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21. A Better Proxy for Technology Determinant of Economic Growth: The International Digital Economy and Society Index

Author:
Elif Asoy
Publication Date:
01-2024
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
The importance of information communication technology in fueling economic growth is widely acknowledged. In the current digital era, the International Digital Economy and Society Index (I-DESI) offers a more precise depiction alternative to the ICT indicators by serving as a better proxy for changes in the factors of production. It monitors the advancement of ICT in the EU27 and 14 non-EU nations, highlighting their strides towards a technologydriven economy. The objective of the study was to evaluate the influence of the I-DESI on economic growth through the utilization of the panel data method. Hence, gross domestic product (GDP) measured at constant prices was utilized as the dependent variable in the analysis, while the Index of Digital Economy and Society Integration (I-DESI), calculated by the European Commission, served as the independent variable. However, it’s important to note that the described index is current and limited at present. In line with this constraint, only four years of data, spanning from 2015 to 2018, were available. To ensure the accuracy of the model, diagnostic tests were conducted, and the Driscoll-Kraay standard error model was employed to assess the outcomes. Two models were constructed to achieve this goal, with the initial one revealing the relationship between the I-DESI and economic growth. The second model aimed to pinpoint the dimensions of the I-DESI that had the greatest impact on growth. According to findings obtained from the analysis, I-DESI and certain subdimensions which are digital skills, use of internet, integration of digital technology, and digital public services affect economic growth positively and significantly. A one percent increase in I-DESI results in a one percent increase in GDP. Similarly, each subdimension mentioned, where meaningful relationships have been identified, possesses explanatory power for GDP. Furthermore, evaluating the coefficient of these independent variables, changing the weight of dimensions can be considered.
Topic:
Economics, Science and Technology, Digital Economy, and Economic Growth
Political Geography:
Global Focus

22. Public Policies on the Socioeconomic Effects of Migration

Author:
Ezgim Yavuz and Nazan Susam
Publication Date:
01-2024
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
To develop a public policy, it is important to understand the experiences of forced migrants. This study reveals the effects of forced migration on public finances in countries hosting displaced people. In this context, public policy support for access to basic humanitarian needs such as education and health, which are semi-public goods, will be evaluated through a quantitative analysis. Interviews with refugees within the scope of this research draw a picture of the current situation. Thus, evaluating the effectiveness and shortcomings of existing policies and determining the policy support needed are among the unique values of this research. Since migration is a dynamic process, it is also aimed to provide a basis for future studies in this field and to reveal the current situation.
Topic:
Economics, Education, Health, Migration, Refugees, Public Policy, and Socioeconomics
Political Geography:
Turkey and Global Focus

23. Panel Causality Analysis of the Relationship among the Rule of Law, Technological Advances, Competitiveness, and Value-Added

Author:
Doğan Keşap and Ali Rıza Sandalcılar
Publication Date:
01-2024
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
The status of countries within the global value chain varies depending on the importance of national production capabilities in the global economy. From this perspective, there is a need for a value-added production approach that focuses on innovation and competitiveness. Technological advances and institutions are considered to play a significant role in transforming the economy towards an innovation-driven one to meet these needs. The aim of this paper is to investigate the relationship among technological advances, the rule of law as a proxy for institutions, value-added production, and competitiveness in a way that reflects crosscountry divergence. Through an analysis employed independently of countries’ existing levels of development, it will be possible to evaluate whether the factors associated with institutions and innovation can produce similar results in all circumstances and for each country. In this context, a panel causality analysis that considers cross-sectional heterogeneity is employed. The analysis shows bidirectional causality between the variables, except for value-added to the rule of law. However, the results also support the existence of cross-country divergence. These findings suggest that future policy plans should be designed to consider the multidimensional nature of country-specific factors, alongside technological advances and the rule of law, and to ensure the integration of both national and international economic objectives.
Topic:
Economics, Science and Technology, Rule of Law, Competition, and Value-added Production
Political Geography:
Global Focus

24. Ceremonial Economics: A General Review

Author:
Aras Yolusever
Publication Date:
06-2024
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
Ceremonial economics explores how traditional values, myths, and rituals intersect with economic practices and institutions. It differentiates between “ceremonial” practices based on tradition and cultural values and “instrumental” practices based on efficiency and problem-solving capabilities. This field, rooted in institutional economics, emphasizes the tension between preserving established social orders and fostering innovation. Scholars can gain insights into the broader implications of economic systems by understanding how ceremonial practices influence economic behavior and social cohesion. This pluralistic approach comprehensively analyzes how ceremonial and instrumental practices interact within various economic systems. The main goal of this study is to develop a detailed and all-encompassing framework for ceremonial economics. A key aspect of this will involve comparing ceremonial economics principles with institutional economics. Additionally, the study will delve into various aspects of ceremonial economics, specifically focusing on cultural and social aspects. Furthermore, the study conducts four examples to provide practical insights into the application of ceremonial economics.
Topic:
Economics, Tradition, and Rituals
Political Geography:
Global Focus

25. Foreign Direct Investment, Brand Value, and Economic Performance: A Multinational Analysis

Author:
Tuba Yıldız, Ünal Arslan, Zeynep Ökten, Yıldız Sağlam Çelıköz, and Hale Kırmızıoğlu
Publication Date:
06-2024
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
The visibility and dependability of multinational corporations’ products increase with the fact that they introduce their goods to markets in other nations through foreign direct investments. The method for presenting products to international markets through foreign direct investments reveals the product’s reputation and therefore the brand’s development value. This study examines the relationship between foreign direct investments and brand value in Australia, Canada, China, France, India, Japan, Spain, the USA, and the UK for the period 2007-2023. The majority of studies in the literature attempt to explain the impact of brand value on foreign direct investments. However, very few studies explain the impac foreign direct investments on brand value and 1st generation unit root tests were generally used. Unlike existing studies, In this study, the second-generation unit root test, Durbin-Hausman cointegration, and Common Correlated Effects Mean Group estimation methods were used. As a result, it is anticipated that this study will contribute to the literature in this regard. The findings show that increases in foreign direct investments boost brand value.
Topic:
Economics, Foreign Direct Investment, Multinational Corporations, Data, and Branding
Political Geography:
Japan, China, United Kingdom, Canada, India, France, Spain, Australia, Global Focus, and United States of America

26. Determinants of Air Transport in the BRICS-T Countries: Findings from Panel Data Analysis

Author:
Şevket Pazarcı, Emre Kılıç, Asım Kar, and Sıla Kale
Publication Date:
06-2024
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
This paper examines the factors that determine air transport in the BRICS countries, which account for approximately 42% of the world’s population and occupy an important position among developing countries in terms of economic size. In more detail, in this study, air transport examines two different models, passenger and freight transport. The research is carried out for the period 1996-2020. Panel data methods were used as analysis methods. According to the results of the analysis, both air passenger transport and air freight transport act together with their macroeconomic and socioeconomic determinants in the long term. Income is positive and significant in the air passenger transportation model, while income is insignificant in the freight transportation model. In addition, inflation, exchange rate, industrialisation and urbanisation on a country basis are important determinants of both air passenger transport and air freight transport for BRICS-T.
Topic:
Economics, Transportation, Data, and BRICS
Political Geography:
Global Focus

27. Contractual Origins of Anti-Americanism: Pew 2013 Results

Author:
Cem Birol
Publication Date:
07-2024
Content Type:
Journal Article
Journal:
All Azimuth: A Journal of Foreign Policy and Peace
Institution:
Center for Foreign Policy and Peace Research
Abstract:
Economic Norms Theory (ENT) implies that anti-modernist and anti-market values flourish in countries where the central authority poorly monitors contracts that bind economic transactions. Decades of research show that ENT astutely predicts civil war and interstate war incidents, as well as people’s support for war, and suicide bombing in defense of Islam. This paper investigates the association between contract enforcement and anti-Americanism, which is the ENT’s core, yet is a statistically under-evaluated implication. Accordingly, in countries with poor economic contract monitoring, power-contending elites can attribute the resultant loss of prosperity to the USA and relatedly spread anti-American values among citizens. It is the urban poor who are cognitively most available to adopt such elite-driven anti-Americanism since they tend to be hurt most socially and economically by unfulfilled market contracts. To investigate this argument, I statistically estimate random intercept models on a sample of Pew Global Attitudes Project’s 2013 survey results. I observe that a three-way interaction among individuals’ urbanity, poverty, and their nations’ poor contract enforcement indicators increase anti-Americanism.
Topic:
Economics, Poverty, Urban, Survey, Economic Norms Theory (ENT), Hierarchical Modelling, and Anti-Americanism
Political Geography:
Global Focus and United States of America

28. Options for Green-Skilled Migration Partnerships: A Guide for Policymakers

Author:
Helen Dempster and Samuel Huckstep
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
Center for Global Development (CGD)
Abstract:
The green transition is widely expected to lead to high levels of net job creation, with roles distributed across the pay and skill spectrum. To fill these roles, many countries of destination will need to use migration alongside their domestic labour supply. Yet few countries of origin have enough skilled workers to meet their own green transition targets. As a result, any green-skilled migration facilitated by countries of destination should be linked with investments in the training, recruitment, and retention of workers into ‘green’ jobs within countries of origin. This paper explores three models that link training and migration in a partnership framework—fixed-term migration; Global Skill Partnerships; and migration with parallel investments—to maximise both economic development and carbon reduction benefits. For each model, the paper outlines key considerations that should be taken into account along with a worked example. It also includes a "guide," walking policymakers through the different models to understand which would best meet the needs of countries of origin, countries of destination, and employers.
Topic:
Economics, Migration, Economic Development, and Green Transition
Political Geography:
Global Focus

29. Inequality and the Environment: Global Inequality Research Award Lecture

Author:
James K. Boyce
Publication Date:
07-2024
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
This lecture, delivered at the ceremony for the inaugural Global Inequality Research Award at Sciences Po in Paris, provides a trajectory of the author’s work on inequality and the environment that was recognized by the award. Thirty years ago, many economists and environmentalists saw inequality as a non-issue. Today there is widespread recognition of its importance. The lecture reviews how inequalities in the distribution of wealth and power affect both the magnitude and incidence of environmental harms and discusses some of the synergies between policies to reduce inequality and to improve environmental quality.
Topic:
Economics, Environment, and Inequality
Political Geography:
Global Focus

30. The Growth of Private Financial Markets

Author:
Lenore Palladino and Harrison Karlewicz
Publication Date:
05-2024
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Over the past decade, “private” financial markets, which face little oversight by regulators, have grown to the point where they dominate financial activity. Private funds have approximately tripled in size in the last decade to $26 trillion in gross assets (compared to the $23 trillion in the U.S. commercial banking industry). Private markets raise more in equity than public markets: in 2021, new stock issuances resulted in $434.7 billion, while private markets raised $1.73 trillion in committed funds that same year–almost four times as much. Private markets are structured differently–organized into funds by asset managers as limited partnerships, which shields general managers from liability. The primary dealers in these private markets are venture capital, private equity, private credit funds, and private real asset managers. In this working paper, we examine four institutional shareholder types: public and private pension funders, endowment plans, and foundations. Institutional shareholders now allocate 28-35% of their assets under management to the “alternative” assets of private markets. Pension funds alone currently account for $2.7 trillion in committed funds to private financial markets, the latter of which has ballooned to $26 trillion in gross assets. This development potentially represents new systemic risks to the economy at large and for the institutional shareholders participating in these markets.
Topic:
Economics, Markets, Regulation, and Financial Markets
Political Geography:
Global Focus