The relationship of domestic sales and export: An application businesses included in the BIST industrial index (2010-2020)

In today's global competitive environment, where international trade is shaped by technological developments, international trade theories have also varied in line with technological developments, and new approaches have been adopted in explaining international trade. The development of technology has enabled the globalization of manufacturing and economic relations. Globalization's penetration of the entire production, supply chain, foreign trade and economic relations cause a problem in manufacturing or the supply chain to become a bigger problem in foreign trade and economic relations. In this regard, the occurrence of the Covid-19 outbreak has resulted in reduced production worldwide, disrupted supply chain networks and adversely impacted foreign trade. Therefore, countries have had to develop new strategies to achieve competitiveness, and exports have increased in importance. In this study, the relationship between domestic sales and exports of the manufacturing industry, which is of strategic importance to Turkish exports, was examined for the years of 2010-2020. The data set of the study is made up of BIST-traded manufacturing firms with an active size of over 100 Million TL's as of 2010. The study used panel data analysis and applied identifying tests, homogeneity testing, horizontal cross-section dependence tests, unit root testing, co-integration tests in this context. The model's long-term regression coefficients were then examined and the Panel Corrected Standard Errors forecaster (PCSEs) was used for model prediction. Finally, panel causality tests were applied to examine the causation relationship between variables used in models According to empirical results, 68 industrial enterprises included in the BIST Industrial Index as of the period under review have concluded that there is a co-integration relationship between their domestic sales and exports. It has been established that there is a complementary relationship between these two variables in the economic sense included in the corresponding literature. Furthermore, according to the empirical analysis results, these manufacturing enterprises in the BIST Industrial Index found that the 1% increase in domestic sales of enterprises increased their exports by 0.77%, while the 1% increase in exports increased domestic sales by 0.17%.