The Impact of exchange rate systems and policies on export in Turkey (1980-2004)

Master ThesisThe Impact of Exchange Rate Systems andPolicies on Export in Turkey (1980-2004)Serdar ÇİÇEKDokuz Eylul UniversityInstitute Of Social SciencesDepartment of EconomicsExchange rate is an important tool that links the economy of a particularcountry to the world. It affects the overall state of economy in many respects.However, its impact is most visible on foreign trade. When exchange rate iswielded for the purpose of influencing the trade, and especially the export, sucha policy needs to be carefully evaluated, as those policies influence other macro-economic variables as well.The impact of exchange rate systems and policies on foreign trade andexport is determined by the overall state of the economy of the country, and theinternational relations in the sense that global economy is affected by advancedtechnology. Exchange rate policy that has been used as a means for promotingexport has over the time become more effective as a result of theinterdependence among nations due to the rapid improvements in informationtechnologies.Many econometric studies on this particular subject have showed thatthe impact of exchange rates on export is either indefinite or ineffective. Whenonly the exchange rate policy is used as a means for promoting the export, theexpected outcome cannot be obtained. In addition to such a policy, the otherpolicies which encouraging exporting means should be used in concurrence.Moreover, stability in macro economic terms has to be prevalent in the markets,and those markets have to be functionalized. When all those policies areviexercised for the purpose of promoting export and the requirements supportingthem are met an effective outcome would be reached.Keywords: 1) Exchange Rate 2) Exchange Rate Systems3) Exchange Rate Policies 4) Export 5) Turkeyvii