Analysis of Exchange Rate-Foreign Trade Relationship with Asymmetric Causality Tests: Sample of Gaziantep

Abstract

Aim of this study is that testing the existence of exchange rate-foreign trade relationship. Also, it aims to analyze direction of the relationship via different economic tests by using two models which include monthly data of 2002:01-2016:02 periods. According to Hatemi-J co-integration and asymmetric causality test findings, it is accepted that there is causality and long termed relationship with structural break between exchange rate and importation. Also, with the aim of determining the existence of causality relationship, advanced time varying asymmetric causality test is used. Periodical relations are found.

Authors and Affiliations

İbrahim ÇÜTCÜ, Mehmet Vahit EREN

Keywords

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  • EP ID EP619824
  • DOI 10.6007/IJARBSS/v7-i10/3368
  • Views 95
  • Downloads 0

How To Cite

İbrahim ÇÜTCÜ, Mehmet Vahit EREN (2017). Analysis of Exchange Rate-Foreign Trade Relationship with Asymmetric Causality Tests: Sample of Gaziantep. International Journal of Academic Research in Business and Social Sciences, 7(10), 157-171. https://europub.co.uk/articles/-A-619824