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Impact of the Real Effective Exchange Rate (Reer) on Turkish Agricultural Trade

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Publication date
08/02/2006
Number of Pages
13
Language:
English
Type of Publication:
Studies
Focus Region:
Middle East & North Africa
Focus Topic:
Market / Trade
Type of Risk:
Market-related
Type of Risk Managment Option:
Risk assessment
Commodity:
Crops
Author
Halil Fidan
Organization
International Journal of Social Science

In this work, the autoregressive vectors are used to know dynamics of the Agricultural export and import, and the real effective exchange rate (REER). In order to analyze the interactions, the impulse- response function is used in decomposition of variance, causality of Granger as well as the methodology of Johansen to know the relations co integration. The REER causes agricultural export and import in the sense of Granger. The influence displays the innovations of the REER on the agricultural export and import is not very great and the duration of the effects is short. It displays that REER has an immediate positive effect, after the tenth year it displays smooth results on the agricultural export. Evidence of a vector exists co integration. In short run, REER has smaller effects on export and import, compared to the long-run effects