Impact of oil price changes on Turkey’s exports

Substantial decline in oil prices observed since the second half of 2014 has brought forward discussions on the impact of oil prices on the external balance. This decline is expected to shift real income from oil exporter countries to oil importer countries. In this context, we study the effect of change in oil prices on Turkey’s exports taking into account the fact that Turkey’s export to oil exporting countries has approximately one-third share in total exports, while export to oil importing countries has a share of two-thirds. At the first step, we analyse the effect of oil prices on economic growth of trade partners of Turkey, where countries are grouped according to their net oil export position. We find that the effect of oil prices on different country groups’ growth is asymmetric. In the second stage, for two groups of countries, we estimate growth-export elasticity through Turkey’s export demand function. Finally, we calculate the net effect of oil prices on exports considering different income effects caused by oil price change on each country groups. Results indicate that the net effect of oil prices on the exports is limited given the current export shares.     

An intersectionality framework for transformative services research

The authors introduce the theory of intersectionality which refers to the interactivity of social identities such as race, class, and gender in shaping individuals’ experiences. Intersectionality is explored using cases and examples from healthcare services, which involve high contact encounters with consumers who may possess multiple disadvantages (e.g. low income, illness, immigrant status) and therefore make for interesting contexts for intersectional analyses. Intersectionality is proposed as a framework that can shed light on the experiences of consumers who belong to multiple disadvantaged social groups, such as being black and low income, immigrant, and in poor health. Detailed guidelines for conducting intersectionality-driven services research are provided, which take into account the interconnected nature of multiple disadvantages. The authors emphasize that intersectionality offers a holistic look at the co-created nature of services and it can be instrumental in designing tailored and fair services to improve consumer and societal well-being.     

Effects of US interest rates and news on the daily interest rates of a highly indebted emerging economy: evidence from Turkey

It has been widely demonstrated that asset prices react sensitively to macroeconomic news releases both in the industrialized countries and emerging markets. However, there are contradicting results on the effects of changes in interest rates of industrialized countries on asset prices of emerging markets. In heavily indebted economies, in addition to these factors, political news and announcements from international institutions that may increase or decrease concerns about debt sustainability can affect asset prices as well. This potential notwithstanding, there has been relatively limited empirical work on the effects of such variables. The objective of this study is to quantify the impact of all of these factors on interest rates of a highly indebted emerging economy. Using daily post-crisis data of the Turkish economy we show that both good and bad political news, International Monetary Fund announcements, and European Union related news significantly affected secondary market government securities yields, whereas volatility of yields was affected mainly by bad news releases. Changes in US Treasury bond rates and ‘appetite’ for risk of foreign investors did not affect government securities yields in the period analysed.     

Understanding Managerial Work Values in Turkey

The objective of this study was to explore certain managerial work values in Turkey. A total of 1023 managers from six Turkey regions participated in the study and filled out the questionnaires. Findings were analyzed using regression and anova analyses. A total of three managerial work value factors emerged, which was supported by the current value literature. It was found that there was a relationship between work values and organizational size. The lower the organizational size, the higher the proper values are held. However, organizational tenure, the number of subordinates a manager is responsible, and the educational level of a manager had no significant effect on holding work values. The proper values outnumbered the improper values significantly. The three most held work values were integrity, doing work with care and discipline, and achievement. The three least held values were cliquishness, laziness, and hypocrisy.     

Exploring spatial vulnerability: inequality and agency formulations in social space

Abstract

The authors derive from critical urban geography and consumer research on vulnerability to investigate the ways in which vulnerability within social space is shaped and negotiated. Multiple power dynamics and ideological tension around the production and consumption of social space are explored through diverse examples within the contexts of spaces of consumption, public space as shared good and digital space. The authors offer a conceptualisation of spatial vulnerability and a framework to understand, critique and transform socio-spatial disadvantages. The spatial perspective offered in this article illuminates the ways in which marketplace vulnerability can be institutionalised and become pervasive through and within spaces of everyday life. Yet, the creative and radical potential of social space in managing spatial disadvantages is also explored along with theoretical, managerial, public policy and practical implications.     

Dynamic incentive contracts with termination threats

We consider a dynamic moral hazard model where the principal offers a series of short-run contracts. We study the optimal mix of two alternative instruments for incentive provision: a performance based wage (a “carrot”) and a termination threat (a “stick”). At any given point in time, these instruments are substitutes in the provision of incentives. We are particularly interested in the dynamic interaction of these two instruments. Both carrot and stick are used more intensively as the agent approaches the end of his finite life. The sharing of the surplus of the relationship plays a key role: a termination threat is included in the optimal contract if and only if the agent’s expected future gain from the relationship is sufficiently high, compared to the principal’s expected future gain. Also, a termination threat is more likely to be optimal if output depends more on “luck” than on effort, if the discount factor is high, or if the agent’s productivity is low. The model, provided that the optimal contract includes a termination threat, essentially provides an alternative explanation for upward-sloping wage profiles even in the absence of full-commitment.