Devaluation and its Effects on Turkish Trade Regime

  • Ergin AKALPLER


In this study devaluation and its effects on the Turkish trade regime between 1985 and 2014 is considered.
Theoretical and practical experiences show that inflation and lower exchange rates can be used as an important
instrument for increasing export capacity.
In general, enlargement of export and devaluation of currency has significant positive impact on growth
and development if domestic inputs are used in the production operation process. However, in Turkey
devaluation is considered as an instrument for enlargement of export and development. Although in this regime,
foreign inputs are used intensively for producing exportable goods, which is negatively affecting and reducing the
impact of devaluation on the Turkish trade regime.
After applying the Ordinary Least Square and Unit Root of which Augmented Dickey Fuller tests for the
long period of time effects on selected variables, relationship between the inflation and export had no significant
positive impact on trade capacity development. Similarly, when we consider the inflation rates for unit root test, its
critical values for ADF test is becoming higher, which means devaluation of Turkish lira had a very small
contribution on exportable goods as R squared values in OLS tests show 0.177 which is very low and inflation
effects on growth rate is not significant.
How to Cite
AKALPLER, Ergin . Devaluation and its Effects on Turkish Trade Regime. Journal of Advanced Research in Law and Economics, [S.l.], v. 7, n. 2, p. 176-192, may 2016. ISSN 2068-696X. Available at: <>. Date accessed: 14 apr. 2024.
Journal of Advanced Research in Law and Economics