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The exchange rate and the balance of trade: The Turkish experience

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  • Josef Brada
  • Ali Kutan
  • Su Zhou

Abstract

In this article, we examine the responsiveness of Turkey's trade balance to devaluation accompanied by trade liberalisation. Our results show that the trade balance was responsive to changes in the exchange rate that were brought about by the economic reforms introduced in the 1980s, suggesting that exchange rate policy was able to create and maintain a satisfactory balance of trade position in the 1980s and early 1990s.

Suggested Citation

  • Josef Brada & Ali Kutan & Su Zhou, 1997. "The exchange rate and the balance of trade: The Turkish experience," Journal of Development Studies, Taylor & Francis Journals, vol. 33(5), pages 675-692.
    • Handle: RePEc:taf:jdevst:v:33:y:1997:i:5:p:675-692
    DOI: 10.1080/00220389708422489
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    References listed on IDEAS

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    1. Bela Balassa, 1985. "Change and Challenge in the World Economy," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-17991-6, December.
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