APL (Ajiken Power Lunch)

APL (Ajiken Power Lunch) is a lunchtime workshop open to public, including IDE staffs, visiting research fellows, IDEAS students, outside researchers and graduate students. This workshop provides a platform for presentation of any work in progress where we can discuss in either English or Japanese.

Those who would attend a seminar are asked to announce yourself to receptionists on your arrival at the IDE and to obtain APL Organizers' signature on your admission card after the seminar.

March 20, 2018. (Tuesday) 15：30-17：00

Institute of Developing Economies, Japan External Trade Organization C23 Meeting Room 　

Regional Loan Distribution in Turkey: The Role of Distance, Political Connection, and Electoral Cycle

Since their establishment back in the 19th century, development banks have played a leading role in supporting development in many countries. Despite the liberalization process of the 1980s and 1990s, development banks have continued to be influential in financing development. In the Turkish case, the performance of development banking in supporting development has varied over time. However, one feature has remained constant: development banking loans did not contribute to the alleviation of regional imbalances even during the period of import substituting industrialization between 1963 and 1979. In this study, I find that development loans were primarily distributed to the periphery of the capital city, indicating the importance of the distance on development lending as spatial concentration theory suggests. The results also show that the political connection of mayors to the central government has been influential. Yet, the results suggest that elections did not significantly affect development banking activities. I also examine regional commercial loans with the same motivation in mind. The results demonstrate that, whilst spatial dimension works for regional commercial loan allocation, political connection does not affect commercial loan provision. The empirical results also do not demonstrate a concrete relationship between electoral cycle and commercial lending.

Huseyin Ozturk (Central Bank of Turkey Tokyo Representative)

Yasushi Hazama

English