Nesrin Özataç

Testing the EKC hypothesis by considering trade openness, urbanization, and financial development: the case of Turkey

This study investigates the environmental Kuznets curve (EKC) hypothesis for the case of Turkey from 1960 to 2013 by considering energy consumption, trade, urbanization, and financial development variables. Although previous literature examines various aspects of the EKC hypothesis for the case of Turkey, our model augments the basic model with several covariates to develop a better understanding of the relationship among the variables and to refrain from omitted variable bias. The results of the bounds test and the error correction model under autoregressive distributed lag mechanism suggest long-run relationships among the variables as well as proof of the EKC and the scale effect in Turkey. A conditional Granger causality test reveals that there are causal relationships among the variables. Our findings can have policy implications including the imposition of a “polluter pays” mechanism, such as the implementation of a carbon tax for pollution trading, to raise the urban population’s awareness about the importance of adopting renewable energy and to support clean, environmentally friendly technology.

Relationship between Industrial Production, Financial Development and Carbon Emissions: The Case of Turkey

Abstract It is widely accepted that industrialization causes air pollution due to increased fossil fuel consumption. On the other hand, recent literature related with the impacts of financial development on air pollution has produced some mixed results. It is argued that not having proper energy policies has become a more severe problem for Turkey as the industrial activities have been accelerated in the country. The present study investigates the long run relationship between industrialization, financial development and carbon emissions by using Granger causality test in Turkey. Findings of the present study reveal a unidirectional relationship from financial development to carbon emissions.

The role of oil prices, growth and inflation in bank profitability

ABSTRACT The present study investigates the long-run equilibrium relationship between banking sector’s profitability and its internal and external determinants such as inflation, growth and oil prices in Turkey. The study adopts two separate models in order to differentiate the direct and indirect effects of oil price changes on bank profitability. Results of the study provide evidence that oil price changes significantly affect the Turkish banking sector’s profitability indirectly through the channels of inflation. Moreover, it is found that bank profitability is affected by oil prices directly and negatively because of the decreased oil-related business lending. The causality test results indicate that there are unidirectional relationships running from oil prices to inflation and from inflation to banking sector’s profitability. It is believed that findings of the study can be generalized for oil importing and developing countries in order to initiate precautions against oil price changes.

Customer Satisfaction in the Banking Sector: The Case of North Cyprus☆

Abstract The aim of the study is to evaluate the determinants of customer satisfaction on higher service quality in North Cyprus Banking sector. SERVQUAL model is used to analyse the perception of customers on determinants of service quality. Total of 207 cutomers of the major banks in North Cyprus have been surveyed. Empirical analysis are carried out by SPSS 18. Empirical results reveal that Cutomer satisfaction in the banking sector depends on good and firm relations, building trust between customers and bank emloyees for the case of North Cyprus. Results also suggest positive word of mouth plays a major role in customer satisfaction.

The Relationship Between Government Expenditure on Education and Economic Growth: The Case of France

The aim of this study is to investigate the long-run equilibrium relationship between economic growth, capital, labor, and government expenditure on education between the years of 1970 and 2012 for the case of France. Johansen co-integration test results suggest the existence of the long-run equilibrium relationship between variables. Existence of the co-integration relationship indicates that capital, labor, and government expenditure on education are long-run determinants of GDP for the case of France. Granger causality test results suggest that there is a bidirectional long-run causality between GDP and gross capital formation. In addition, there are long-run unidirectional causalities which run from labor and expenditure on education to GDP and from labor and expenditure to capital. Results of the study suggest the existence of education-induced economic growth for the case of France.

International Insurance Industry and Systemic Risk

After the global crises, it is observed that not only the banking sector but also the insurance industry has systemic risk sources. Moreover, there are studies that found that insurance companies are even more risky compared to other financial intermediaries. In regard to this, life and non-life insurance companies and banks’ systemic risk causalities are analysed. Systematic risk measurements and conditional capital inadequacy were used. Dumitrescu-Hurlin panel causality tests were used to analyse the weekly global data for the years between 2005 and 2015. The main aim of the study is to find out if there is a relation between the systemic risk of life and non-life insurance and commercial banks. However, the results of the past studies indicate that the transfer of bank systemic risk has a strong role. The results of the study reveal that especially in regard to conditional risk based value where the systemic risks of life and non-life insurance companies and banks have strong causalities. It can be concluded that insurance companies’ systemic risk has a potential to be spreaded regarding to the geographical area.

Gold Versus Stocks as an Inflationary Hedge: The Case of Spain

This study empirically observes two models based on Fisher hypothesis (1930): (1) long-term hedging ability of the stocks and (2) long-term hedging ability of gold against inflation in Spain. Zivot–Andrews (1992) unit root test allowing for one structural break, Maki (2012) cointegration test allowing for five structural breaks, and vector error correction model (VECM) techniques have been applied to monthly data covering the period of January 1994–July 2015. Our results show that stocks and gold are in a long-term equilibrium relationship with inflation. The negative association between inflation and gold with inelastic coefficient and the positive relationship between inflation and stocks with the elastic coefficient are observed. Hence, our findings suggest that only stocks are the hedging instruments against inflation in Spain.

The Effect of Financial Crises on Banking Performance in Developed and Emerging Economies

The aim of the study is to examine the effect of crises on the stability of the bankingsystem in 46 developed and emerging economies for the years 1999–2014. The variables are tested by using the two-step dynamic panel data analysis. The results indicate that the banking crises have an impact on the banking system stability. On the other hand, it is obsereved that the comparative conditions and the volatility on asset prices are the determinants on performance-stability relations. The most important finding is that the credit to GDP gap influence bank performance negatively.

The Dynamic Effect of Financial Crises and Economic Volatilities on the Insurance Sector

In this study, the effect of the international financial crises and the volume of the economic performance of the market share of the insurance sector and the premiums accumulated through life and non-life insurance sector are analysed. A dynamic panel data analysis is used to examine 30 developed and emerging economies for the years between 1995 and 2014. The results indicate that the crises and volatilities in economic conditions influence insurance sector negatively.