This study investigates the relationship between foreign direct investment (FDI) and macroeconomic stability for Turkey. To represent the macroeconomic stability, two main variables are examined. The first of these is inflation rate that represents the economic stability in real sector and the second one is real exchange rate representing the stability in the financial sector. In addition to these variables, the market size, openness to trade and financial development variables are also used as control-transmission variables. Used data are monthly and cover the period from January 2003 to April 2015. Empirical methods used in the study are unit root tests, cointegration analyses, vector error correction model (VECM) and Granger causality test. Obtained empirical results show that fluctuations in inflation and the real exchange rate have a negative and permanent effect on FDI, meaning that instabilities that occurred in real and financial markets negatively affected the inward FDI. Therefore Turkey, which has enough potential to attract FDI, has to provide stability in its macroeconomic indicators to attract a higher volume of FDI.
In conventional e/m experiments performed in undergraduate laboratories, generally a simple mechanical ruler is used to measure the radius of the circular trajectory of the electrons. But, the measurement error in this technique is mostly big and varies from one student to another. As an alternative to a mechanical ruler, we proposed a more accurate and a more precise technique for measuring the radius. This technique is based on image processing and it is well known that the image processing is one of the more powerful techniques for precise measurements in physical experiments. ImageJ software was used for image processing and for taking photographs of the circular trajectory of the electrons in the e/m experiment. ImageJ is a java-based image processing program which was developed by the National Institute of Health of USA. The photographs of the trajectory were taken by using a generic webcam connected to the computer and it was observed that the trajectory was not visible for a one shot photograph which is due to the low intensity of the light coming from the trajectory. By taking multiple photographs of the trajectory at the same time and adding these photographs to each other, the trajectory on the photograph became visible. It was concluded that the accuracy of the measuring the radius of the circular trajectory could be increased by using the image processing and it was found that the relative error made in this measurement is about 0.5% which is 10 times smaller than the relative errors made in conventional measuring techniques performed by a simple mechanical ruler (around 5%). This result directly increases the precision and the accuracy of measuring the e/m ratio of the electrons in undergraduate physics laboratories.
This study examines the degree of exchange rate pass through (ERPT) into producer prices and consumer prices in Turkey. To see the effect of ERPT, recursive vector autoregressive (VAR) model on monthly data from January 2002 to November 2014 is used. Model includes six variables which are oil prices that represent supply shock, industry production index representing demand shocks, reserve money representing monetary policy, nominal exchange rate and CPI-PPI indices. Obtained results show that although there is a pass through from exchange rate to consumer and producer prices, its degree is not as effective as prior to 2001. This means that policymakers have more power for pursuing independent monetary policy.
The aim of this study is to research the impact of minimum wage on unemployment, prices, and growth for the Turkish economy. The data used is monthly and covers the period from January 2005 to March 2017. The producer price index represents prices and the industrial production index represents growth. The Autoregressive Distributed Lag (ARDL) model is used to see the effect of the minimum wage on these variables. An error-correction based Granger causality test is then conducted to see short-run and long-run causalities. The bounds test yields evidence of a long-run relationship between variables. The obtained ARDL results also show that while the minimum wage has a statistically significant effect on unemployment and prices, it does not have a statistically significant effect on production. While there is short-run causality from minimum wage to prices only, the obtained significant error correction terms indicate long-run causality for all of the variables. Consequently, the minimum wage plays a significant role in increasing prices and the number of unemployed people in Turkey.
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