Open AccessRevisiting the role of exchange rate volatility in Turkey’s exports: Evidence from the structural VAR approach
Author(s) -
Özge Barış-Tüzemen,
Samet Tüzemen
Publication year - 2021
Publication title -
economic annals/ekonomski anali
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.148
H-Index - 12
eISSN - 1820-7375
pISSN - 0013-3264
DOI - 10.2298/eka2131127b
Subject(s) - economics , structural vector autoregression , exchange rate , volatility (finance) , turkish economy , vector autoregression , monetary economics , international economics , turkish , effective exchange rate , econometrics , macroeconomics , monetary policy , linguistics , philosophy
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.