Reflections of economic globalization through currency and trade wars: A Review on the Turkey economy

Globalization refers to world economies becoming more interdependent with increasing financial, commercial, and cultural ties. While this process, on the one hand, encourages economic growth through capital flows, free trade agreements and international investments between countries, on the other hand, it makes country economies more open to fluctuations in global markets. In addition to increased cooperation and competition between countries due to the disappearance of economic borders with globalization, this situation has also triggered exchange rates and trade wars. In the first part of this study, the concept of globalization and its historical development are explained, and the economic globalization process is mentioned by touching on the dimensions of globalization. In the second part, the processes, causes and consequences of exchange rate and trade wars are discussed. Particular emphasis was placed on the trade wars between the USA and China and their economic repercussions. Explanations were made from the perspective of interaction with exchange rate systems. In the third part, the reflections on exchange rates and trade wars in Türkiye are detailed. In order to explain the economic impact of currency wars on Turkey, the effects of exchange rate, gross domestic product and corporate tax rate variables on export volume were analyzed with data between 2005 and 2023. In this context, regression analysis and Granger causality test were applied using gross domestic product, corporate tax rate, average dollar exchange rate and export data. Empirical findings have proven that exchange rate and corporate tax rate data affect exports significantly, but gross domestic product growth data do not significantly affect export volume.