Factors affecting firm-based exports in Turkish manufacturing industry

In the Tenth and Eleventh Five-Year Development Plans, the Turkish economy aimed to increase its international competitiveness and its share in world exports, aiming to reduce high value added production, development of new technologies, and imports of investment and intermediate goods in the manufacturing industry. This importance given by the Turkish economy to the manufacturing industry constitutes the main motivation of the study. In this study, the factors affecting the exports of firms in the Turkish manufacturing industry are discussed in two models. In the study, data from 21 sectors covering the years 2006-2019 are used according to ISIC Rev.4 Level 2 classification. The dependent variable is the average export data of sectoral, sectoral index real effective exchange rate, sectoral export-weighted GDP, industrial production index, the index of output per employee hour, your gross wage wage index and industrial production index data is located in the model as independent variables. Fixed effects Driscoll-Kraay estimator is used, which produces standard errors resistant to the problems of varying variance, autocorrelation, and cross-section dependence. As a result of the analysis, in both models, the variables of the sectoral real effective exchange rate index, sectoral export weighted GDP, industrial production index, production index per employee hour and gross wage salary index affect firm exports positively and significantly. However, a definite result could not be obtained between the employment variable and the export of the firm. Among the independent variables, the increase in foreign income provides the highest effect on firm exports. Except for the sectoral export-weighted GDP, the coefficients in other variables were observed to be quite small.