Author/Authors :
DİREKÇİ, Tuba Gaziantep Üniversitesi - İ İ B F - İktisat Bölümü, Turkey , ÖZÇİÇEK, Ömer Gaziantep Üniversitesi - İİBF - İktisat Bölümü, Turkey
Title Of Article :
The Effect Of Real Exchange Rate On Economic Activities in Turkey
Abstract :
The effect of the real exchange rate on economic growth in developing countries is an important discussion subject. According to the orthodox view a devaluation in local currency increases exports which stimulates economic growth. One pillar of the economic programs advised by the World Bank and IMF to developing countries is to devaluate. However, not all economists agree that devaluations have a positive effect. In this study, we investigate how the effects of real exchange rate changes are projected on the Turkish economy by focusing on the GDP and its subcomponents. As a result it is found that a real appreciation increases GDP, private machinery and equipment investment, and inventory, but decreases private building construction, and there is no effect on other components including consumption.
NaturalLanguageKeyword :
Exchange rate , economic effect , production , consumption , investment
JournalTitle :
Gaziantep University Journal Of Social Sciences
