The effects of labor productivity and FX rate on export: Turkey and chosen country analysis

In the history of international trade theories, beginning from the Mercantilist View it is shown that international trade is beneficiary not only for the exporter side, it is also efficient for importer side. It is also accepted that by international trade, the limited sources are used more efficiently.Specialization is highlighted in all theories, countries has specialized in some products will export them and import the rest that it is not specialized.Turkey implemented import substitute politics in 1970?s. Then after 24 January, as it is the trend in the world, Turkey implemented more liberal politics in international trade. ?The free international capital flow? acceptedat 1989, and this helped the internalization of Turkey. The Custom Union Agreement signed with the EU shaped the International Trade Policy of Turkey since now.The international trade statistics became more important after 1980 due to the liberalization policies. The increasing imports and insufficient exports are always an important issue for Turkey policy makers. International trade policies are one of the determinants of the economic system in Turkey.Especially for countries like Turkey that uses another currency for international trade has a big risk in terms of currency movements. So some of the countries in the world implement some trade restriction policies in order to avoid this risk. On the other hand some other countries try to find a policy that they will increase the exports and reach a more stabile economy.In our study, we tried to explore the relation of the exports of Turkey with the FX rate and the productivity using the data from 1992 ? 2009 in 6 months period. For comparison of the study with other countries, we also investigated the same relation for other countries.