The Impact of the Change in Exchange Rate on Economic Growth in Turkey

The Turkish economy has been affected by the recurring populist cycles and resultant economic crises, which have, in turn, unfavorably influenced the growth performance of Turkey. Inspired by the Turkish experience, this study attempts to investigate the change in exchange rate on the growth performance of the Turkish economy by using the production function framework. The data is sourced from the World Development Indicators and Penn World Table. Modern time series techniques are utilized to estimate the production function. Our findings reveal that there is a long-term but unfavorable relationship between the change in the exchange rate and economic growth in Turkey over the 1980-2019 period.