Open AccessThe impact of foreign exchange movements on Turkish textile sector
Author(s) -
Yusuf Kaya,
Gizem Karakan,
Emilia Visileanu
Publication year - 2019
Publication title -
industria textilă
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.281
H-Index - 14
ISSN - 1222-5347
DOI - 10.35530/it.070.03.1591
Subject(s) - turkish , competitor analysis , volatility (finance) , business , exchange rate , lira , devaluation , clothing , international economics , economics , geography , marketing , finance , philosophy , linguistics , archaeology
Due to importance of global supply chain and high-tech exports, importance of new developing markets is graduallyincreasing. Turkey keeps the strategic importance for textile sector being in the center of Balkans, Asia, Middle East, NorthAfrica, Eastern Europe and Russia. The geographical location allowing trade in the region makes the country much moreadvantageous than its competitors. However, devaluation and the exchange rate volatility of Turkish Lira in 2018 have beenseriously affecting Turkish textile sector. This study aims to determine the impact of exchange rate fluctuation on Turkishtextile firms’ performance between the years of 2013 and 2017. Additionally, multiple regression analysis was done in orderto investigate the impact of firms’ performance such as firm age and firm size on performance of the textile firms. Accordingto results, it was observed that exchange rate volatility had a negative effect on the firm performance and the firm size hada negative effect on firm performance while the firm age did not have any influence on firms’ performance significantly.