Manuscript2 – Page 12 – BUSINESS AND ECONOMICS RESEARCH JOURNAL

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Online Resolution of Tax Disputes: An Assessment on The Turkish Tax Judiciary System

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Online Resolution of Tax Disputes: An Assessment on The Turkish Tax Judiciary System
Author(s):	Mine Binis
Volume:	12
Number:	3
Year:	2021
Page:	653-667
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.343

Abstract

A dispute is a conflict that occurs between at least two parties in terms of existence, functioning and results of any legal relationship. The structure of these disputes, which are likely to be experienced in all areas, has varied depending on the widespread use of the internet and developments in information technologies. This alteration has generated differences in the nature of the disputes and its resolution. Together with the participation of the technology as “the fourth party” in resolution of the disputes a change movement has emerged. This transformation has led to the idea of including online solutions in dispute resolution systems. Online resolution way is a method aiming to resolve the disputes fast, simple and less costly via internet. The study aims to evaluate the application areas of online resolutions and to consider the availability of incorporating online dispute resolution ways into the dispute resolution system for resolving tax disputes in the judicial process in Turkey. From this point, evaluations have been made on the theory, country practices, existing legal regulations, and judgement principles. As a result of these evaluations, it has been concluded that the online resolution of disputes is partially implemented in Turkey and e-ADR, which have application areas in civil law proceedings, can also be applied in tax proceedings with the necessary legal regulations.

Keywords:

Online Dispute Resolution (ODR), Electronic Alternative Dispute Resolutions (e-ADR), Tax Dispute, Tax Judgement

JEL Classification:

K30, K34, K41, 033

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The Effect of Working Capital Financing Strategies on Firm Profitability: An Application on Borsa Istanbul Manufacturing Firms

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Effect of Working Capital Financing Strategies on Firm Profitability: An Application on Borsa Istanbul Manufacturing Firms
Author(s):	Ersin Timur, Turhan Korkmaz
Volume:	12
Number:	3
Year:	2021
Page:	629-652
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.342

Abstract

Working capital management is among the most important issues of financial management, which includes investment and financing decisions for current assets. Working capital is an important area that business management, especially financial managers, should work on meticulously in order to fulfill the daily activities of a business without interruption and to ensure the continuity of business activities. In this context, it is of great importance for businesses to be managed with an effective working capital so that they can continue their activities without interruption, increase their profitability by reducing the risk and reach the targeted vision. However, the adoption and implementation of the optimal financing strategy for businesses significantly affects the efficiency and profitability in the management of current assets. In this study, it is aimed to investigate the relationship between working capital financing strategies and firm profitability. In addition, the factors affecting working capital management were tried to be determined. For this purpose, the financial data of the firms traded in the Borsa Istanbul (BIST) Manufacturing sector for the 2010-2019 periods were obtained. Selected data were tested econometrically with panel data analysis. The empirical findings obtained as a result of the study were analyzed, and as a result of the analysis, it was concluded that the factors affecting the profitability of companies following balanced financing strategy, conservative financing strategy, and aggressive financing strategy affect differently.

Keywords:

Working Capital Management, Working Capital Financing Strategies, Profitability, Borsa Istanbul

JEL Classification:

C33, G32, L25

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The Effects of Universities on Local Economy: The Case Study of Bursa Uludag University

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Effects of Universities on Local Economy: The Case Study of Bursa Uludag University
Author(s):	Volkan Gursel, Cem Okan Tuncel, Serdar Geldimyradov
Volume:	12
Number:	3
Year:	2021
Page:	613-627
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.341

Abstract

Universities have a positive influence on the cities not only in terms of cultural and social aspects but also in economic aspects. Due to students’ expenditures, universities make a contribution to urban economic growth in the cities where they located. The main goal of this study is to investigate the direct, indirect, and induced effects of Bursa Uludag University on the Bursa economy. In this study, the information compiled from spending units of the university, and data gathering from 381 students of Bursa Uludag University are used. According to data analyzing results, Bursa Uludag University created a total of 1.21 billion Turkish Lira (TL) direct and indirect income, and 13,870 direct and indirect employment in the Bursa economy in 2018. As a result, induced income effect and induced employment effect of Bursa Uludag University are estimated as 2.57 billion TL and 21,227 employees respectively.

Keywords:

Urban Economy, Bursa Economy, University, Students’ Expenditure, Economic Impact

JEL Classification:

I23, O10

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Asymmetric Effect of Oil Price and Exchange Rate on Food Prices: The Case of Turkey

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Asymmetric Effect of Oil Price and Exchange Rate on Food Prices: The Case of Turkey
Author(s):	Cem Gokce
Volume:	12
Number:	3
Year:	2021
Page:	599-611
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.340

Abstract

One of the obstacles to economic stability is high inflation. Food inflation can be considered among the determining factors of inflation. In this context, the study aims to examine the effect of oil prices and exchange rates on food prices. In the study, NARDL (Non-Linear Autoregressive Distributed Lag) method was applied to predict that oil prices and exchange rates may have an asymmetric effect on food prices. Monthly data from January 2010 to December 2019 were used in the study. The main results achieved were realized within the framework of expectations. The results show that oil prices and exchange rates are in an asymmetrical relationship with food prices in the long run. In the short term, an asymmetrical relationship was not detected. Also, when the long-term coefficients are analyzed, it is seen that positive changes in oil prices and exchange rates are statistically significant. Positive changes in oil price and exchange rate affect the dependent variable in the same direction. If oil prices increase by 1 U.S. Dollar, the food price index increases by 0.30 units, and when the U.S. Dollar rate increases by 1 TL (Turkish Lira), the food price index increases by 16.6 units. As a policy recommendation within the framework of these results, precautions should be taken to reduce the pass-through of positive shocks in oil prices and exchange rates to food prices.

Keywords:

Oil Prices, Exchange Rates, Food Prices, NARDL Model, Asymmetry

JEL Classification:

E31, Q11, Q31, Q43

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Effects of The Construction Sector on Economic Growth and Financial Markets: The Case of Turkey

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Effects of The Construction Sector on Economic Growth and Financial Markets: The Case of Turkey
Author(s):	Mehmet Ali Polat, Eda Fendoglu
Volume:	12
Number:	3
Year:	2021
Page:	575-598
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.339

Abstract

The construction sector, which provides significant employment with its labor-intensive structure, is one of the most important growth means in developing countries like Turkey. It stimulates economic activities in the other sectors that it interacts with. The study aims to analyze the effects of the construction sector on Turkey’s economic growth and financial markets. The data of real Gross Domestic Product (GDP), Construction Production Index, Borsa Istanbul (BIST) 100 index, and the banking sector domestic credit volume data for 2002:Q1-2019:Q3 are used to reveal the impacts of the construction sector on economic growth and financial markets in Turkey. Moreover, events affecting the Turkish economy within the analysis period are estimated by Bai and Perron’s (1998, 2003) method, and accordingly, ten different dummy variables are included in the analysis. Long-term analyses are performed using the Dynamic Ordinary Least Squares (DOLS) method. The findings indicate that a 1% increase in construction production index has increased national income by 0.68%, BIST100 index by 1.80%, and domestic credit volume by 2.35% in Turkey during the 2002:Q1-2019:Q3 period. Short-term analyses are also conducted by the DOLS method, and it is found that the growth in the construction sector affects economic growth and financial markets positively and statistically significant in the short term. The results also indicate that error correction mechanisms of the models operate.

Keywords:

Construction Sector, Economic Growth, Borsa Istanbul, Credit Volume, Analysis with Structural Breaks

JEL Classification:

L740, F43, G10

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The Relationship Between Competition and Productivity in the Turkish Manufacturing Industry: A Firm-Level Analysis

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Relationship Between Competition and Productivity in the Turkish Manufacturing Industry: A Firm-Level Analysis
Author(s):	Ramazan Ekinci
Volume:	12
Number:	3
Year:	2021
Page:	557-573
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.338

Abstract

This study aims to analyze the effect of competition on total factor productivity (TFP) for selected 77 companies operating in the manufacturing industry for the 2011-2019 period. The competitiveness of firms is calculated using the Lerner index. Total factor productivity is estimated based on the cost function using the stochastic frontier analysis (SFA) method. As a result of the estimation, the total factor productivity growth rate decreases rapidly after 2015 and becomes negative in 2018 and 2019. Although the average Lerner index, which shows the competitive power of the companies, is 35.06%, there is no significant change in the level of competition. Among the sectors, while the Basic Metal Industry is the lowest sector in terms of TFP growth rate; the sector with the highest TFP growth is the Chemicals, Petroleum Rubber and Plastic Products sector. On the other hand, while the most competitive sector is the Paper and Paper Products, Printing and Publishing, the sector with the least competition is the Non-Metallic Mineral Products Sub-sector. The findings of the study shows that the relationship between competition and total factor productivity is not linear. The estimated competition (1-Lerner index) threshold value for firms is 0.322. When competition is below the threshold, the effect of increased competition on total factor productivity is insignificant. When competition is above the threshold, the effect of increased competition on total factor productivity is positive and statistically significant.

Keywords:

Competition, Productivity, Manufacturing Industry, Panel Data Analysis, Stochastic Frontier Analysis

JEL Classification:

C24, D22, L11

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The Impact of Unconventional Monetary Policy Instruments on Financial Stability: The Case of Turkey

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Impact of Unconventional Monetary Policy Instruments on Financial Stability: The Case of Turkey
Author(s):	Sencan Felek, Resat Ceylan
Volume:	12
Number:	3
Year:	2021
Page:	537-555
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.337

Abstract

The global crisis, which started in the United States of America in 2007 and felt its impact in Turkey in 2008, revealed the fact that financial stability should be considered as a macroeconomic goal. Therefore, central banks have developed new monetary policy instruments within the framework of macroprudential policies. In the context of these developments, the main purpose of this study, in the aftermath of the 2008 global financial crisis, by using the 2011M1-2019M6 periods of monthly data, is to investigate the effects of unconventional monetary policy instruments implemented by the Central Bank of the Republic of Turkey (CBRT) on financial stability. In the study, the effects of interest rate corridor, exception day application, and credit expansion, which are unconventional monetary policy instruments, on the financial stability index calculated with the help of principal components analysis are revealed by the SVAR method. Financial stability index, one-week repo interest rate, nominal exchange rate, and domestic loan volume variables are used in the analysis. According to the findings, the interest rate corridor and exception day application, which are among the unconventional monetary policy tools used by the CBRT, are effective in ensuring financial stability. The monetary transmission mechanism works with the exchange rate channel.

Keywords:

Monetary Policy, Interest Rate Corridor, Exception Day Application, Principal Component Analysis (PCA), Structural VAR

JEL Classification:

C10, C51, E52, E43, E58

Full Text ( ↓ 1648)

The Impact of Public Capital Stock on Regional Income in Turkey

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Impact of Public Capital Stock on Regional Income in Turkey
Author(s):	Merve Siretli, Metin Karadag
Volume:	12
Number:	3
Year:	2021
Page:	523-535
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.336

Abstract

The effects of public capital stock on reducing regional disparities and on regional economic growth process have been studied in the literature in recent years. Regarding Turkey, there are large disparities in regional growth rates and thus studying the effects of public capital stock on regional economic growth gains importance. Hence, the main aim of this study is to investigate the impact of public capital stock on regional economic growth. For the aim of the study, we use panel data analysis by using the data set for the time period 2007-2014 at NUTS-2 level. The study uses the real gross domestic product as a dependent variable and private capital stock, labor, public capital stock as an independent variable. The results of the study show that; public capital stock, private capital stock, and labor have a positive and significant effect on regional output. In addition, the results of the study show that; public capital stock increases regional output although the amounts are different for each NUTS-2 region.

Keywords:

Public Capital Stock, Regional Economic Growth, Panel Data Analysis

JEL Classification:

H54, R10, R53

Full Text ( ↓ 1252)

Forecasting of the U.S. Steel Prices with LVAR and VEC Models

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Forecasting of the U.S. Steel Prices with LVAR and VEC Models
Author(s):	Kaveh A. Adli, Ugur Sener
Volume:	12
Number:	3
Year:	2021
Page:	509-522
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.335

Abstract

Base metal prices, especially steel, play a significant role in industrial economics, making them worth knowing about future values. In most cases, we expect superior performance from multivariate forecasting models comparing univariate methods due to the involvement of explanatory variables in the system. Standard vector auto regressive model can only capture short-run dynamics because of the differencing process for non-stationary series that eliminates the possible long-run relationship. Instead, performing non-stationary series on levels through the vector auto-regressive framework does not suffers such loss. Moreover, the vector error correction model can define both short-term and long-run dynamics explicitly. These models can yield more robust forecasts in the mid-term and long-term by investigating short-run and long-run relationships simultaneously. The current study aims to perform an out-of-sample forecast for the United States steel prices index 18 months ahead using cointegrated variables. The results suggest that the non-stationary vector auto-regressive model outperforms the vector error correction model regarding mean absolute percentage error and root mean square error as forecast accuracy measures.

Keywords:

Cointegration, Forecast, Steel, VAR, VEC

JEL Classification:

C22, C32, C53

Full Text ( ↓ 1326)

The Real Effective Exchange Rate and Industrial Employment: The Turkish Case

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Real Effective Exchange Rate and Industrial Employment: The Turkish Case
Author(s):	Resat Can Akkay
Volume:	12
Number:	3
Year:	2021
Page:	491-507
ISSN:	2619-9491
DOI Number:	10.20409/berj.2021.334

Abstract

This study investigates the relationship between industrial employment and producer price index-based real effective exchange rate, over the period 2009M01-2019M10, by employing the autoregressive distributed lag cointegration procedure, for the Turkish economy. The empirical findings support the existence of a positive relationship between the appreciation of the producer price index-based real effective exchange rate and an increase in industrial employment. Accordingly, a 1% appreciation of the producer price index-based real effective exchange rate leads to a 0.092% increase in industrial employment. This finding supports the dominance of the “imported input” channel over the other transmission channels for Turkey at the industry level.

Keywords:

Real Effective Exchange Rate, Industrial Employment, ARDL Model, Aggregation Bias, Turkey

JEL Classification:

E24, F31, C22

Full Text ( ↓ 1200)