•  Asymmetric Effects of Financial Development on South-South and South-North Trade (with O.S. Dahi) (Under Review).

Abstract: Using bilateral trade data in total and technology-and-skill-intensive manufactures for 28 developing countries that account for 82% of all developing country manufactures exports between 1978 and 2005, the paper explores the effects of financial development on South-South and South-North trade. The empirical results using panel regressions and comprehensive sensitivity tests suggest that financial development in the South has a statistically and economically significant South-South and South-North trade increasing effect in manufactures and technology-and-skill-intensive manufactures. However, the positive effect of financial development is found to be asymmetric favoring South-South significantly more than South-North trade.

• Exchange Rate Volatility and Employment Growth in Developing Countries: Evidence from Turkey (Under Review).

Abstract: Employing a unique panel of 691 private firms that accounted for 26% of total value-added in manufacturing in Turkey, the paper explores the impacts of exchange rate volatility on employment growth during the period of 1983 - 2005. The empirical analysis using a variety of specifications, estimation techniques, and robustness tests suggest that exchange rate volatility has a statistically and economically significant employment growth reducing effect on manufacturing firms. Using point estimates, our results suggest that for an average firm a one standard deviation increase in real exchange rate volatility reduces employment growth in the range of 1.4 - 2.1 percentage points.

•  “Effects of Trade Liberalization on the Pattern of South-South and South-North Trade” (with O.S. Dahi).

Abstract: Using bilateral trade data for 28 developing countries that account for over 80% of developing country exports between 1978 and 2005, we find that trade liberalization in the South significantly increased the share of manufactures and technology-and-skill-intensive manufactures exports in South-South and South-North trade. Furthermore, trade liberalization is found to be favoring the South-North trade more than the South-South trade.

WORKING PAPERS

•  “Firm Growth and Foreign Direct Investment under Exchange Rate Shocks”

•  “South-South vs. South-North Trade and Technology Transfer: Does the Direction Matter?” (with O.S. Dahi)

•  “Does the Source of Finance Matter for Firm Performance? Foreign Investment vs. Stock Market” (with V.B Uysal)

•  “Exchange Rate Uncertainty and South-South vs. South-North Trade” (with M. Caglayan and O.S. Dahi).