CURRENCY DEPRECIATION IN RALATION TO INTERNATIONAL TRADE:EVIDENCE FROM TURKEY
Bello Ibrahim (PhD) , Abubakar Bala (PhD) , Yusuf Mohammed and Mohammed Alhassan Ibrahim
Volume 9 Issue 2
Abstract
The paper examines the issue of currency depreciation in relation to international trade in Turkey spining the period 1990-2020 Autoregressive Destributive lag Model (ARDL) approach. The results reveals that inflation,Trade openness shows the positive long-run relationship with currency devaluation. While, exchange rate and remittances indicates negative relationship with currency devaluation that is influx of currency into the economy increases the value of such currency in domestic economy this will devaluate it. This also shows that there is a long run relationship between trade openess and currency devaluate that when there is increase in currency devaluation the acticities of trade will also increase. The study recommends that the government should encourage exports and discourage importation so as to have positive balance of trade as well as balance of payment. Keywords: Trade, Inflatıon, Internatıonal Mıgratıon, Remıttances
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