Macroeconomic factors affecting foreign trade: The case of Turkey

When we hear the word "foreign trade," the economic and political benefits it provides to a country's economy are indisputable, even inconceivable. It's clear that countries with developed, open-to-development foreign trade have a say in their economies, shape their own destinies, and excel in these areas. However, it's important to remember that when foreign trade isn't given the necessary importance, it can lead to economic problems that can persist for years. This study for Turkey demonstrates the importance of foreign trade and the macroeconomic factors affecting it. Data from 1991 to 2024 were used. Econometric analyses were conducted. These analyses included ADF and PP tests that do not allow for breaks, Zivot-Andrews unit root tests that allow for single breaks, Gregory and Hansen cointegration tests, and Hacker-Hatemi causality analyses to determine the relationship between variables. The analysis revealed a bidirectional causal relationship between foreign trade and unemployment, and between foreign trade and foreign direct investment. No causal relationship was found between foreign trade and inflation, or between foreign trade and GDP