Template-Type: ReDIF-Article 1.0 Author-Name: Hurşit GÜNEŞ Author-Workplace-Name: Department of Economics, Marmara University, İstanbul, Turkey Title: The Political Anatomy of Economic Crises – The Case of Turkey: 1945-2018 Abstract: The foundations of economic and financial crises are conventionally attributed to the tech-nicalities of macroeconomic fragilities. Yet political instability (caused by the deficiency of democracy and/or unfunctional political institutions) can also be considered as a major de-terminant of economic instability by deteriorating the debt dynamics through depreciation of the national currency or the ascent of interest rates. Analogously, political instability, for instance, disruption of cabinet durability, to a large extent depends on the economic perfor-mance of governments. Hence, though most economists conceive macroeconomic fragilities as the mother of all crises, the issue is rather complex and there is an intermingled relationship between political and economic crises. Besides, as macroeconomic fragilities or structural imbalances are results of inappropriate pol-icies, the political rationale and the social motives behind such misleading policies should also be well comprehended. For that purpose, a comprehensive elaboration will enable the nega-tion of the prevalent argument that it is only economic factors that instigate crises. This study investigates the political background of eight economic crises in Turkey, since 1946. In all of them, significant levels of devaluation and retraction of growth are observed. All of the devaluations were indispensable, except the first one in 1946 which was discretionary and pre-cautionary. The crises of 1978/9, 1994 and 2001 ended with drastic austerity programmes, albeit the others, where governments eschewed them by macroeconomic adjustment through fiscal and monetary measures. The 2001 twin-crises was so peculiar, as it was to a large extent caused by the design-defection of the programme recommended by the IMF. Yet, since the attempt of financial liberalization, all of the other economic crises were prompted by capital flights. The 2008/9 crisis was due to global contagion and the 2018 crisis was caused by the tensions in the bilateral relations with the US, amid high private sector foreign debt. In all economic crises, the profligate fiscal stance of governments has played a prominent role, as well as the continuation of appreciated exchange rates, but such choices had a political rationale. Finally, in the background of all the economic crises in Turkey, we observe stern political instability. Political instability not only restricts the rational decision-making capacity of the policy-maker, particularly if it converges into a political crisis, but also exacerbates economic sentiment, either by consumer confidence or by investor appetite, which subsequently results in economic decline. It also intensifies risks and causes exchange rate depreciation as well as interest rate hikes, both Classification-JEL: F00,F30,G00,G10,K00,K20,M00,M20,O10 Keywords: Democracy, economic crises, emerging market, political crisesJournal: Yildiz Social Science Review Pages: 91-109 Volume: 7 Issue: 2 Year: 2021 Month: December DOI: 10.51803/yssr.908331 File-URL: https://yssr.yildiz.edu.tr/storage/upload/pdfs/1644482383-en.pdf File-Format: Application/pdf Handle: RePEc:aye:journl:v:7:y:2021:i:2:p:91-109 Template-Type: ReDIF-Article 1.0 Author-Name: Sedef AKGÜNGÖR Author-Workplace-Name: Department of Economics, Dokuz Eylül University, Faculty of Business, İzmir, Turkey Author-Name: Mert ABAY Author-Workplace-Name: Department of Economics, College of Europe, European Economic Studies, Bruges, Belgium and Dokuz Eylül University, Faculty of Business, İzmir, Turkey Title: Knowledge Space, Relatedness and Complexity: A Regional Analysis in Turkey Abstract: Regional development policies based on regions’ core strengths are key for innovation. For sustainable growth, regions would discover their own growth paths grounded on their core knowledge base. Although there are studies focusing on regional clustering of economic ac-tivity in Turkey, little is known related to regions’ potential to attract new technologies based on their core strenghts. The first objective of the paper is to map knowledge space in Turkey for 2010 and 2017. The second objective of the paper is to understand relatedness and knowledge complexity in Turkey’s NUTS3 regions. The third objective is to demonstrate the relationship of regional innovativeness with relatedness and knowledge complexity across Turkey’s regions. Relatedness of the regions is operationalized by relatedness density. Knowledge complexity is operationalized by knowledge complexity index. We use regression analysis to understand the correlation of patent applications with regions’ relatedness density and knowledge complexity. As a control variable, diversity variable is used. The analysis demonstrates that knowledge space in Turkey became denser between 2010 and 2017 and there are variations across regions with respect to relatedness and knowledge complexity. Diversity and relatedness density are positively correlated with patent applications while complexity does not have a correlation with regional innovativeness. Classification-JEL: F00,F30,G00,G10,K00,K20,M00,M20,O10 Keywords: Branching, relatedness density, knowledge space, regional diversifi-cation, regional development, smart specialization, patents, Turkey; JEL Classification: R10, R11 R58Journal: Yildiz Social Science Review Pages: 110-122 Volume: 7 Issue: 2 Year: 2021 Month: December DOI: 10.51803/yssr.869824 File-URL: https://yssr.yildiz.edu.tr/storage/upload/pdfs/1644482998-en.pdf File-Format: Application/pdf Handle: RePEc:aye:journl:v:7:y:2021:i:2:p:110-122 Template-Type: ReDIF-Article 1.0 Author-Name: Sadi UZUNOĞLU Author-Workplace-Name: Department of Economics, Trakya University, Edirne, Turkey Author-Name: Caner ÖZDURAK Author-Workplace-Name: Department of Financial Economics, Yeditepe University, Istanbul, Turkey Author-Name: Serap DURSUN Author-Workplace-Name: Department of Economics, Trakya University, Edirne, Turkey Title: Spillovers Between Institutional Interactions Index, Market Risk and Return: Case of Turkey (2007-2020) Abstract: One of the key components of political stability is relations with institutions, which refers to the relationships between the government and higher judicial organ, government and presidency, government and military bureaucracy, government civil bureaucracy and independent economic institutions, and relations with international institutions. The importance of institutions for economic development and stability has been thoroughly discussed by both the old and new schools of institutional economics, who developed theses against the Classical and Neo-Classical paradigms. In the study, we utilized VAR-VECH-TARCH models to understand spillover effects between our newly introduced Institutional Interaction Index (II), markets return (BIST 100, FX), and risks (CDS). The Institutional Interaction Index, the novelty of this paper, was obtained from data published daily by S. Bilişim. According to the results especially in the long-term spillover exists between all variables. The results from this study support institutionalist approaches. As the relations with institutions deteriorate, BIST100 and FX rate volatilities, that is, instability, increases due to the increase in market risks. Classification-JEL: F00,F30,G00,G10,K00,K20,M00,M20,O10 Keywords: Arch-garch model, bist100 ındex, cds, exchange rate, relations with institutionsJournal: Yildiz Social Science Review Pages: 123-136 Volume: 7 Issue: 2 Year: 2021 Month: December DOI: 10.51803/yssr.872075 File-URL: https://yssr.yildiz.edu.tr/storage/upload/pdfs/1644482183-en.pdf File-Format: Application/pdf Handle: RePEc:aye:journl:v:7:y:2021:i:2:p:123-136 Template-Type: ReDIF-Article 1.0 Author-Name: Yasemin ÖZERKEK Author-Workplace-Name: Department of Economics, Marmara University, Istanbul, Turkey Author-Name: Fatma DİDİN SÖNMEZ Author-Workplace-Name: Department of Economics, Istanbul Bilgi University, Istanbul, Turkey Title: Labor Underutilization in European Countries: Some Facts About Age and Gender Abstract: It is undeniably accepted that labor underutilization has important consequences for econ-omies and societies. Unemployment that is the narrowest measure of labor underutilization is one of the main concerns for policymakers, investors, and society. Besides the standard unemployment rate, there are alternative measures of labor underutilization providing a wider picture of the underutilization of workforce. This study aims to delineate some facts about labor underutilization by age and gender for a group of European countries in a broader view. For this purpose, specifically, time-related underemployment and potential labor force data are employed to measure the labor underutilization along with unemployment. It is observed that there are significant gender and age differences in the labor underutilization components across countries. Elasticity and descriptive analyses together verify that time-related under-employment is more sensitive to unemployment than the potential labor force. While the sensitivity of time-related underemployment to changes in unemployment differs by gender and age, the potential labor force is almost equally sensitive to unemployment regardless of age and gender. The study additionally displays the degree of reallocation between underutilization components and suggests a higher reallocation for the young than adults. On the other hand, reallocation between labor underutilization components is not gender-biased. Classification-JEL: F00,F30,G00,G10,K00,K20,M00,M20,O10 Keywords: Age, gender, labor underutiliza-tion, unemploymentJournal: Yildiz Social Science Review Pages: 137-146 Volume: 7 Issue: 2 Year: 2021 Month: December DOI: 10.51803/yssr.926562 File-URL: https://yssr.yildiz.edu.tr/storage/upload/pdfs/1644482909-en.pdf File-Format: Application/pdf Handle: RePEc:aye:journl:v:7:y:2021:i:2:p:137-146 Template-Type: ReDIF-Article 1.0 Author-Name: Ergün DEMİREL Author-Workplace-Name: Department of Maritime Transportation and Management Engineering, Piri Reis University, Maritime Faculty, Istanbul, Turkey Title: Cooperation between Turkey and Libya on Maritime Transport Abstract: Turkey is an important agent in MENA region, especially in the Eastern Mediterranean. Although it does not have oil sources, Turkey is one of the developing countries of the region. It has historical and cultural ties with all countries in the region. Libya, on the other hand, is a country with significant oil reserves in the world and is dependent on foreign countries with its limited industry and agriculture. Since the year 2011 civil unrest and war continue in this country. While France, Egypt, Greece, Italy, GCA (Greek Cypriot Administration), United Arab Emirates support the Libyan National Army, Turkey and Qatar support to the Nation Reconciliation Government (GNA) at the West recognized by the United Nations. This situation is temporary and will change soon. It is inevitable to achieve order by reaching a consensus in Libya soon. The aim of this research is to evaluate possible development and economic activities in Libya, in the near future and defining the scope of maritime transport will be realized for this purpose. Finally, assessing the sustainable cooperation areas in the maritime transportation between Libya and Turkey. This research starts analysing the political, economic, social, and military relations of the two countries and as a result, identifying possible areas for a sustainable cooperation in the maritime transportation. Afterwards, the determined areas of cooperation will be examined separately, and the results and proposals will be presented. Classification-JEL: F00,F30,G00,G10,K00,K20,M00,M20,O10 Keywords: Cooperation for Maritime Transport, Libya, Middle East, North Africa, TurkeyJournal: Yildiz Social Science Review Pages: 147-159 Volume: 7 Issue: 2 Year: 2021 Month: December DOI: 10.51803/yssr.859303 File-URL: https://yssr.yildiz.edu.tr/storage/upload/pdfs/1644482083-en.pdf File-Format: Application/pdf Handle: RePEc:aye:journl:v:7:y:2021:i:2:p:147-159