The exchange rate and the balance of trade: The Turkish experience

Josef Brada, Ali Kutan and Su Zhou

Journal of Development Studies, 1997, vol. 33, issue 5, 675-692

Abstract: In this article, we examine the responsiveness of Turkey's trade balance to devaluation accompanied by trade liberalisation. Our results show that the trade balance was responsive to changes in the exchange rate that were brought about by the economic reforms introduced in the 1980s, suggesting that exchange rate policy was able to create and maintain a satisfactory balance of trade position in the 1980s and early 1990s.

Date: 1997
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DOI: 10.1080/00220389708422489

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