The inconsistent response of Turkish export demand to real exchange rate shocks
Author
Berument, Hakan
Denaux, Z.
Yalçın, Y.
Date
2015Source Title
Global Journal of Business Research
Print ISSN
1931-0277
Electronic ISSN
2157-0191
Publisher
The Institute for Business and Finance Research
Volume
9
Issue
1
Pages
49 - 56
Language
English
Type
ArticleItem Usage Stats
301
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26
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Abstract
In this study, we examine the responsiveness of exports to the real exchange rate shocks for different
countries. Employing a Vector Autoregressive (VAR) methodology, the effects of different real exchange
rate shocks on the Turkish export demand is examined by using quarterly data from the Turkey’s 15
major trade partners. The study finds that the depreciation of the aggregate real exchange rate affected
the Turkish export demand positively and significantly for three quarters. After accounting for the effect
of the aggregate real exchange rate, this study empirically shows that the responses of Turkish exports to
individual bilateral real exchange rate shocks are not uniform across countries.