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Investigation of the Validity of Purchasing Power Parity with Fourier Unit Root Test: The Case of N-11 Countries

Posted on Saturday October 16th, 2021Sunday October 17th, 2021 by editor

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Investigation of the Validity of Purchasing Power Parity with Fourier Unit Root Test: The Case of N-11 Countries
Author(s):	Tunahan Haciimamoglu
Volume:	12
Number:	4
Year:	2021
Page:	799-811
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.353

Abstract

Purchasing power parity (PPP) is an approach which is based on the law of one price and balances the purchasing power of currencies by excluding price differences among countries. The interest in the PPP hypothesis, which is also used as an international development criteria, has been increasing due to price instability and trade deficits faced by countries. Along with the increasing interest, the validity of the PPP hypothesis is tested more often for different country groups and time periods by using modern analysis methods. The aim of this study is to test the validity of the PPP hypothesis for the period 1970-2019 in nine of N-11 countries. Accordingly, the BCIPS unit root analysis method, which allows for cross-section dependence, soft breaks, and common factor structure and which was proposed by Lee, Wu, and Yang (2016), was used as a modern test technique in the study. The findings of the analysis suggest that the real exchange rates for N-11 countries are stationary, therefore, it is concluded that the PPP hypothesis is valid. In this respect, it is revealed that the effect of shocks on the real (effective) exchange rate in N-11 countries is temporary and that PPP can be used as a reliable indicator in monetary policy decisions and international development measures.

Keywords:

Purchasing Power Parity, Real Exchange Rate, Fourier Unit Root Test, Stationarity, N-11 Countries

JEL Classification:

C23, F31, F41

Full Text ( ↓ 1634)

Testing of the Feldstein-Horioka Hypothesis for Turkey: A Fourier Approach

Posted on Saturday October 16th, 2021Sunday October 17th, 2021 by editor

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Testing of the Feldstein-Horioka Hypothesis for Turkey: A Fourier Approach
Author(s):	Omer Akkus
Volume:	12
Number:	4
Year:	2021
Page:	787-798
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.352

Abstract

This study investigates the Feldstein-Horioka hypothesis, which addresses the relationship between domestic investments and savings within the framework of capital mobility whether it is valid for Turkey in the period of 1980-2020. The Fourier KPSS stationarity test based on the KPSS test in revealing the stationarity levels of the variables is applied. The cointegration relationship between variables is revealed through the Fourier cointegration which allows structural change in the cointegration relationship and Shin cointegration test. The coefficient of the model established in the study is estimated by the Dynamic Ordinary Least Squares method. The results indicate that there is a long-run relationship between domestic savings and investments when structural change is allowed. It is revealed that domestic savings are insufficient to meet investments while it is determined that the saving coefficient considered as an independent variable in the study is close to zero and the capital mobility is high. As a result, it has been determined that the Feldstein-Horioka hypothesis is not valid for Turkey. Since Turkey is faced with a lack of savings in meeting domestic investments, the development of policies that encourage the entry of foreign capital into the country will allow more investments to be made in the country and contribute to its faster growth.

Keywords:

Feldstein-Horioka Hypothesis, International Capital Mobility, Investment, Saving, Fourier Cointegration

JEL Classification:

C22, E21, E22

Full Text ( ↓ 1560)

Effects of the Covid-19 Pandemic on Growth, Unemployment, Inflation and Industrial Production in the Euro Area

Posted on Saturday October 16th, 2021Sunday October 17th, 2021 by editor

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Effects of the Covid-19 Pandemic on Growth, Unemployment, Inflation and Industrial Production in the Euro Area
Author(s):	Mehtap Ozenen Kavlak, Bulent Gunsoy, Muzeyyen Anil Senyel Kurkcuoglu, Saye Nihan Cabuk, Ahmet Dabanli
Volume:	12
Number:	4
Year:	2021
Page:	767-786
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.351

Abstract

The COVID-19 pandemic triggered a financial crisis having deeper effects than the global financial crisis that took place in 2008. Large-scale monetary and fiscal measures have been taken globally to minimize the negative outcomes of the pandemic regarding domestic demand, foreign trade, and tourism activities. The aim of this study is to determine how the changes caused by the COVID-19 pandemic in the Eurozone countries affect the macroeconomic indicators. The findings obtained within the scope of the study were mapped in the Geographic Information Systems (GIS) environment. In this study, the economic effects of the pandemic on the Eurozone countries are evaluated in terms of the gross domestic product (GDP), one of the most important indicators for evaluating the strength of the country’s economies and development levels, inflation, unemployment, and industrial production. It was seen that the negative effects of the COVID-19 pandemic on the Eurozone economies manifested themselves in the first quarter of 2020 (Q1) and these effects reached their maximum level in the second quarter (Q2) of the same year. The recovery period and the positive trends signaling a way out of this crisis are observed to start in the third quarter (Q3). The economic developments in this period emerged from the normalization attempts and the relaxation of the tight restriction measures which had been put into practice at the beginning of the pandemic process. The restrictions aiming to prevent the spread of pandemic caused contractions in tourism, industry, and other sectors while resulting in unemployment in these sectors. Switching back to normal, gave way decreases in unemployment rates in the related sectors.

Keywords:

COVID-19, Pandemic, Macroeconomics, Eurozone Countries, Geographic Information Systems

JEL Classification:

F41, E12

Full Text ( ↓ 2020)

The Effects of Renewable and Non-renewable Energy Consumption and Economic Growth on CO2 Emissions: Empirical Evidence from Developing Countries

Posted on Saturday October 16th, 2021Sunday October 17th, 2021 by editor

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Effects of Renewable and Non-renewable Energy Consumption and Economic Growth on CO2 Emissions: Empirical Evidence from Developing Countries
Author(s):	Salih Turedi, Necati Turedi
Volume:	12
Number:	4
Year:	2021
Page:	751-765
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.350

Abstract

This study examines the effects of renewable and non-renewable energy consumption and economic growth on CO2 emissions for 53 developing countries during the period 1990-2014. For this purpose, the study employs a two-step difference Generalized Method of Moments (GMM) approach. Empirical results show that there is an inverted U-shaped relationship between economic growth and CO2 emissions, which shows the validity of the environmental Kuznets curve (EKC) hypothesis. The effect of renewable energy consumption (REC) on CO2 emissions was found to be negative and significant, while the effect of non-renewable energy consumption (NREC) was positive and significant. Moreover, both renewable and non-renewable energy consumption positively affect economic growth. Thus, for developing countries aiming to reduce CO2 emissions and the consequent environmental pollution, it is necessary to reduce the share of NREC in total energy consumption and to increase the share of REC. Furthermore, because NREC positively affects economic growth, the efficiency of non-renewable energy resources should be increased in order not to damage the economic growth process while decreasing the use.

Keywords:

Renewable Energy Consumption, Non-renewable Energy Consumption, Economic Growth, CO2 Emissions, Developing Countries

JEL Classification:

O44, Q40, Q53

Full Text ( ↓ 2927)

The Marshall-Lerner Condition in the Fragile Five Economies: Evidence from the ARDL Bounds Test Approach

Posted on Saturday October 16th, 2021Sunday October 17th, 2021 by editor

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Marshall-Lerner Condition in the Fragile Five Economies: Evidence from the ARDL Bounds Test Approach
Author(s):	Ayrton J. C. Amaral, Marthinus C. Breitenbach
Volume:	12
Number:	4
Year:	2021
Page:	731-750
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.349

Abstract

This paper evaluates the Marshall-Lerner condition in the fragile five economies of Brazil, India, Indonesia, South Africa, and Turkey and, in the process, offers an indication of whether the evaluation of this condition is subject to the limitations that have previously been identified in the literature. This research is novel as it studies a set of countries known as the fragile five, often overlooked in the literature. The ARDL Bounds methodology is used to estimate separate export and import demand equations. Results of the study show little evidence supporting the validity of the Marshall-Lerner condition in these five countries. All the models, except for those relating to Turkey, show signs of underlying issues such as model misspecification. The results imply that future empirical work on the Marshall-Lerner condition, particularly work centred on the fragile five, would likely need to address these underlying empirical issues in order to produce more consistent results.

Keywords:

Marshall-Lerner Condition, Fragile Five, ARDL Bounds Test, Trade Elasticities, Emerging Markets

JEL Classification:

F32, C22, C50

Full Text ( ↓ 4356)

Informal Value Transfer System as Terrorism Financing and Money Laundering Tool: The Case of Hawala

Posted on Wednesday August 18th, 2021Sunday October 17th, 2021 by admin

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Informal Value Transfer System as Terrorism Financing and Money Laundering Tool: The Case of Hawala
Author(s):	Ali Yurdakul
Volume:	12
Number:	4
Year:	2021
Page:	829-841
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.348

Abstract

Terrorism has grown tremendously in the last few decades and has become a serious threat to international peace and security. Determining the financial transactions of criminal and terrorist organizations is an important activity for the fight against terrorism. The study aims to clarify the use of informal value transfer systems and the measures that can be taken in the financing of terrorism and money laundering. The findings of this study are as follows; Following the terrorist events of September 11, 2001, informal value transfer systems came under pressure to regulate and control. Hawala, an alternative traditional remittance method often used by immigrant families to transfer money, has been found to be vulnerable to abuse by criminal organizations and terrorist groups. While making arrangements for the informal value transfer system, it is important that the service provision to those who use these systems is maintained without interruption. For this reason, it has been concluded that it is important to synchronize economic factors, development, prevention of crime and terrorist use in regulations for informal value transfer systems.

Keywords:

Terrorism, Terrorism Financing, Money Laundering, Hawala, FATF, Control of Financial Flows

JEL Classification:

E26, H56, O17, F55

Full Text ( ↓ 4246)

An Overview of Compulsive Buying Behavior

Posted on Wednesday July 21st, 2021Saturday July 24th, 2021 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	An Overview of Compulsive Buying Behavior
Author(s):	Asena Gizem Yigit, Bekir Govdere
Volume:	12
Number:	3
Year:	2021
Page:	717-730
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.347

Abstract

Compulsive buying behavior is the consumption made by individuals to alleviate the tension experienced in situations such as anxiety, mood disorders, depression, and stress. In here, what is important for the individual is the feeling of pleasure in the purchasing process rather than obtaining any product or service. Although compulsive consumers experience a short-term relief with the buying process, they then face a feeling of regret. However, later they face a feeling of regret. In addition, this behavior, which causes great financial problems, causes not only economic problems but also social and family problems. In particular, there are opinions that the constantly changing life conditions, digitalization, internet use, sales and marketing strategies of companies, and credit opportunities feed this behavior. In this study, it is aimed to better understand compulsive purchasing behavior and to grasp the importance of its socio-economic dimension. For this purpose, a detailed literature review was made and the characteristics, causes, demography, prevalence and consequences of compulsive buying behavior in societies were emphasized. Compulsive buying studies does not have a very long history, and most of the work done in the field has been framed by the clinical field. This situation caused the socio-economic dimension of the studies to lag behind. In this sense, the study is expected to contribute to both academic and social fields.

Keywords:

Compulsive Buying, Compulsive Consumption, Behavioral Economics, Compulsive Consumer, Excessive Consumption Behavior

JEL Classification:

D11, D91

Full Text ( ↓ 2027)

The Role of Brand Personality in the Relationship Between Social Media Marketing Activities and Purchase Intention: A Literature Research

Posted on Wednesday July 21st, 2021Saturday July 24th, 2021 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Role of Brand Personality in the Relationship Between Social Media Marketing Activities and Purchase Intention: A Literature Research
Author(s):	Mustafa Seckin Salvarli, Burak Kartal
Volume:	12
Number:	3
Year:	2021
Page:	705-716
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.346

Abstract

The developments in the digital world have changed the strategy followed by companies in dealing with changes in the business environment. Therefore, the way marketers touchpoints with the customer, the resources, and the methods they use to attract or retain the customer have changed. These changes essentially required developing relationships that would enable the customer to understand the needs, characteristics, ideas, relationship patterns, and problems in the virtual world. Thanks to the relationships that have been developed, it has begun to be understood the purchasing intentions of the consumers and the factors they attach importance to the purchasing phase. Based on the literature review, this study examines the effects of social media marketing activities, which have many different advantages besides their benefits in establishing relationships with customers, and brand personality on consumers’ intention to purchase the relevant brand. With this study, the need to examine the possible mediating effect of brand personality on the relationship between social media marketing activities and the consumer’s purchase intention is emphasized, and it is aimed to be a source of motivation for conducting studies on this subject.

Keywords:

Social Media, Social Media Marketing Activities, Brand, Brand Personality, Consumer Purchase Intention

JEL Classification:

M30, M31

Full Text ( ↓ 1475)

The Effects of Social Marketing Activities on Purchasing Behaviour

Posted on Wednesday July 21st, 2021Saturday July 24th, 2021 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Effects of Social Marketing Activities on Purchasing Behaviour
Author(s):	Suleyman Can Yildirir
Volume:	12
Number:	3
Year:	2021
Page:	685-703
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.345

Abstract

Social problems have been monitored closely by almost all countries since the middle of the 20th century. Regarding the subject, the regulations of the countries and institutions, as well as the perspective of the people, have pushed the enterprises to create systems for social issues in their activities. The aim of this study is to examine the effects of enterprises’ social marketing activities on attitudes, buying intentions, and behaviors of consumers. In addition, it is aimed to determine whether there is a difference between the attitudes of consumers towards social marketing activities according to their demographic characteristics. The convenience sampling method was used for the selection of samples. 383 data were obtained and structural equation modeling was used for analysis. Results of the study show that consumers prefer the companies which make social benefits, also they prefer the firms which disseminate these activities via the mass medium. Likewise, consumers who have participated in the study said that they might pay more to the products and firms that make social benefits than the other same quality and cheaper products.

Keywords:

Social marketing, Attitude, Intention, Behavior, Consumer

JEL Classification:

M30, M31

Full Text ( ↓ 1291)

An Examination of Football Fans on the Basis of Customer Loyalty and Consumer Behavior

Posted on Wednesday July 21st, 2021Saturday July 24th, 2021 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	An Examination of Football Fans on the Basis of Customer Loyalty and Consumer Behavior
Author(s):	Merve Simsek, Eyup Akin
Volume:	12
Number:	3
Year:	2021
Page:	669-684
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.344

Abstract

Fans’ expenditures are one of the most important income items of sports clubs. In addition to socio-demographic factors, the connection that fans establish with their teams can also be effective in this expenditure. From a sports marketing perspective, it is important to focus on the influence of fan loyalty and advocacy in spending for the team. In this study, it was examined whether different types of fans, fan loyalty, and the socio-demographic characteristics of the fans have effects on the spending for the team. The research was carried out in two stages. In the first stage, data were obtained from a group of 50 people in order to determine the different types of supporters, the types of financial support provided and, if not, the reasons for this. The information obtained from this preliminary study was used in the main survey form prepared later. To measure the loyalty of the fans, scales in Mahony, Madrigal and Howard (2000), Bobalca, Gătej and Ciobanu (2012), El-Manstrly and Harrison (2013), and Tachis and Tzetzis (2015) were used. Data were obtained from a sample of 533 people using the convenience sampling method. According to the results of the regression analysis, it was observed that these variables were effective in some of the expenditures made for the team, but not in others.

Keywords:

Sports Marketing, Customer Loyalty, Consumer Behavior, Football, Fans

JEL Classification:

M31, L83

Full Text ( ↓ 1365)