Abstract:
In this thesis, the effect of bilateral real exchange rate changes on the firm-level export behavior of the Turkish manufacturing sector is investigated. Using the detailed panel of Turkish customs and industry data sets covering the years 2007-2014, both export participation and export supply decisions are tested empirically. Export participation results indicate that depreciation of the domestic currency reduces the probability of exporting. On the other hand, it is observed that export supply increases as the domestic currency depreciates. It is also found that more productive and sizeable firms increase their export supply more than smaller firms and that being an importer significantly improves the amount of exports. The results are robust to alternative samples and estimation methods.
