Sequencing, pace and timing of financial liberalization process in Turkey with implications on the macroeconomic environment

Download

index.pdf

Date

2006

Author

Ganioğlu, Aytül

Metadata

Show full item record

Item Usage Stats

205
views

91
downloads

This study basically analyzes timing, sequencing and pace of the financial liberalization experience of the Turkish economy in the 1980s and evaluates its implications for the crises in the Turkish economy since the 1990s. The objectives of this study are threefold: Firstly, it aims to reveal the main policy objectives and political factors pushing the government to take capital account liberalization decision in 1989. It is concluded that domestic decision makers have shaped and taken the decision of capital account liberalization in 1989, while the interaction of economic and political factors has played a major role in its timing. Secondly, it examines the extent to which economic and political institutional weaknesses in the Turkish economy, which generated inappropriate sequencing of financial liberalization policies in the 1980s, can be held responsible for the crises of 2000 and 2001 crises. It is concluded that financial liberalization policies were inappropriately sequenced, as domestic financial market and capital account liberalization were not accompanied or preceded by macroeconomic stability and financial sector institutional reforms such as prudential regulation and supervision of the banking sector. These factors have been instrumental in the crises episodes in Turkey through contributing to an environment conducive to crises. Thirdly, it aims to analyze whether there exists a clear association between weaknesses in the regulation and supervision of the banking sector and banking crises through an empirical analysis. It is concluded that the nature of the banking crises is more associated with the institutional structure of the financial system rather than macroeconomic conditions of the economy.

Subject Keywords

Economics.

URI

http://etd.lib.metu.edu.tr/upload/3/12607124/index.pdf
https://hdl.handle.net/11511/15766

Collections

Graduate School of Social Sciences, Thesis

Suggestions

OpenMETU
Core

Direct foreign investment in Turkish manufacturing industry Koldaş, Tevfik; Şenses, Fikret; Department of Economics (2005) This study deals with direct foreign investment (DFI) in Turkish manufacturing industry with two main objectives: First, the reasons of the failure of Turkish economy in attracting sufficiently high levels of DFI is analysed as compared to the experiences other developing countries that have been successful on this count. Second, the impact of DFI in Turkish manufacturing industry is analysed in terms of export, employment, and technology contribution as well as the comparative behaviour of domestic and DFI...
An empirical analysis of the relationship between financial deepening and economic growth: the case of Turkey Esen, Kılıç; Voyvoda, Ebru; Department of Economics (2008) This study aims to investigate the direction of the relationship between financial deepening and economic growth after the completion of financial liberalization in Turkey. In order to do this, an unbalanced panel data set of 49 OECD and emerging countries for 1953-2005 period is examined with Granger causality and panel data estimation techniques. In the light of panel data analysis results, quarterly Turkish time series data for 1987-2006 period is examined by using Granger causality, cointegration and Ve...
Fiscal sustainability, banking fragility and balance sheets : 2000-2001 financial crises in Turkey Koğar, Çiğdem İzgi; Özmen, Erdal; Department of Economics (2004) The aim of this thesis is to identify and assess the reasons of the Turkish financial crises based on various crises model explanations including the first, the second and the third generation models. It is argued that following factors played a crucial role in triggering crises in Turkey. Firstly, under the weak sustainable fiscal policies, implementation of the exchange rate based stabilization program caused the increase in vulnerabilities in the sectoral balance sheets and thus increased the prospective...
The determinants of financial development in Turkey : A principal component analysis Börü, Mesrur; Erol, Işıl; Department of Economics (2009) This thesis investigates the determinants of financial development in Turkey. Principle Component Analysis (PCA) is employed in order to examine the main determinants of financial sector development and shed light on the structure of the financial system in Turkey. The empirical studies on financial development suffer from the measurement problem. This study aims to remedy the measurement problem by providing proxies that explain different aspects of financial development more accurately than other proxies ...
Bank competition and banking system stability: evidence from Turkey Ak Kocabay, Selvi; Özmen, Erdal; Department of Economics (2009) This study empirically investigates the validity of the competition and stability trade-off hypothesis for the Turkish banking system. To this end, we consider annual bank level accounting data for the 1990-2008 period and compute the most commonly used measures of banking stability and competition. The effects of macroeconomic factors and bank specific indicators including the ownership structure are also taken into account. The fixed effects panel estimation results suggest that the relation between compe...

Citation Formats

A. Ganioğlu, “Sequencing, pace and timing of financial liberalization process in Turkey with implications on the macroeconomic environment,” Ph.D. - Doctoral Program, Middle East Technical University, 2006.