Theoretical and Applied Economics
No. 3 / 2021 (628), Autumn
The relationship between exchange rates, foreign trade and economic growth: An application on Turkey
Sivas Cumhuriyet University, Sivas, Turkey
Necati Alp ERILLI
Sivas Cumhuriyet University, Sivas, Turkey
Abstract. The inevitable interaction of countries with each other in the globalizing world has made the relationship between foreign trade and exchange rate sizes important. Sustainable economic growth is important for countries to draw capital flows from abroad and for the continuity of investments. The present study investigates the relationship between exchange rate, foreign trade and economic growth in 2010-2019 period for Turkey. Level stability of series and the presence of unit roots were determined with ADF and PP unit root tests. Since there was a unit root problem in the level values of the variables, the first differences of the variables were examined. With ADF test, it was found that the most suitable model was up-to-date and stable. According to the results of Granger causality test, a one-way relationship was found from export to import and from exchange rate to import. No causality relationship was found between the other variables.
Contents
Two vital reference elements in the evolution of the current model of European integration – The Maastricht Treaty and the implementation of the single currency – Euro
Development in Romania during the post-crisis period: A human, economic and social perspective
Multifactorial analysis of the price formation in the terms of a risk-free rate
Financial contracts with several types of agents
Evaluation of the methodological relationship between real business cycle model and macroprudential policy
Efficiency of commercial banks in India after global financial crises
Effectiveness of monetary policy and interest rate pass-through in India since financial sector reforms
FDI and ODA effects on recipient countries imports: Evidence from selected MENA countries
Estimating the relationship between governance, economic growth, inequality and poverty
Environmental Kuznets curve and India: Evidence from autoregressive distributed lag model
Rural urban migration with heterogeneous firms, heterogonous laborer and the effect of wage subsidy
The relationship between exchange rates, foreign trade and economic growth: An application on Turkey