The effect of real exchange rate uncertainty on Turkey’s foreign trade: new evidences from SVAR model

KÖSE, NEZİR; Aslan, Çağlayan

doi:10.1080/16081625.2020.1808798

The effect of real exchange rate uncertainty on Turkey’s foreign trade: new evidences from SVAR model

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KÖSE N., Aslan Ç.

Asia-Pacific Journal of Accounting and Economics, 2020 (SSCI)

Publication Type: Article / Article
Publication Date: 2020
Doi Number: 10.1080/16081625.2020.1808798
Journal Name: Asia-Pacific Journal of Accounting and Economics
Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, ABI/INFORM, EconLit
Keywords: exchange rate Volatility, macroeconomic policy, SVAR model
Istanbul Gelisim University Affiliated: Yes

Abstract

© 2020 City University of Hong Kong and National Taiwan University.In this study, the relationship between exchange rate uncertainty and Turkey’s foreign trade performance is analyzed using monthly data from 2002:01 to 2017:12 via Structural VAR (SVAR) model. The empirical results indicate that domestic income and import have more impact on Turkey’s export. Moreover, domestic income, exchange rate and exchange rate uncertainty are effective on Turkey’s import. These results imply that Turkey’s export is dependent on imported inputs more than the exchange rate and exchange rate uncertainties.