Acceso al sitio web del Consejo de Políticas de Infraestructura

   
ARTÍCULO
TITULO

The Relationship between Exchange Rate and Inflation: An Empirical Study of Turkey

Abderezak Ali Abdurehman    
Samet Hacilar    

Resumen

This paper investigates the relationship between inflation and exchange rate in Turkey. Unlike many empirical studies which make use of the US and Turkey inflation data to test the relationship between inflation and exchange rate in Turkey, this paper employed inflation data of Turkey and the United Kingdom. An OLS regression and a simple GARCH model were used to understand the relationship between inflation and exchange rate. The results obtained from OLS regression indicate Purchasing Power Parity (PPP) does not exist in Turkey. However, the existence of ARCH and GARCH in the relationship indicates that the deviations from PPP are not random and follow a certain pattern. Therefore, we conclude that the deviation of PPP might be attributed to certain factors such as transaction cost, government restriction, product specialization or other related factors.Keywords: Exchange Rate, Inflation, GARCH model JEL Classifications: C87; E31; F31

PÁGINAS
pp. 1454 - 1459
MATERIAS
ECONOMÍA

 Artículos similares

       
 
Kamil Albert Homski     Pág. 37 - 44
The first aim of this study was to measure the efficiency of the R&D sector in the EU countries. The findings have indicated that the sector?s efficiency was different in particular countries. It was more than three times higher in the most efficient... ver más

 
Jakub Staniszewski     Pág. 7 - `18
The paper reviews the economic theories that describe the relationship between agricultural productivity growth and economic development. Historical examples of such relationships are also presented. The review proves that improvements in the productivit... ver más

 
Huseyin Avunduk     Pág. 20 - 33
Today, manufacturing industries are trying to maintain and increase their competitiveness in an environment where constantly changing uncertainty prevails. The industry is increasingly searching for new technology to respond quickly and at low cost to fl... ver más

 
Axellina Muara Setyanti,Setyo Tri Wahyudi     Pág. 208 - 219
Abstract: FDI - employment relationship has been a major concern of many researchers due to it's various findings. FDI is stated that able to trigger growth in employment, however, on the other hand, some have found that employment conditions affect FDI ... ver más
Revista: Jurnal Economia

 
I Wayan Gde Sarmawa,Ida Ayu Oka Martini,Ida Ayu Putu Widani Sugianingrat     Pág. 249 - 266
Abstract: Companies are constantly trying to maintain customer trust and loyalty in an effort to preserve business sustainability. Implementing environmental concerns in the form of Corporate Social Responsibility (CSR) is expected to achieve both of the... ver más
Revista: Jurnal Economia