Journal of Academic Opinion

The Effect of Foreign Direct Investments in Different Sectors on Economic Growth: The Case of Türkiye

Zeynep Arslan — 2024-12-30

Foreign direct investments, defined as a company purchasing a company operating in another country, establishing a partnership by increasing the capital of a newly established company, or establishing a production facility in another country, have become widespread as a result of increasing globalization movements in the world. Foreign direct investments are of great importance for developing countries because they provide the capital needed by the country without an interest burden. However, the impact of foreign direct investments made in different sectors on the economy varies. Therefore, analyzing foreign direct investments sectorally is of great importance in attracting these investments to the country. This study examines the relationship between economic growth and foreign direct investments made in different sectors in Turkey. Using data from the period 2010-2024, the study examines the effects of foreign direct investments made in the service, industry and agriculture sectors on the Gross Domestic Product. In addition, export, import and inflation variables were included in the analysis as explanatory variables and the effects of these variables were examined. As a result of the ARDL bounds test applied, it was determined that foreign direct investments in the service, industry and agriculture sectors had a significant and positive effect on the economy.

Does Foreign Direct Investment Increase Ecological Footprint? An Analysis of Countries Attracting the High Foreign Direct Investment

Serap Barış — 2024-12-30

This study aimed to investigate the impact of foreign direct investments on the ecological footprint. For this purpose, data for the period 1990-2021 of the 19 countries that attracting the high Foreign Direct Investment (FDI) were used. In order to determine the short and long-term effects on the FDI-ecological footprint relationship, the Panel Lag Distributed Autoregressive Model (Panel ARDL) was analyzed using the Pooled Mean Group (PMG) estimator. The analysis findings show that FDI have a positive effect on the ecological footprint. The fact that FDI increases the ecological footprint in the selected group of countries means that these countries are subject to environmental degradation and pollution by FDI. In addition, while economic growth, one of the explanatory variables used in the model, has a positive relationship with the ecological footprint, renewable energy has a negative relationship. As a result of the study, various policy recommendations were made to host countries to reduce the ecological footprint caused by FDI.

The A Research on the Effects of Consumer Loans, Exchange Rate, Oil Prices on the Current Account Balance in Turkiye of Consumer Loans on Changes in the Current Account Deficit in Turkiye

Esengül Salihoğlu — 2024-12-30

Current account balance/GDP (CABGDP) is an important indicator for understanding a country's position in the world economy and its external economic sustainability. Persistent current account deficits in CABGDP pave the way for many structural problems for economies. Therefore, it is important to evaluate the factors that cause current account deficit formation. This study aims to analyze the impact of consumer loans, exchange rates, and oil prices on CABGDP in Turkey. For this purpose, CABGDP, change in consumer loan volume (CREDBUYU), oil prices (LNBRENT), and exchange rate (LNREDK) are included in the analysis. Quarterly data sets for the period between 2010:Q2 and 2024:Q1 are used in the analysis. The analysis aims to examine the short- and long-run effects of changes in the volume of bank consumer loans, exchange rate, and oil price on the current account balance in Turkey. In addition, it is also aimed to investigate whether there is a long-run cointegration relationship between the variables and if there is a relationship, how long it takes for the equilibrium to occur with the “error correction coefficient.” According to the ARDL bounds test results, the variables are cointegrated in the long run. It is observed that the short-run deviations in the analyzed series disappear over time and equilibrium is reached in the long run. In the short run, it is estimated that CABGDP decreases when CREDBUYU increases. However, CABGDP increased when CREDBUYU(-1) increased. According to the findings of the analysis, the effect of the increase in the volume of consumer loans in the current period and the increase in the lagged period on the ratio of the CABGDP is different and in this case, credit expansion should be carefully managed. In the short run, it is estimated that its own lagged values have a positive effect on CABGDP, while the 2018 crisis dummy variable has a negative effect. In the long run, it is estimated that CABGDP decreases when LNBRENT increases. According to the findings of the analysis, credit policies in the short run and energy policies in the long run have significant effects on the current account balance.

Behavioral Economics in The Era of Digital Subscriptions: Choice or Manipulation

Cezara Georgiana Radu — 2024-12-30

The current research paper explores the relationship between behavioral economics and the practices used in the current economic environment in which a large part of consumption is done through digital subscriptions, identifying whether they represent genuine consumers’ choice or can be considered a form of manipulation. In the current context of accelerated digitalization, subscriptions for services such as streaming platforms, software applications, and educational portals, have become ubiquitous, determined and supported by sophisticated marketing strategies and data-based algorithms. At the same time, the study highlights how the design based on choice architecture and the use of AI do both contribute to the personalization of the user experience and the exploitation of cognitive vulnerabilitites. Based on a bibliometric analysis, the research identifies the connections between consumers behaviour and business models based on digital subscriptions. The study highlights the importance of personalized offers and choice architecture in influencing consumer decisions, often to teir detriment. At the same time, the paper exploers the possibility of non-ethical practices of digital subscription based business models in manipulating consumers’ choices and behavior. The results can sustain that the economic succes of business models based on digital subscriptions depends strongly on the equilibrium between satisfying consumer needs and generating a stable profit for supplers. Hence, the research contributes to the scientific literature by providing an understanding of how digitalization is transforming consumers’ choices and offers insights into the responsability of those business models to always call for good practices.

Exchange Rate Pass-Through In The Turkish Economy: A Time Series Analysis For The 2009-2023 Period

Sacit Sarı — 2024-12-30

This study examines the exchange rate pass-through (ERPT) effect on the Consumer Price Index (CPI) and Producer Price Index (PPI) in the Turkish economy, using monthly data from 2009:01 to 2023:11. The analysis employs the Residual Augmented Least Squares (RALS) methods to determine the impact of exchange rate fluctuations on domestic prices. The findings reveal that the exchange rate has a significant and strong effect on both CPI and PPI. A 1% increase in the exchange rate is found to raise CPI by approximately 0.71% and PPI by 1.13%. Additionally, oil prices are found to have a significant impact on both consumer and producer prices, while the output gap variable has a negative but relatively insignificant effect on both price indices. These results indicate that exchange rate fluctuations have substantial implications for price stability in the Turkish economy, emphasizing the importance of maintaining exchange rate stability. Policymakers should develop more effective and coordinated exchange rate policies to mitigate the adverse effects of exchange rate volatility on domestic prices. Furthermore, it is recommended to invest in alternative energy sources and improve energy efficiency to minimize the impact of energy costs on inflation.

Analysis of Türkiye’s Macroeconomic Performance for the Period 2000–2023 with Multi–Criteria Decision Making Approach

Yunus Emre Birol — 2024-12-30

The main purpose of this study is to evaluate Türkiye's macroeconomic performance for the period 2000–2023. Various criteria have been determined for performance analysis and these criteria are economic growth, unemployment rate, inflation rate and current account balance. In the study, performance analysis was performed using TOPSIS and COPRAS techniques, which are multi-criteria decision-making methods, with a 24 year alternative and 4 economic indicator criteria. As a result of the analysis, the performance order of the years was determined according to TOPSIS and COPRAS techniques. It was determined that the years in which Türkiye showed the highest and lowest performance were similar in both methods. Although there were slight changes in the rankings according to the methods, the years in which Türkiye's macroeconomic performance was the highest were 2004, 2005 and 2015, and the years in which macroeconomic performance was the lowest were 2001, 2022 and 2023. In the years in which performance was higher, high economic growth and low inflation were the determinants, and in the years in which performance was lower, high inflation and current account deficit were the determinants. The large increase in inflation rates, especially in 2001, 2022 and 2023, has negatively affected economic performance. These results show that inflation has a significant impact on Türkiye's macroeconomic performance. The economic crisis experienced in Türkiye in 2001, the COVID-19 global pandemic, which continues to have economic effects in the world and in Türkiye, and the low interest rate policy implemented in Türkiye are the most important features of 2022 and 2023.

The Social Function Of Cash Waqfs

Murat Türk — 2024-12-30

Cash waqfs have played an important role in the social and economic structures of Ottoman society in the historical process and are organisations based on philanthropy and social solidarity established to meet the needs of individuals and communities. Cash waqfs have contributed to increasing social welfare and solidarity by creating an important resource in the provision of education, health, housing and other basic services. Within the framework of today's social welfare approach, understanding the social position of cash waqfs is of critical importance from the perspective of social service, social assistance and social security. This study aims to determine the place of these organisations in the social welfare system by examining cash waqfs with a multidisciplinary approach in line with the data obtained from the fields of economics, finance, accounting and social policy sciences. The research aims to better understand the functions and social impacts of these organisations in the fields of social services, social assistance and social security by analysing secondary sources on cash waqfs. In this context, the historical and contemporary functioning of cash waqfs, their contributions to social needs and their impact on social welfare will be analysed comprehensively. This study aims to provide a framework for determining the place of cash waqfs in the social welfare system in the historical process.