The Effect of Foreign Trade on Innovation: The Case of Brics-T Countries

Working Paper
Betül Gür
EconWorld Working Papers Series No: 2020003
DOI: 10.22440/EconWorld.WP.2020.003



The power that makes countries superior to each other in global competition is their ability to be innovative. With Industry 4.0, today's industrial policies are being established on an innovation basis. The degree of countries' trade openness in the economy is very important for developing countries in terms of learning and developing information and technology and ultimately contributing to the improvement of their innovation capacities. This study aims to determine the effects of the main foreign trade indicators on innovation with respect to the developing countries group BRICS-T through panel cointegration analysis for the period 2007-2019. In terms of foreign trade, "export", "import", and "foreign direct investment" have been taken into account, and the "global innovation index" has been taken into consideration as the indicator of innovation. As a result of the cointegration analysis, it has been determined that the variables are related in the long run, exports have a positive effect on innovation, whereas imports and foreign direct investments adversely affect innovation. As a result of causality analysis, a two-way causality relationship has been found between export and innovation while a one-way causality has been detected with direct foreign investment and import.

Keywords: Innovation, Foreign Trade, Panel Cointegration Analysis

Jel Codes: O30, O57

CSRPolicies on Community Relationships as Value Drivers of Spanish Firms

Working Paper
Sonia Benito-Hernández, Cristina López-Cózar Navarro, Gracia Rubio Martín
EconWorld Working Papers Series No: 2020002
DOI: doi: 10.22440/EconWorld.WP.2020.002



This paper provides empirical evidence of efforts to enable Spanish manufacturing companies to boost their economic profitability rates through the development of Corporate Social Responsibility (CSR) policies. This study aims to develop new approaches and sensibilities towards work from an ethical, values (virtues) and CSR perspective, showing how internal and externaldimensions of CSR -such as those related to relationships with employees, relationship with the community and responsibility in process quality management -contribute to improve the economic profitability of the company (ROA) in addition to improving society. The results of a sample of 6,186 businesses show that, in general, the implementation of collaboration policies have increased relationships with the community. Alliances with competitors, institutions and suppliers had a significant positive effecton increased ROA. Nevertheless, as we anticipated, cooperation with customers had a negative impact on ROA. In addition, to improve relationships with employees, the implementation of quality policies had a positive and relevant impact on the ROA.

Keywords: Economic Profitability, Policies of CSR, Employees’ Relations, Responsibility in Quality Management, Community Relations.

Jel Codes: M14, L20

Open Innovation: from OI to OI2

Working Paper
Vânia Pacheco, Nuno Araújo, Luis Rocha
EconWorld Working Papers Series No: 2020001
DOI: doi: 10.22440/EconWorld.WP.2020.001



Popularized in the early of 2000s, the concept of Open Innovation (OI) is a systematic process that instigates the circulation of ideas among different exploitation vectors focused on value creation. Over the past decade, the OI paradigm had a significant impact on the emergence of innovation networks and ecosystems. With the emergence of digital disruptive technologies, a new approach to OI has emerged -Open Innovation 2.0 (OI2) -incorporating technological, social, political, environmental dimensions, based on principles of integrated collaboration and co-created shared value, cultivating innovation ecosystems, unleashing the power of exponential technologies, with extraordinarily rapid adoption. This article will begin by explaining the evolution from IO to IO2. Key incentives, risks and costs associated with this new strategic approach to innovation will also be identified, as well as, the factors and the conditions of success that lead companies to formulate OI2 strategies starting from OI. This study will culminate in the identification of some initiatives developed in Portugal that are contributing to this transition. The analysis carried out will show that OI2 is not a panacea that can solve any challenge, but help drive significant structural changes and benefits through innovation to society and industry.

Keywords: Open Innovation, Open Innovation 2.0, Co-creation, Digital Agenda, Networking

Jel Codes: O32, Q55

Why Do Turkish Firms Go Abroad to Invest?

Working Paper
Yılmaz Kılıçaslan, Yeşim Üçdoğruk Gürel, Gökhan Önder, Zeynep Karal Önder
EconWorld Working Papers Series No: 2019001



The aim of this paper is to examine the determinants and localization of outward FDI (oFDI)
of Turkish firms that differs from developed country MNEs with respect to firm size,
technology, skills and access to information about global markets. This research is the first
attempt aimed to explore especially the determinants of country/region selection of Turkish
outward FDI at the firm level by using discrete choice models. The findings in this paper are
based on the primary data collected by in-depth-interviews with 299 outward-investing Turkish
firms operating in manufacturing, wholesale and retail trade, transportation and storage, and
information and communication sectors. Our descriptive findings show that 60% of the
investments are green-field. We found that 68% of the investments were made in developing
countries while the developed countries attracted only 32% of Turkish investments. Our
findings show that the main motivation of Turkish firms investing in other counties is
willingness to reach to the larger markets (77%). Our econometric findings show that the size
of the firm and the parent firm are significant factors in selecting developed countries as the
host country for the investment. As the size of the firm increases, the possibility of Turkish
investors to choose developed countries is diminishing, while as the size of the parent firm bets
bigger, the possibility of locating the investment in developed countries is rising. The high share
of foreign ownership in parent firms has a positive impact on choosing developing countries to
locate the investment. It seems that foreign firms benefit from the experiences of Turkish firms
operating in developing markets. Finally, while willingness to avoid from tariffs has no
significant impact on the probability of investing in developed countries (including EU
countries), it increases the probability of investment in the member countries of Shanghai
Cooperation Organization.

Keywords: Outward Foreign Direct Investment, outward FDI, Probit, Logit, Turkey

Gelen Doğrudan Yabancı Sermaye Yatırımları ile Geri Bağ Arasındaki İlişki

Working Paper
Huriye Alkın
EconWorld Working Papers Series No: 2018002
DOI: 10.22440/EconWorld.WP.2018.002


Bu çalışmanın amacı 2000-2012 yılları arasında Çekya, Estonya, Macaristan, Polonya ve
Slovakya’ya gelen doğrudan yabancı yatırımlar ile geri bağ arasındaki ilişkinin analiz
edilmesidir. Panel veri analiz yönteminin kullanıldığı bu çalışmada analiz 14 ayrı sektör için
yapılmıştır. Analiz sonuçları gıda ürünleri-tütün ürünleri; petrol ürünleri-kimyasal ürünleri;
elektrik, gaz, su; motorlu taşıtlar-diğer ulaşım araçları ve taşımacılık-telekomünikasyon-
otelcilik-yemek hizmetleri sektörlerinde yapılan doğrudan yabancı sermaye yatırımları ile geri
bağ arasında istatistiksel olarak anlamlı bir ilişki olduğunu göstermektedir. Diğer sektörlerde
doğrudan yabancı sermay

Anahtar Kelimeler: Doğrudan Yabancı Sermaye Yatırımları, Küresel Değer Zinciri, Geri Bağ Katılımı, Panel Veri Analizi

Jel Kodları: C23, F10, F13, F21


The Relationship between Inward Foreign Direct Investment and Backward Linkage


The aim of this study is to analyze the relationship between backward linkage and inward
foreign direct investment to Czech Republic, Estonia, Hungary, Poland and Slovak Republic
and between the years of 2000 and 2012. The analysis is carried out with panel data analysis
for 14 sectors. The empirical result indicates that there is a statistically significant relationship
between foreign direct investment and backward linkage in food products-tobacco products;
petroleum products-chemical products; electricity, gas, water; motor vehicles-the other
transport vehicles and transportation-telecommunication-hotel-food services sectors. There is
no statistically significant relation between foreign direct investment and backward linkage in
other sectors.

Keywords: Foreign Direct Investment, Global Value Chain, Backward Linkage Participation, Panel Data Analysis

Jel Codes: C23, F10, F13, F21

Vergi Dairesi Başkanlığı Çalışanlarının Vergi Algıları: Antalya Örneği

Working Paper
Burak Alp, Ünal Töngür
EconWorld Working Papers Series No: 2018001
DOI: 10.22440/EconWorld.WP.2018.001


Devlet olmanın sorumluluklarından birisi vergi toplamaktır. Vergi idaresi, mükelleflerin vergisel davranışları üzerinde etkili olabilmektedir. Bu çalışmada, Antalya Vergi Dairesi Başkanlığı’nda çalışan vergi memurlarına anket yapılmış ve vergi memurlarının Türkiye’de vergi sistemine ilişkin algıları incelenmiştir. Elde edilen bulgulardan hareketle, Türkiye’ de vergi memurlarının; vergileme ilkelerine, mükellef tutumlarına, vergi bilincine, vergi suçlarına, vergi denetimine karşı algıları ortaya konmuş ve vergi sistemimiz ile ilgili aksaklıklara çözüm önerileri sunulmuştur.

Anahtar Kelimeler: Vergi Algısı, Vergi İdaresi, Vergileme İlkeleri, Antalya

Jel Kodları: H20, H25, H26


Tax Perceptions of the Tax Office Directorate Officials and Employees: The Case of Antalya


One of the responsibilities of being a state is collecting taxes. The tax administration units can be effective on the tax paying behaviors of the taxpayers. In this study, a questionnaire is performed on the tax officers working in the Tax Administration Units of Antalya and their perception of the Tax System in Turkey is examined. Within the light of findings of the survey conducted, the structure of the tax officers’ perceptions about taxation principles, taxpayer attitudes, tax awareness, and tax inspection is analyzed by using descriptive statistics.

Keywords: Tax Perception, Tax Administration, Taxation Principles, Antalya

Jel Codes: H20, H25, H26

The Impact of Petrol Prices on Stock Prices of Energy Companies: A Panel Data Analysis for Turkey

Working Paper
Nur Dilbaz Alacahan, Seda Yavuzaslan Söylemez
EconWorld Working Papers Series No: 2017006
DOI: 10.22440/EconWorld.WP.2017.006



The aim of this paper is to analyze the impact of petrol prices on the stock prices of energy companies traded in Istanbul Stock Exchange. To achieve this objective, daily panel data for 9 energy companies are examined for the period between 01/02/2008 and02/26/2016. For the estimations, random effects and fixed effects panel data estimation methods are used. According to the results, changes in petrol prices effects stock prices of energy companies, negatively. Interest rates and M2 money supply affect stock prices of the energy companies, negatively. In addition to the macro variables, ROA and capital growth are the micro variables affecting stock prices of energy companies.

Keywords: Petrol Prices, Stock Prices, Panel Data Analysis, Turkey

Jel Codes: E44, G12, E44

Dijital Bölünme Çerçevesinde Türkiye’nin Durumunun Değerlendirilmesi

Working Paper
Barış Yıldız, Gizem Akbulut
EconWorld Working Papers Series No: 2017005


Bilgi ve İletişim Teknolojilerinde (BİT-ICT) yaşanan gelişmeler ülkelerin mevcut durumlarının değerlendirilmesine ışık tutmaktadır. Ülkelerin sahip oldukları BİT dinamiklerinin farklı olmasından kaynaklanan dijital bölünme sorunu hala ciddi bir şekilde yaşanmaktadır. Dijital Bölünme (Digital Divide) kavramının pek çok tanımı yapılmakla birlikte BİT (ICT-Information and Communication Technologies)’ ye sahip olanlar ile olmayanlar, ICT’ yi kullanan ve kullanmayanlar arasındaki farklılık düzeyleri olarak tanımlamak mümkündür. Dijital bölünme kavramı sadece küresel ölçekte değil aynı zamanda ülke içerisinde bölgeler arasında yaşanan eşitsizlik sonucu da meydana gelebilmektedir. Diğer taraftan gelişmekte olan ülkelerin içerisinde yaşanan dijital bölünme sorunu gelişmiş ülkelerle olan ilişkilerini de etkileyebilmektedir. Dijital bölünme sadece gelişmekte olan ülkelerin değil aynı zamanda gelişmiş ülkelerin de sorunu haline gelmektedir. Bilgiye ve teknolojiye erişimlerin kıyaslanmasında çeşitli endeks değerler kullanılmakla birlikte Uluslararası Telekomünikasyon Birliği (ITU) tarafından geliştirilen ICT Gelişme Endeksi-IDI (ICT Development Index) ölçüt olarak çalışmada kullanılmıştır. Gelişmekte olan ülkeler arasında yer alan Türkiye açısından bu endeks değere göre 2000 yılından itibaren genel olarak olumlu bir seyir izlediği görülmüştür. Ancak bu olumlu seyir Türkiye’nin gelişmiş ülkeler arasında yer alması noktasında yetersiz kalmaktadır. Hem Türkiye içerisinde bölgelerarası eşitsizliğin yüksek oranda olması hem de gelişmiş ülkelerle kıyaslandığında endeks sıralamasında oldukça gerilerde kalması Türkiye’nin dijital bölünme sorununa çözüm bulmasını zorunlu kılmaktadır.

Anahtar Kelimeler: Teknoloji, Dijital Bölünme, Bilgi ve İletişim Teknolojileri.

Jel Kodları: O14, L86, L96


Evaluation of the Situation of Turkey in the Digital Division Framework


Developments in Information and Communication Technologies (ICT) shed light on the assessment of the current situation of countries. It is possible to define as the level of difference between those who have ICT and those who do not, and those who do not use it, as well as many definitions of the Digital Divide concept. The concept of digital division is not only a result of global inequality, but also of inequality among regions within the country. The problem of digital divide among the developing countries can also affect relations with developed countries. Digital divide is not only a problem of the developing countries but also of the developed countries. The ICT Development Index developed by the International Telecommunication Union (ITU) has been used as a benchmark, with various index values being used to compare countries' access to information and technology access. As regards Turkey it has been seen that this index has been generally positive from 2000 onwards. However, this positive trend is inadequate at the point where Turkey is among the developed countries. Both the fact that the regional inequalities are high in Turkey and the fact that they are quite behind in the index order compared to the developed countries necessitates Turkey to find a solution to the digital divide problem.

Keywords: Technology, Digital Divide, Information and Communication Technologies

Jel Codes: O14,L86, L96

Addressing Un/Under-Employment at the Local Level: Participatory Action Research in Greece of Crisis

Working Paper
Eugenia Vathakou, Maria Tsampra, Pantelis Sklias
EconWorld Working Papers Series No: 2017004



The underutilization of human capital, reflected on shrinking job opportunities and employment deterioration, is the major crisis outcome and cause of socio-economic exclusion in Greece. Our research (EEA-GR07/3694 project), addressing un/under-employment at the local level during the country’s downturn, identified wide discrepancies between labour supply and demand. Data analysis revealed that the type of employment required by locally prevailing business does not contribute to local employability, nor sustains labour market resilience and employment recovery. On this ground, the capability of local entrepreneurship to capitalize the existing qualified personnel was questioned; and Participatory Action Research (PAR) was carried out in order to set new accounts of entrepreneurship for inclusive growth and social innovation. The paper presents the collaborative process and tentative results of PAR undertaken at the target-locality of Sparta in Greece. The process of action planning and implementation engaged local key-stakeholders and empowered local actors (municipality, vocational institutions, business chambers, trade unions, cooperatives) to address the potential of the un/underemployed and particularly, the most vulnerable of the labour market (young and women). The action implemented as part of the PAR process, "Spartathlon - Routes of Taste, Trade and Art", sought to attract more tourists to the town and strengthen local business. Its presentation makes a contribution to the discussion for social innovation, cohesion and sustainable economic recovery.

Keywords: local entrepreneurship, skills mismatch, labour surplus, participatory action research

Jel Codes: J24, P48, J64

Women Directors’ Compensation and Firm Performance of an Emerging Economy: India

Working Paper
Rakesh Yadav
EconWorld Working Papers Series No: 2017003




This probably maiden study for Indian financial market on executive compensation uses novel approach by using data of women director’s compensation of firm listed at Bombay stock exchange (BSE)India. The methodology adopted for this study is multivariate regression method; this method is common for the research on compensation, on the basis of the survey of literature which treats total compensation paid to the director as dependent variable and firm performance as independent variable. This study adds to the literature one more equation that is impact of firm performance (dependent variable) on compensation (independent variable). Further by using the holistic combination which is rare in the literature of executivecompensation, both measures of firm performance mainly accounting measures (EPS, ROCE and RONW) and market measures (P/E, P/BV) gives comprehensive view of firm performance in relation to compensation. The control variables mainly net sales, R and D and total assets are drawn from literature often known as instrumental variable approach in econometrics. The boundary condition for the sample is BSE-500 firms listed at Bombay stock exchange out of this BSE-500 firms sample of 407 firms are used for study.

Keywords: Logistic model, asymptotic methods, small parameter, asymptotic expansions

Jel Codes: С59, M11, M20

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