The Relationship between Nominal Exchange Rate and Sectoral Output: An Emprical Analysis

Ahmet Ay, Şerife Özşahin, Mustafa Gerçeker
2014 International Conference on Eurasian Economies 2014   unpublished
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
more » ... 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.
doi:10.36880/c05.00901 fatcat:our32whxa5fmdn6r2ha6lhbikq