The relationship between real exchange rate and export

One of the most important ways for countries to increase their level of development and maintain their foreign trade balance is to apply export-increasing policies. In addition to the production capacity, technological infrastructure and efficiency factors of the countries, the most effective method in reaching the desired levels of exports is to implement an exchange rate policy suitable for the country's economy. The fluctuations in real exchange rate affect exports and therefore foreign trade balance is affected by these fluctuations. Based on the depreciation of the currency, this study examines whether there is a relationship between the real exchange rate and exports within the framework of Marshall-Lerner Condition and J-Curve Hypothesis approaches. Within the framework of this theoretical basis it is aimed to reveal the effect of exchange rate adjustments on exports. In the study, effect of exchange rate adjustments on the export variable is examined on a sectoral basis. The relationship between exports of agriculture, mining, industry, defense and aviation, automotive and steel sectors and real exchange rate has been analyzed by Fourier cointegration testing using Turkey's monthly data from 2011:01-2021:03. According to the findings, in the test applied for the fixed model, the existence of a relationship depending on the Fourier function between the real exchange rate and exports in Turkey could not be determined; however for the fixed term and trend model, it has been determined that there is a long-run cointegration relationship between the real exchange rate and steel industry.