alexa The Impact of Competitive Devaluation on the Foreign Trade of Turkey
ISSN: 2151-6219

Business and Economics Journal
Open Access

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Research Article

The Impact of Competitive Devaluation on the Foreign Trade of Turkey

Parisa Fathi* and Mustafa Ersungur S

Internatıonal Economy, IIBF Economics Department Ataturk University, Erzurum, Turkey

*Corresponding Author:
Parisa Fathi
Internatıonal Economy
IIBF Economics Department Ataturk University
Erzurum, Turkey
Tel: 904422311111
E-mail: [email protected]

Received date: October 20, 2016; Accepted date: November 09, 2016; Published date: November 19, 2016

Citation: Fathi P, Mustafa Ersungur S (2016) The Impact of Competitive Devaluation on the Foreign Trade of Turkey. Bus Eco J 7:270. doi: 10.4172/2151- 6219.1000270

Copyright: © 2016 Fathi P, et al. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

 

Abstract

Exchange rate system, although it is an important factor in determining the real value of the currency of a country, economy, inflation, devaluation, interest rates vs. foreign trade, such as the affect in many ways. In the study, competitive devaluations and trade relationship is investigating in Turkey. The relationship between foreign trade and competitive devaluations, cumulative method ARDL approach to study is to investigate where there is a long-term relationship between the variables and factors related to long-term model and error correction is estimated between 1965-2014 periods for TB. The results indicate that positive and significant correlation between TB and RER and also between TB and GDP there is, and significant and negative correlation between TB and P, as well as between TB and G there is. Long-term variable coefficient equals 0.80.

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