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11. Spatial Econometric Analysis of the Ecological Footprint of European Countries

Author:
Beyda Demirci and Ferda Yerdelen Tatoğlu
Publication Date:
06-2024
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
This study explains the effects of various economic factors on the ecological footprint of 34 European countries in 2022 using spatial econometric techniques. Unlike previous studies on the ecological footprint, this study presents more comprehensive results by including spatial effects in the model using spatial econometric techniques for 34 countries for 2022. This study analyzes the lagged effects of per capita GDP growth, trade openness, and renewable energy use on the ecological footprint. The spatial Durbin Model was confirmed as the most appropriate through diagnostic tests and selection criteria. The results show that per capita GDP growth, trade openness, and renewable energy usage positively and significantly affect the ecological footprint. Additionally, the spatially lagged per capita GDP growth rate has a negative impact on the ecological footprint, while the spatially lagged trade openness has a positive impact, both of which are statistically significant. These findings underscore the importance of considering the environmental impacts of economic policies to achieve sustainable development. Furthermore, the identification of spatial effects in the spread of ecological footprints highlights the need to address environmental issues not only at the national level but also in relation to neighbouring countries.
Topic:
Economics, Econometrics, and Ecology
Political Geography:
Europe

12. 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

13. 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

14. Populism and Income Inequality: Is Income Inequality in Türkiye a Political Choice?

Author:
Dila Asfuroğlu
Publication Date:
06-2024
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
The argument that national inequalities are political and thereby driven by political decisions implies that income distribution is not merely an economic phenomenon but also a political one. Hence, this study explores the impact of populist governance on income inequality in Türkiye. In doing so, this study addresses whether income inequality in Türkiye is a political choice, drawing on economic, social, and political data over the years 2008- 2022. According to the results of the quantitative analysis, the share of income for the working class has fallen, the income gap between the lowest and highest deciles of the working class has narrowed, and the potential for fiscal interventions to reduce income inequality is not realised. In return, the income inequality that existed in 2008 has persisted at the same magnitude over the years. In other words, even if income inequality is not an explicit political choice, the populist governance in Türkiye between 2008 and 2022 has chosen not to contribute to the solution to this prevailing inequality.
Topic:
Economics, Politics, Income Inequality, and Populism
Political Geography:
Turkey and Middle East

15. Did the February 6-7 Türkiye Earthquake Trigger a Housing Market Bubble? Empirical Insights from Right-tailed Unit-root Tests

Author:
Gökhan Kartal
Publication Date:
06-2024
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
This study primarily aims to assess whether the destructive earthquakes of February 6-7, 2023 triggered a potential nationwide housing market bubble. Spanning the period from January 2010 to September 2024, the analysis employs Generalised Supremum Augmented Dickey-Fuller and Backward Supremum Augmented Dickey-Fuller methods to identify bubble formations. The findings reveal significant bubble periods, including January to August 2015, November 2015 to November 2016, May 2018 to January 2019, May to June 2019, and February to December 2023. The latest bubble formation occurred immediately after the earthquake, highlighting a strong link between the disaster and housing market dynamics. While the earthquake’s impact—through abrupt housing stock loss, large-scale displacement, and intensified demand for secure housing—was undeniably a crucial trigger for this bubble, other macroeconomic factors, such as inflationary pressures, low interest rates, and the perception of housing as a lucrative investment, also played a reinforcing role. The Türkiye experience enhances the understanding of speculative cycles in seismic regions, demonstrating how non-economic shocks such as earthquakes can rapidly boost demand and strain housing supply, amplifying speculative behaviour. This bubble, which peaked in May 2023 and gradually deflated, completely dissipated by December 2023. This development can be associated with the policies implemented by economic authorities, including interest rate hikes, restrictive credit measures, as well as the normalisation of conditions across the country following the earthquake. This highlights the need for proactive monitoring and intervention by economic authorities through appropriate economic policies and regulations to address supply-demand imbalances and mitigate the risks of future housing bubbles, particularly in response to external shocks. Furthermore, in response to the study’s findings on earthquake-triggered bubbles, policymakers should prioritise initiatives aimed at strengthening building infrastructure and implementing urban transformation strategies.
Topic:
Economics, Natural Disasters, Earthquake, Speculative Bubbles, and Housing Market
Political Geography:
Turkey and Middle East

16. A Monitoring Framework for Progress in Artificial Intelligence Technology: A Research Based on Scientific and Technological Indicators

Author:
Fethi Aslan
Publication Date:
06-2024
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
In the past century, the key technologies that shaped societal and economic transformation were mechanical, electrical, and automation technologies. In the current century, there are strong trends indicating the prominence of artificial intelligence technology. Therefore, artificial intelligence technology has become more important for all countries. The success of countries in artificial intelligence technology is only possible with well-designed artificial intelligence policy tools. It is important to measure the level of technological advancement for the formulation of policies. However, efforts to measure the scientific and technological advancement of artificial intelligence technology are insufficient. Therefore, this study aims to develop a framework to measure the scientific and technological progress of AI technology. The developed framework includes the number of publications and citations, the number of high-impact scientific journals, the number of patent applications, the number of universities ranked in the top thousand in the field of computer science, the number of international high-impact conferences, and the total number of researchers in higher education. Through these criteria, the level of scientific and technological progress of the countries has been analysed in detail. The findings clearly revealed the leading position of the USA in this field. China followed the USA. These two countries are clearly and positively differentiated from the other countries. Other countries with good performance are the UK, the Netherlands and Germany.
Topic:
Science and Technology, Artificial Intelligence, Entropy, and Grey System Theory
Political Geography:
Global Focus

17. Determinants of Ecological Footprint in Türkiye: Evidence from the Fourier ARDL Bounds Test Approach

Author:
Mustafa Torun, Cüneyt Kılıç, Ahmet Tayfur Akcan, and Müşerref Arık
Publication Date:
06-2024
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
Ecological footprint calculations evaluate sustainability by examining natural resources. The ecological footprint obtained by calculating the number of natural resources per person provides information about the amount of waste produced as well as the natural resources consumed and examines the sustainability of living conditions in the world in this respect. The ecological footprint is one of the frequently encountered topics in the literature in terms of the analysis of environmental impacts. This study examines the factors influencing the Ecological Footprint in Turkey. Using annual data between 1980 and 2018, the relationship of renewable energy consumption, human capital and urbanization variables to the Ecological Footprint is examined. The Fractional Fourier Augmented Dickey Fuller Unit Root Test and the Fourier Autoregressive Distributed Lag Bound Test is used in the study. There is a statistically significant relationship between the renewable energy, human capital and urbanization variables and the Ecological Footprint. When the outputs obtained in the study are examined, it is seen that the variables affect the ecological footprint. The increased value of these variables can be used to explain why the Ecological Footprint increased. Increasing industrial activities due to globalization and technological developments, increasing vehicle traffic in cities due to population growth, unplanned urbanization and destruction of green areas due to the sheltering needs of the increasing population, inability of recycling facilities to adapt to the increasing population and unplanned waste management, etc. factors can increase the ecological footprint. However, as urbanization increases, if a correct plan is drawn by taking these factors into consideration, the negative correlation between the ecological footprint and urbanization can be explained. Within the determined plan; Wastewater management, protection of green areas, prevention of unplanned urbanization and efficient use of resources are explanatory at this point. The empirical findings have important policy implications. According to these policy implications, to offset the effects on the ecological footprint, educational activities to raise environmental awareness and adopt energy-efficient lifestyles should be given due importance, various incentives and supports should be implemented and a green-based lifestyle.
Topic:
Economics, Natural Resources, Renewable Energy, Ecology, and Consumption
Political Geography:
Turkey and Middle East

18. 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

19. Aspects of Employment in Ottoman Waqfs Examples of Fatih, Yavuz Selim, and Süleymaniye Waqfs

Author:
Ayşenur Karademir
Publication Date:
06-2024
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
This study examines the role of Ottoman imperial waqfs as employment institutions, focusing on the salary register EV.HMH.1178, prepared for the Fatih, Yavuz Selim, and Süleymaniye waqfs in the early 18th century. By analyzing the administrative and financial oversight documented in this register, the article explores the redistributive functions of these waqfs and their contribution to sustaining long-term social and economic stability. Special attention is given to the intervention of the central office (Sadr-ı Âli Nezareti/Grand Vizier’s Office) through an imperial decree and the classification of employee roles by workplace. This research contributes to the literature on waqfs by providing insights into their employment systems and administrative practices.
Topic:
Economics, History, Employment, Ottoman Empire, and Waqf
Political Geography:
Turkey and Middle East

20. Investigation of Connectedness Effects in the Euro Region: The Case of the Real Estate Prices Index

Author:
Öznur Taşdöken and Hakan Kahyaoğlu
Publication Date:
06-2024
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
Shocks occurring in the housing market among countries using the common currency in the European Union also cause fluctuations in real estate market prices. Therefore, the analysis of the spread and mutual influence of price fluctuations in the real estate market on the economies of countries becomes essential in the implementation of macroeconomic and common monetary policies. In terms of the social and economic impact of the housing market, this information has become the most important source for understanding countries’ investment preferences and price dynamics. Consequently, what initially begins as country-specific shocks in housing markets often evolves into a structure in which these shocks affect housing markets in other countries. Within this framework, the primary objective of this study is to present findings regarding the estimation of parameters related to the interconnectedness of shocks occurring in the housing markets of countries using the single currency of the European Union with other countries’ housing markets.Otherwise, it explores the macroeconomic impacts of countries’ housing markets in the Eurozone due to the mutual interdependence among these countries.The main findings obtained from the study indicate that shocks in the left tail (τ = 0.05) and right tail (τ = 0.95) have a greater impact on connectivity than shocks obtained from median predictions. This demonstrates that relying solely on median-based predictors is not appropriate for examining return transmissions associated with extreme positive/negative events. This is because shocks in the housing market propagate more strongly in the right and left tails than in the median.
Topic:
Economics, European Union, Real Estate, Housing Market, and Interconnectedness
Political Geography:
Europe