Does Overvalued Turkish Lira Affect Turkey's Foreign Trade Competitiveness?

Eren Erdoğan, Osman Nuri Aras and Mustafa Öztürk

MPRA Paper from University Library of Munich, Germany

Abstract: Turkey's export growth has been increasing since 1980 and reached its peak in 2011 despite declines in different periods. The 2008 economic crisis that overvalued the exchange rates was a big obstacle to overcome for the Turkish exporters, and this diminishes their returns and thus lessened Turkey’s global strategic competitiveness. This study examines Turkey’s competition power against the BRIC countries seen as strong competitors to Turkey based on exchange rates and purchasing power parity. This study which is about purchasing power parity and exchange rates shows that real exchange rates affect trade volumes and Turkey’s RER has appreciated especially after 2010 and it lessened the competitiveness of Turkish companies.

Keywords: International Competitiveness; Exchange Rates; Competitiveness Indicators. (search for similar items in EconPapers)
JEL-codes: F10 F13 F14 F4 F40 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in International Journal of Social Sciences and Humanity Studies 4.2(2012): pp. 159-168

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/81857/1/MPRA_paper_81857.pdf original version (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:pra:mprapa:81857

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().