Exchange Rate Volatility and Employment Growth in Developing Countries: Evidence from Turkey

Firat Demir

MPRA Paper from University Library of Munich, Germany

Abstract: Employing a unique panel of 691 private firms that accounted for 26% of total value-added in manufacturing in Turkey, the paper explores the impacts of exchange rate volatility on employment growth during the period of 1983 - 2005. The empirical analysis using a variety of specifications, estimation techniques, and robustness tests suggests that exchange rate volatility has a statistically and economically significant employment growth reducing effect on manufacturing firms. Using point estimates, the results suggest that for an average firm a one standard deviation increase in real exchange rate volatility reduces employment growth in the range of 1.4 - 2.1 percentage points.

Keywords: Exchange Rate Volatility; Employment Growth; Manufacturing Firms; South Eastern Europe; Turkey (search for similar items in EconPapers)
JEL-codes: E24 F31 L6 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-ara
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Citations: View citations in EconPapers (24)

Published in World Development 38.8(2010): pp. 1127-1140

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Journal Article: Exchange Rate Volatility and Employment Growth in Developing Countries: Evidence from Turkey (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:24477

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