The Effects of the Asian Crisis on Turkish Manufacturing Industries: The Case of Textile, Food and Cement Industries

Abstract

This paper hypothesizes that Asian crisis has severely affected the financial dimensions of the Turkish industries. The analysis of the financial data for 70 companies from textile, food and cement industries provides evidence to partially support this hypothesis. By principal components analysis we identified five statistical factors that is meaningful and economically significant to represent main financial dimensions contained in twenty-one financial variables of the sample firms. The discriminant analyses based on the identification of the discrimination between financial dimensions of the sample firms for pre- and post-crisis years identified that profitability margins of the export-oriented Turkish textile industry significantly decreased in post-crisis years. No statistically significant changes in financial dimensions are detected for food and cement industries in post-crisis years.

Keywords: Asian Crisis, Turkish manufacturing industries, contagion effect, factor analysis

JEL Classification: F36, F02, L66, L67, L74,