Exports, real exchange rates and dollarization: empirical evidence from Turkish manufacturing firms

Karamollaoğlu, Nazlı; Yalçın, Cihan

doi:10.1007/s00181-019-01733-1

Cited by 8 publications

(3 citation statements)

References 28 publications

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“…Additionally, in studies conducted with large datasets on a firm basis, it has been determined that the depreciation of Turkey's local currency has a positive impact on the competitive power and market shares of exporting companies (e.g. Karamollaoğlu and Yalçin, 2020).…”

Section: Exchange Rate and Tradementioning

confidence: 99%

Impact of Liner Shipping Connectivity on Container Traffic in Turkish Ports

2022

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Demand for the transport sector is a derived demand; however, the transport sector is not only affected by the demand for the goods transported, but can also influence demand for itself by providing more transport facilities, which can affect trade by generating more options for foreign trade stakeholders. Accordingly, we have examined the effect of the Liner Shipping Connectivity Index (LSCI) variable, which is an indicator of countries' liner transportation connectivity, on Turkey's export and import container traffic, by using regression analysis. We have enriched our model by adding the real exchange rate variable, which is the most important factor affecting foreign trade. Our results show that a 1% increase in the country's LSCI increases export and import container traffic by approximately 1%. This result shows that not only exchange rate and production policies, but also transportation policies, are critical in improving foreign trade of the country. The development of transportation facilities can both reduce transport costs and shorten the delivery time, thereby supporting Turkey's policies to become a production centre.

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Section: Exchange Rate and Tradementioning

confidence: 99%

Impact of Liner Shipping Connectivity on Container Traffic in Turkish Ports

2022

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“…In addition to the fundamental restructuring, favourable global conditions have helped Turkey to access international capital, which resulted in the rapid growth of the financial markets and increased liquidity. Although the large amount of foreign capital inflow helped Turkey to finance its chronic current account deficit, it also caused the Turkish financial markets to become more vulnerable to external conditions (Toraganli & Yalcin, 2016) and increased the volatility. Notably, in 1994Notably, in , 2000Notably, in , 2001Notably, in , and 2008, the Turkish stock and exchange markets experienced extremely severe shocks.…”

Section: Introductionmentioning

confidence: 99%

Co‐movement of foreign exchange rate returns and stock market returns in an emerging market: Evidence from the wavelet coherence approach

Gökmenoğlu

Kırıkkaleli

et al. 2021

Int. J Fin Econ

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This study aims to investigate the causal relationship between the Turkish stock market returns, namely XU100, and foreign exchange rates, namely USD/TRY and EUR/TRY, in Turkey using the wavelet coherence approach. In this study, we focus on the period from April 2000 to March 2019. Our findings reveal the following: (i) While we identify substantial volatility in the exchange rate during the 2000 November (banking crisis), 2001 February (economic cri-

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“…) [57] Vietnam X (Bannister et al 2018) [9] Emerging Markets X X (Caglayan and Talavera 2016) [8] Turkey X X (Beckerman and Solimano 2002) [58] Ecuador X (Çalışkan and Karimova 2017) [59] Turkey X (IŞIK 2019) [1] Turkey X (Karamollao glu and Yalçin 2019) [60] Turkey X (Kubo 2017) [61] ASEAN X (Licandro and Mello 2016) [62] Latin America X X (Marcelin and Mathur 2016) [62] Turkey + 19 Countries X (Marcelin and Ike 2018) [63] Emerging Economies X (Metin-Özcan 2017) [64] Turkey X (Nidhiprabha 2017) [65] CLMV Countries X X (Odajima 2017) [66] ASEAN X (Okuda 2017) [67] Cambodia X (Ozsoz and Rengifo 2016) [68] Emerging Markets X (Tasseven 2017) [69] Turkey X (Urosevic and Rajkovic 2016) [70] CESE Countries X (Ybrayev 2018) [10] ASEAN X X…”

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confidence: 99%

Determinants of Dollarization of Savings in the Turkish Economy

et al. 2020

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This study aims to analyze the nature of the dollarization that takes place in the Turkish economy and to decompose the factors that have contributed to its increase in recent years. With this purpose, we first identify the events that have significantly affected the dollarization trend in Turkey using the Iterative Cumulative Sum of Squares (ICSS) and Markov Switching Dynamic Regression (MS-Dynamic) structural break models. Then, we proceed to analyze the relationship between the percentage of Forex deposits of the residents over total deposits of the residents and the TRY/USD exchange rate using the Johansen cointegration test. USD, EUR, and TRY interest rates are also added to the model as independent variables to account for the effects of the difference between exchange rates. Long-term and short-term effects are tested with the Vector Error Correction Model, and causality is tested using the Granger causality test. The results of the study indicate that speculative trading is not the cause of the dollarization of deposits in Turkey. Additionally, results suggest that the political events have a stronger influence over dollarization compared to economic events. Collectively, our findings suggest that domestic citizens dollarize their deposits with the motivation to protect against political ambiguity rather than economic volatility. The results of the study are in line with the literature in the sense that they support the claim that dollarization can be averted in the short run with an increase in interest rates.

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Exports, real exchange rates and dollarization: empirical evidence from Turkish manufacturing firms

Cited by 8 publications

References 28 publications

Impact of Liner Shipping Connectivity on Container Traffic in Turkish Ports

Impact of Liner Shipping Connectivity on Container Traffic in Turkish Ports

Co‐movement of foreign exchange rate returns and stock market returns in an emerging market: Evidence from the wavelet coherence approach

Determinants of Dollarization of Savings in the Turkish Economy

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