The Effects of Gasoline Price, Real Exchange Rate and Food Price on Vegetable and Fruit Export

Abstract

This research investigates the impact of gasoline prices, actual exchange rate fluctuations, and food prices on exporting vegetables and fruits from Turkey. Applying the Nonlinear ARDL (NARDL) approach, an attempt was made to find the determinants of vegetable and fruit exports during the period spanning from 2003:1 to 2019:12, under the assumption that the movements of gasoline, actual exchange rates, and food prices are nonlinear. The study aimed to identify the asymmetric impacts of gasoline, real exchange rate, and food prices on the exports of vegetables and fruits. The NARDL model's results indicate that long-term fluctuations in gasoline prices impact the export of fruits and vegetables of varying sizes. Conversely, it has been noted that vegetable exports are subject to linear impacts in the long term regarding the real exchange rate. In contrast, fruit exports have been discovered to be subject to asymmetric effects. The current publication indicates that fluctuations in food prices have varying impacts on the worldwide exports of vegetables.