International Conference on Eurasian Economies
1-3 July 2014 – Skopje, MACEDONIA
Paper detail
Paper ID : 901
Status : Paper published
Language : English
Topic : Sectoral Analyses
Presenter: Prof. Dr. Ahmet Ay
Session : 5A Macroeconomics
The Relationship between Nominal Exchange Rate and Sectoral Output: An Emprical Analysis
The Relationship between Nominal Exchange Rate and Sectoral Output: An Emprical Analysis
- Prof. Dr. Ahmet Ay (Selçuk University, Türkiye)
- Asst. Prof. Dr. Şerife Özşahin (Necmettin Erbakan University, Türkiye)
- Asst. Prof. Dr. Mustafa Gerçeker (Selçuk University, Türkiye)
Abstract
In this study, it is investigated the existence of the long term relationship between nominal exchange rate and sectoral output for seven different sectors in Turkey by using control variables including money supply, total public expenditure, oil price and unemployment rate. For this purpose, possible relations are tried to be determined by using bound test and ARDL method for the period 1998 Q1-2011 Q3 with quarterly data. As a result of the bound test, it is achieved that there is a long term relationship in all sectors excluding construction. Based on this finding, it is estimated the long term coefficients and equations for the six sectors. These long term coefficients indicate that the rise in the TL/dollar nominal exchange rate affects sectoral output negatively in all sectors excluding finance because of the cost effects of imported input usage.
JEL codes: B22, C01
Ay, Ahmet, Özşahin, Şerife, Gerçeker, Mustafa (2014). "The Relationship between Nominal Exchange Rate and Sectoral Output: An Emprical Analysis" in Proceedings of International Conference of Eurasian Economies 2014, pp.138-147, Skopje, MACEDONIA.
DOI: https://doi.org/10.36880/C05.00901
