Advanced Search
MyIDEAS: Login to save this article or follow this journal

An Investigation Of Real Exchange Rate Volatility On Turkish Textile And Apparel Export

Contents:

Author Info

  • Selim Adem Hatirli
  • Kübra Onder

    ()
    (Süleyman Demirel University
    Süleyman Demirel University)

Registered author(s):

    Abstract

    Due to significant contributions of textile and apparel industry in terms of employment, export opportunities and industrial value added, it has a crucial role in the Turkish economy. Even there are many factors influencing the export performance of this sector, real exchange rate is one of the significant factors. In this study, we investigated the causal relationship between the real exchange rate and export of textile and apparel industry by using monthly data, covering from 1998-2008. Exchange rate volatility was also considered in the model using GARCH approach. In order to determine appropriate Granger causality relations, unit root, cointegtration and error correction models were used. With time-series techniques, this study provided evidence that there is a long-run relationship exist between the real exchange rate and export of textile and apparel industry. Based on the results of the model it was concluded that increasing exchange rate volatility negatively impacts on textile and apparel export. Moreover, results indicated that there is a one way casual relationship from real exchange rate to export of textile and apparel industry, and bidirectional Granger causality from exchange rate volatility to textile and apparel industry.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.anadolu.edu.tr/arastirma/hakemli_dergiler/sosyal_bilimler/pdf/2010-2/2010_02_04.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Anadolu University in its journal Anadolu University Journal of Social Sciences.

    Volume (Year): 10 (2010)
    Issue (Month): 2 (May)
    Pages: 41-54

    as in new window
    Handle: RePEc:and:journl:v:10:y:2010:i:2:p:41-54

    Contact details of provider:
    Postal: Yunus Emre Kampusu 26470, Eskişehir
    Phone: (90) (222) 335-0580 x 2743
    Fax: (90) (222) 320-1304
    Email:
    Web page: http://www.anadolu.edu.tr/akademik/birim/genelBilgi/205/3429/1
    More information through EDIRC

    Related research

    Keywords: Textile and apparel industry; real exchange rate; GARCH; causality; cointegration; export.;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Peree, Eric & Steinherr, Alfred, 1989. "Exchange rate uncertainty and foreign trade," European Economic Review, Elsevier, vol. 33(6), pages 1241-1264, July.
    2. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    3. Mckenzie, Michael D., 1998. "The impact of exchange rate volatility on Australian trade flows," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 8(1), pages 21-38, January.
    4. McKenzie, Michael D. & Brooks, Robert D., 1997. "The impact of exchange rate volatility on German-US trade flows," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 7(1), pages 73-87, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:and:journl:v:10:y:2010:i:2:p:41-54. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Social Sciences Institute).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.