Exchange rate volatility and exports: a firm-level analysis

Solakoğlu, M. Nihat; Solakoglu, Ebru Güven; Demirağ, Tunç

doi:10.1080/00036840600749888

Cited by 29 publications

(19 citation statements)

References 21 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Two recent studies have suggested that the negative trade effect of exchange rate variability is 'by no means a robust, universal finding' (Clark et al, 2004, p.6; see also Solakoglu, 2005). This MRA is able more conclusively to establish that the trade effects of exchange rate variability are highly conditional.…”

Section: Resultsmentioning

confidence: 52%

The effects of exchange rate variability on international trade: a meta-regression analysis

Ćorić

Pugh

2010

Applied Economics

View full text Add to dashboard Cite

Section: Resultsmentioning

confidence: 52%

The effects of exchange rate variability on international trade: a meta-regression analysis

Ćorić

Pugh

2010

Applied Economics

View full text Add to dashboard Cite

“…Ozturk and Avaraci (2002) find a negative relationship between the exchange rate volatility and real exports of Turkey for 1989-2002 period. By using annual data at the firm level over 2001, Solakoglu et al, (2008 argue that there is no significant relationship between the exchange rate volatility and real exports of Turkey. Erdal et al, (2012) analyze the relationship between the exchange rate volatility and agricultural imports/exports of Turkey using the data from 1995 to 2007 period.…”

Section: Literature Reviewmentioning

confidence: 99%

The effect of real exchange rates and their volatilities on the selected agricultural commodity exports: A case study on Turkey, 1971-2010

Yanıkkaya¹,

Kaya²,

Koçtürk³

2013

Agric. Econ. - Czech

View full text Add to dashboard Cite

235After the collapse of the Brettonwood system in 1973, most of the countries have abandoned to use solely the fixed exchange rate regime, and different countries have adapted different exchange rate regimes. Then, the impact of both the exchange rate level and the exchange rate volatility or variability especially on exports, the bilateral trade flows and the volumes of trade have been empirically and theoretically discussed.A large number of studies examine both the effect of the exchange rate and its volatility on agricultural trade. However, no consensus was reached yet on the relationship between the exchange rate and agricultural trade. As discussed in the literature, it is important to use disaggregated data and/or data on the individual commodities to get more meaningful results on the size and magnitude of the effects of the real exchange rates on agricultural commodities trade. (Awokuse and Yuan 2006;Byrne et al. 2008;Bahmani-Oskooee and Hegerty 2009;Karemera et al. 2011). Byrne et al. (2008) discuss the possibility of finding a negative effect of the exchange rate volatility on trade by pooling the data of all industries together, and claim that the disaggregation of the data such as firm, industry or commodity level could provide more appropriate and meaningful results. Considering the individual sectors and/or commodities is vitally important to understand the exact nature of the relation and to further tailor effective policy measures based on these fine results. Thus, we investigate the relationship between the real exchange rates and several of the most important Turkish agricultural commodities. They represent almost a quarter of the overall Turkish agricultural exports. LITERATURE REVIEWA number of studies ( Hooper and Kohlhagen 1978;Arize et al. 2008;Kafle and Kennedy 2012) argue that the exchange rate volatility can have a negative effect on the international trade flows, either directly through the uncertainty and adjustment costs or indirectly through its effect on the allocation of resources and government policies. The volatile nature of exchange rates has always led risk-averse traders to reduce their trading activities ultimately reducing the international trade flows. However, Arize et al. Abstract: Th is study investigates the eff ect of the exchange rate volatility and the real exchange rate on the bilateral agricultural exports fl ows of Turkey to 46 countries. A panel data set, which contains 46 cross-sections and 1840 observations, is used for exports of the selected agricultural commodities to countries from 1971 to 2010. Our empirical results based on a gravity equation show that while the exchange rate volatility does not exert a signifi cant eff ect on the Turkish agricultural commodity exports, the real exchange rate has a statistically signifi cant eff ect on the agricultural commodity export fl ows. Regardless of the region chosen, raisins and tobacco exports are very much sensitive to the real exchange rates. It means that any depreciation in the Turkish Lira leads to hig...

show abstract

“…Gul and Ekinci (2006) argue that there isn't any causality from real exchange rate to neither import nor export of Turkey, but a unidirectional causality from export and import to the exchange rate. While Ozturk and Acaravci (2002) find a negative relationship between the exchange rate volatility and the real export flows of Turkey, Solakoglu et al (2008) claim that the exchange rate volatility has no significant effect on the real exports of Turkey. Erdem et al (2010) argue that agricultural trade is more related to exchange rate volatility than to the level of exchange rate and more importantly they emphasize that the effects of exchange rate and its volatility can be different for different agricultural commodities.…”

Section: Iiii Agricultural Subsidies/distortions and Agricultural Tmentioning

confidence: 99%

Impacts of Agricultural Supports on Exports of Individual Agricultural Products in Turkey

Yanıkkaya¹,

Koral²

2015

International Review of Economics and Management

View full text Add to dashboard Cite

Our paper empirically investigates the effects of agricultural supports on the exports of eighteen Turkish agricultural commodities to 72 countries over the 1965 -2010 period. As we use PSE (Producer Support Estimate) and NRA (Nominal Rate of Assistance) as indicators of agricultural supports, our study considers not only agricultural subsidies but also all the efforts of government to support agriculture through both domestic and border measures. Our estimation results show that agricultural supports along with border measures have mixed effects on the export of Turkish agricultural commodities, and agricultural supports are as important as exchange rates in the determination of the export patterns of Turkish agricultural commodities. We also investigate the effects of real exchange rate and its volatility on the exports of Turkish agricultural commodities. Although they are generally positive, our estimated coefficients on real exchange rates in the analysis exhibit mixed results.

show abstract

Exchange rate volatility and exports: a firm-level analysis

Cited by 29 publications

References 21 publications

The effects of exchange rate variability on international trade: a meta-regression analysis

The effects of exchange rate variability on international trade: a meta-regression analysis

The effect of real exchange rates and their volatilities on the selected agricultural commodity exports: A case study on Turkey, 1971-2010

Impacts of Agricultural Supports on Exports of Individual Agricultural Products in Turkey

Contact Info

Product

Resources

About