IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpep/v2023y2023i3id827p225-245.html
   My bibliography  Save this article

Analysing Impact of Economic Crises on Sector Profits with a New Approach

Author

Listed:
  • İsmail Cakmak
  • Selcen Öztürk

Abstract

The manufacturing sector has been regarded as a key factor in the history of economic devel-opment and growth. However, economic fluctuations affect manufacturing seriously. This study examines the impact of the 2008 global economic crisis on Turkish manufacturing sector profit-ability. This paper uses micro-econometric difference in differences methods in conjunction with the macroeconomic forecasting method to investigate how profit levels in the Turkish manufacturing industry are affected by the crisis. The results indicate that the profit levels changed significantly after the crisis with a one-year lag and actual profits exceeded the estimated profits in the later years. Economic impacts of crises have long been investigated; however, this paper differs from the literature in using a new analytical framework for the issue. The suggested method can be expanded to other areas, which can spark new future studies.

Suggested Citation

  • İsmail Cakmak & Selcen Öztürk, 2023. "Analysing Impact of Economic Crises on Sector Profits with a New Approach," Prague Economic Papers, Prague University of Economics and Business, vol. 2023(3), pages 225-245.
    • Handle: RePEc:prg:jnlpep:v:2023:y:2023:i:3:id:827:p:225-245
    DOI: 10.18267/j.pep.827
    as

    Download full text from publisher

    File URL: http://pep.vse.cz/doi/10.18267/j.pep.827.html
    Download Restriction: free of charge
    File URL: http://pep.vse.cz/doi/10.18267/j.pep.827.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.pep.827?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sujan Chandra Paul & Md. Asiqur Rahman & Jiasmin, 2021. "Current Assets, Current Liabilities and Profitability: A Cross Industry Analysis," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 11(1), pages 55-68, June.
    2. Foroni, Claudia & Marcellino, Massimiliano & Stevanovic, Dalibor, 2022. "Forecasting the Covid-19 recession and recovery: Lessons from the financial crisis," International Journal of Forecasting, Elsevier, vol. 38(2), pages 596-612.
    3. John B. Taylor, 2009. "The Financial Crisis and the Policy Responses: An Empirical Analysis of What Went Wrong," NBER Working Papers 14631, National Bureau of Economic Research, Inc.
    4. Sujan Chandra Paul & Md. Asiqur Rahman & Jiasmin, 2021. "Current Assets, Current Liabilities and Profitability: A Cross Industry Analysis," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 11(1), pages 55-68.
    5. Park, Cyn-Young & Shin, Kwanho, 2020. "Contagion through National and Regional Exposures to Foreign Banks during the Global Financial Crisis," Journal of Financial Stability, Elsevier, vol. 46(C).
    6. Haraguchi, Nobuya & Cheng, Charles Fang Chin & Smeets, Eveline, 2017. "The Importance of Manufacturing in Economic Development: Has This Changed?," World Development, Elsevier, vol. 93(C), pages 293-315.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. İsmail Cakmak & Selcen Öztürk, . "Analysing Impact of Economic Crises on Sector Profits with a New Approach," Prague Economic Papers, Prague University of Economics and Business, vol. 0.
    2. KAMKOUM, Arnaud Cedric, 2023. "The Federal Reserve’s Response to the Global Financial Crisis and its Effects: An Interrupted Time-Series Analysis of the Impact of its Quantitative Easing Programs," Thesis Commons d7pvg, Center for Open Science.
    3. Hertrich Markus, 2019. "A Novel Housing Price Misalignment Indicator for Germany," German Economic Review, De Gruyter, vol. 20(4), pages 759-794, December.
    4. Kveta Kubatova, 2009. "Issues of tax burden measuring using tax quota," ACTA VSFS, University of Finance and Administration, vol. 3(2), pages 106-115.
    5. Georg Feigl & Markus Marterbauer & Miriam Rehm & Matthias Schnetzer & Sepp Zuckerstätter & Lars Nørvang Andersen & Thea Nissen & Signe Dahl & Peter Hohlfeld & Benjamin Lojak & Achim Truger & Andrew Wa, 2016. "The Elusive Recovery," SciencePo Working papers Main hal-03459084, HAL.
      • Georg Feigl & Markus Marterbauer & Miriam Rehm & Matthias Schnetzer & Sepp Zuckerstätter & Lars Nørvang Andersen & Thea Nissen & Signe Dahl & Peter Hohlfeld & Benjamin Lojak & Achim Truger & Andrew Wa, 2016. "The Elusive Recovery," PSE-Ecole d'économie de Paris (Postprint) hal-03459084, HAL.
      • Georg Feigl & Markus Marterbauer & Miriam Rehm & Matthias Schnetzer & Sepp Zuckerstätter & Lars Nørvang Andersen & Thea Nissen & Signe Dahl & Peter Hohlfeld & Benjamin Lojak & Thomas Theobald & Achim , 2016. "The Elusive Recovery," PSE Working Papers hal-03612850, HAL.
      • Georg Feigl & Markus Marterbauer & Miriam Rehm & Matthias Schnetzer & Sepp Zuckerstätter & Lars Nørvang Andersen & Thea Nissen & Signe Dahl & Peter Hohlfeld & Benjamin Lojak & Achim Truger & Andrew Wa, 2016. "The Elusive Recovery," Post-Print hal-03459084, HAL.
      • Georg Feigl & Markus Marterbauer & Miriam Rehm & Matthias Schnetzer & Sepp Zuckerstätter & Lars Nørvang Andersen & Thea Nissen & Signe Dahl & Peter Hohlfeld & Benjamin Lojak & Thomas Theobald & Achim , 2016. "The Elusive Recovery," SciencePo Working papers Main hal-03612850, HAL.
      • Georg Feigl & Markus Marterbauer & Miriam Rehm & Matthias Schnetzer & Sepp Zuckerstätter & Lars Nørvang Andersen & Thea Nissen & Signe Dahl & Peter Hohlfeld & Benjamin Lojak & Thomas Theobald & Achim , 2016. "The Elusive Recovery," PSE-Ecole d'économie de Paris (Postprint) hal-03612850, HAL.
      • Georg Feigl & Markus Marterbauer & Miriam Rehm & Matthias Schnetzer & Sepp Zuckerstätter & Lars Nørvang Andersen & Thea Nissen & Signe Dahl & Peter Hohlfeld & Benjamin Lojak & Thomas Theobald & Achim , 2016. "The Elusive Recovery," Working Papers hal-03612850, HAL.
    6. Lütkenhorst, Wilfried, 2018. "Creating wealth without labour? Emerging contours of a new techno-economic landscape," IDOS Discussion Papers 11/2018, German Institute of Development and Sustainability (IDOS).
    7. Stijn Claessens & M. Ayhan Kose, 2013. "Financial Crises: Explanations, Types and Implications," CAMA Working Papers 2013-06, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    8. Stefan Pahl & Marcel P. Timmer, 2020. "Do Global Value Chains Enhance Economic Upgrading? A Long View," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1683-1705, July.
    9. Gagnon, Marie-Hélène & Gimet, Céline, 2013. "The impacts of standard monetary and budgetary policies on liquidity and financial markets: International evidence from the credit freeze crisis," Journal of Banking & Finance, Elsevier, vol. 37(11), pages 4599-4614.
    10. Sa, Filipa & Towbin, Pascal & wieladek, tomasz, 2011. "Low interest rates and housing booms: the role of capital inflows, monetary policy and financial innovation," Bank of England working papers 411, Bank of England.
    11. Lavopa, Alejandro & Szirmai, Adam, 2018. "Structural modernisation and development traps. An empirical approach," World Development, Elsevier, vol. 112(C), pages 59-73.
    12. Zhao, Xinyue & Chen, Heng & Zheng, Qiwei & Liu, Jun & Pan, Peiyuan & Xu, Gang & Zhao, Qinxin & Jiang, Xue, 2023. "Thermo-economic analysis of a novel hydrogen production system using medical waste and biogas with zero carbon emission," Energy, Elsevier, vol. 265(C).
    13. Kuang-Liang Chang & Nan-Kuang Chen & Charles Ka Yui Leung, 2013. "In the Shadow of the U nited S tates: The International Transmission Effect of Asset Returns," Pacific Economic Review, Wiley Blackwell, vol. 18(1), pages 1-40, February.
    14. Kim, Teakdong & Koo, Bonwoo & Park, Minsoo, 2013. "Role of financial regulation and innovation in the financial crisis," Journal of Financial Stability, Elsevier, vol. 9(4), pages 662-672.
    15. Peter J. Boettke & Alexander W. Salter & Daniel J. Smith, 2018. "Money as meta-rule: Buchanan’s constitutional economics as a foundation for monetary stability," Public Choice, Springer, vol. 176(3), pages 529-555, September.
    16. Christophe Blot & Paul Hubert & Fabien Labondance, 2017. "Does monetary policy generate asset price bubbles ?," Documents de Travail de l'OFCE 2017-05, Observatoire Francais des Conjonctures Economiques (OFCE).
    17. Alessandri, Enrico, 2023. "Identifying technological trajectories in the mining sector using patent citation networks," Resources Policy, Elsevier, vol. 80(C).
    18. Marc Hayford & Anastasios Malliaris, 2010. "Asset Prices and the Financial Crisis of 2007--09: An Overview of Theories and Policies," Forum for Social Economics, Taylor & Francis Journals, vol. 39(3), pages 279-286, January.
    19. Fratianni, Michele & Giri, Federico, 2017. "The tale of two great crises," Journal of Economic Dynamics and Control, Elsevier, vol. 81(C), pages 5-31.
    20. Baumeister, Christiane & Guérin, Pierre, 2021. "A comparison of monthly global indicators for forecasting growth," International Journal of Forecasting, Elsevier, vol. 37(3), pages 1276-1295.

    More about this item

    Keywords

    forecasting; difference in differences; 2008 economic crisis; manufacturing;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • G01 - Financial Economics - - General - - - Financial Crises
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlpep:v:2023:y:2023:i:3:id:827:p:225-245. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.