The Analysis for the Impacts of Exchange Rate Volatility on Foreign Trade for Turkish Economy

Fatih Ayhan

Business and Economics Research Journal, 2019, vol. 10, issue 3, 629-647

Abstract: Foreign trade volume is significantly affected by different macroeconomic factors. The change in the exchange rate also has a significant effect on foreign trade decisions such as other macro factors. In this study, the effect of exchange rate volatility on foreign trade is examined both theoretical and empirically. The industrial production index, exports, imports and the real exchange rate monthly data are used for January 2005 and February 2014 for Turkey's economy used. The ARDL model was used in this paper and according to findings; while foreign country income level has a positive impact on both short and long term, exchange rate volatility and real exchange rate negatively affect exports both in the short and long term. At the same time, industrial production and real exchange rate positively affect the imports of Turkey in both short and long term, while exchange rate volatility negatively affects the imports for Turkey.

Keywords: Exchange Rate Volatility; Foreign Trade; Export; Import; Real Exchange Rate (search for similar items in EconPapers)
JEL-codes: F14 F31 F47 O24 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.berjournal.com/the-analysis-for-the-im ... -for-turkish-economy Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:buecrj:0412

Access Statistics for this article

Business and Economics Research Journal is currently edited by Adem Anbar

More articles in Business and Economics Research Journal from Uludag University, Faculty of Economics and Administrative Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Adem Anbar ().