The impact of real exchange rate volatility on the export of Turkish electrical appliances
Argumenta Oeconomica, vol.30, no.1, pp.109-125, 2013 (SSCI, Scopus)
- Publication Type: Article / Article
- Volume: 30 Issue: 1
- Publication Date: 2013
- Journal Name: Argumenta Oeconomica
- Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
- Page Numbers: pp.109-125
- Eskisehir Osmangazi University Affiliated: No
Abstract
This paper examines the impact of real exchange rate volatility on the demand for electrical exports, which is the second largest sub-sector of machinery in Turkey, by employing multivariate cointegration and error correction methods. The model was estimated for two-digit electrical exports (SITC 77), using quarterly data for the period 1995-2010. Our estimation results suggest that real exchange rate exerts a negative and significant impact on electrical exports both in the long and short term, while its volatility has only a positive and significant impact in the long run. In addition, the results of the long-term export model indicate that foreign income also has a positive and significant impact on Turkish electrical exports.