Crisis concept, financial crisis, and finance crisis of 2008-2012: In the axis of Turkey, his effects on developing countries

The object of this thesis is to reveal the phases of global financial crisis of 2008, its geographical limits and effects on emerging markets in the pivot of Turkey. The 2008 crisis erupted in the United States and spread all over the world had profound impacts on Turkey as an emerging economy. The crisis concept and structural etude of financial crises have considered essential for better understanding these effects. In that context, this thesis shore up the claim that the recessions caused by financial crises last longer-go deeper than the recessions induced by other crises, but diverges from the cropping up and development points of the crisis. 2008 crisis had impacts as severe as in emerged countries on emerging markets: contraction in grow rate, severe decrement in the output levels, unemployment, deterioration in the current balance and inflationary pressures. Despite the strengthening of the financial structure after the 2001 banking crisis, the Turkish economy was among the emerging markets, which had been most affected by the 2008 crisis. Turkey exposed to the global crisis through its export channel to European Union countries. Most macroeconomic deteriorations led by sudden distortions in Turkey's total exports. In this respect, 2008 crisis has little difference compared to "currency bottleneck" crises Turkey experienced before. ARDL and Toda-Yamamoto (TY) Granger Causality Tests have applied to total export of Turkey, income level of top-10 European countries, Euro/TL exchange rate, and its five intermediate goods import. Tests have resulted in long-run relationship and TY causalities between some variables. Key words: Global Finance Crisis of 2008, emerging markets, financial crises, recessions, real sectors, financial area, emerged countries, grow rate, output levels, unemployment, current balance, inflationary pressures, financial structure, macroeconomic deteriorations, currency bottleneck, ARDL, exchange rate, intermediate goods import, long-run equilibrium, cointegration, Toda-Yamamoto (TY) Granger Causality Test