External income shocks and Turkish exports: a sectoral analysis

Date
2014
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Source Title
Economic Modelling
Print ISSN
0264-9993
Electronic ISSN
1873-6122
Publisher
Volume
37
Issue
Pages
476 - 484
Language
English
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Abstract

This study assesses how the growth rates of Turkish trading partners affected Turkish exports in various sectors for the period 1996:01 to 2009:12. To determine this, we modeled the destination countries and the export demand for each sector separately. Each model is estimated as a system of equations, where each equation represents a country using a seemingly unrelated regression method. The empirical evidence suggests that Motor Vehicles, Basic Metals, and Radio-Television are the sectors with the highest income elasticities for most of the analyzed countries, whereas the Food Products and Beverages sector has the lowest income elasticity. We also performed simulations for the effect of a 1% increase in the growth rate of each country on Turkish exports. © 2013 Elsevier B.V.

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