THE RELATIONSHIP BETWEEN EXCHANGE RATE, PRICE AND SIZE OF FOREIGN TRADE: AN ARDL BOUNDS TEST APPROACH


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Authors

  • Mehmet AYDINER Dr. Öğr. Üyesi, A.Adnan Menderes Üniversitesi, AİF, İktisat Bölümü, maydiner@adu.edu.tr, ORCID: 0000-0002-9385-5045

DOI:

https://doi.org/10.51293/socrates.94

Keywords:

Exchange Rate, Price, Volatility, Export, Import, ARDL

Abstract

The paper investigates effects of real exchange rate, price and exchange rate volatility on foreign trade size of Turkey. Data set spans from January 2009 to June 2021. Since our variables have different stationary levels, ARDL Bound Test was determined as the most appropriate econometric method for the study. Our results indicates that real exchange rate, price and exchange rate volatility have no effect on export size of Turkey at all, while only exchange rate from amongst variables has significant effect on import size of Turkey. One percent change in real exchange rate causes only 0.3 percent increase or decrease in size of imports.

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Published

2021-09-15

How to Cite

AYDINER, M. (2021). THE RELATIONSHIP BETWEEN EXCHANGE RATE, PRICE AND SIZE OF FOREIGN TRADE: AN ARDL BOUNDS TEST APPROACH. Socrates Journal of Interdisciplinary Social Studies, 11, 110–123. https://doi.org/10.51293/socrates.94

Issue

Vol. 11 (2021): Socrates Journal

Section

Articles

License

Copyright (c) 2021 Socrates Journal of Interdisciplinary Social Studies

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.