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DOES OVERVALUED TURKISH LIRA AFFECT TURKEY’S FOREIGN TRADE COMPETITIVENESS?

Year 2012, Volume: 4 Issue: 2, 159 - 168, 01.12.2012

Eren Erdogan Osman Nuri Aras Mustafa Ozturk

Abstract

Turkey's export growth has been increasing since 1980 and reached its peak in 2011 despite declines in different periods. The 2008 economic crisis that overvalued the exchange rates was a big obstacle to overcome for the Turkish exporters, and this diminishes their returns and thus lessened Turkey’s global strategic competitiveness. This study examines Turkey’s competition power against the BRIC countries seen as strong competitors to Turkey based on exchange rates and purchasing power parity. This study which is about purchasing power parity and exchange rates shows that real exchange rates affect trade volumes and Turkey’s RER has appreciated especially after 2010 and it lessened the competitiveness of Turkish companies

Keywords

International Competitiveness Exchange Rates Competitiveness Indicators

References

  • Cockburn John, Eckhard Siggel, Massaoly Coulibaly and Sylvian Vézina (1998), Measuring Competitiveness and Its Sources: The Case of Mali’s Manufacturing Sector, African Economic Paper; Discussion Paper:16. Washington D.C: United States Agency for International Development Bureau.
  • Michael Eugene Porter (1998), The Competitive Advantage of Nations, New York: The Free Press, pp.73-84.
  • Rainer Feurer ve Kazem Chaharbaghi (1994), “Defining Competitiveness: A Holistic Approach”, Management Decision, Vol.32, No.2, pp.49-58.
  • James R. Markusen, Productivity, Competitiveness, Trade Performance and Real Income: The Nexus Amonf Four Concepts in Coşkun Can Aktan ve İstiklal Y. Vural (2004), Rekabet Dizisi: 2 Rekabet Gücü ve Rekabet Stratejileri, Ankara: Türkiye İş Veren Sendikaları Konfederasyonu.
  • Coşkun Can Aktan ve İstiklal Y. Vural (2004), Rekabet Dizisi: 2 Rekabet Gücü ve Rekabet Stratejileri, Ankara: Türkiye İş Veren Sendikaları Konfederasyonu.
  • Bela Balassa (1965), “Trade Liberalization and ʻRevealedʼ Comparative Advantage”, The Manchester School, Vol.33, pp.99-123.
  • Thomas L. Vollrath (1991), “A Theoretical Evaluation of Alternative Trade Intensity Measures of Revealed Comparative Advantage”, Review of World Economics, Vol.127, No.2, pp.265-280.
  • Jan Fagerberg, Martin Srholec and Mark Knell (2007), “The Competitiveness of Nations: Why Some Countries Prosper While Others Fall Behind?”, World Development, Vol.35(10), pp.1595-1620.
  • Eckhard Siggel (2006), “International Competitiveness and Comparative Advantage: A Survey and a Proposal for Measurement”, Journal of Industry, Competition and Trade, Vo l. 6, No.2, pp.137-159.
  • John Clark and Ken Guy (1998), “Innovation and Competitiveness: A Review”, Technology Analysis and Strategic Management, Vol.10, No.3, pp.363-395.
  • Gabriel Di Bella, Mark Lewis and Aurélie Martin (2007), Assessing Competitiveness and Real Exchange Rate Misalignments in Low Income Countries, IMF WP Series, No.07/201, International Monetary Fund.
  • Philip Turner and Jozef van’t Dack (1993), Measuring International Price and Cost Competitiveness, Bank for International Settlements Economic Paper Series, No.39.
  • Zelal Kotan (2002), Uluslararası Rekabet Gücü Göstergeleri Türkiye Örneği, TCMB Çalışma Tebliği.
  • Devajyoti Ghose and Homi Kharas (1993), International Competitiveness, the Demand for Exports and Real Effective Exchange Rates in Developing Countries, Journal of Development Economics, Vol.41(2), pp.377-398.
  • S. W. Kevis and R. Driver (1998), Real Exchange Rates for the Year 2000 (Policy Analyses in International Economics), Institute for International Economics, May. Nurdan Aslan and Ayşe N. Kanbur (2007), “Türkiye’de 1980 Sonrası Satın Alma Gücü Paritesi Yaklaşımı”, Marmara Üniversitesi İ.İ.B.F. Dergisi, Vol.23(2), pp.9-43.
  • Augustine C. Arize, “The Effects of Exchange-Rate Volatility on U.S. Exports: An Empirical Investigation”, Southern Economic Journal, Vol.62(1), pp. 33-43.
  • Erich Spitaller (1980), Short-Run Effects of Exchange Rate Changes on Terms of Trade and Trade Balance, IMF Staff Papers, Vol.27, No.2, pp.320-348.
  • Francis In and Jayant Menon (1996), “The Long - Run Relationship Between the
  • Real Exchange Rate and Terms of Trade in OECD Countries”, Applied
  • Economics, Vol. 28(9), pp.1075-1080.

Year 2012, Volume: 4 Issue: 2, 159 - 168, 01.12.2012

Eren Erdogan Osman Nuri Aras Mustafa Ozturk

Abstract

References

  • Cockburn John, Eckhard Siggel, Massaoly Coulibaly and Sylvian Vézina (1998), Measuring Competitiveness and Its Sources: The Case of Mali’s Manufacturing Sector, African Economic Paper; Discussion Paper:16. Washington D.C: United States Agency for International Development Bureau.
  • Michael Eugene Porter (1998), The Competitive Advantage of Nations, New York: The Free Press, pp.73-84.
  • Rainer Feurer ve Kazem Chaharbaghi (1994), “Defining Competitiveness: A Holistic Approach”, Management Decision, Vol.32, No.2, pp.49-58.
  • James R. Markusen, Productivity, Competitiveness, Trade Performance and Real Income: The Nexus Amonf Four Concepts in Coşkun Can Aktan ve İstiklal Y. Vural (2004), Rekabet Dizisi: 2 Rekabet Gücü ve Rekabet Stratejileri, Ankara: Türkiye İş Veren Sendikaları Konfederasyonu.
  • Coşkun Can Aktan ve İstiklal Y. Vural (2004), Rekabet Dizisi: 2 Rekabet Gücü ve Rekabet Stratejileri, Ankara: Türkiye İş Veren Sendikaları Konfederasyonu.
  • Bela Balassa (1965), “Trade Liberalization and ʻRevealedʼ Comparative Advantage”, The Manchester School, Vol.33, pp.99-123.
  • Thomas L. Vollrath (1991), “A Theoretical Evaluation of Alternative Trade Intensity Measures of Revealed Comparative Advantage”, Review of World Economics, Vol.127, No.2, pp.265-280.
  • Jan Fagerberg, Martin Srholec and Mark Knell (2007), “The Competitiveness of Nations: Why Some Countries Prosper While Others Fall Behind?”, World Development, Vol.35(10), pp.1595-1620.
  • Eckhard Siggel (2006), “International Competitiveness and Comparative Advantage: A Survey and a Proposal for Measurement”, Journal of Industry, Competition and Trade, Vo l. 6, No.2, pp.137-159.
  • John Clark and Ken Guy (1998), “Innovation and Competitiveness: A Review”, Technology Analysis and Strategic Management, Vol.10, No.3, pp.363-395.
  • Gabriel Di Bella, Mark Lewis and Aurélie Martin (2007), Assessing Competitiveness and Real Exchange Rate Misalignments in Low Income Countries, IMF WP Series, No.07/201, International Monetary Fund.
  • Philip Turner and Jozef van’t Dack (1993), Measuring International Price and Cost Competitiveness, Bank for International Settlements Economic Paper Series, No.39.
  • Zelal Kotan (2002), Uluslararası Rekabet Gücü Göstergeleri Türkiye Örneği, TCMB Çalışma Tebliği.
  • Devajyoti Ghose and Homi Kharas (1993), International Competitiveness, the Demand for Exports and Real Effective Exchange Rates in Developing Countries, Journal of Development Economics, Vol.41(2), pp.377-398.
  • S. W. Kevis and R. Driver (1998), Real Exchange Rates for the Year 2000 (Policy Analyses in International Economics), Institute for International Economics, May. Nurdan Aslan and Ayşe N. Kanbur (2007), “Türkiye’de 1980 Sonrası Satın Alma Gücü Paritesi Yaklaşımı”, Marmara Üniversitesi İ.İ.B.F. Dergisi, Vol.23(2), pp.9-43.
  • Augustine C. Arize, “The Effects of Exchange-Rate Volatility on U.S. Exports: An Empirical Investigation”, Southern Economic Journal, Vol.62(1), pp. 33-43.
  • Erich Spitaller (1980), Short-Run Effects of Exchange Rate Changes on Terms of Trade and Trade Balance, IMF Staff Papers, Vol.27, No.2, pp.320-348.
  • Francis In and Jayant Menon (1996), “The Long - Run Relationship Between the
  • Real Exchange Rate and Terms of Trade in OECD Countries”, Applied
  • Economics, Vol. 28(9), pp.1075-1080.
There are 20 citations in total.

Details

Other ID JA75VB72NE
Journal Section Articles
Authors

Eren Erdogan This is me

Osman Nuri Aras This is me

Mustafa Ozturk This is me

Publication Date December 1, 2012
Published in Issue Year 2012 Volume: 4 Issue: 2

Cite

APA Erdogan, E., Aras, O. N., & Ozturk, M. (2012). DOES OVERVALUED TURKISH LIRA AFFECT TURKEY’S FOREIGN TRADE COMPETITIVENESS?. International Journal of Social Sciences and Humanity Studies, 4(2), 159-168.
AMA Erdogan E, Aras ON, Ozturk M. DOES OVERVALUED TURKISH LIRA AFFECT TURKEY’S FOREIGN TRADE COMPETITIVENESS?. IJ-SSHS. December 2012;4(2):159-168.
Chicago Erdogan, Eren, Osman Nuri Aras, and Mustafa Ozturk. “DOES OVERVALUED TURKISH LIRA AFFECT TURKEY’S FOREIGN TRADE COMPETITIVENESS?”. International Journal of Social Sciences and Humanity Studies 4, no. 2 (December 2012): 159-68.
EndNote Erdogan E, Aras ON, Ozturk M (December 1, 2012) DOES OVERVALUED TURKISH LIRA AFFECT TURKEY’S FOREIGN TRADE COMPETITIVENESS?. International Journal of Social Sciences and Humanity Studies 4 2 159–168.
IEEE E. Erdogan, O. N. Aras, and M. Ozturk, “DOES OVERVALUED TURKISH LIRA AFFECT TURKEY’S FOREIGN TRADE COMPETITIVENESS?”, IJ-SSHS, vol. 4, no. 2, pp. 159–168, 2012.
ISNAD Erdogan, Eren et al. “DOES OVERVALUED TURKISH LIRA AFFECT TURKEY’S FOREIGN TRADE COMPETITIVENESS?”. International Journal of Social Sciences and Humanity Studies 4/2 (December 2012), 159-168.
JAMA Erdogan E, Aras ON, Ozturk M. DOES OVERVALUED TURKISH LIRA AFFECT TURKEY’S FOREIGN TRADE COMPETITIVENESS?. IJ-SSHS. 2012;4:159–168.
MLA Erdogan, Eren et al. “DOES OVERVALUED TURKISH LIRA AFFECT TURKEY’S FOREIGN TRADE COMPETITIVENESS?”. International Journal of Social Sciences and Humanity Studies, vol. 4, no. 2, 2012, pp. 159-68.
Vancouver Erdogan E, Aras ON, Ozturk M. DOES OVERVALUED TURKISH LIRA AFFECT TURKEY’S FOREIGN TRADE COMPETITIVENESS?. IJ-SSHS. 2012;4(2):159-68.