Article 2025 · 0 citations

Asymmetric Effect of Real Exchange Rates on Import Expenditures

Abstract

Research Originality: This study contributes to the literature by investigating the asymmetric effect of the real exchange rate on real import expenditures in Turkey. Research Objectives: This study aims to investigate the short- and long-run symmetric/asymmetric effects of the exchange rate on import expenditures in the Turkish economy. Research Methods: The study utilized both a linear Distributed Lag Autoregressive (ARDL) bounds testing approach and a nonlinear ARDL (NARDL) model, using a dataset from 1980 to 2022. Empirical Result: The findings indicate that the real exchange rate has asymmetric effects on real import expenditures in the short run. The error correction model results reveal that short-run shocks among variables will lose their impact in the long run, and the co-movement of variables will correct itself in approximately 3 and 1.5 years. Implications: These results shed light on policymakers shaping Turkey's import regime. In addition, adopting policies that provide macroeconomic balance based on real exchange rates is considered a crucial factor in reducing external dependency

Keywords

import expenditure exchange rate asymmetric effect nonlinear ARDL INTERNATIONAL-TRADE BALANCE

WoS Categories

Economics

Sustainable Development Goals

Partnerships for the Goals Decent Work and Economic Growth

Citation

Journal: ETIKONOMI
Year: 2025
Volume: 24
Issue: 1
Pages: 135-154
ISSN: 1412-8969
eISSN: 2461-0771
DOI: 10.15408/etk.v24i1.38967
WoS UID: WOS:001447656900009

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