Effects of the Exchange Rate on the Export Share of Sales in Borsa Istanbul Firms

2021 ◽  
pp. 405-423
Author(s):  
Serkan Ünal
Keyword(s):  
Exchange Rate ◽  
Current Account ◽  
Positive Relationship ◽  
Current Account Deficit ◽  
Trade Flow ◽  
Export Share ◽  
Export Shares ◽  
Research Findings ◽  
The Exchange Rate ◽  
The Current Account

For many years, the current account deficit problem is on the agenda of policymakers and academics in Turkey. With the exchange rate shock experienced in 2018, the importance of the current account deficit has become clearer. The relationship between exchange rates and trade flow is one of the issues frequently discussed in the literature. In this study, to contribute to the subject from a different perspective, the 12-year data of 230 companies traded on Borsa Istanbul from 2008 to 2019 were used and the share of these companies' exports in their total sales was analyzed. According to the research findings, there is a strong, statistically significant, and positive relationship between real Euro/USD exchange rate and export shares of Turkish firms. There is also a positive relationship between the real Euro rate and export share of automotive firms in Borsa İstanbul.

Chapter I. The Home Economy

1976 ◽  
Vol 77 ◽  
pp. 7-32
Keyword(s):  
Exchange Rate ◽  
Interest Rates ◽  
Current Account ◽  
Current Account Deficit ◽  
Private Investment ◽  
Public And Private ◽  
Current Output ◽  
The Exchange Rate ◽  
The Current Account

The recovery in UK output is now clearly under way, against the background of a world recovery more rapid than we previously anticipated. Inflation has come down from 25 per cent to just below 15 per cent (both on a year earlier and on a quarterly basis). The current account deficit, after a low first quarter, appears to have worsened somewhat and is running at an annual rate of over £2 billion per annum. Looking over the next eighteen months, we can see a continuation of the current output recovery but, because of the drop in the exchange rate, inflation on a year earlier seems unlikely to fall below 10 per cent, in spite of our assumption that the next wages policy is not formally broken. The current account deficit should start to fall from early 1977; this improvement could be sufficient, on the assumption that monetary growth is held down by higher interest rates, to stabilise the exchange rate in the second half of 1977, if at a somewhat lower level than today's. Private investment should recover quite sharply in 1977, but unemployment may fall only slowly from a peak in early 1977 of about 1.3 million. This highlights the fact that this projected recovery, largely based on exports and stockbuilding, occurs in manufacturing and not also, as in 1972–3, in public and private services, which are relatively labour-intensive.

The Effects of Macroprudential Policies on Financial Stability in Developing Countries

2019 ◽  
pp. 92-114
Author(s):  
Sümeyra Gazel
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Current Account ◽  
Financial Stability ◽  
Current Account Deficit ◽  
Common Factor ◽  
Policy Instruments ◽  
Credit Growth ◽  
Macroprudential Policies ◽  
The Current Account

In this chapter, the concept of financial instability is examined in terms of the policy instruments used by central banks. Although the policy instruments used in each country differ according to the country conditions, it is thought that the common factor among developing countries with a current account deficit problem is exchange rate volatility resulting from excessive credit growth and short-term capital movements. In this context, Argentina, Brazil, Chile, Colombia, Hungary, Indonesia, India, Mexico, Poland, South Africa, and Turkey are examined with regard to the effects of macroprudential policies on financial stability for the period between Q2 of 2006 and Q2 of 2017 by using the time-varying panel causality test developed by Dumitrescu and Hurlin. The results of the analysis indicate that excessive credit growth is a cause of the current account deficit. The same findings are also valid for interest rate. There is no obvious link between the exchange rate and the current account deficit.

The Impact of Current Account Deficit on Economic Growth: An ARDL Approach

2020 ◽  
Vol 21 (1) ◽  
pp. 76-92
Author(s):  
Tamma Reddy ◽  
T. Sita Ramaiah
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Current Account ◽  
Unit Root ◽  
Current Account Deficit ◽  
External Debt ◽  
Unit Root Test ◽  
Output Growth ◽  
The Impact ◽  
The Current Account

In this study, we examine the linkages between External debt, Exchange rate, Current account deficit, and GDP at Factor cost for India over the period of 1975-76 to 2018- 19 using the Unit root test and Autoregressive Distributed Lag (ARDL). The results of the unit root test reveal that GDP growth rate and External debt are integrated at the level I(0); while the Current Account deficit and Exchange rate are integrated at first order I(1). The results of the ARDL technique reveal that the current account deficit has a positive and significant impact on Real GDP. It clearly reflects the role of imports in accelerating the growth of a developing economy like India. There is also evidence that the external debt has a positive and significant impact on the Current account deficit while the Exchange rate does not have an impact on the Current account deficit. The authors opine that the external debt assists in a gradual reduction in the current account deficit and contributes to economic growth by narrowing down the saving-investment gap. As the demand for Indian exports is inelastic in the global market, the country has not benefitted from the depreciation of its currency. The authors stressed the need for focusing on further diversification of its export markets, creating a conducive environment for attracting longer-term FDIs, liberalization, promoting commercial services exports, and achieving exchange rate stability in the context of the USA-China trade war and stagnation in the world output growth. Huge untapped potential for IT-enabled services should be exploited to promote service trade. The authors point out the current account deficit in the range of 2-3 percent of GDP can be manageable.

scholarly journals Interlinkage Between Real Exchange Rate And Current Account Behaviors: Evidence From India

2015 ◽  
Vol 31 (4) ◽  
pp. 1199-1204
Author(s):  
Mohamed Arouri ◽  
Arif Billah Dar ◽  
Niyati Bhanja ◽  
Aviral Kumar Tiwari ◽  
Frederic Teulon
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Current Account ◽  
Current Account Deficit ◽  
Real Exchange Rates ◽  
Structural Var ◽  
Real Effective Exchange Rate ◽  
Effective Exchange ◽  
Positive Shock ◽  
The Current Account

The study analyzes the dynamic interlinkage between Indias real effective exchange rate and real current account deficit using standard VAR and structural VAR (SVAR). The empirical analysis suggests that a real currency appreciation leads to an improvement in the current account deficit, thereby highlighting the occurrence of permanent shocks such as technical innovations, productivity shocks, and changes in tastes and preferences. A positive shock to the current account deficit leads to an appreciation in the real exchange rate. Moreover, both current account and real exchange rates are found to be affected by the changes in these variables themselves rather than changes in the other variables in the system.

scholarly journals The banks, the current account, the financial and the outlook

2009 ◽  
Vol 5 (1) ◽  
Author(s):  
Geoff Bertram
Keyword(s):  
Exchange Rate ◽  
New Zealand ◽  
Current Account ◽  
Banking Sector ◽  
The Exchange Rate ◽  
The Current Account

Some years back I wrote two papers (Bertram, 2001, 2002) about the current account, the exchange rate and the banks. Here I pick up the threads of my earlier analysis as the backdrop to some remarks about the recent decision of the New Zealand government to provide a wholesale deposit guarantee to this country’s New Zealand-incorporated – but mainly Australian-owned – banking sector.

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