Mustafa Caglayan

Professor of Finance

+44 (0)131 451 8373
Room 1.18
Mary Burton Building
Heriot-Watt University
Roles and responsibilities

Professor in Finance


Mustafa's research interests lie in the areas of Applied Economics and Finance.

In particular, his recent research concentrates on firm investment and cash holding behaviour, international trade flows and exchange rates, bank lending, monetary policy and price dynamics. Mustafa's recent working papers on RePec have examples of his research areas.

Mustafa is also interested in supervising PhD students in the above fields.

Selected publications

'Trade Flows, Exchange Rate Uncertainty and Financial Depth: Evidence from 28 Emerging Countries' (with O. Dahi and F. Demir), Southern Economic Journal, forthcoming.

'The Role of Uncertainty in the Transmission of Monetary Policy Effects on Bank Lending' (with C. F. Baum and N. Ozkan), The Manchester School, forthcoming.

'Inventories, Sales Uncertainty, and Financial Strength' (with S. Mateut and S. Maioli), Journal of Banking and Finance, 2012, 36(9), pp. 2512-2521.

'The Effect of the Exchange Rates on Investment in Mexican Manufacturing Industry' (with R. Munoz-Torres), Open Economies Review, 2011, 22(4), pp. 669-683.

'Parliamentary Election Cycles and the Turkish Banking Sector' (with C. F. Baum and Oleksandr Talavera), Journal of Banking and Finance, 2010, 34, pp. 2709-2719.

'On the Sensitivity of Firms' Investment to Cash Flow and Uncertainty' (with C. F. Baum and O. Talavera), Oxford Economic Papers, 2010, 62, pp. 286-306.

'On the Investment Sensitivity of Debt under Uncertainty' (with C. F. Baum and O. Talavera), Economics Letters, 2010, 106, pp. 25-27.

'Does Real Exchange Rate Volatility Affect Sectoral Trade Flows?' (with J. Di), Southern Economic Journal, 2010, 77 (2), pp. 313-335.

'Effects of Exchange Rate Volatility on the Volume And Volatility of Bilateral Exports' (with C. F. Baum), Journal of International Money and Finance, 2010, 29(1), pp. 79-93.

'The Second Moments Matter: The Response of Bank Lending Behavior to Macroeconomic Uncertainty' (with C. F. Baum and N. Ozkan), Economics Letters, 2009, 102, pp. 87-89.

'Market Structure and the Link Between Inflation and Price Dispersion' (with A. Filiztekin and M. T. Rauh), European Economic Review, 2008, 52(7), pp. 1187-1208.

'Political Patronage in Ukrainian Banking' (with C. F. Baum, D. Schaefer and O. Talavera), Economics of Transition, 2008, 16(3), pp. 537-557.

'Uncertainty Determinants of Corporate Liquidity' (with C. F. Baum, A. Stephan and O. Talavera), Economic Modelling, 2008, 25, pp. 833-849.

'Uncertainty Determinants of Firm Investment' (with C. F. Baum and O. Talavera), Economics Letters, 2008, 98(3), pp. 282-287.


Mustafa joined the School of Management and Languages at Heriot-Watt University in January 2013.

Mustafa studied at Bogazici University, Istanbul, Turkey, and gained BSc in Electrical Engineering in 1987. He received his PhD degree from Boston College in the USA in 1997.

Since then Mustafa has worked at several universities in the US, Turkey, and the UK including Fletcher School of Law and Diplomacy, Tufts University, USA;  Koc University, Turkey; University of Durham; University of Liverpool; and the University of Leicester. He took up a Chair in Economics at the University of Glasgow in 2005 and later moved to the University of Sheffield as Professor of Economics.

View Mustafa's full CV here: Mustafa Caglayan