Turkey (TR)

BUSINESS ENVIRONMENT

1. In what income category does Turkey fall? Kristi Rolf

Turkey’s income level is measured by gross national income (GNI) per capita, a measurement intended to represent the average annual income per person before tax. In 2018, Turkey was classified as an upper-middle income level country. Below, Turkey’s GNI per capita is reported in U.S. dollars over a period from 2010-2019.

Sources:

https://datatopics.worldbank.org/world-development-indicators/stories/the-classification-of-countries-by-income.html

https://databank.worldbank.org/source/world-development-indicators#

2. Market indicators: Isaac Ritenour

  • Market Indicators “quantitative in nature and seek to interpret stock or financial index data in an attempt to forecast market moves”. These Market indicators are technical and help investors’ investment or trading decisions. The tables and graphs below show the change in the GDP (Growth Domestic Product) as a constant from 2010 in US Million$, and the GDP Annual % change over the last ten years. GDP (Constant 2010 US $) has increased from $ 711,513.0 in 2009 to $1,251,358.80 in 2019. Then looking at the GDP (Annual %) Turkey has averaged a growth of 5.39% per year from 2009 to 2010.
    • https://databank.worldbank.org/source/world-development-indicators#
  • Figure 1. Table of Gross Domestic Product as constant 2010 in US$ Millions, and Gross Domestic Product Annual Percentage growth.
    • https://databank.worldbank.org/source/world-development-indicators#

  • Figure 2. Graph 1 of Gross Domestic Product ( Constant 2010 US$) from 2009 to 2019.
    • https://databank.worldbank.org/source/world-development-indicators#

  • Figure 3. Graph 2 of Grows Domestic Product annual percentage growth from 2009 to 2019.
    • https://databank.worldbank.org/source/world-development-indicators#

3. Control of corruption: Zach Oddo

  • Based on this data, it can be understood that Turkey falls somewhere in the middle ground in terms of different countries and their ability to control corruption.
    • Of the years where data was collected, there has not been much of a change in the control of corruption and it has pretty much stayed consistent every year.
  • The aspects being measured in this figure are governance, percentile rank, and standard error.
  • Governance:
    • The governance scale is measured from -2.5 to 2.5, higher values correspond to better governance. Turkey has remained in the -0.50 to 0 range since 1996, leaving them almost in the direct middle in terms of governance.
  • Percentile Rank:
    • The percentile rank is measured from a 0-100 scale and indicates the rank of a country among the rest of the countries in the world, again higher value corresponds to a higher rank. Turkey sits again in the upper middle of this scale with the highest rank since 1996 being 62 and the lowest 43, in recent years it has been on a slight decline but not a rapid drop.
  • Standard Error:
    • “Standard Error captures the precision of the estimate of governance for each country. Lower values indicate more precision. Standard errors are related to confidence intervals reported elsewhere as follows: a 90% confidence interval is the estimate of governance +/- the standard error multiplied by 1.645.” Turkeys standard error values have remained fairly constant and improving slightly every year meaning that the data is very accurate. The highest standard error Turkey has seen was 0.21 in 1996 but has improved every year down to 0.14 in 2019.

 

  • This graph captures the mostly consistent lack of change in the control of corruption in Turkey, with very few spikes and drops in the graph.

4. Rule of law: Cameron Harris

Rule of law captures perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The data collected is from 2009-2019

The governance score is the estimate of governance measured on a scale from approximately -2.5 to 2.5. Higher values correspond to better governance.

From 0-100. The greater the number the better the governance rating. The thin black line indicate the corresponding 90% confidence interval

2009 57.82
2010 58.77
2011 57.75
2012 57.28
2013 55.87
2014 57.21
2015 53.37
2016 46.63
2017 45.19
2018 42.31
2019 44.71

The solid blue line shows Turkey’s percentile rank and the grey-shaded region indicates the margin of error

Source: https://info.worldbank.org/governance/wgi/Home/Reports

5. Terrorism: Bridget Shorey

Number of Incidents since 1970

https://www.start.umd.edu/gtd/search/Results.aspx?chart=overtime&casualties_type=&casualties_max=&country=209&count=100

Target Type

 

https://www.start.umd.edu/gtd/search/Results.aspx?charttype=bar&chart=target&casualties_type=&casualties_max=&country=209&count=100

 

6. Freedom: Damian Stifter

Last year Turkey scored a 31/100 on the Freedom House Index and was not free. This year Turkey scored a 32 and is still not free.

https://freedomhouse.org/country/turkey/freedom-world/2020

Political Rights Score: 16/40

In terms of political rights, Turkey does particularly well on maintaining a civilian controlled government (3/4); Turkey does particularly poorly on operating with openness and transparency (0/4).

Civil Liberties Score: 16/40

In terms of civil liberties, Turkey does slightly well on personal social freedoms, including choice of marriage partner and size of family, protection from domestic violence, and control over appearance (2/4); Turkey does particularly poorly on due process in civil and criminal matters (0/4)

https://freedomhouse.org/country/turkey/freedom-world/2020

7. Government effectiveness: Ian Densley

  • Government effectiveness “captures perceptions of the quality of public services, the quality of the civil service and the degree of its independence from political pressures, the quality of policy formulation and implementation, and the credibility of the government’s commitment to such policies.” The tables and graphs below show the change in government effectiveness over the last ten years. Percentile Rank has decreased from 65% in 2011 to 54% in 2019. Higher income families are satisfied with the government while the lower income families are dissatisfied with the government and how they implement and follow through with policies.
    • https://info.worldbank.org/governance/wgi/Home/Reports
  • Figure 1. Table of Government Effectiveness between Years 2009 and 2019
    • https://info.worldbank.org/governance/wgi/Home/Reports

  • Figure 2. Graph of Government Effectiveness between Years 2009 and 2019
    • https://info.worldbank.org/governance/wgi/Home/Reports

  • Figure 3. Times Series Comparison of Government Effectiveness According to the High Income Population
    • https://info.worldbank.org/governance/wgi/Home/Reports

  • Figure 4. Times Series Comparison of Government Effectiveness According to the Low Income Population
    • https://info.worldbank.org/governance/wgi/Home/Reports

 

EXTENT OF GLOBALIZATION

This is Turkey:

The country of Turkey is poised at the intersection of Europe and Asia in the Middle Eastern region. Turkey’s population of 82 million people primarily practice Islam and speak  either the Turkish or Kurdish languages. In 1923, modern day Turkey emerged from the fallen Ottoman empire and is currently governed by a presidential republic. In the past decade, Turkey has experienced security threats from terrorist organizations such as ISIS and the Revolutionary People’s Liberation Party, and been the destination of large numbers of refugees fleeing conflict in nearby states. 

 

1. TRADE

Ian Densley

The trade indicator includes information on imports and exports of goods and services, as well as total trade as a percentage of GDP. Total trade includes data from both imports and exports. Trade in relation to the country’s GDP, or size of their economy, shows the importance of trading, exports, and imports in the country’s economy. Data are for the last 10 years, from 2009 to 2019, and were obtained from the World Development Indicators available through the World Bank’s DataBank. The chart below portrays Turkey’s data year by year. The graphs include a comparison to Brazil’s information on imports and exports of goods and services, as well as total trade as a percentage of GDP. These data give an additional view to Turkey’s data. Brazil was selected because of the grave difference in amount of imports versus exports.

Turkey’s trade as a percentage of GDP has increased dramatically in the last three years. Trade increased 6% from 2017 to 2018. The country’s data also indicates that they import more than they export except in 2019. Their import versus export difference has leveled out in the last two years. Both Brazil’s and Turkey’s overall trade has seen a slow increase in the last ten years.

2. FOREIGN DIRECT INVESTMENT

Isaac Ritenour

The Foreign Direct Investment indicator includes information on Net Inflows and Outflows, as percentage of GDP. Representing Foreign Direct Investment indicators relative to the country’s GDP (the size of the country’s economy) shows the importance of Net Inflows and Outflows in the country’s economy. The data shown is for the last 15 years, from 2006 to 2020, and were obtained from the World Development Indicators available through the World Bank’s DataBank. The graphs also include data on Finland Net Inflows and Outflows, in order to give additional context and support to Turkey ‘s data. Finland was selected as a point of comparison because Finland is a member of the European Union. While Turkey is a major partner of the European Union.

Turkey’s Foreign Direct Investment Net Inflows as a percentage of GDP has decreased 2.6% from 2006-2020. This shows a decrease in capital provided by foreign direct investor to a foreign affiliate, or capital which was received by foreign direct investor from a foreign affiliate. While the Foreign Direct Investment Net Outflows as a percentage of GDP increased largely as seen from 2013-2014 with an overall increase of 0.4%. But then begins to fluctuate from 2015-2019 with an overall change of 0.2%. This is similar to how it did from 2006-2012 with a 0.1% overall change. This shows that overall, their was no large overall change in the total value of outward overseas direct investments made by the residents or reports of the economy to businesses based in foreign nations. https://databank.worldbank.org/reports.aspx?source=world-development-indicators

3. ATTITUDES TOWARD GLOBALIZATION

Cameron Harris

From the graph of public opinion taken by the European Commission in Turkey in June 2009, October 2009, and May 2012 most Turkish people believe that globalization is good, as it represents a good opportunity for Turkish companies. Over the 3 time periods a little over a fourth of the population thought that globalization was a threat to employment and countries in Turkey

 

Between April 11th and May 16th of 2014 1,001 adults in Turkey were surveyed by Pew research. Turkey had the lowest overall support for trade in the survey, 57% of Turks thought international trade was good. 30% of Turks believe international trade leads to job losses while 32% believe it’ll create jobs. 31% believe international trade will lead to a decrease in wages of workers and 28% believe it’ll lead to an increase. 62% say that foreign companies buying local companies is bad and 30% say it’s good. In the spring of 2014 33% of the population thought trading with other countries would lead to an increase in the price of products, 36% thought it would lead to a decrease, and 15% thought it wouldn’t make a difference. 17% thought that when foreign countries build new factories in Turkey it had a very good impact on the country

Between the summer of 2002 and the spring of 2014, the public opinion of globalization had gone down. Originally, 54% thought globalization was very good, 29% thought it was somewhat good, 6% thought it was somewhat bad, and 6% thought it was very bad. By 2014 only 30% thought globalization was very good, 27% thought it was somewhat good, 23% thought it was somewhat bad, and 13% thought it was very bad.

Any percentages not listed were those that either didn’t know or didn’t answer the question

4. PARTICIPATION IN TRADE AND INVESTMENT AGREEMENTS

Bridget Shorey

As of the World Trade Organization, Turkey is part of 22 regional trade agreements, mainly with Muslim countries, the EU, and countries in northern Africa. In bilateral trades, which are processed by the World Bank, Turkey has been part of 93 agreements since 1962 to 2014.

 

https://icsid.worldbank.org/resources/databases/bilateral-investment-treaties

https://rtais.wto.org/UI/PublicSearchByMemberResult.aspx?membercode=792

5. INTERNET ACCESS

Kristi Rolf

Access to the internet is measured as percentage of the population using the internet and number of secure internet servers per 1 million people. Both of these numbers have increased in the past decade. Between 2010 and 2019, the percentage of the population using the internet increased steadily from less than 40% to more than 70%. The number of secure internet servers per 1 million people increased gradually from 2010-2015 but has exploded in the years since.

6. TOURISM

Damian Stifter

Tourism in Turkey can be measured in passengers carried by air transport, seeing as it is the most popular mode of transportation for tourists coming into the country. Tourism is a good indicator of global awareness of a country, making a country more likely to be impacted by globalism in more beneficial ways.

In the graph below it is apparent that air transport to Turkey exploded between the years 2009 and 2015, starting at 31.3 million and increasing to 96.6 million passengers, and continued to increase through 2019 at a fairly  consistent rate. Romania is used as a comparison country because its air transport data through ten years hovers at a constant of around 3-5 million passengers per year. This country comparison helps better articulate the impact air transport has on Turkey. Just through air transport alone, it is clear to see that tourism is an ever growing industry within the Turkish economy, helping the country grow more every year.

Source: https://databank.worldbank.org/reports.aspx?source=world-development-indicators

7. MIGRATION AND REMITTANCES

Zach Oddo

Turkey hosts one of the largest migrant and refugee populations in the world.  At the end of 2015, over 2.5 million people sought temporary protection or asylum in Turkey. As of 2015 immigrants made up for 3.8% of the country’s population. 

As many as 577,457 people immigrated to Turkey in 2018, an increase of 23.8% compared to previous year, according to data by the Turkish Statistical Institute (TurkStat). Meanwhile, in the same period 323,918 people left Turkey for foreign countries, an increase of 27.7% over the previous year. Turkey also hosts the highest number of refugees in the world, nearly 4 million, according to official figures. The number of Syrian refugees living in the country was 3.63 million as of July.

Remittances in Turkey averaged 161.78 USD Million from 1984 until 2020, reaching an all time high of 574 USD Million in September of 1998 and a record low of 8 USD Million in April of 2020.

With 8.6 billion USD of humanitarian assistance in 2018, Turkey is the largest humanitarian donor in the world, and the most generous country based off of per capita humanitarian spending. According to the UN High Commission for Refugees. Turkey has spent more than 40 billion USD to provide aid and services to the Syrians.