Abstract:

Since 1973, when the fixed exchange rate system applications were abandoned, significant exchange rate fluctuations have been observed. This situation has caused that the relationship between exchange rate volatility and trade is a frequently investigated subject in theoretical and empirical studies. However, there is no consensus on the existence of the relationship between foreign trade and exchange rate volatility in the studies in the literature. This study investigates the effects of real effective exchange rate volatility on Turkey's import volume. Panel data analysis results which was carried out using 22 manufacturing sub-sector data shows that exchange rate volatility does not have a statistically significant effect on the volume of imports in the period of 2005:Q1-2012:Q2

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