The main aim of this paper is to investigate on banking crises which stemming from asymmetric knowledge problems in financial system. Asymmetric information and its related problems have a great influence on the functioning of financial markets. Finance literature underlines that banking firms are special intermediaries due to systemic risk concerns. In post liberalization interest rate tends to rise and moral hazard and adverse selection problem exist at firm level in banking business because of lack of adequate supervision. As is typically argued, unless liberalization is accompanied by sufficient prudential supervision of the banking sector, it will result in excessive risk taking by financial intermediaries and a subsequent crisis. In this paper excessive risk taking behavior of banking firms analyze with using a theoretical framework of New Keynesian that the “credit rationing model” offers, and moral hazard, adverse selections problems causing bank failure are discussed.

Keywords:Banking Crises, Asymmetric Knowledge, Excessive Risk Taking, Credit Rationing, Banking Firm

Instead of making R&D expenditures, developing countries generally obtain technology either directly by transferring technology or indirectly by importing technology contained commodities. In this study, using the Turkey’s case, the relationship between foreign trade and economic growth is investigated in terms of knowledge transfer through foreign trade for the period 1989-2009. Using Johansen cointegration method and VAR methodology, the effect of knowledge transfer through foreign trade on economic growth is investigated in terms of direction and dimension. The estimations reveal that knowledge transfer through capital and intermediate goods imports has no significant effect on economic growth of Turkey in the period investigated. Comparisons of variables show that the effect of knowledge transfer through less knowledge contained intermediate goods imports is higher than the effect of knowledge transfer through high knowledge contained capital goods imports. This result implies that Turkey should import more capital goods and have enough human capital to use technology within capital goods.

Keywords:Foreign Trade, Economic Growth, Knowledge Transfer, Johansen Cointegration Test, VAR Analysis

A developing country like Pakistan is heavily dependent on the oil as inputs for almost every industrial sector therefore increase in oil prices, increases inputs cost, consequently increasing production costs and unemployment rate. Existing literature has mostly focused on the relationship between unemployment and oil prices of developed countries, the current study used the data from developing country Pakistan to investigate the relationship between oil prices and unemployment. The current study used monthly data from the period 1991:01–2010:12, making 238 observations of each variable for analysis and employed Toda Yamamoto causality test. The results of current study suggested the significant effect of oil prices on unemployment but found no significant association between real interest rate and unemployment, thus findings of current study are partially consistent with the efficiency wage model. Furthermore, results suggest that real oil prices cause significant changes in the real interest rate in Pakistan. It can be concluded from the results that oil prices can be used in long run to improve the forecasting of unemployment and real interest rate.

Keywords:Oil prices, Interest rate, Unemployment, Efficiency Wage Model, Toda-Yamamoto

A developing country like Pakistan is heavily dependent on the oil as inputs for almost every industrial sector therefore increase in oil prices, increases inputs cost, consequently increasing production costs and unemployment rate. Existing literature has mostly focused on the relationship between unemployment and oil prices of developed countries, the current study used the data from developing country Pakistan to investigate the relationship between oil prices and unemployment. The current study used monthly data from the period 1991:01–2010:12, making 238 observations of each variable for analysis and employed Toda Yamamoto causality test. The results of current study suggested the significant effect of oil prices on unemployment but found no significant association between real interest rate and unemployment, thus findings of current study are partially consistent with the efficiency wage model. Furthermore, results suggest that real oil prices cause significant changes in the real interest rate in Pakistan. It can be concluded from the results that oil prices can be used in long run to improve the forecasting of unemployment and real interest rate.

Anahtar Kelimeler: Oil prices, Interest rate, Unemployment, Efficiency Wage Model, Toda-Yamamoto

We investigate the effectiveness of Benford’s Law through a digital analysis of the off-balance sheet account disclosures made by Turkish Banks during the 1990-2010. We found that off-balance sheet account disclosures of the fiscal term 1999 doesn’t comply with Benford’s Law. Our finding is consistent with the Turkish Banks’ practices. We also provide evidence on “The Law of Anomalous Numbers”. Our results indicate a link between economic policy and deviation from frequencies of Benford’s Law.

Keywords:Benford’s Law, Digital analysis, Banking sector, Fraud investigation

This paper proposes a multi-regional growth model with endogenous human and physical capital in a perfectly competitive economy. Structurally it is an extension of the Uzawa-Lucas model to an interregional economy, even though this paper models behavior of households in an alternative way and introduce Arrow’s learning by doing and Zhang’s creative leisure (or learning through consuming) in modeling human capital accumulation. The small-open economy consists of multiple regions and each region has production, one education and one housing sector. The production side is the same as in the neoclassical growth theory. Households move freely among regions, making decisions on levels of choosing housing, education, good, consumption and saving. A region’s amenity which affects households’ decisions is endogenous, depending on the region’s output and population. The model describes a dynamic interdependence among wealth accumulation, human capital accumulation, time distribution (among leisure, work and education) and division of labor with endogenous wealth and income distribution among regions under perfect competition. This study also simulates the motion of the national economy and examines effects of changes in some parameters.

Keywords:Education, human and physical capital, multiple regions, amenity, agglomeration