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Exchange Rate Volatility and Turkey-US Commodity Trade: An Asymmetry Analysis

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  • M Bahmani-Oskooee
  • H Karamelikli

Abstract

In this paper we assess the symmetric and asymmetric effects of lira-dollar volatility on 56 2-digit industries that trade between Turkey and the US When a linear model was estimated, which assumes the effects to be symmetric, we found short-run effects of volatility on 23 Turkish exporting industries and 31 Turkish importing industries. Short-run effects lasted into the long-run in 6 exporting and 18 importing industries. However, when a nonlinear model was estimated, we found short-run effects in 41 exporting and 42 importing industries which were asymmetric in all industries. Short-run effects translated into asymmetric long-run effects in 45 exporting and 22 importing industries.

Suggested Citation

  • M Bahmani-Oskooee & H Karamelikli, 2020. "Exchange Rate Volatility and Turkey-US Commodity Trade: An Asymmetry Analysis," Economic Issues Journal Articles, Economic Issues, vol. 25(2), pages 1-29, September.
    • Handle: RePEc:eis:articl:220bahmani
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    References listed on IDEAS

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    2. Izunna Chima Anyikwa & Lehlohonolo Domela, 2022. "Asymmetric effects of exchange rate volatility on trade flows in BRICS economies," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 46(3), pages 224-247, July.

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    More about this item

    Keywords

    Exchange rate volatility; Asymmetry; Commodity trade; Turkey; US; Nonlinear ARD;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange

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