THE RELATIONSHIP BETWEEN EXCHANGE RATE, EXPORT AND VACANCY: LEBANON CASE

Abstract

Globally differentiation of growth between countries, being in close economic relationships between countries today, and the differences in terms of development depend on some conditions. Some economies are seen as financial centres, some are seen as technology centres, and some are seen as having over production with low-cost production factors. It can be said that factors, which have certainly become important today, such as innovation policies, monetary policies, labour productivity and wealth of factor of production, differentiate the development between countries, within this direction, all economic activities can affect each other. In this study, firstly the effects of exchange rate on export and unemployment were addressed in terms of theoretical and political aspects. In the later chapters, the validity of these effects in terms of Lebanon was tested with Toda-Yamamoto causality analysis. As a result of the causality test, a bidirectional relationship between real effective exchange rate and export, a bidirectional relationship between the rate of unemployment and export were ascertained.