foreign Direct Capital Investments and Gross Domestic Increasing Rate with ARDL and Toda Yamamoto Tests: Turkey (1991-2020)
(Investigation of the Relationship of Unemployment Rates, Net Foreign Direct Capital Investments and Gross Domestic Increasing Rate with ARDL and Toda Yamamoto Tests: Turkey (1991-2020))
- Author(s):İbrahim Arslan, Yusuf Bozgeyik, Tuğçe Metin
- Language:English
- Subject(s):Economic history, Labor relations, Transformation Period (1990 - 2010), Present Times (2010 - today), Socio-Economic Research
- Page Range:149-169
- No. of Pages:21
- Keywords:macroeconomics; unemployment; Turkey; economic history;
- Summary/Abstract:The concept of unemployment has been one of the leading macroeconomics topics that national economies have been trying to analyze since the Industrial Revolution. This is because unemployment is not only an individual problem, but also a comprehensive social problem with a negative multiplier effect. When the literature on unemployment is reviewed, there are many studies on the causes and consequences of unemployment and policy recommendations for the solution of unemployment. However, although the number of studies on it is high, only fiew talk about the existence of a policy proposal that has yet completely solved the unemployment problem. In this study, considering the 1991-2020 data, Turkey’s net foreign direct investment data and the relationship between the rate of increase in gross domestic product and the unemployment rate were examined through the ARDL limit test and Toda Yamamoto tests with the Eviews 9 package program. The goal of the study is to analyze whether there is a relationship between the variables in the short or long term, the causality between the variables and the time required for a possible shock effect in unemployment rates to pass through the system. In the first part of the study, the conceptual framework was included, in the second part, the samples, methods and results of similar studies in the literature were mentioned, the analysis findings of the study were shared in the third part, and comments and suggestions regarding the analysis results were shared in the last part.
Jeopolitik Riskin Gelişmekte Olan Piyasalar Üzerindeki Etkileri
Jeopolitik Riskin Gelişmekte Olan Piyasalar Üzerindeki Etkileri
(Effects of Geopolitical Risk on Emerging Markets)
- Author(s):Eray Gemici, Yunus Kiliç
- Language:Turkish
- Subject(s):Economic history, Transformation Period (1990 - 2010), Present Times (2010 - today), Financial Markets, Geopolitics
- Page Range:171-197
- No. of Pages:27
- Keywords:Emerging Markets; geopolitics; geopolitical risk; BRICS; Turkey;
- Summary/Abstract:In this study, the relations between the stock market indices of BRICS (Brazil, Russia, India, China, South Africa) countries and Turkey and the geopolitical risk index between the period 1995:10-2019:4 were examined using panel data methods. First of all, it was seen that there is a strong cross-sectional dependency among the countries included in the panel. This shows that a shock that occurred in one of the countries in the panel affected other countries as well. Then, according to the results of the second generation panel unit root test used in the case of cross-sectional dependence, it was seen that the series examined were not stationary in their level values. The said non-stationaryness was also examined with panel break tests and it was determined that the non-stationaryness was not caused by structural breaks. The cointegration test and cointegration coefficient estimator, which allow cross-section dependence, were used to examine the long-term relationship between the series. Finally, the causality relationship between the series was examined with the Panel causality test, which takes into account cross-sectional dependence and heterogeneity.
The Relationship Between Renewable Energy Consumption and Economic Growth in Selected Developed and Developing Economies
The Relationship Between Renewable Energy Consumption and Economic Growth in Selected Developed and Developing Economies
(The Relationship Between Renewable Energy Consumption and Economic Growth in Selected Developed and Developing Economies)
- Author(s):Cebrail Telek
- Language:English
- Subject(s):Energy and Environmental Studies, Environmental and Energy policy, Developing nations, Economic development
- Page Range:199-217
- No. of Pages:19
- Keywords:Renewable Energy; Economic Growth; Developing Economies;
- Summary/Abstract:Energy, a very important concept since the existence of man, is defined as the ability of a system to do work. With the increased use of machines in production as a result of the industrial revolution, the energy demand has increased, even more, making energy even more important to humans. Today, it is one of the most important factors that countries need to achieve sustainable economic growth and development…
The Relationship Between Renewable Energy Consumption, Oil Price, Gold Price, Exchange Rate, and Stock Market
The Relationship Between Renewable Energy Consumption, Oil Price, Gold Price, Exchange Rate, and Stock Market
(The Relationship Between Renewable Energy Consumption, Oil Price, Gold Price, Exchange Rate, and Stock Market)
- Author(s):Muhammed Fatih Yürük
- Language:English
- Subject(s):Energy and Environmental Studies, International relations/trade, Financial Markets
- Page Range:219-253
- No. of Pages:35
- Keywords:Renewable Energy; Oil Price; Gold Price; Exchange Rate; Stock Market;
- Summary/Abstract:In this study, the relationship between WTI crude oil price and the variables in which it interacts was analyzed. These variables are; Gold, Dollar Index, S&P 500 Energy, DJ Oil & Gas, and Renewable Energy Consumption. Among these variables, it has been examined whether the increase in Renewable Energy Consumption, in particular, affects crude oil prices. In the study, unit root tests of the series were made and the series was made stationary. Afterward, the appropriate number of delays was determined and the VAR model was created. After it was seen that the model met the assumptions, the impulse-response functions of the VAR model were calculated. The results of each variable were interpreted with variance decomposition analysis. The Granger causality test was performed for the status of the relationship between the variables. According to the Granger causality test results; Changes DJ in Oil & Gas index affect crude oil, changes in S&P 500 Energy and DJ Oil & Gas indices affect crude oil variable, while changes in DJ Oil & Gas and S&P 500 Energy Index affect the renewable energy consumption variable. In particular, no granger causality was found between the renewable energy consumption of crude oil and between renewable energy consumption and crude oil prices.
Determination of Optimal Security Measures in Nuclear Energy Investments: Strategy Recommendations for Emerging Markets
Determination of Optimal Security Measures in Nuclear Energy Investments: Strategy Recommendations for Emerging Markets
(Determination of Optimal Security Measures in Nuclear Energy Investments: Strategy Recommendations for Emerging Markets)
- Author(s):Hasan Dinçer, Duygu Yavuz, Serhat Yüksel
- Language:English
- Subject(s):Energy and Environmental Studies, Environmental and Energy policy, Financial Markets
- Page Range:255-272
- No. of Pages:18
- Keywords:optimal security measures; nuclear energy; Emerging Markets;
- Summary/Abstract:This study aims to define optimal security measures in nuclear energy investments. Within this context, selected criteria are evaluated with DEMATEL. Within this framework, four different criteria are selected with the help of analyzing similar studies in the literature. Financial issues may have an impact on the prevention of nuclear power plant accidents. In addition to this issue, organizational effectiveness of the nuclear energy investors can have a significant role in this regard. Thirdly, there is a strong need for qualified personnel to minimize the risks of the accidents. Finally, technological developments have a positive contribution to minimize the explosion risk in nuclear power plant.
A Study on Emissions Pricing in Maritime Transport and a Model Proposal
A Study on Emissions Pricing in Maritime Transport and a Model Proposal
(A Study on Emissions Pricing in Maritime Transport and a Model Proposal)
- Author(s):Cengiz Toraman, Elif Ulucenk
- Language:English
- Subject(s):Energy and Environmental Studies, Environmental interactions, Fiscal Politics / Budgeting, Transport / Logistics
- Page Range:273-294
- No. of Pages:22
- Keywords:carbon emissions; Transport; Maritime Transport; environment;
- Summary/Abstract:The aim of this study is to examine the proposals that they are submitted by the relevant authorities on the pricing of carbon emissions from maritime transport. The goal of zeroing emissions from maritime transport, which it has the highest share in international transportation, constitutes one of the most important environmental movements of today. In this context, by the relevant authorities have been proposed alternative financing approaches in order to raise capital for advanced engineering studies and technological developments that are needed to zero ship-sourced carbon emissions. The IMO, which is the maritime authority, has proposed an international carbon tax approach for pricing carbon emissions in the financial system, on the other hand, The EU Commission has planned to include to EU ETS the emissions from ships associated with the European continent. At the IMO meetings, the participants also proposed a new financing model on an international scale, to be called IMRF and to be financed by fuel tax. In the investigations, it has been concluded that international financing models are more effective approaches for the implementation of zero emission technologies.
Katılım ve Konvansiyonel Sigortacılığının Belirleyicileri
Katılım ve Konvansiyonel Sigortacılığının Belirleyicileri
(Determinants of Participation and Conventional Insurance)
- Author(s):Muhammed Hadin Öner
- Language:Turkish
- Subject(s):International relations/trade, Welfare systems, Financial Markets, Socio-Economic Research, Labour and Social Security Law
- Page Range:295-315
- No. of Pages:21
- Keywords:financial system; Conventional Insurance; insurance; Turkey;
- Summary/Abstract:The financial system has become a complementary and indispensable actor of the economies of the countries. The insurance sector, which is included in the financial system, has an important place especially in developed countries. Insurance in developing countries has reached a high growth volume. The interest of investors in the sector is increasing. At the same time, researchers and academics are also working intensively on insurance. The analysis of the factors affecting the development of insurance is important for the development of the sector and to reach its expected potential. This study focused on examining the factors affecting the development of the participation and conventional insurance sector in Turkey. Panel data analysis method was used the data of 2009Q4-2022Q2 period. According to the findings of the research, it was seen that gdp, bank size, foreign trade volume, interest rate and social security expenditures had a positive effect on the insurance sector. COVID-19 had a negative effect. It was determined that the inflation variable affected the insurance sector both positively and negatively. Participation and the development of the conventional insurance industry will gain importance through in-depth analysis of these findings.
Elderly Services Policies of Emerging Markets withinside the Context of Silver Economy (The Case of the Ministry of Family and Social Services of the Republic of Türkiye)
Elderly Services Policies of Emerging Markets withinside the Context of Silver Economy (The Case of the Ministry of Family and Social Services of the Republic of Türkiye)
(Elderly Services Policies of Emerging Markets withinside the Context of Silver Economy (The Case of the Ministry of Family and Social Services of the Republic of Türkiye))
- Author(s):Adnan Söylemez, Hakkı M. AY
- Language:English
- Subject(s):Government/Political systems, Welfare systems, Financial Markets, Socio-Economic Research, Labour and Social Security Law
- Page Range:317-341
- No. of Pages:25
- Keywords:Emerging Markets; silver economy; Elderly Services Policies; social policies;
- Summary/Abstract:As one of the essential political troubles of the twenty first century, populace getting older brings with it various demanding situations and possibilities for all societies. Keeping human beings lively and healthful is essential to maximize the capability contribution of the aged populace and combine paintings into social and monetary lifestyles and be capable of deal successfully with rising problems. As people’s life expectancy gets longer, issues related to aging have begun to be discussed and talked about more. The concept of active aging is one of them. With this concept, it is aimed to maximize the opportunities of the elderly, who have completed their long working life and retired with their own income, in terms of health, security and participation in social life. The Turkish government transfers a share of its budget to the elderly in terms of services and aids. In addition, thanks to the social policies implemented by local governments for the elderly, elderly citizens benefit from all services, especially transportation. Thanks to these services, elderly people continue their lives without being separated from the society.
Digital Transformation in Logistics: Lights-Out Logistics
Digital Transformation in Logistics: Lights-Out Logistics
(Digital Transformation in Logistics: Lights-Out Logistics)
- Author(s):Bulent Yildiz, Şemsettin Çiğdem
- Language:English
- Subject(s):ICT Information and Communications Technologies, Transport / Logistics
- Page Range:343-366
- No. of Pages:24
- Keywords:Logistics; Digital Transformation; digital technologies; logistics industry;
- Summary/Abstract:The fast growth of digital technologies is causing a lot of trouble in the logistics industry, which is causing the industry to change in a big way. The idea of "lights-out logistics," which refers to the automation of logistics operations through the use of digital technologies such as robotics, autonomous vehicles, and artificial intelligence, is one of the most significant shifts that has taken place. In this chapter, a summary of the lights-out logistics concept is presented, along with a discussion of its advantages, challenges, and potential effects on the logistics industry. Aside from that, the chapter focuses on the critical technologies and applications that enable lights-out logistics, as well as the strategies and best practices that businesses can use to successfully implement this concept. This chapter uses different case studies and examples to show how lights-out logistics can help businesses improve their operational efficiency, lower their costs, and improve the customer experience. A discussion of the future prospects of lights-out logistics and its potential to transform the logistics industry in the digital age serves as the chapter's conclusion.
