İlkay Dellal

The Impact of Exchange Rate Variability on Agricultural Exports of Developing Countries

Abstract This paper examines the impact of exchange rate and its volatility on the Turkish agricultural exports in the framework of error-correction model. The error correction model results indicate that except a few countries, the exchange rate and its variability do not have significant impact on Turkish exports of dried figs, grapes and tobacco. Thus, policies designed to increase the export level of Turkish agricultural products by incorporating weak Turkish lira against other currencies are not likely to be effective. The policy makers, therefore, should take into account the ineffectiveness of exchange rate on stimulating agricultural exports in their new policy designs.