Effects of the Exchange Rate on the Export Share of Sales in Borsa Istanbul Firms

Abstract

For many years, the current account deficit problem is on the agenda of policymakers and academics in Turkey. With the exchange rate shock experienced in 2018, the importance of the current account deficit has become clearer. The relationship between exchange rates and trade flow is one of the issues frequently discussed in the literature. In this study, to contribute to the subject from a different perspective, the 12-year data of 230 companies traded on Borsa Istanbul from 2008 to 2019 were used and the share of these companies' exports in their total sales was analyzed. According to the research findings, there is a strong, statistically significant, and positive relationship between real Euro/USD exchange rate and export shares of Turkish firms. There is also a positive relationship between the real Euro rate and export share of automotive firms in Borsa İstanbul.