Hasan

Assoc. Prof.

Görkem

Assist. Prof.

From Classical Economic Thought of the 18th century to today’s New Consensus, the science of economics has come a long way. There are various colors in the pallet of the discipline and they all represent different methodological frameworks. At this point in time, Neoclassical economics, which is the dominant form of theory building in the world of economics today bases its arguments on a positivist methodology, claiming its theories are universal, scientific and rational. However, the struggle for mathematical modelling which is one of the most profound features of the Neoclassical view, came with sacrifices. For instance, one can observe that in its pursuit of formalization, economics reduces relations in a society to mere man-object level, thus, mostly excluding the social side of economic transactions. An economic argumentation must encompass the relation of man to man, and man with the society. It is evident that under this quest for formalization lies the methodological understanding which has its roots in modernist thinking. That is the claim that humanity will be able to dominate its environment through positive analysis, which is one of the tenets of the enlightenment and hence modernism has an important place in the development of this perspective in economics. However, with this economic mentality, came some counter arguments, too. Because of the devastating wars, economic crises, poverty, inequality, famines etc. the reign of this modernist thinking was challenged from a number of points of view. It was seen that modernism was not the answer to the problems that are faced by humanity. Furthermore, it brought with it a new set of problems, some of them are still waiting to be solved. For once, the idea that the social environment of man could easily be manipulated From Classical Economic Thought of the 18th century to today’s New Consensus, the science of economics has come a long way. There are various colors in the pallet of the discipline and they all represent different methodological frameworks. At this point in time, Neoclassical economics, which is the dominant form of theory building in the world of economics today bases its arguments on a positivist methodology, claiming its theories are universal, scientific and rational. However, the struggle for mathematical modelling which is one of the most profound features of the Neoclassical view, came with sacrifices. For instance, one can observe that in its pursuit of formalization, economics reduces relations in a society to mere man-object level, thus, mostly excluding the social side of economic transactions. An economic argumentation must encompass the relation of man to man, and man with the society. It is evident that under this quest for formalization lies the methodological understanding which has its roots in modernist thinking. That is the claim that humanity will be able to dominate its environment through positive analysis, which is one of the tenets of the enlightenment and hence modernism has an important place in the development of this perspective in economics. However, with this economic mentality, came some counter arguments, too. Because of the devastating wars, economic crises, poverty, inequality, famines etc. the reign of this modernist thinking was challenged from a number of points of view. It was seen that modernism was not the answer to the problems that are faced by humanity. Furthermore, it brought with it a new set of problems, some of them are still waiting to be solved. For once, the idea that the social environment of man could easily be manipulated.

Economics: From Modernism to Postmodernism

Harun

According to the basic principles of Islamic economics, an economic system should promote social solidarity and human wellbeing, prioritize the sharing of profits and losses over interest-based financial instruments, and envisage a just and equitable financial system. However, due to the changes having taken place in the modern period, these basic principles have not been adequately realized. The individualization of modern society has acted as a primary agent of such societal changes. Although the degree of individualization varies among countries, premodern solidarity has been compromised significantly due to such large-scale individualization. Owing to such transformation, activities previously fulfilled through social solidarity are now governed by welfare state institutions and the market system. Furthermore, the existence of a legal personality facilitates the dominance of the market, curtails the benefits offered by the financial system to the real economy, and causes social inequality. Commercial entities with legal personalities operate with the goal of earning unlimited profit by leveraging limited liabilities. Such an objective contributes to the development of financial capitalism and an acute shortage of materials; moreover, it raises the volume of debt-based financial instruments. This study aims to critically evaluate, from the perspective of Islamic economics, the institution of legal personality, a phenomenon that plays an essential role in the emergence of the capitalist system that, in turn, facilitates capital accumulation.We argue that financial crises and other such social adversities caused by financial capitalism stem primarily from the existence of commercial legal entities and the goal of unlimited profit as the mission imposed on them within the capitalist system, rather than incidental problems, such as lack of regulation and supervision. Hence, the legal personality exerts a significant influence on the financialization of the economy. The important assertion is that in the current scenario, it would be a rational decision for companies to pursue profits without considering the welfare of society, possess limited liabilities, and exhibit behaviors that might result in negative consequences. Although Islamic scholars have justified the validity of legal personality in Islamic law by referring to the mosque, waqf and state institutions, we argue that such an analogy not be used when evaluating commercial legal personalities. This is because the institutions referenced to legitimize the existence of the legal personality are either established for worship or as a means for Muslims to attain salvation (falah). For this reason, a controversial issue in Islamic law today is the status of the legal personality of corporations, which, as opposed to the legal personality in Islamic law, was established with the goal of obtaining unlimited profit, facilitating capital accumulation, and mitigating company owners’ risks.&nbsp;For this reason, as claimed by Timur Kuran, it is true that Muslim societies had not developed commercial legal entities; however, such absence of commercial legal entities was not owing to a shortcoming of Muslim societies but because of the establishment of “commercial legal entities” was deemed impossible by the Islamic morality that governs Muslim societies. Kuran’s basic assumption is that capital accumulation is essential for material growth in all societies. This modern understanding, which claims to be a universal truth, has been challenged, particularly in the post-modern period. Questions such as, “Should material and spiritual growth and development coexist with Islamic moral values?” and “If so, how can this harmony be accomplished?” are subjects that require research in reference to the basic sources of Islamic economics. The scope of this study is to demonstrate the incompatibility of the Islamic morality with the current economic system, which assumes that capital accumulation is a universally inevitable phenomenon and legitimizes the existence of the institution of legal personality as a means for achieving this accumulation. Such incompatibility results from the social consequences of the legal personality. It is argued that existence of the legal personality leads to an increase in financialization as opposed to facilitating actual production. Ultimately, it promotes individualism and contributes to the diminishment of essential solidarity and cooperation among individuals.&nbsp;&nbsp;

Consequences of the Legal Personality of Commercial Entities: An  Evaluation from the Perspective of Islamic Economics

Zühal

Inequality and the Import Demand in Turkey

Hande

Fatih

How Do the Exchange Rates Affect the Sector Indices?  A Dynamic Panel Data Analysis for Borsa Istanbul

Bilge

In this study, it is aimed to examine the determinants of the industrial production index, which is necessary for sustainable growth. Even though the share of the industrial sector in the total output is around 20%, it is still significant as a precursor to the gross domestic product. The industrial production affects the economy in many ways. The increase in industrial production through both domestic consumption and exports is closely related to economic growth. The fact that industrial production is sensitive to both consumption demand and interest rates makes the industrial production index closely related to growth. The importance of the manufacturing industry sector, which has a weight of more than 80% in the industrial production index, is enormous. One of the first studies which reveal the impact of the manufacturing industry sector on economic growth is Kaldor’s 1966 study. The first rule accepted as Kaldor’s laws of growth reveals that the manufacturing industry is the main factor of economic growth. The increase in the share of the manufacturing industry sector, which has a high multiplier effect, will also increase the growth.When the literature on the industrial production index is examined, it is seen that the factors affecting the industrial production index and the analysis methods differ from each other. In this study, the relationship between the leading indicators of the industrial production index, which is one of the most important leading indicators of economic growth, is examined with the ARDL (Autoregressive Distributed Lag) Model using monthly data between 2007 and 2020 in the Turkish Economy. In this model, electricity consumption, white goods production and manufacturing industry capacity utilization rate are used as independent variables to explain the industrial production index.&nbsp;According to the results of the study, electricity consumption and manufacturing industry capacity utilization rate are significant in explaining the industrial production index in the long run. The leading variable which is most effective in explaining the industrial production index is the electricity consumption. According to the results, 1% increase in electricity consumption increases the industrial production index by 1.2%. In addition, 1-unit change in the capacity utilization rate increases the industrial production index by 0.5%. On the other hand, in the short run, it is concluded that 1% increase in electricity consumption will increase the industrial production index by 0.6%. Also, 1% increase in white goods production will increase the industrial production index by 0.3% and 1- unit change in the capacity utilization rate increases the industrial production index by 0.6%. Since the error correction coefficient is significant and negative in the short-term model indicates that the system will return to equilibrium if there is a deviation from the long-term equilibrium. Accordingly, the error correction coefficient being -0.28 indicates that if there is a deviation from the long-term balance in the industrial production index due to a shortterm shock, the system will stabilize in approximately 3.5 months. In other words, it shows that 28.2% of the deviation that will occur in the long-term balance due to a shock in the short-term might be eliminated at the end of the 1-month period. Effect of white goods production, which had an impact on the industrial production index in the short term, disappeared in the long term. Furthermore, the effect of capacity utilization rate is very limited in both the long and short run.In future studies, the relationship of industrial production index with leading indicators such as exports, imports of intermediate goods and capital goods, manufacturing industry purchasing managers index (manufacturing PMI), automobile production can be analyzed.&nbsp;&nbsp;

Determinants of Industrial Production in Turkey: ARDL Model

Devran

Aziz

Prof.

When the growth processes of countries are examined, it is known that some countries perform much faster economic growth than others. In current growth theories, human capital and technology have become factors explaining growth and income differences Keynesian models give notice that growth can be achieved not only by increases in factors of production but also by reallocating existing resources from the inefficient non-export sector to the more productive export sector. According to this traditional view, an increase in export volume will have a positive effect on growth. The mentioned effect is experienced through foreign demand created by the increase in exports, resource allocation, economies of scale, technology diffusion, increasing total factor productivity, and contributing to free trade. One step further, it is argued that high-tech industries are the sectors that contribute the most to the international competitive performance of countries and that world trade in high-tech industries stimulates growth much more than in other manufacturing industries. Diversification of exports from primary goods to high value-added technology-intensive goods will allow more technological spillover to sectors than traditional product exports provide and will contribute to decimating the technology gap between countries.This study aims to present new findings to the literature by analyzing the impact of high-tech(HT) exports on revenue using panel data methods in 49 countries and under both Cobb-Douglas and Translog production functions for the period 1988- 2017. The common point of previous studies is that they explain these relations under the Cobb-Douglas (C-D) production function. No other study has been found in the literature investigating the HT-Income relationship in the Translog production function. In this aspect, the current analysis is a pioneer study.&nbsp;&nbsp;Regression coefficients were estimated by the Driscoll-Kraay method, which produces robust standard errors in cases where OLS assumptions cannot be met. Furthermore, the existence of cointegration between the series was investigated by the stationarity of the residuals. The stationarity of the regression residuals indicates that the estimated regression coefficients are not spurious and the obtained statistics can be interpreted with confidence. Since the series are cointegrated, regression analyzes can be interpreted in the long term.According to the findings, the income elasticity of the physical capital contributing to the scale is 0.668; income elasticity of human capital was calculated as 0.584 and income elasticity of HT exports was calculated as 0.071. HT export-oriented technology-intensive policies will contribute positively to income.However, HT exports have been found to contribute to income per labor force, while human capital contributes to income per labor force along an increasing curve. The relationship between physical capital and income seems decidedly linear. When the substitution elasticities are examined, it is seen that the substitution relationship between physical and human capital is weak and there are complementary factors. Human capitalHT; physical capital-HT factors are factors that can be substituted for each other. These findings were tested for robustness with alternative regression methods in addition to the main models, and results compatible with the existing models were obtained.The fact that human capital contributes to income along a curve that increases non-linearly emphasizes the importance of this factor for countries. This characteristic of human capital as the determinant of the condition of increased returns on the scale and the dominant factor determining income shows that the policies to increase high-tech exports recommended to countries to get out of the middle-income trap can actually be a supporting element that complements human capital. Therefore, policies that will basically increase the quantity and quality of education will both stimulate income growth and contribute to the reduction of social problems such as gender inequality.&nbsp;Accordingly, policies must be designed for the establishment of technologyintensive free zones, the provision of the logistics infrastructure of these zones, encouraging foreign investment and trade, increasing institutional quality, etc.

The Impact of High-Tech Exports on Income: Findings on the Translog Production Function

Orhan

Globalization is a central concept that characterizes today’s economies. Globalization is extensive in scope, encompassing the cross-border movement of goods, capital, and individuals and thereby affecting almost all disciplines. The impacts of globalization are not limited to economics but extend to political, social, and cultural changes. During the period dominated by Keynesian economics, from World War II to the 1970s, the state’s role in the economy expanded and the view that demand-oriented government policies would increase welfare became widespread. After the 1970s, many countries around the world took steps toward radical changes in economics and politics. The idea that the welfare state, as identified in Keynesian economics, leads to inefficiency, wasted resources, and corruption in the public sector, started to take hold on political-economic grounds.The new world order that began in the 1970s focuses on a structure that differs from previous periods, reducing the role of the state in the economy, increasing integration across countries, and removing economic and trade barriers. International organizations under the control of developed countries, such as the International Monetary Fund and the World Bank, have tried to persuade underdeveloped and developing nations to benefit from globalization by opening up their economies. The Washington Consensus, proposed by John Williamson (1990), is a manifesto that specifies the reforms developing countries should implement in order to adapt to globalization. The impact of integrating with international markets on individual countries is not only economic; it also affects corruption, which is closely related to political decision-making and corporate governance. The theoretical literature in this field focuses primarily on the impacts of corruption on trade openness. However, trade openness itself influences corruption through various mechanisms. Optimistic views argue that&nbsp;trade openness reduces corruption by reducing monopolistic rents and the motivation to seek bribes. In contrast, those who argue that trade openness increases corruption state that the marginal utility of bribery for customs officers increases with openness, the control mechanism of commercial activities weakens, and there is an increased need for funds due to politicians’ concerns about being re-elected that leads to a rise in rent-seeking activities.Based on this framework, this study analyzes the impact of trade openness on corruption for a panel group consisting of Turkey and the MENA countries, Algeria, Bahrain, Egypt, Iran, Israel, Jordan, Kuwait, Lebanon, Malta, Morocco, Oman, Qatar, Saudi Arabia, and Tunisia, using data spanning the period from 1996 to 2018. The dependent variable is a control of corruption index, and the share of total exports and imports of a country’s Gross Domestic Product (GDP) is used as an indicator of trade openness. Other explanatory variables include a rule of law index, real GDP per capita, and public expenditures. In the first stage of the empirical analysis, the cross-section dependence test, homogeneity test, and unit root test are performed. The Augmented Mean Group (AMG) method developed by Eberhardt and Bond (2009) is used to reveal a long-term relationship between the variables. After determining this long-term relationship, Dumitrescu-Hurlin’s (2012) causality method is used to investigate the causality linkage between the variables. According to the AMG results, trade openness negatively affects the control of corruption in the panel countries. In terms of economic rhetoric, corruption increases with trade openness. In addition, the impact of other explanatory variables on corruption control is positive. Accordingly, we find that economic growth, the rule of law, and the increase in public expenditures reduce corruption by increasing the extent to which corruption is controlled.The causality test performed after the parameter estimation reveals different findings. We show there are bidirectional causality linkages between control of corruption and economic growth, control of corruption and trade openness, trade openness and economic growth, the rule of law and economic growth, and public expenditures and the rule of law. In addition, one-way causality relationships are found from public expenditures to control of corruption,&nbsp; The causality test performed after the parameter estimation reveals different findings. We show there are bidirectional causality linkages between control of corruption and economic growth, control of corruption and trade openness, trade openness and economic growth, the rule of law and economic growth, and public expenditures and the rule of law. In addition, one-way causality relationships are found from public expenditures to control of corruption,&nbsp;&nbsp;economic growth, and trade openness, and from trade openness and to the rule of law. Our findings are consistent with the pessimistic view that states trade openness increases corruption. The results offer various suggestions for policymakers in MENA countries and Turkey. When pursuing integration with the global economy, policymakers should develop policies to strengthen the rule of law, increase accountability and transparency, ensure political stability, improve regulatory quality, and make the public sector more effective to reduce the negative impact of globalization on corruption within the country. These countries should also implement policies that will improve institutional quality when integrating into the global economy. Therefore, beyond quantitative growth, qualitative development of the public sector becomes more critical.

The Political Economics of Trade Openness and Its Impacts on Corruption

Emrah

Res. Assist.

İlknur

Migration is the act of individuals moving within or between countries due to force majeure or to achieve personal goals. Multiple socioeconomic factors can trigger decisions to migrate, and new communities and social lives are formed in both the area of migration and abandoned area as a result of such individual or mass movement.The phenomenon of migration, which is high on the agenda of many countries across the globe, has a very important place due to changing living standards. The living conditions of abandoned regions of international or national human flows have been observed as more negative to human flourishing than the preferred region. At the same time, issues such as unplanned urbanization, increased crime rates, interpersonal communication challenges, and racism can arise in the migration from underdeveloped regions to developed regions.Concerning the attempt to maintain a balance in class relations between individuals in the same region, migration from irregular and underdeveloped regions results in income differences, particulary related to employment which are at the forefront of rising crime and incompatibility in a society defined by the rule of law.Hope of a better life, health, or employment opportunities is called internal migration. The first data on internal migration in Turkey was obtained by Turkstat in the 1970 general population census by asking the place of residence of the people in the previous year. The causes of internal migration in Turkey have over time. While immigration occurred for reasons such as job changes and marriage in the early years of the Republic, in the advent of technological development and industrialization, mobility from rural to urban areas and from city to city occured&nbsp;in the subsequent periods. In addition to various appealing factors, such as city’s zoning amnesty, terrorist incidents in the east of the country increased migration movements from east to west.As the Turkish economy evolved from agriculture to industry and service sectors, internal migration became prominent and attracted attention starting in the 1950s. In this context, migration from rural areas to city centers accelerated urbanization. As a result of internal migration movements in Turkey over the years, significant differences in interregional development and interregional population densities have emerged. Since the service standards offered by the cities are more attractive to individuals, there are now regional variations in health, environment, employment, social, and economic factors. Intense transitions occurred in the eastern parts of the country, especially to the Marmara Region. Among the main reasons for this circumstance are the rising mechanization of agriculture, increasing unemployment in villages, education opportunities in cities, and security.In this study, from perspective of the Todaro Paradox, the significant weakening of new employment opportunities in cities due to internal migration was tested using the ARDL limit test, examing internal migration and urban unemployment rates the years from 1988 to 2019 and the validity of the Todaro Paradox for Turkey. The findings revealed a significant relationship between the urban employment rate, rural population rate, and urban unemployment rate for 1988- 2019 in Turkey. The analysis demonstrates that the positive effect of increasing employment opportunities in Turkish cities in reducing the unemployment rate is diminished by internal migration. This result confirms the validity of the Todaro Paradox in Turkey between 1988 and 2019. In other words, continuous increase in employment opportunities in cities triggers rural migration to cities causing unemployment to become endemic.These findings are congruent with other studies examining the relationship between immigration to cities and unemployment in cities. It would not be incorrect to assert that urban immigration is related to multiple issues, such as population density, unplanned urbanization, insufficient infrastructure, and traffic&nbsp;complications. It is insufficient to develop policy packages based only on cities to address such changelles. Policies aimed at managing the problems experienced in cities should include regional aspect aimed at increasing employment opportunities and improving living standards in rural areas. When individuals do not face unemployment in the region in which they live and if they feel that education, health, and security are sufficient, they will tend to be more cautious and hesitant regarding migration. At this point, encouraging reverse migration with rural development policies is an important consideration for preventing internal rural-urban migration, which is triggered by low incomes and lack of living standards in rural areas compared to urban areas.

Analysis of Internal Migration in Turkey Within The Framework of the  Todaro Paradox: An ARDL Bound Testing Approach

Fatma

Petroleum and petroleum products are vital for the continuous operation of economic operations in countries around the world. Petroleum products are also an important foreign trade commodity that generates considerable income for oil-exporting countries, as well as an imperative production input of significant expenditure for oil-importing countries. These two opposing effects also represent an essential export/import commodity subject to trade between countries. Export revenue from petroleum products in the international market and import expenditure for petroleum products are among the critical variables that determine countries’ macroeconomic performance. For this reason, in the face of sudden shocks in global markets (e.g., oil supply–demand and exchange rate shocks), countries may face adverse conditions, such as stagnant economic growth, decreased foreign trade, and inflation, which can have negative effects on national welfare.The USD dollar, which has the uppermost share in international reserve currency status, has a major influence in the international trade of petroleum products, like many other products. Undoubtedly, fluctuations in the dollar exchange rate have differing effects on oil exporting and importing countries. An overvalued dollar exchange rate may cause more costly imports for oil-importing countries resulting in foreign trade deficits. Therefore, negative exchange rate shocks that occur in global markets may cause a decrease in countries’ foreign trade income or an increase in costs, affecting important macroeconomic variables such as inflation, savings, and economic growth in particular. In this sense, the important relationship between oil prices and exchange rates is followed closely by both policymakers and investors.&nbsp;The demand for petroleum and petroleum products, which are an essential production input for countries’ economic performance, is rising in Turkey, as well as on a global scale. Due to limited reserves, most of Turkey’s crude oil needs are met through imports. Consequently, determining the direction of causality between oil prices and exchange rates can provide vital information for policymakers and investors to better understand the dynamics of the relationship. This study investigates symmetric and asymmetric causality relationships between oil prices and real exchange rate variables using annual data for the period 1960– 2019 for Turkey. Both the relationship between crude oil prices and real exchange rate series and the causality relationships between positive and negative shocks of these series are examined using the Fourier Toda–Yamamoto method. The results show no symmetric causality relationship between oil prices and real exchange rate variables; however, a one-way causality relationship is revealed from positive oil price shocks to positive real exchange rate shocks, indicating that the increase in oil prices causes an increase in the real exchange rate in Turkey. According to these results, asymmetric effects should be considered when examining the relationship between oil prices and exchange rates in Turkey. Oil imports are crucial in the sustainability of economic activities in Turkey. In this sense, the increase in oil prices will increase Turkey’s import expenditure and thus foreign exchange demand. The increase in the demand for foreign currency puts pressure on the exchange rates in Turkey due to limited alternative income sources. Increases in the exchange rate adversely affect the macroeconomic balances of the country, principally, account deficit and cost inflation. In this sense, long-term policies to reduce dependence on petroleum products should be developed and strongly advocated. It is recommended to implement structural reforms that encourage the diversification of energy consumption, particularly through the development of alternative clean energy sources (such as solar, wind, nuclear, and hydroelectric).&nbsp;&nbsp;

Relationship Between Oil Prices and Real-Exchange Rate in Turkey:  An Investigation Using Asymmetric Fourier Causality Analysis

Mehmet

Emrullah

Following the industrial revolution, the adoption of mechanization, the introduction of mass production, and the use of fossil fuels put serious pressure on the ecosystem, resulting in climate change and environmental pollution. This mode of production and economic growth, which has threatened the continuity of natural life since the first half of the 20th century, has begun to draw attention, necessitating the introduction of certain environmental principles. One of the key principles is the concept of sustainable development. Sustainable development refers to economic development based on the use of renewable resources, considering the environmental effects of economic activities. Achieving economic growth without causing environmental pollution will be possible only with technological development and innovation.According to the endogenous economic growth theory, increase in research and development (R&amp;D) activities can provide factor productivity and an increase in production with technological innovation; however, the contribution of technological innovation to environmental quality, especially greenhouse gas emissions, is uncertain. Thus, it is important to determine whether technological innovation protects the environment.Technological innovation is considered as a key solution to environmental problems and a viable instrument for sustainable development. Technological innovation refers to the innovation of production or production technology, the development of new ideas, development and implementation of new patents and technologies, and modification in the existing production process. The relationship between economic growth and CO2 emissions is based on the Environmental Kuznets Curve in economic literature. The relationship between economic growth and pollution is presented as an inverse U-curve, and the increase in production and income creates an initial increasing pressure on the environment as countries continue their economic development. On reaching a certain income level, the environmental pressure created by economic growth is decreased.Studies on the emission-reducing effect of technological innovation are important not only in the relation to countries but also for academic purposes. In this regard, this study used energy technology innovation to test the impact of technology on emissions; it evaluated the R&amp;D scale and, finally, developed a patent. Unlike R&amp;D expenditure, patent data were a measure of output. A patent is a right to the person making an invention granted by a governing authority; it may grant other people the right to use the invention for a certain period. Obtaining a patent is both an intensive procedure and a very expensive process. The intensive procedure and heavy cost serve as a guarantor for high quality inventions. A patent is usually granted after the development of the technology has begun, that is, it proofs that success has been achieved.This study examined the impact of environmental technological innovations on CO2 emissions in 18 OECD founding countries. The study focused on the period between 2005 and 2018. CO2 emissions were used as the dependent variable; energy consumption, economic growth (GDP), and technological innovation data were used as independent variables. The panel generalized method of moments (GMM) was used for the analysis and the number of patents to prevent climate change was used as a technological innovation indicator.The patent data used in the study were scored according to the inventor countries. For example, where there was a joint patent application from two different countries, each country was given 0.5 points to prevent duplicate counting, and in case of applications from three countries, each country was given 0.33 points. Concerning patent applications, classifications were made based on the technology density. There were four classifications. Classifications of 1 and above refer to all patent applications, including inventions with low value. In this study, patent applications of inventions with higher value were used, considering the classifications of 2 and above.Analyzed results show that the increase in energy consumption and economic growth increase CO2 emissions and an increase in the number of patents reduces CO2 emissions. The evaluated results in terms of OECD countries were not surprising. In fact, patent applications for environmental innovations aimed at preventing climate change increased approximately six times in the last three decades across OECD countries. This increase indicates the importance given to policies for preventing environmental problems in OECD countries. Additionally, the acceleration of globalization, the increase in the world population, and the resulting increase in total demand increased the production and energy demand. Although efforts to reduce energy consumption based on fossil resources and interest in renewable energy have recently increased, the share of renewable energy consumption in total energy consumption has not yet reached the desired levels.&nbsp;&nbsp;

The Impact of Environmental Technological Innovations on CO2 Emissions: The Case of OECD Countries

Gökhan

Metehan

Res. Assist. Dr.

Changing the Course of Tax Narrative: Relationality, Sociality, and Postcapitalist Possibilities

Sergei

Effects of the EU’s CBAM on Eurasian Countries

Murat

Serdar

Parla

The Rise of Household Debt in Global Economy and Türkiye

Hamza

Prof. Dr.

Havanur

Assoc. Prof. Dr.

Lecturer

The Impact of Globalization with its Different Aspects on Economic Growth: The Case of Turkey

Burcu

Abdulkadir

Determining the Criteria Affecting Tax Ethics in Türkiye Using the Fuzzy DEMATEL Method

Zeynep

Do People Adapt to Unemployment? Findings from Türkiye

Ferda

The Importance of Space in Comparative Capitalism Analyses: A Comparison of Varieties of Capitalism and Variegated Capitalism Approaches

Burak

Ahmet

Merve

Macroeconomic Determinants of Tourism Demand Toward Emerging Markets

Historicizing National Socialism and Mehmet Genç

@JOURNAL_BOX_CURRENT

@JOURNAL_BOX_EARLYVIEW

Özgür

Sultan

The Causal Relationship Between Economic Growth and Export: The Case of Russia

Ümit

The Monetary Policy Reaction Function in Turkey: Evidence from Fourier-Based Time Series Methods

Kalim

The US Economy, Global Imbalances and Recent Development: A Critical Review

@JOURNAL_BOX_FEATURED

Recep

Nowadays, tax expenditures are extensively applied in many countries in order to achieve certain economic and social goals more effectively and quickly. This situation reveals the importance of fiscal discipline in OECD countries, one of which is Turkey. In recent years, the increasing need for public services has led to increases in demand for public expenditures. In this context, tax which is the most important resource of financing public expenditures, has become an important implementation tool of fiscal policies. In addition to the implementation of tax as a fiscal policy tool for the purpose of financing public expenditures, it can also be applied indirectly in the form of tax expenditures in place of forgone tax revenues, for the purpose of economic and social policies.Tax expenditures, which were introduced for the first time in the 1960’s and which are extensively applied in many countries in order to achieve certain economic and social goals more effectively and quickly, constitute an important discussion topic. Thus, tax expenditures generally represent forgone tax revenues&nbsp;and are generally applied in the form of tax exemption and exceptions, reductions, credits, low tax ratios and tax deferrals. The fact that tax expenditures have the qualifications of extra budgetary public expenditures and the transfer of funds from the public sector to the private sector increases these discussions further. Therefore, the efficient and effective implementation of tax expenditures is becoming more and more important in terms of income and expenditure policies.In this study, prepared in order to analyse the development of tax expenditures in Turkey, first the concept of tax expenditures and the theoretical framework and implementations were examined, then the volume of tax expenditures, increase ratios, distribution according to the categories of taxes, and ratios to various macro indicators were analysed, using the estimated tax expenditures of the 2015-2021 period in Turkey. Then, the functional distribution of tax expenditures was covered and it was determined which areas these expenditures are directed towards. Finally, the ratio of tax expenditures in Gross Domestic Product (GDP) in various countries and the situation in Turkey were examined, and an attempt was made to develop some policy recommendations in order to apply tax expenditures more efficiently and effectively.The findings of the study show that tax expenditures are extensively applied in both developed and developing countries and they continue to increase despite efforts to decrease tax expenditures in the context of fiscal discipline practices. In Turkey, tax expenditures have attained a significant level and in addition to tax laws, there are tax incentives in the form of tax expenditures in many laws. In Turkey, it is envisaged that tax expenditures which are 79,6 billion TL in 2015 will reach 230 billion TL in 2021, by increasing with an annual average 19,3% ratio. In addition, significant increases have been realised in tax expenditures, especially in 2017, 2018 and 2019. This data shows that tax expenditures are extensively applied in Turkey especially in recent years, as an active fiscal policy tool besides the other policy measures, in order to revive the economy.The Income Tax takes the highest share of the tax expenditures in Turkey. In 2018, 38,4% of total tax expenditures comes from the Income Tax, 27,7% from the Value Added Tax, 15,6% from the Corporate Tax, 14% from the Special Consumption Tax and 4,3% from the other taxes. In 2018, 55,9% of the tax expenditures in the Income Tax consisted of the minimum living allowances. This ratio constitutes 21,8% of total tax expenditures. The fact that the highest shares of tax expenditures are the the Income Tax and the minimum living allowances in the Income Tax, is also important in terms of showing that the tax expenditures are applied to improve the income distribution.In 2018, the ratios of tax expenditures to tax revenues obtained in the same categories of taxes were 41,7% the Income Tax, 29,9% the Corporate Tax, 23,5% the Value Added Tax, 15,8% the Special Consumption Tax and 7,1% under the other laws in Turkey, while the majority of tax revenues consist of indirect taxes, the implementation of tax expenditures mostly to taxes on income decreases the balance in tax distribution.Regarding the functional distribution of the tax expenditures in Turkey, labor market development, wages and employment has a share of 24,5%, development of the business world and increasing of investments has a share of 20,7%, infrastructure, energy and transportation has a share of 18,5%, increasing of domestic savings and deepening of the financial markets has a share of 14,7%. These are followed by tax incentives for agriculture with 9,9%, tax expenditures for health and social purposes with 9%, Research &amp; Development, innovation and design activities with 2,4%, tax expenditures in education, culture, sports and arts with 0,4%.The functional distribution is important in terms of showing how tax expenditures are applied within the scope of determined economic and social goals. In recent years, implementations such as minimum living allowances, private pensions, business incentives, research and development incentives, important infrastructure, energy and transportation projects, and agricultural supports show that tax expenditures are extensively applied within the scope of these determined economic and social goals.In 2018, while the ratio of tax expenditures in GDP was 4,1% in Turkey, the share of tax expenditures in budget revenues, tax revenues, and budget expenditures were 19,9%, 24,3% and 18,2% respectively. These ratios are significant when they are compared to many countries’ ratios. In 2018, Canada with 18,6%, Australia with 9,3% and The United States of America (USA) with 6,7% are ranked among the countries with the highest ratio of tax expenditures in GDS. Turkey with 4,1% ratio of tax expenditures in GDP is one of the countries where tax expenditures are extensively applied for the purpose of various economic goals outside public expenditures.In this context, some policy recommendations such as a more effective realisation of cost-benefit analyses on tax expenditures, the calculation of tax expenditures in the most realistic manner with minimum error, the determination of the tax expenditures’ objectives and the explication to the public opinion, the regular and more detailed reporting of estimated tax expenditures/continue to be reported, the functional classification of tax expenditures by sectors, the submission of the reports to the public opinion within the annual budget, the monitoring of the harmony level between the expenditures and the goals and the explication to the public opinion, the termination of ineffective tax expenditures or the replacement with the effective tax expenditures, the simplification of the Tax System, the inclusion of the tax incentives other than tax laws in the form of tax expenditures and providing transparency in resource allocation on tax expenditures are presented in order to apply tax expenditures more efficiently and effectively in Turkey. With these policies, it is envisaged that tax expenditures will contribute positively to Turkey’s economic performance in such a way that the efficiency and effectiveness of tax expenditures are increased and fiscal transparency is achieved.

The Development of the Tax Expenditures in Turkey: 2015-2021

Süleyman

Liberalization process of the capital markets in Turkey began by July 1984 dated number 30 executive order of the government and the process has continued with executive order number 32 on August 1989. New regulations allow domestic and foreign individuals and institutions to open bank accounts, invest in Turkish debt and stock markets in Turkish Lira and foreign currency with some restrictions on borrowing with foreign currency. Short and long term capital flows increased with the liberalization of capital markets in Turkey.Deposit and credit dollarization of banking system is defined as ratio of foreign exchange deposits and credit to the total deposits and credits. In between 2003- 2019 (the sample period of this study), the dollarization (both deposit and credit) of Turkish economy followed a volatile path (Figure I). Dollarization which was around 45% at the beginning of 2000’s declined below 30% until year 2010. After the modifications in the framework of the monetary policy implementation, both deposit and credit dollarization began to rise. The simultaneity of the modification in the monetary policy framework and the rise in dollarization may be related to the fact that required reserve ratios of Turkish lira deposits increased while those of foreign currency decreased were decreased by the monetary authority. During the same period, a simultaneous elevation of volatility of the Turkish lira US dollar exchange rate was observed. In the literature the relationship between deposit dollarization and exchange rate volatility has been showed in multiple studies (Akçay 1997, Honohan, 2006, Corrado, 2008, Yinusa 2008 Mengesha and Holmes, 2013), yet the impact of credit dollarization on exchange rate has not been investigated in our best knowledge. In this paper, we investigate the effects of credit and deposit dollarization and portfolio capital flows on volatility the Turkish Lira (TL) US Dollar (USD) exchange rate. For this purpose we employed the EGARCH-M model. This paper, contributes to literature by its comprehensive approach of examining exchange rate volatility relationship with dollarization of both kinds, portfolio flows and country risk factor (CDS).Empirical results provide insights to the dynamics of Turkish lira US dollar exchange rate volatility since 2003. According to this, increase in deposit and especially credit dollarization elevate conditional volatility of the TL-USD exchange rate. On the other hand, portfolio flows reduce it. In addition to conditional volatility findings indicate that higher deposit interest rate spread between TL and USD deposits, appreciate the TL-USD exchange rate, while higher spreads in loan interest rate TL-USD depreciate TL. These results are in line with theory and literature.Findings of this study indicate that dollarization of the financial system through deposit and credit dollarization elevate volatility of the exchange rate risk in Turkey. So, reducing dollarization of the financial markets gradually decrease exchange rate volatility and risk, eventually attracting foreign portfolio flows by increasing return per unit of risk (Sharpe ratio) which in turn reduce volatility further more. This virtuous cycle eventually reduce volatility more and stabilize exchange rate, increase investments and lead to economic growth and prosperity

The Relationship between Dollarization, Portfolio Flows and Exchange Rate Volatility for the Turkish Economy during the 2003-2018 Period

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Istanbul Journal of Economics-İstanbul İktisat Dergisi is an open access, peer-reviewed, scholarly journal published two times a year in June and December. It has been an official publication of Istanbul University Faculty of Economics since 1939. Starting from 2023, except for the articles in process, the journal has started to consider manuscripts in English for evaluation and publication language has become English. Before 2023 the publication languages of the journal were English and Turkish.

Being one of the earliest peer-reviewed academic journals in Turkey in the area of economics, Istanbul Journal of Economics-İstanbul İktisat Dergisi aims to provide a forum for exploring issues in basicly economics and publish both disciplinary and multidisciplinary articles.

Economics is the main scope of the journal. However, multidisciplinary and comparative approaches are encouraged as well and articles from various social science areas such as sociology of economics, history, social policy, international relations, financial studies are welcomed in this regard. The target group of the journal consists of academicians, researchers, professionals, students, related professional and academic bodies and institutions.

As of 2024, the print version has been stopped. The journal has become an online-only publication.

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Istanbul Journal of Economics-İstanbul İktisat Dergisi is an open access, peer-reviewed, scholarly journal published two times a year in June and December. It has been an official publication of Istanbul University Faculty of Economics since 1939. Starting from 2023, except for the articles in process, the journal has started to consider manuscripts in English for evaluation and publication language has become English. Before 2023 the publication languages of the journal were English and Turkish.Being one of the earliest peer-reviewed academic journals in Turkey in the area of economics, Istanbul Journal of Economics-İstanbul İktisat Dergisi aims to provide a forum for exploring issues in basicly economics and publish both disciplinary and multidisciplinary articles.Economics is the main scope of the journal. However, multidisciplinary and comparative approaches are encouraged as well and articles from various social science areas such as sociology of economics, history, social policy, international relations, financial studies are welcomed in this regard. The target group of the journal consists of academicians, researchers, professionals, students, related professional and academic bodies and institutions.

Aim and Scope

Emerging Sources Citation Index (ESCI) <a href="https://app.trdizin.gov.tr/publication/journal/detail/TVRrNU9Uaz0" target="_blank" style="background-color: transparent;">TÜBİTAK-ULAKBİM TR Dizin</a> EconLit<a href="https://doaj.org/toc/2602-3954?source=%7B%22query%22%3A%7B%22filtered%22%3A%7B%22filter%22%3A%7B%22bool%22%3A%7B%22must%22%3A%5B%7B%22terms%22%3A%7B%22index.issn.exact%22%3A%5B%222602-4152%22%2C%222602-3954%22%5D%7D%7D%5D%7D%7D%2C%22query%22%3A%7B%22match_all%22%3A%7B%7D%7D%7D%7D%2C%22size%22%3A100%2C%22sort%22%3A%5B%7B%22created_date%22%3A%7B%22order%22%3A%22desc%22%7D%7D%5D%2C%22_source%22%3A%7B%7D%7D" target="_blank" style="background-color: transparent;font-size: 13.3333px;">DOAJ (Directory of Open Access Journals)</a><a href="https://dbh.nsd.uib.no/publiseringskanaler/erihplus/periodical/info?id=501980" target="_blank" style="background-color: transparent;">ERIH PLUS</a><a href="https://ciaonet.org/catalog?utf8=%E2%9C%93&amp;searched=yes&amp;search_field=all_fields&amp;q=istanbul+economics" target="_blank" style="background-color: transparent;">Columbia International Affairs Online</a><a href="https://ideas.repec.org/s/ist/journl.html" target="_blank" style="background-color: transparent;font-size: 10pt;">RePEc - IDEAS</a> <a href="https://econpapers.repec.org/article/istjournl/" target="_blank" style="background-color: transparent;">RePEc - EconPapers</a><a href="https://www.econbiz.de/Search/Results?lookfor=%09+2602-3954&amp;type=ISN" target="_blank" style="background-color: transparent;font-size: 10pt;">EconBiz</a> ProQuest Central                ProQuest Turkey Database EBSCO Business Source UltimateEBSCO Central &amp; Eastern European Academic Source SOBİADCabells Journalytics

Indexing and Abstracting

The journal is committed to upholding the highest standards of publication ethics and pays regard to Principles of Transparency and Best Practice in Scholarly Publishing published by the <a href="https://publicationethics.org/" target="_blank">Committee on Publication Ethics (COPE)</a>, the <a href="https://doaj.org/apply/transparency/#principles-of-transparency-and-best-practice-in-scholarly-publishing" target="_blank">Directory of Open Access Journals (DOAJ)</a>, the <a href="https://oaspa.org/" target="_blank">Open Access Scholarly Publishers Association (OASPA)</a>, and the <a href="https://www.wame.org/" target="_blank">World Association of Medical Editors (WAME)</a> on <a href="https://publicationethics.org/resources/guidelines-new/principles-transparency-and-best-practice-scholarly-publishing" target="_blank">https://publicationethics.org/resources/guidelines-new/principles-transparency-and-best-practice-scholarly-publishing</a> The subjects covered in the manuscripts submitted to the Journal for publication must be in accordance with the aim and scope of the Journal. Only those manuscripts approved by every individual author and that were not published before in or sent to another journal, are accepted for evaluation.Changing the name of an author (omission, addition or order) in papers submitted to the Journal requires written permission of all declared authors.Plagiarism, duplication, fraud authorship/denied authorship, research/data fabrication, salami slicing/salami publication, breaching of copyrights, prevailing conflict of interest are unethical behaviors. All manuscripts not in accordance with the accepted ethical standards will be removed from the publication. This also contains any possible malpractice discovered after the publication. Plagiarism Submitted manuscripts that pass preliminary control are scanned for plagiarism using iThenticate software. If plagiarism/self-plagiarism will be found authors will be informed. Editors may resubmit manuscript for similarity check at any peer-review or production stage if required. High similarity scores may lead to rejection of a manuscript before and even after acceptance. Depending on the type of article and the percentage of similarity score taken from each article, the overall similarity score is generally expected to be less than 15 or 20%. Double Blind Peer-Review After plagiarism check, the eligible ones are evaluated by the editors-in-chief for their originality, methodology, the importance of the subject covered and compliance with the journal scope. The editor provides a fair double-blind peer review of the submitted articles and hands over the papers matching the formal rules to at least two national/international referees for evaluation and gives green light for publication upon modification by the authors in accordance with the referees’ claims.

Policies

The journal is an open access journal and all content is freely available without charge to the user or his/her institution. Except for commercial purposes, users are allowed to read, download, copy, print, search, or link to the full texts of the articles in this journal without asking prior permission from the publisher or the author. This is in accordance with the <a href="https://www.budapestopenaccessinitiative.org/read" target="_blank">BOAI</a> definition of open access.The open access articles in the journal are licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International (<a href="https://creativecommons.org/licenses/by-nc/4.0/deed.en" target="_blank">CC BY-NC 4.0</a>) license.

All expenses of the journal are covered by the Istanbul University. Processing and publication are free of charge with the journal. There is no article processing charges or submission fees for any submitted or accepted articles.

Authors publishing with the journal retain the copyright to their work licensed under the Creative Commons Attribution-NonCommercial 4.0 International license (<a href="https://creativecommons.org/licenses/by-nc/4.0/" target="_blank">CC BY-NC 4.0</a>) (<a href="https://creativecommons.org/licenses/by-nc/4.0/" target="_blank">https://creativecommons.org/licenses/by-nc/4.0/</a> ) and grant the Publisher non-exclusive commercial right to publish the work. CC BY-NC 4.0 license permits unrestricted, non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Editor should consider publishing correction if minor errors that do not effect the results, interpretations and conclusions of the published paper are detected. Editor should consider retraction if major errors and/or misconduction that invalidate results and conclusions are detected.Editor should consider issuing an expression of concern if there is evidence of research or publication misconduct by the authors; there is evidence that the findings are not reliable and institutions of the authors do not investigate the case or the possible investigation seems to be unfair or nonconclusive. The guidelines of <a href="https://publicationethics.org/resources/flowcharts/complete-set-english" target="_blank">COPE</a> and <a href="https://www.icmje.org/recommendations/" target="_blank">ICJME</a> are taken into consideration regarding correction, retractions or expression of concern.

To guarantee that all papers published in the journal are maintained and permanently accessible, articles are stored in Dergipark which serves as a  national archival web site and at the same time permits LOCKSS to  collect, preserve, and serve the content.Additionally, authors are encouraged to self-archive the final PDF version of their articles in open electronic archives with  that conform to standards of Open Archives Initiative (<a href="https://www.openarchives.org/" target="_blank">https://www.openarchives.org/</a>). Authors should provide a link from the deposited version to the URL of IUPress journal website.

Istanbul Journal of Economics-İstanbul İktisat Dergisi is committed to upholding the highest standards of publication ethics and pays regard to Principles of Transparency and Best Practice in Scholarly Publishing published by the <a href="https://publicationethics.org/" target="_blank">Committee on Publication Ethics (COPE)</a>, the <a href="https://doaj.org/apply/transparency/#principles-of-transparency-and-best-practice-in-scholarly-publishing" target="_blank">Directory of Open Access Journals (DOAJ)</a>, the <a href="https://oaspa.org/" target="_blank">Open Access Scholarly Publishers Association (OASPA)</a>, and the <a href="https://www.wame.org/" target="_blank">World Association of Medical Editors (WAME)</a> on <a href="https://publicationethics.org/resources/guidelines-new/principles-transparency-and-best-practice-scholarly-publishing" target="_blank">https://publicationethics.org/resources/guidelines-new/principles-transparency-and-best-practice-scholarly-publishing</a>All submissions must be original, unpublished (including as full text in conference proceedings), and not under the review of any other publication synchronously. Authors must ensure that submitted work is original. They must certify that the manuscript has not previously been published elsewhere or is not currently being considered for publication elsewhere, in any language. Applicable copyright laws and conventions must be followed. Copyright material (e.g. tables, figures or extensive quotations) must be reproduced only with appropriate permission and acknowledgement. Any work or words of other authors, contributors, or sources must be appropriately credited and referenced.Each manuscript is reviewed by one of the editors and at least two referees under double-blind peer review process. Plagiarism, duplication, fraud authorship/denied authorship, research/data fabrication, salami slicing/salami publication, breaching of copyrights, prevailing conflict of interest are unnethical behaviors.All manuscripts not in accordance with the accepted ethical standards will be removed from the publication. This also contains any possible malpractice discovered after the publication. In accordance with the code of conduct we will report any cases of suspected plagiarism or duplicate publishing.

Ethics

Journal of Economics adheres to the highest standards in research ethics and follows the principles of international research ethics as defined below. The authors are responsible for the compliance of the manuscripts with the ethical rules.-    Principles of integrity, quality and ransparency should be sustained in designing the research, reviewing the design and conducting the research.-    The research team and participants should be fully informed about the aim, methods, possible uses and requirements of the research and risks of participation in research.-    The confidentiality of the information provided by the research participants and the confidentiality of the respondents should be ensured. The research should be designed to protect the autonomy and dignity of the participants.-    Research participants should participate in the research voluntarily, not under any coercion.-    Any possible harm to participants must be avoided. The research should be planned in such a way that the participants are not at risk.-    The independence of research must be clear; and any conflict of interest or must be disclosed.-    In experimental studies with human subjects, written informed consent of the participants who decide to participate in the research must be obtained. In the case of children and those under wardship or with confirmed insanity, legal custodian’s assent must be obtained.-    If the study is to be carried out in any institution or organization, approval must be obtained from this institution or organization.-    In studies with human subject, it must be noted in the method’s section of the manuscript that the informed consent of the participants and ethics committee approval from the institution where the study has been conducted have been obtained.

It is authors’ responsibility to ensure that the article is in accordance with scientific and ethical standards and rules. And authors must ensure that submitted work is original. They must certify that the manuscript has not previously been published elsewhere or is not currently being considered for publication elsewhere, in any language. Applicable copyright laws and conventions must be followed. Copyright material (e.g. tables, figures or extensive quotations) must be reproduced only with appropriate permission and acknowledgement. Any work or words of other authors, contributors, or sources must be appropriately credited and referenced.All the authors of a submitted manuscript must have direct scientific and academic contribution to the manuscript. The author(s) of the original research articles is defined as a person who is significantly involved in “conceptualization and design of the study”, “collecting the data”, “analyzing the data”, “writing the manuscript”, “reviewing the manuscript with a critical perspective” and “planning/conducting the study of the manuscript and/or revising it”. Fund raising, data collection or supervision of the research group are not sufficient roles to be accepted as an author. The author(s) must meet all these criteria described above. The order of names in the author list of an article must be a co-decision and it must be indicated in the <a href="https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/8137CF88D98D446BA7C14A96AC5893D9" target="_blank">Copyright Agreement Form</a>. The individuals who do not meet the authorship criteria but contributed to the study must take place in the acknowledgement section. Individuals providing technical support, assisting writing, providing a general support, providing material or financial support are examples to be indicated in acknowledgement section.All authors must disclose all issues concerning financial relationship, conflict of interest, and competing interest that may potentially influence the results of the research or scientific judgment.When an author discovers a significant error or inaccuracy in his/her own published paper, it is the author’s obligation to promptly cooperate with the Editor-in-Chief to provide retractions or corrections of mistakes.

Editor-in-Chief evaluates manuscripts for their scientific content without regard to ethnic origin, gender, sexual orientation, citizenship, religious belief or political philosophy of the authors. He/She provides a fair double-blind peer review of the submitted articles for publication and ensures that all the information related to submitted manuscripts is kept as confidential before publishing.Editor-in-Chief is responsible for the contents and overall quality of the publication. He/She must publish errata pages or make corrections when needed.Editor-in-Chief does not allow any conflicts of interest between the authors, editors and reviewers. Only he has the full authority to assign a reviewer and is responsible for final decision for publication of the manuscripts in the Journal.Reviewers must have no conflict of interest with respect to the research, the authors and/or the research funders. Their judgments must be objective.Reviewers must ensure that all the information related to submitted manuscripts is kept as confidential and must report to the editor if they are aware of copyright infringement and plagiarism on the author’s side.A reviewer who feels unqualified to review the topic of a manuscript or knows that its prompt review will be impossible should notify the editor and excuse himself from the review process.The editor informs the reviewers that the manuscripts are confidential information and that this is a privileged interaction. The reviewers and editorial board cannot discuss the manuscripts with other persons. The anonymity of the referees must be ensured. In particular situations, the editor may share the review of one reviewer with other reviewers to clarify a particular point.

Only those manuscripts approved by its every individual author and that were not published before in or sent to another journal, are accepted for evaluation.Submitted manuscripts that pass preliminary control are scanned for plagiarism using iThenticate software. After plagiarism check, the eligible ones are evaluated by editor-in-chief for their originality, methodology, the importance of the subject covered and compliance with the journal scope.The editor hands over the papers matching the formal rules to at least two national/international referees for double-blind peer review evaluation and gives green light for publication upon modification by the authors in accordance with the referees’ claims.

Peer Review

Editor-in-Chief evaluates manuscripts for their scientific content without regard to ethnic origin, gender, citizenship, religious belief or political philosophy of the authors. He/She provides a fair double-blind peer review of the submitted articles for publication and ensures that all the information related to submitted manuscripts is kept as confidential before publishing.Editor-in-Chief is responsible for the contents and overall quality of the publication. He/She must publish errata pages or make corrections when needed.Editor-in-Chief does not allow any conflicts of interest between the authors, editors and reviewers. Only he has the full authority to assign a reviewer and is responsible for final decision for publication of the manuscripts in the journal.Reviewers must have no conflict of interest with respect to the research, the authors and/or the research funders. Their judgments must be objective.Reviewers must ensure that all the information related to submitted manuscripts is kept as confidential and must report to the editor if they are aware of copyright infringement and plagiarism on the author’s side.A reviewer who feels unqualified to review the topic of a manuscript or knows that its prompt review will be impossible should notify the editor and excuse himself from the review process.The editor informs the reviewers that the manuscripts are confidential information and that this is a privileged interaction. The reviewers and editorial board cannot discuss the manuscripts with other persons. The anonymity of the referees must be ensured. In particular situations, the editor may share the review of one reviewer with other reviewers to clarify a particular point.

Only those manuscripts approved by its every individual author and that were not published before in or sent to another journal, are accepted for evaluation.Submitted manuscripts that pass preliminary control are scanned for plagiarism using iThenticate software. After plagiarism check, the eligible ones are evaluated by Editor-in-Chief for their originality, methodology, the importance of the subject covered and compliance with the journal scope. Editor-inChief evaluates manuscripts for their scientific content without regard to ethnic origin, gender, citizenship, religious belief or political philosophy of the authors and ensures a fair double-blind peer review of the selected manuscripts.The selected manuscripts are sent to at least two national/international external referees for evaluation and publication decision is given by Editor-in-Chief upon modification by the authors in accordance with the referees’ claims.Editor-in-Chief does not allow any conflicts of interest between the authors, editors and reviewers and is responsible for final decision for publication of the manuscripts in the journal.Reviewers’ judgments must be objective. Reviewers’ comments on the following aspects are expected while conducting the review.- Does the manuscript contain new and significant information?- Does the abstract clearly and accurately describe the content of the manuscript?- Is the problem significant and concisely stated? - Are the methods described comprehensively? - Are the interpretations and consclusions justified by the results?- Is adequate references made to other Works in the field?- Is the language acceptable?Reviewers must ensure that all the information related to submitted manuscripts is kept as confidential and must report to the editor if they are aware of copyright infringement and plagiarism on the author’s side.A reviewer who feels unqualified to review the topic of a manuscript or knows that its prompt review will be impossible should notify the editor and excuse himself from the review process.The editor informs the reviewers that the manuscripts are confidential information and that this is a privileged interaction. The reviewers and editorial board cannot discuss the manuscripts with other persons. The anonymity of the referees is important.

LanguageThe language of the journal is English. Submitted article must include an abstract in EnglishManuscript Organization and FormatAll correspondence will be sent to the first-named author unless otherwise specified. Manuscpript is to be submitted online via <a href="https://dergipark.org.tr/en/pub/istjecon" target="_blank">https://dergipark.org.tr/en/pub/istjecon</a> and it must be accompanied by a cover letter indicating that the manuscript is intended for publication, specifying the article category (i.e. research article, review etc.) and including information about the manuscript (see the Submission Checklist). Manuscripts should be prepared in Microsoft Word 2003 and upper versions. In addition, a <a href="https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/8137CF88D98D446BA7C14A96AC5893D9" target="_blank">Copyright Agreement Form</a> that has to be signed by all authors must be submitted.1. The manuscripts should be in A4 paper standards: having 2.5 cm margins from right, left, bottom and top, Times New Roman font style in 10 font size and line spacing of 1.5 and “justify align” format. For indented paragraph, tab key should be used. One line spacing should be used for the tables and figures, which are included in the text.2. The manuscripts should contain between 4500 and 10000 words and the page numbers must be at the bottom and in the middle.3. The name(s) of author(s) should be given just beneath the title of the study aligned to the right. Also the affiliation, title, e-mail and phone of the author(s) must be indicated on the bottom of the page as a footnote marked with an asterisk (*).4. Before the introduction part, there should be an abstract of 120-250 words in English.  Summarizing the scope, the purpose, the results of the study and the methodology used is to be included following the abstracts. Underneath the abstracts, 3 keywords that inform the reader about the content of the study should be specified in English.&#34;According to the field of study, at least one and at most three Jel codes should be added under the keywords. Please visit <a href="https://www.aeaweb.org/jel/guide/jel.php" target="_blank">https://www.aeaweb.org/jel/guide/jel.php</a> for the JEL classifications that should be chosen according to the article's topic. JEL classification codes will be given below the English abstracts.5. The manuscripts should contain mainly these components: title, abstract and keywords; sections, footnotes and references.6. Tables, graphs and figures can be given with a number and a defining title if and only if it is necessary to follow the idea of the article. Otherwise features like demographic characteristics can be given within the text.7.  In articles, decimal numbers are separated by a comma or dot for the entire article. The two points should not be used simultaneously. In order to ensure the formal integrity of the article, it should be preferred to use commas or dots and this usage should be applied for the whole article. This rule should also be followed in the display of econometric findings.8. A <a href="https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/0215D45F250E49898162B610275C8D6E" target="_blank">title page</a> including author information must be submitted together with the manuscript. The title page is to include fully descriptive title of the manuscript and, affiliation, title, e-mail address, postal address, phone, fax number of the author(s) and ORCIDs of all authors (see The Submission Checklist).9. The scientific and legal responsibility for manuscripts submitted to our journal for publication belongs to the author(s).10. The author(s) can be asked to make some changes in their articles due to peer reviews.11. A copy of the journal will be sent to each author of the accepted articles upon their request.12. The studies that were sent to the journal will not be returned whether they are published or not.13. &#34;iThenticate&#34; document is mandatory for article submission (Maximum15%).

Author Guidelines

Before beginning the online submission process please read the Information for Authors and make sure you have the followings available:Cover letter to the editor<ul type="disc"> <ul type="circle"> <li style="text-align: left;">The category of the manuscript</li> <li style="text-align: left;">Confirming that “the paper is not under consideration for publication in another journal”.</li> <li style="text-align: left;">Including disclosure of any commercial or financial involvement.</li> <li style="text-align: left;">Confirming that the statistical design of the research article is reviewed.</li> <li style="text-align: left;">Confirming that last control for fluent English was done.</li> <li style="text-align: left;">Confirming that journal policies detailed in Information for Authors have been reviewed.</li> <li style="text-align: left;">Confirming that the references cited in the text and listed in the references section are in line with APA 6.</li> </ul> </ul><a href="https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/8137CF88D98D446BA7C14A96AC5893D9" target="_blank">Copyright Agreement Form</a>Permission of previous published material if used in the present manuscript<a href="https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/F2C472301B83408FAB8CDFA957D3BCC7" target="_blank">Title page</a><ul type="disc"> <ul type="circle"> <li style="text-align: left;">The category of the manuscript</li> <li style="text-align: left;">The title of the manuscript both in Turkish and in English</li> <li style="text-align: left;">All authors’ names and affiliations (institution, faculty/department, city, country), e-mail addresses</li> <li style="text-align: left;">Corresponding author’s email address, full postal address, telephone and fax number</li> <li style="text-align: left;">ORCIDs of all authors.</li> </ul> </ul>Main Manuscript Document<ul type="disc"> <ul type="circle"> <li style="text-align: left;">The title of the manuscript both in Turkish and in English</li> <li style="text-align: left;">Abstracts (120-250 words) both in Turkish and in English</li> <li style="text-align: left;">Key words: 3 words both in Turkish and in English</li> <li style="text-align: left;">Extended Abstract (600-800 words) in English (only for Turkish articles)</li> <li style="text-align: left;">Main article sections</li> <li style="text-align: left;">Acknowledgement (if exits)</li> <li style="text-align: left;">References</li> <li style="text-align: left;">All tables, illustrations (figures) (including title, description, footnotes)</li> </ul> </ul>Manuscript Submission<ul type="disc"> <li style="text-align: left;">DergiPark manuscript submission site of the journal is: <a href="https://dergipark.org.tr/tr/journal/2248/submission/step/manuscript/new" target="_blank">https://dergipark.org.tr/tr/journal/2248/submission/step/manuscript/new</a>   </li> <li style="text-align: left;">The manuscript must be submitted through the account of the corresponding author. The account of authors other than the corresponding author or someone else who is not included as an author in the work must not be used for submission. All correspondence regarding the submission is made with the corresponding author through e-mail via the DergiPark system.</li> <li style="text-align: left;">While uploading Main Document, make sure that the main document has no information that clarify the author’s identity. Due to double blind peer review, Main Document must not include Title Page, the name of author or any other detail that can disclose the author identity. </li> </ul>Files to be uploaded separately<ul type="disc"> <li style="text-align: left;">Copyright Agreement Form</li> <li style="text-align: left;">Permissions obtained for previously published material if used in the present manuscript</li> <li style="text-align: left;">Title page</li> <li style="text-align: left;">Main Manuscript Document</li> </ul><ul type="disc"> <ul type="circle"> <li style="text-align: left;">The title of the manuscript both in Turkish and in English</li> <li style="text-align: left;">Abstracts (120-250 words) both in Turkish and in English</li> <li style="text-align: left;">Key words: 3 words both in Turkish and in English</li> <li style="text-align: left;">Extended Abstract (600-800 words) in English (only for Turkish articles)</li> <li style="text-align: left;">Main article sections</li> <li style="text-align: left;">Acknowledgement (if exists)</li> <li style="text-align: left;">References</li> <li style="text-align: left;">All tables, illustrations (figures) (including title, description, footnotes)</li></ul></ul>

Although references to review articles can be an efficient way to guide readers to a body of literature, review articles do not always reflect original work accurately. Readers should therefore be provided with direct references to original research sources whenever possible. On the other hand, extensive lists of references to original work on a topic can use excessive space on the printed page. Small numbers of references to key original papers often serve as well as more exhaustive lists, particularly since references can now be added to the electronic version of published papers, and since electronic literature searching allows readers to retrieve published literature efficiently. Papers accepted but not yet included in the issue are published online in the Early View section and they should be cited as “advance online publication”. Citing a “personal communication” should be avoided unless it provides essential information not available from a public source, in which case the name of the person and date of communication should be cited in parentheses in the text. For scientific articles, written permission and confirmation of accuracy from the source of a personal communication must be obtained.Reference Style and FormatIstanbul Journal of Economics-İstanbul İktisat Dergisi complies with APA (American Psychological Association) style 6th Edition for referencing and quoting. For more information:-    American Psychological Association. (2010). Publication manual of the American PsychologicalAssociation (6th ed.). Washington, DC: APA.-    <a href="http://www.apastyle.org/" target="_blank">http://www.apastyle.org</a>Accuracy of citation is the author’s responsibility. All references should be cited in text. Reference list must be in alphabetical order. Type references in the style shown below.Citations in the TextCitations must be indicated with the author surname and publication year within the parenthesis.If more than one citation is made within the same paranthesis, separate them with (;).Samples:More than one citation;(Esin et al., 2002; Karasar, 1995)Citation with one author;(Akyolcu, 2007, p. 17)Citation with two authors;(Sayıner &amp; Demirci 2007, p. 72)Citation with three, four, five authors;First citation in the text: (Ailen, Ciambrune, &amp; Welch, 2000) Subsequent citations in the text: (Ailen et al., 2000)Citations with more than six authors;(Çavdar et al., 2003)Citations in the ReferenceAll the citations done in the text should be listed in the References section in alphabetical order of author surname without numbering. Below given examples should be considered in citing the references.Basic Reference TypesBooka) Turkish BookKarasar, N. (1995). Araştırmalarda rapor hazırlama (8th ed.) [Preparing research reports]. Ankara, Turkey: 3A Eğitim Danışmanlık Ltd.b) Book Translated into TurkishMucchielli, A. (1991). Zihniyetler [Mindsets] (A. Kotil, Trans.). İstanbul, Turkey: İletişim Yayınları.c) Edited BookÖren, T., Üney, T., &amp; Çölkesen, R. (Eds.). (2006). Türkiye bilişim ansiklopedisi [Turkish Encyclopedia of Informatics]. İstanbul, Turkey: Papatya Yayıncılık.d) Turkish Book with Multiple AuthorsTonta, Y., Bitirim, Y., &amp; Sever, H. (2002). Türkçe arama motorlarında performans değerlendirme [Performance evaluation in Turkish search engines]. Ankara, Turkey: Total Bilişim.e) Book in EnglishKamien R., &amp; Kamien A. (2014). Music: An appreciation. New York, NY: McGraw-Hill Education.f) Chapter in an Edited BookBassett, C. (2006). Cultural studies and new media. In G. Hall &amp; C. Birchall (Eds.), New cultural studies: Adventures in theory (pp. 220–237). Edinburgh, UK: Edinburgh University Press.g) Chapter in an Edited Book in TurkishErkmen, T. (2012). Örgüt kültürü: Fonksiyonları, öğeleri, işletme yönetimi ve liderlikteki önemi [Organization culture: Its functions, elements and importance in leadership and business management]. In M. Zencirkıran (Ed.), Örgüt sosyolojisi [Organization sociology] (pp. 233–263). Bursa, Turkey: Dora Basım Yayın.h) Book with the same organization as author and publisherAmerican Psychological Association. (2009). Publication manual of the American psychological association (6th ed.). Washington, DC: Author.Articlea) Turkish ArticleMutlu, B., &amp; Savaşer, S. (2007). Çocuğu ameliyat sonrası yoğun bakımda olan ebeveynlerde stres nedenleri ve azaltma girişimleri [Source and intervention reduction of stress for parents whose children are in intensive care unit after surgery]. Istanbul University Florence Nightingale Journal of Nursing, 15(60), 179–182.b) English Articlede Cillia, R., Reisigl, M., &amp; Wodak, R. (1999). The discursive construction of national identity. Discourse and Society, 10(2), 149–173. http://dx.doi.org/10.1177/0957926599010002002c) Journal Article with DOI and More Than Seven AuthorsLal, H., Cunningham, A. L., Godeaux, O., Chlibek, R., Diez-Domingo, J., Hwang, S.-J. ... Heineman, T. C. (2015). Efficacy of an adjuvanted herpes zoster subunit vaccine in older adults. New England Journal of Medicine, 372, 2087–2096. http://dx.doi.org/10.1056/NEJMoa1501184d) Journal Article from Web, without DOISidani, S. (2003). Enhancing the evaluation of nursing care effectiveness. Canadian Journal of Nursing Research, 35(3), 26–38. Retrieved from http://cjnr.mcgill.cae) Journal Article wih DOITurner, S. J. (2010). Website statistics 2.0: Using Google Analytics to measure library website effectiveness. Technical Services Quarterly, 27, 261–278. http://dx.doi.org/10.1080/07317131003765910f) Advance Online PublicationSmith, J. A. (2010). Citing advance online publication: A review. Journal of Psychology. Advance online publication. http://dx.doi.org/10.1037/a45d7867g) Article in a MagazineHenry, W. A., III. (1990, April 9). Making the grade in today’s schools. Time, 135, 28–31.Doctoral Dissertation, Master’s Thesis, Presentation, Proceedinga) Dissertation/Thesis from a Commercial DatabaseVan Brunt, D. (1997). Networked consumer health information systems (Doctoral dissertation). Available from ProQuest Dissertations and Theses database. (UMI No. 9943436)b) Dissertation/Thesis from an Institutional DatabaseYaylalı-Yıldız, B. (2014). University campuses as places of potential publicness: Exploring the politicals, social and cultural practices in Ege University (Doctoral dissertation). Retrieved from http://library.iyte.edu.tr/tr/hizli-erisim/iyte-tez-portalic) Dissertation/Thesis from WebTonta, Y. A. (1992). An analysis of search failures in online library catalogs (Doctoral dissertation, University of California, Berkeley). Retrieved from http://yunus.hacettepe.edu.tr/~tonta/yayinlar /phd/ickapak.htmld) Dissertation/Thesis abstracted in Dissertations Abstracts InternationalAppelbaum, L. G. (2005). Three studies of human information processing: Texture amplifica&#173;tion, motion representation, and figure-ground segregation. Dissertation Abstracts International: Section B. Sciences and Engineering, 65(10), 5428.e) Symposium ContributionKrinsky-McHale, S. J., Zigman, W. B., &amp; Silverman, W. (2012, August). Are neuropsychiatric symptoms markers of prodromal Alzheimer’s disease in adults with Down syndrome? In W. B. Zigman (Chair), Predictors of mild cognitive impairment, dementia, and mortality in adults with Down syndrome. Symposium conducted at the meeting of the American Psychological Association, Orlando, FL.f) Conference Paper Abstract Retrieved OnlineLiu, S. (2005, May). Defending against business crises with the help of intelligent agent based early warning solutions. Paper presented at the Seventh International Conference on Enterprise Information Systems, Miami, FL. Abstract retrieved from http://www.iceis.org/iceis2005/abstracts_2005.htmg) Conference Paper - In Regularly Published Proceedings and Retrieved OnlineHerculano-Houzel, S., Collins, C. E., Wong, P., Kaas, J. H., &amp; Lent, R. (2008). The basic nonuniformity of the cerebral cortex. Proceedings of the National Academy of Sciences, 105, 12593–12598. http://dx.doi.org/10.1073/pnas.0805417105h) Proceeding in Book FormParsons, O. A., Pryzwansky, W. B., Weinstein, D. J., &amp; Wiens, A. N. (1995). Taxonomy for psychology. In J. N. Reich, H. Sands, &amp; A. N. Wiens (Eds.), Education and training beyond the doctoral degree: Proceedings of the American Psychological Association National Conference on Postdoctoral Education and Training in Psychology (pp. 45–50). Washington, DC: American Psychological Association.i) Paper PresentationNguyen, C. A. (2012, August). Humor and deception in advertising: When laughter may not be the best medicine. Paper presented at the meeting of the American Psychological Association, Orlando, FL.Other Sourcesa) Newspaper ArticleBrowne, R. (2010, March 21). This brainless patient is no dummy. Sydney Morning Herald, 45.b) Newspaper Article with no AuthorNew drug appears to sharply cut risk of death from heart failure. (1993, July 15). The Washington Post, p. A12.c) Web Page/Blog PostBordwell, D. (2013, June 18). David Koepp: Making the world movie-sized [Web log post]. Retrieved from http://www.davidbordwell.net/blog/page/27/d) Online Encyclopedia/DictionaryIgnition. (1989). In Oxford English online dictionary (2nd ed.). Retrieved from http://dictionary.oed.comMarcoux, A. (2008). Business ethics. In E. N. Zalta (Ed.). The Stanford encyclopedia of philosophy. Retrieved from http://plato.stanford.edu/entries/ethics-business/e) PodcastDunning, B. (Producer). (2011, January 12). inFact: Conspiracy theories [Video podcast]. Retrieved from http://itunes.apple.com/f) Single Episode in a Television SeriesEgan, D. (Writer), &amp; Alexander, J. (Director). (2005). Failure to communicate. [Television series episode]. In D. Shore (Executive producer), House; New York, NY: Fox Broadcasting.g) MusicFuchs, G. (2004). Light the menorah. On Eight nights of Hanukkah [CD]. Brick, NJ: Kid Kosher.

<a href="https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/8137CF88D98D446BA7C14A96AC5893D9" target="_blank">Copyright Agreement Form</a><a href="https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/AC76F8CB7ACA46E080DC110CAC47E363" target="_blank">Title Page</a><a href="https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/6BCDBAD61F5946649AE671DC13D38269" target="_blank">Author Form</a>

Ensure that the following items are present:●    Cover letter to the editorü    The category of the manuscriptü    Confirming that “the paper is not under consideration for publication in another journal”.ü    Including disclosure of any commercial or financial involvement.ü    Confirming that the statistical design of the research article is reviewed.ü    Confirming that last control for fluent English was done.ü    Confirming that journal policies detailed in Information for Authors have been reviewed.ü    Confirming that the references cited in the text and listed in the references section are in line with APA 6.●    <a href="https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/8137CF88D98D446BA7C14A96AC5893D9" target="_blank">Copyright Agreement Form</a>●    Permission of previous published material if used in the present manuscript●    <a href="https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/70298F3E51EC4455892087381B3FCB55" target="_blank">Title page</a>ü    The category of the manuscriptü    The title of the manuscript both in Turkish and in Englishü    All authors’ names and affiliations (institution, faculty/department, city, country), e-mailaddressesü    Corresponding author’s email address, full postal address, telephone and fax numberü    ORCIDs of all authors.●    Main Manuscript Documentü    The title of the manuscript both in Turkish and in Englishü    Abstracts (120-250 words) both in Turkish and in Englishü    Key words: 3 words both in Turkish and in Englishü    Extended Abstract (600-800 words) in Englishü    Main article sectionsü    Grant support (if exists)ü    Conflict of interest (if exists)ü    Acknowledgement (if exists)ü    Referencesü    All tables, illustrations (figures) (including title, description, footnotes)

Issue Type	Regular
Editor(s)	Gökhan Karabulut
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Istanbul Journal of Economics

VOLUME 71, ISSUE 2, 2021

Economics: From Modernism to Postmodernism

Consequences of the Legal Personality of Commercial Entities: An Evaluation from the Perspective of Islamic Economics

Inequality and the Import Demand in Turkey

How Do the Exchange Rates Affect the Sector Indices? A Dynamic Panel Data Analysis for Borsa Istanbul

Determinants of Industrial Production in Turkey: ARDL Model

The Impact of High-Tech Exports on Income: Findings on the Translog Production Function

The Political Economics of Trade Openness and Its Impacts on Corruption

Analysis of Internal Migration in Turkey Within The Framework of the Todaro Paradox: An ARDL Bound Testing Approach

Relationship Between Oil Prices and Real-Exchange Rate in Turkey: An Investigation Using Asymmetric Fourier Causality Analysis

The Impact of Environmental Technological Innovations on CO2 Emissions: The Case of OECD Countries

INFORMATION

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