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Exchange rate volatility and Turkish commodity trade with the rest of the world

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Listed:
  • Mohsen Bahmani-Oskooee

    () (University of Wisconsin-Milwaukee)

  • Nazif Durmaz

    () (University of Huston-Victoria)

Abstract

Abstract Since advent of the current float, like many other currencies the Turkish lira has followed a volatile path. Several previous studies have assessed the impact of this volatility on Turkish exports and imports using aggregate trade flows of Turkey. Not much significant effects are found. In this paper, we use disaggregated Turkish imports and exports of 61 industries that trade with the rest of the world and find that exchange rate volatility has short-run significant impact on the imports of 39 industries and exports of 23 industries. The short-run effects last into the long run in almost half of the industries.

Suggested Citation

  • Mohsen Bahmani-Oskooee & Nazif Durmaz, 2016. "Exchange rate volatility and Turkish commodity trade with the rest of the world," Economic Change and Restructuring, Springer, vol. 49(1), pages 1-21, February.
  • Handle: RePEc:kap:ecopln:v:49:y:2016:i:1:d:10.1007_s10644-015-9172-8
    DOI: 10.1007/s10644-015-9172-8
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    References listed on IDEAS

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    More about this item

    Keywords

    Exchange rate volatility; Industry data; Turkey; Bounds testing;

    JEL classification:

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

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