Trade wars and turkish search for new foreign trade markets under the pressure of foreign exchange rate
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Tarih
2019
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Peter Lang AG
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
The concept of trade wars is usually considered as a product of the US President Trump; yet, it has a deeper historical background. Trade wars can be associated with the periods when the focus is on protective foreign trade policies, with free foreign trade assumptions taking a backseat. There have been many periods that could be described as trade wars during the development of the global economic system. It is remarkable that countries resort to protective policies to be less affected by the consequences of the negative conjunctures, usually following wars or crisis. In this sense, similarly, after the 2008 Global Financial Crisis, countries relied on protective policies. The US President Trump has enforced protective policies in the foreign trade activities with many countries, especially China, which contributed to the emergence of trade wars. Turkey seeks to make the best of its foreign trade potential, despite the fluctuations in exchange rates amid the negative outlook caused by the current conjuncture. Also, Turkey must increase its share in existing foreign trade markets and enter new foreign trade markets to meet the desired amount of 500 billion dollars, which is the country's target exports for the year 2023. This study analyzes how the groups of target and priority countries, which are assigned by the Ministry of Economy to serve as a roadmap for Turkish exporters and are annually updated, react to the changes in foreign currency rates in the period of Trade Wars. The findings of the study demonstrate that foreign exchange volatility does not have an impact on the exports of the countries included in the analysis. However, there is a statistically significant and negative correlation between the imports of the mentioned countries and foreign exchange volatility. As fluctuations in foreign exchange rates increase, the imports of the countries in the analysis decrease. The size of this negative correlation is small enough to be overlooked. © Peter Lang AG 2019.
Açıklama
Anahtar Kelimeler
Foreign Exchange Wars; New Foreign Trade Markets; Protective Foreign Trade; Trade Wars
Kaynak
Current Perspectives in Public Finance
WoS Q Değeri
Scopus Q Değeri
N/A
