International Conference on Eurasian Economies

2-4 September 2020 – Baku - AZERBAIJAN

Paper properties

Paper ID : 2427
Status : Paper published
Language : Turkish
Topic : International Trade and Globalization
Presenter: Ph.D. candidate Ferhat Orman
Presentation Location : Beykent
Session : 3A Mikroekonomi ve Finans

The Effect of Euro/Dollar Parity on the Export of Upper Middle Income Countries: A Panel Data Analysis
Euro/Dolar Paritesinin Üst Orta Gelirli Ülkelerin İhracatları Üzerindeki Etkisi: Bir Panel Veri Analizi

• Ph.D. candidate Remzi Can Yılmaz (Istanbul Beykent University, Türkiye)
• Ph.D. candidate Ferhat Orman (Istanbul Beykent University, Türkiye)
• Asst. Prof. Dr. Murat Süslü (Alanya University, Türkiye)

Abstract

In this study, the hypothesis that the changes in Euro / Dollar parity affects the export amounts of the economies in real terms, whether the changes in the currencies of the two economies, which constitute almost half of the world economy in total, have a significant effect on the foreign trade balance of other countries; if it is, it is aimed to verify by what extent and in what direction it is. Nineteen upper middle income countries with the largest export volume were selected as the sample of the study. The 2000 - 2017 interval was analyzed with multi - panel regression analysis. As a result, the Euro / Dollar parity was statistically significant and the changes in the said variable affected the exports of the sample countries in the same direction. In addition to the Euro / Dollar parity, the gross domestic product, domestic loan amount and domestic savings ratio were also statistically significant and they changed the exports simultaneously with the changes that occurred in them. This result is mainly attributable to the exports of the upper middle income countries; and that the increase in Euro / Dollar parity has led to an increase in profit margins by lowering imported input costs and making exports more attractive.

JEL codes: C33, F41, F31

Yılmaz, Remzi Can, Orman, Ferhat, Süslü, Murat (2020). "The Effect of Euro/Dollar Parity on the Export of Upper Middle Income Countries: A Panel Data Analysis" in Proceedings of International Conference of Eurasian Economies 2020, pp.93-97, Baku - AZERBAIJAN.

DOI: https://doi.org/10.36880/C12.02427

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Session 3A: Mikroekonomi ve Finans