Real exchange rates and bilateral trade dynamics of Turkey: Panel cointegration approach

Abstract

The aim of this article is to analyse Turkey's bilateral trade dynamics with respect to a panel of seven countries. Employing several panel cointegration techniques, we show that the effect of a devaluation of Turkish currency on trade balance is country specific and there is no J-curve effect. © 2010 Taylor & Francis. © 2010 Elsevier B.V., All rights reserved.