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Business and Economics Journal

ISSN: 2151-6219

Open Access

The Impact of Competitive Devaluation on the Foreign Trade of Turkey

Abstract

Parisa Fathi, Mustafa Ersungur S

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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