PROBLEMS FACED BY INTERNATIONAL FIRMS IN DEVELOPING COUNTRIES DUE TO EXCHANGE RATE FLUCTUATIONS: A CRITICAL STUDY OF INTERNATIONAL FIRMS IN TURKEY

Autor:	Yaw Frimpong Ofori Atta
Rok vydání:	2017
Předmět:	Exchange rate Social Granger causality Developing country Business International economics Exchange rate foreign trade international firms VAR impulse response function Churning Causality Sosyal
Zdroj:	Volume: 6, Issue: 1 8-16 Journal of Business Economics and Finance
ISSN:	2146-7943
Popis:	Purpose- Exchange rate fluctuations and instability have rekindled interest of researchers in the subject of relationship between international trade and exchange rate. This study focused on the impact of exchange rate on international trade churning out various problems faced by international firms in developing countries specifically in Turkey. Methodology- A bi-variate framework was employed in the study for exchange rate and foreign trade. The study used the VAR approach and VAR granger causality in the identification of long run co-integration and causality. Data used was between 1975 and 2014. Findings- It was found that there was no directional granger causality between exchange rate and foreign trade in Turkey. However, diverse dynamic linkages were found between exchange rate and foreign trade in Turkey using Impulse Response Functions. Conclusion- The study concluded that, international firms in Turkey are not singularly motivated by exchange rate increase or decrease to engage in international trade.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::4d6d0abcc22ed28fca528410c1b0e56f https://dergipark.org.tr/tr/pub/jbef/issue/32771/363983 Zobrazit plný text záznamu