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

Firat Demir

World Development, 2010, vol. 38, issue 8, 1127-1140

Abstract: Summary 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)
Date: 2010
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Citations: View citations in EconPapers (21)

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Working Paper: Exchange Rate Volatility and Employment Growth in Developing Countries: Evidence from Turkey (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:38:y:2010:i:8:p:1127-1140

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