KIZILDERE, Celal Yüzüncü Yıl Üniversitesi - Erciş MYO, Turkey , KABADAYI, Burhan Erzincan Üniversitesi - İİBF İktisat Bölümü, Turkey , EMSEN, Ömer Selçuk Atatürk Üniversitesi - İİBF İktisat Bölümü, Turkey

THE SENSITIVITY OF FOREIGN TRADE TO EXCHANGE RATES: THE CASE STUDY OF SELECTED EMERGING COUNTRIES

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The aim of this study is to identify factors that affect the foreign trade of Developing Countries (DC) and especially to set forth the sensitivity of foreign trade to exchange rate changes. In this study, it is examined the effects of exchange rate changes on exports and imports of 18 emerging economies including Turkey separately. The effects of exchange rate changes on emerging countries’ external trade were analyzed by using alternative econometric models. The time sample of the analysis cover the years between 1994 and 2010 and the panel data analysis were applied. Depending on stationary and co-integrating properties of the variables, error correction models were used to check short run relationships. Thus, coefficients’ signs of the variables used in models were found theoretically expected.

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Foreign trade , Exchange rates , Panel Data Analysis

Journal Of Economics and Administrative Sciences, Ataturk University

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