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.
Keywords: economic growth, foreign trade, exchange rate, unit root analysis, granger causality test.
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
Alin Ioan CREŢU
Alina Ștefania CHENIC
- Development in Romania during the post-crisis period:
A human, economic and social perspective
Maria-Daniela TUDORACHE
- Multifactorial analysis of the price formation in the terms
of a risk-free rate
Constantin ANGHELACHE
Mădălina-Gabriela ANGHEL
Iulian RADU
- Financial contracts with several types of agents
Laura CONSTANTIN
Ștefan Virgil IACOB
Dana Luiza GRIGORESCU
- Evaluation of the methodological relationship
between real business cycle model and macroprudential policy
Ayşegül Ladin SÜMER
- Efficiency of commercial banks in India
after global financial crises
K. RAVIRAJAN
K.R. SHANMUGAM
- Effectiveness of monetary policy and interest rate
pass-through in India since financial sector reforms
N. KUBENDRAN
- FDI and ODA effects on recipient countries imports:
Evidence from selected MENA countries
Mahmoud M. SABRA
- Estimating the relationship between governance,
economic growth, inequality and poverty
Mohammed TOUITOU
Ahmed BOUDEGHDEGH
- Environmental Kuznets curve and India:
Evidence from autoregressive distributed lag model
Jaganath BEHERA
- Rural urban migration with heterogeneous firms,
heterogonous laborer and the effect of wage subsidy
Sravaitri CHAUDHURI
Ranajoy BHATTACHARYYA
Sukanta BHATTACHARYA
- The relationship between exchange rates,
foreign trade and economic growth:
An application on Turkey
Çiğdem ALIM
Necati Alp ERILLI