International Conference on Eurasian Economies 2019, 2019
This study aims to explore the long-term productivity dynamics of the economy of the Turkish Repu... more This study aims to explore the long-term productivity dynamics of the economy of the Turkish Republic of Northern Cyprus by using a simple Autoregressive Distributed Lag (ARDL) Model. More specifically, we aim to analyze the impact of macroeconomic instability and socio-economic infrastructure on total factor productivity over the 1977-2017 period. Additionally, this study develops a socio-economic infrastructure index by combining information from communication, energy, education and health indicators. The main result of this paper is that while total factor productivity is positively and significantly affected by the improvements in socio-economic infrastructure it is negatively affected from the external macroeconomic instability.
This study investigates the relationship between environmental performance and the comparative ad... more This study investigates the relationship between environmental performance and the comparative advantage of crude oil by incorporating the role of institutional quality in 28 oil-producing countries from 2002 to 2014. Using dynamic panel data analysis, the results show that environmental performance and institutional quality along with the conventional factors for comparative advantage are key determinants of the comparative advantage of crude oil. Specifically, while environmental performance negatively affects the comparative advantage of crude oil, it is also negatively associated with the comparative advantage of crude oil. These results are in support of the pollution haven hypothesis in resource-based industry, and it shows a bidirectional relationship between environmental performance and comparative advantage of producing crude oil. Further, the results revealed a vital role played by institutional quality in enhancing the comparative advantage of crude oil and environmental performance. More so, the environmental Kuznets curve (EKC) hypothesis is validated in our result. Finally, a substantial difference in the results between OPEC and non-OPEC countries is confirmed by a set of dummy variables.
ABSTRACT In this paper, we use an exogenous policy variation in the labour market to determine th... more ABSTRACT In this paper, we use an exogenous policy variation in the labour market to determine the wage gap between formally and informally employed workers. For our purposes, ‘informal employment’ describes employees who are not officially registered with any social security scheme. We use self-reported employee registration status to identify such workers, but the choice of working unregistered is not exogenous. Nevertheless, through an amnesty that was extended to only some workers in the labour market, we reduce the endogeneity problem, enabling estimation of the wage gap between these two groups. Our two-stage least square estimates reveal that the hourly wage penalty of working in the shadows is as high as 59%, and the monthly salary penalty is around 66%. Moreover, the wage gap is higher (as high as 70%) for those working in the services sector, as unregistered workers in this sector tend to be low skilled and low educated, and the monitoring of this sector is more difficult. Our analysis contributes to the literature by using an instrumental variable to treat the endogeneity of workers’ registration status. In addition, it shows that people working informally in the services industry receive a higher average wage penalty than other informally employed workers.
The impact of the global crisis on the financial sector has been equally mild in both parts of di... more The impact of the global crisis on the financial sector has been equally mild in both parts of divided Cyprus, thanks largely to traditional banking systems with little dependence on international markets. However, both economies have experienced a negative impact on the real ...
ABSTRACT In this study we analyze the labor market experiences of Turkish immigrants in Northern ... more ABSTRACT In this study we analyze the labor market experiences of Turkish immigrants in Northern Cyprus. Northern Cyprus presents a unique example for Turkish migrants, as many traditional obstacles (language barrier, cultural and ethnic differences and non-transferability of human capital) for immigrant laborers are not applicable since Turkish immigrants have ethnic and cultural similarities to native citizens and Turkey is considered the “motherland” of Northern Cyprus. Nonetheless, significant differences between Turkish immigrants and natives in regard to the labor market exist in Northern Cyprus. Using data from the period 2004–2011, we find that although occupational attainment of immigrants has improved in favor of high-skilled occupations, the average wage gap has not decreased significantly. The statistical estimations reveal that Turkish immigrants earn, on average, 25 percent less than natives in the private sector. Furthermore, half of this gap cannot be explained by differences in individual characteristics and ethnic discrimination.
The paper attempts to generate simulated values for Total Factor Productivity (TFP) growth in Nor... more The paper attempts to generate simulated values for Total Factor Productivity (TFP) growth in North and South Cyprus between 1996 and 2003. Using estimated values of respective growth rates of output and physical capital per worker, we obtain alternative possible values of TFP growth, each based on a unique assumption about the growth rate of human capital per worker in each economy. Based on rough estimates obtained from the available data about number of immigrant workers and their education levels for North Cyprus, human capital per worker could be slightly declining in both North and South Cyprus. Based on this assumption, TFP growth seems to be slightly negative over the period of our study, which in turn, raises questions about the possible worsening of efficiency in resource allocation for both regions of Cyprus. In the second part of our paper we generate nine alternative combinations of “Internal Conditions” and “External Conditions” each of which represents a unique “Polit...
Isbu calisma, Kuzey Kibris Turk Cumhuriyeti Basbakanligi ile Dogu Akdeniz Universitesi arasinda i... more Isbu calisma, Kuzey Kibris Turk Cumhuriyeti Basbakanligi ile Dogu Akdeniz Universitesi arasinda imzalanan “Ekonominin Gelistirilmesine Yonelik Projelerin Yurutulmesine Iliskin Protokol” cercevesinde hazirlanmistir. Rapor, Mustafa Besim koordinatorlugunde asagida ismi gecen uzmanlarin hazirladiklari dokumanlar temel alinarak Kamil Sertoglu ile birlikte yazilmistir. Mustafa Besim; Dogu Akdeniz Universitesi, Isletme ve Ekonomi Fakultesi Kamil Sertoglu; Dogu Akdeniz Universitesi, Isletme ve Ekonomi Fakultesi Cem Tanova; Dogu Akdeniz Universitesi, Isletme ve Ekonomi Fakultesi Isle Sami Fethi; Dogu Akdeniz Universitesi Isletme ve Ekonomi Fakultesi Sevin Ugural; Dogu Akdeniz Universitesi Isletme ve Ekonomi Fakultesi Ismail Sila; Girne Amerikan Universitesi, Isletme ve Ekonomi Fakultesi Tufan Ekici; Orta Dogu Teknik Universitesi (KKTC Kampusu), Iktisat Programi Nezahat Kucuk; British University of Nicosia, Isletme ve Ekonomi Fakultesi Calismada Dervis Kirikkaleli, Girne Amer...
International Journal of Islamic and Middle Eastern Finance and Management
Purpose This study aims to investigate how the Islamic banking share (percentage of total Islamic... more Purpose This study aims to investigate how the Islamic banking share (percentage of total Islamic banking assets relative to total banking sector assets) and individual characteristics (gender, age, income and education) affect financial inclusion in 14 Middle Eastern and North African (MENA) countries with different income levels. Design/methodology/approach This study uses data from the 2014 World Bank Global Findex database to analyze the impact of individual characteristics, Islamic banking share and countries’ developmental levels on financial inclusion and its barriers in MENA countries. The probit estimation method is used for estimations. Findings The findings indicate that financial inclusion, particularly in middle-income MENA countries, is lower than the global average. While being male, rich and older positively affects financial inclusion in these countries, education does not. Islamic banking practises also contribute to financial inclusion, especially for individuals ...
International Conference on Eurasian Economies 2019, 2019
This study aims to explore the long-term productivity dynamics of the economy of the Turkish Repu... more This study aims to explore the long-term productivity dynamics of the economy of the Turkish Republic of Northern Cyprus by using a simple Autoregressive Distributed Lag (ARDL) Model. More specifically, we aim to analyze the impact of macroeconomic instability and socio-economic infrastructure on total factor productivity over the 1977-2017 period. Additionally, this study develops a socio-economic infrastructure index by combining information from communication, energy, education and health indicators. The main result of this paper is that while total factor productivity is positively and significantly affected by the improvements in socio-economic infrastructure it is negatively affected from the external macroeconomic instability.
This study investigates the relationship between environmental performance and the comparative ad... more This study investigates the relationship between environmental performance and the comparative advantage of crude oil by incorporating the role of institutional quality in 28 oil-producing countries from 2002 to 2014. Using dynamic panel data analysis, the results show that environmental performance and institutional quality along with the conventional factors for comparative advantage are key determinants of the comparative advantage of crude oil. Specifically, while environmental performance negatively affects the comparative advantage of crude oil, it is also negatively associated with the comparative advantage of crude oil. These results are in support of the pollution haven hypothesis in resource-based industry, and it shows a bidirectional relationship between environmental performance and comparative advantage of producing crude oil. Further, the results revealed a vital role played by institutional quality in enhancing the comparative advantage of crude oil and environmental performance. More so, the environmental Kuznets curve (EKC) hypothesis is validated in our result. Finally, a substantial difference in the results between OPEC and non-OPEC countries is confirmed by a set of dummy variables.
ABSTRACT In this paper, we use an exogenous policy variation in the labour market to determine th... more ABSTRACT In this paper, we use an exogenous policy variation in the labour market to determine the wage gap between formally and informally employed workers. For our purposes, ‘informal employment’ describes employees who are not officially registered with any social security scheme. We use self-reported employee registration status to identify such workers, but the choice of working unregistered is not exogenous. Nevertheless, through an amnesty that was extended to only some workers in the labour market, we reduce the endogeneity problem, enabling estimation of the wage gap between these two groups. Our two-stage least square estimates reveal that the hourly wage penalty of working in the shadows is as high as 59%, and the monthly salary penalty is around 66%. Moreover, the wage gap is higher (as high as 70%) for those working in the services sector, as unregistered workers in this sector tend to be low skilled and low educated, and the monitoring of this sector is more difficult. Our analysis contributes to the literature by using an instrumental variable to treat the endogeneity of workers’ registration status. In addition, it shows that people working informally in the services industry receive a higher average wage penalty than other informally employed workers.
The impact of the global crisis on the financial sector has been equally mild in both parts of di... more The impact of the global crisis on the financial sector has been equally mild in both parts of divided Cyprus, thanks largely to traditional banking systems with little dependence on international markets. However, both economies have experienced a negative impact on the real ...
ABSTRACT In this study we analyze the labor market experiences of Turkish immigrants in Northern ... more ABSTRACT In this study we analyze the labor market experiences of Turkish immigrants in Northern Cyprus. Northern Cyprus presents a unique example for Turkish migrants, as many traditional obstacles (language barrier, cultural and ethnic differences and non-transferability of human capital) for immigrant laborers are not applicable since Turkish immigrants have ethnic and cultural similarities to native citizens and Turkey is considered the “motherland” of Northern Cyprus. Nonetheless, significant differences between Turkish immigrants and natives in regard to the labor market exist in Northern Cyprus. Using data from the period 2004–2011, we find that although occupational attainment of immigrants has improved in favor of high-skilled occupations, the average wage gap has not decreased significantly. The statistical estimations reveal that Turkish immigrants earn, on average, 25 percent less than natives in the private sector. Furthermore, half of this gap cannot be explained by differences in individual characteristics and ethnic discrimination.
The paper attempts to generate simulated values for Total Factor Productivity (TFP) growth in Nor... more The paper attempts to generate simulated values for Total Factor Productivity (TFP) growth in North and South Cyprus between 1996 and 2003. Using estimated values of respective growth rates of output and physical capital per worker, we obtain alternative possible values of TFP growth, each based on a unique assumption about the growth rate of human capital per worker in each economy. Based on rough estimates obtained from the available data about number of immigrant workers and their education levels for North Cyprus, human capital per worker could be slightly declining in both North and South Cyprus. Based on this assumption, TFP growth seems to be slightly negative over the period of our study, which in turn, raises questions about the possible worsening of efficiency in resource allocation for both regions of Cyprus. In the second part of our paper we generate nine alternative combinations of “Internal Conditions” and “External Conditions” each of which represents a unique “Polit...
Isbu calisma, Kuzey Kibris Turk Cumhuriyeti Basbakanligi ile Dogu Akdeniz Universitesi arasinda i... more Isbu calisma, Kuzey Kibris Turk Cumhuriyeti Basbakanligi ile Dogu Akdeniz Universitesi arasinda imzalanan “Ekonominin Gelistirilmesine Yonelik Projelerin Yurutulmesine Iliskin Protokol” cercevesinde hazirlanmistir. Rapor, Mustafa Besim koordinatorlugunde asagida ismi gecen uzmanlarin hazirladiklari dokumanlar temel alinarak Kamil Sertoglu ile birlikte yazilmistir. Mustafa Besim; Dogu Akdeniz Universitesi, Isletme ve Ekonomi Fakultesi Kamil Sertoglu; Dogu Akdeniz Universitesi, Isletme ve Ekonomi Fakultesi Cem Tanova; Dogu Akdeniz Universitesi, Isletme ve Ekonomi Fakultesi Isle Sami Fethi; Dogu Akdeniz Universitesi Isletme ve Ekonomi Fakultesi Sevin Ugural; Dogu Akdeniz Universitesi Isletme ve Ekonomi Fakultesi Ismail Sila; Girne Amerikan Universitesi, Isletme ve Ekonomi Fakultesi Tufan Ekici; Orta Dogu Teknik Universitesi (KKTC Kampusu), Iktisat Programi Nezahat Kucuk; British University of Nicosia, Isletme ve Ekonomi Fakultesi Calismada Dervis Kirikkaleli, Girne Amer...
International Journal of Islamic and Middle Eastern Finance and Management
Purpose This study aims to investigate how the Islamic banking share (percentage of total Islamic... more Purpose This study aims to investigate how the Islamic banking share (percentage of total Islamic banking assets relative to total banking sector assets) and individual characteristics (gender, age, income and education) affect financial inclusion in 14 Middle Eastern and North African (MENA) countries with different income levels. Design/methodology/approach This study uses data from the 2014 World Bank Global Findex database to analyze the impact of individual characteristics, Islamic banking share and countries’ developmental levels on financial inclusion and its barriers in MENA countries. The probit estimation method is used for estimations. Findings The findings indicate that financial inclusion, particularly in middle-income MENA countries, is lower than the global average. While being male, rich and older positively affects financial inclusion in these countries, education does not. Islamic banking practises also contribute to financial inclusion, especially for individuals ...
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