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Analysis of Exchange Rate-Foreign Trade Relationship with Asymmetric Causality Tests: Sample of Gaziantep

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  • Ibrahim Cutcu
  • Mehmet Vahit Eren

Abstract

Aim of this study is that testing the existence of exchange rate-foreign trade relationship. Also, it aims to analyze direction of the relationship via different economic tests by using two models which include monthly data of 2002:01-2016:02 periods. According to Hatemi-J co-integration and asymmetric causality test findings, it is accepted that there is causality and long termed relationship with structural break between exchange rate and importation. Also, with the aim of determining the existence of causality relationship, advanced time varying asymmetric causality test is used. Periodical relations are found.

Suggested Citation

  • Ibrahim Cutcu & Mehmet Vahit Eren, 2017. "Analysis of Exchange Rate-Foreign Trade Relationship with Asymmetric Causality Tests: Sample of Gaziantep," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 7(10), pages 157-171, October.
    • Handle: RePEc:hur:ijarbs:v:7:y:2017:i:10:p:157-171
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    References listed on IDEAS

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