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Revisiting The Role Of Exchange Rate Volatility In Turkey’S Exports: Evidence From The Structural Var Approach

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  • Özge Barış-Tüzemen
  • Samet Tüzemen

Abstract

The exchange rate is both an important economic variable when determining a country’s export volume and an indicator of its international competitiveness. This paper re-investigates the impact of real exchange rate volatility on Turkey’s exports using the structural vector autoregression method and monthly data from 2003:01 to 2019:12. Empirical evidence shows that real exchange rate and exchange rate volatility do not affect exports in Turkey. On the other hand, external income has had a slight effect on Turkey’s exports in the post-global-crisis period. The findings show that other factors which effect macroeconomic indicators in the Turkish economy should also be considered.

Suggested Citation

  • Özge Barış-Tüzemen & Samet Tüzemen, 2021. "Revisiting The Role Of Exchange Rate Volatility In Turkey’S Exports: Evidence From The Structural Var Approach," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 66(231), pages 127-150, October –.
    • Handle: RePEc:beo:journl:v:66:y:2021:i:231:p:127-150
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    References listed on IDEAS

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    More about this item

    Keywords

    exchange rate volatility; exports; SVAR; structural breaks; Turkey;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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