The Management of household indebtedness: changing forms of state intervention in Turkey in the post-2001 period

Download
2017
Kahraman, Erse
This thesis examines the process of state intervention in consumer credit markets in Turkey in the post-2001 period. The larger parts of the population have gained access to financial markets over recent decades in capitalist societies. One aspect of this change has been rapid growth of consumer credit markets and concurrent rise in household indebtedness. The dominant approaches in the literature on household debt have mainly drawn their frameworks from the experiences of the advanced capitalist economies, and also largely overlook the role of state state actions in shaping the processes of financialisation. By contrast, the emergent literature on financialisation in developing countries acknowledges the role states have played through the processes of financial deepening, and associates this state involvement with the dependent form of financialisation observed in those economies. This study critically engages with the theoretical accounts in both literatures, and argues that they both fall short of offering a proper framework to analyse the concrete processes of the Turkish state’s increasing involvement in consumer credit markets, as these markets have developed in a rapid pace throughout the 2000s. Having derived methodological tools and insights from Samuel Knafo’s discussion on liberal financial governance, it traces the legal regulations, policies, and strategies towards consumer credit markets in the period 2001-2016 and tries to understand these different forms of state intervention in relation to dynamic relation between state and market actors. Within this framework, this thesis argues that the Turkish state’s interventions in the consumer credit markets have been shaped on the bases of its concerns for reinforcing the finance-led growth regime and containing the political and economic risks associated with the debt-driven growth. Based on these two contending objectives, the Turkish state’s main orientation throughout this period has been to promote the expansion of consumer credit markets, while also attempting to give a more controlled direction to the market growth.  

Suggestions

The determinants of capital flows: the turkish evidence
Kara, Serdar Ufuk; Özmen, Erdal; Department of Economics (2007)
This study investigates the domestic and external determinants of net capital flows to Turkey. The results of the Johansen cointegration analyses indicate that capital flows to Turkey increase in response to increases in domestic real interest rate, domestic real income growth, and budget balance; appreciation of domestic currency; and decreases in financial fragility and the US real interest rates. It can be said that, higher domestic real returns and improved country creditworthiness attract more foreign ...
Manipulative function of credit card advertisements in Turkey
Bayraktaroğlu, Hale Nur; Erdoğan, Necmi; Department of Media and Cultural Studies (2011)
This study intends to investigate the role of credit card commercials in the integration of credit cards to the Turkish society and how this integration has affected the concept of consumption in Turkey. While presenting credit cards to the society, commercials establish certain kinds of relationships between people and credit cards, as well as between people and the other commodities in the market. In this respect, they attempt to rationalize the use of credit cards and to get social approval in order to w...
The impact of value added components of GDP and FDI on economic freedom in Europe
SAYARI MARCUM, NAZ; Sarı, Ramazan; Hammoudeh, Shawkat (Elsevier BV, 2018-06-01)
This paper investigates the possibility of a long-run relationship between the Economic Freedom Index (EFI), Foreign Direct Investment (FDI) and value added components of GDP in thirty Eastern, Central and Western European countries. The study further examines whether the FDI and sector-specific components of GDP have any significant impact on economic freedom for these countries. We use annual data and employ Pedroni and KAO panel cointegration analyses to assess the long-run relationships. The results ind...
The Turkish economy and the challenge of technology: a trade perspective
Ege, Aylin; Ege, A. Yavuz (2017-11-01)
This article provides an analysis of Turkish trade deficits from the perspective of technology, with particular focus on the period that began with the new millennium. It draws special attention to the technological structure of Turkish exports vis-a-vis Turkey's major trade partners and illustrates how Turkish trade deficits are primarily structural in nature and essentially caused by weak technology as compared with Turkey's partners. Turkish products lack competitiveness, particularly in the case of rela...
The State, Crisis, and Transformation of Small and Medium-sized Enterprise Finance in Turkey
Topal Yılmaz, Aylin (Routledge, 2019-01-01)
This chapter explains the impact of Turkey’s financial transformation since the 1980s on domestic SMEs. As is common in bank-based emerging markets like Turkey, SMEs have faced difficulties in accessing sources of sustainable finance with the transition to neoliberalism. During the 1990s, governments responded with new public credit mechanisms for SMEs. Then in the 2000s, private banks in Turkey saw SME finance as an increasingly appealing source of returns. This chapter argues that in order to integrate th...
Citation Formats
E. Kahraman, “The Management of household indebtedness: changing forms of state intervention in Turkey in the post-2001 period,” M.S. - Master of Science, Middle East Technical University, 2017.