The political economy of government programs on export success: a logit model for a Turkish survey

This article examines the differences between exporter and nonexporter small and medium enterprises (SMEs) in Turkey to understand the impact of government programs on their export decisions. The empirical data are from a survey of 300 Turkish SMEs (150 exporters and 150 nonexporters) in Turkey. As our question is why some SMEs are exporting while others of a similar size are not, although the government export promotion programs are same for all SMEs, the dependent variable should be dichotomous, and the applicable analytical model should come from the binary-choice genre of models, namely. Results suggest that government export-promoting programs, size of the firms, and manufacturing status of the firms contribute positively to export performance in SMEs, but barriers such as educational level of managers, lack of financial resources, lack of language knowledge, too many government regulations, and high taxes negatively affect the export performance of Turkish SME

Rent-Seeking in Developed and Developing Countries: Cross Section and Time Series Studies

The property rights issue is one of the most important institutional differences between developed/developing countries. The violation of the property rights results with rentseeking. In order to see if the extent of rent-seeking differs significantly between developed and developing countries, I applied a cross section and a time series study with the intention to measure rent-seeking. I found that rent-seeking is low in developed countries whilst it is high in developing counterparts. Turkey, as a developing country was my special case to apply time series study to see if rentseeking vary over the years. In my additional work for Turkey, I found that there is a cointegrating relationship between rent- seeking as a percentage of the budget LnRt and government size ( LnGYt ), and GNP per capita income ( LnGNPCt ).Rent-Seeking; Budgetary Allocation; Cross Section Study; Time Series Study

Cointegration Analysis-Causality Testing and Wagner's Law The Case of Turkey, 1950-1990

This paper investigates statistically the existence of a long-run relationship between public expenditure and GNP (Wagner’s Law) using data for Turkey over the period 1950-1990. Recent advances in time series analysis have permitted the investigation of the long-run relationship between public expenditure and GNP in terms of cointegration analysis. In the case of Wagner’s Law, evidence of cointegration is sufficient to establish a long-run relationship between public expenditure and income. However, to support Wagner’s Law would require unidirectional causality from income to public expenditure. Therefore cointegration should be seen as a necessary condition for Wagner’s Law, but not sufficient. Hence, conditional on cointegration results, it is necessary to look at the causality properties of the model(s). Using the Engle and Granger cointegration test, the Granger Causality test and Turkish time series aggregate data for the period 1950-1990, we find no empirical support for Wagner’s Law.Wagner's Law; Public Expenditure Growth; Unit Root Test; Cointegration Analysis; Causality

Graduating to globalisation: A study of southern multinationals.

FDI by firms in developing countries is a recent phenomenon and demands a study of relationship between firm productivity and different modes of globalisation activities. This paper attempts to understand this relationship through ordered probit models, examining two key hypotheses using firm level panel data from India. First, we test whether there are characteristic differences between domestic firms, exporting firms and firms engaging with FDI. Second, we test if FDI is an integral part of the evolution of firms in developing countries. Our results suggest that there are strong differences between domestic firms, exporting firms, and firms that invest abroad, especially in their knowledge investment, indicating the presence of a ladder of quality in graduating to globalisation.