Export Led Growth : Evidence from Turkey’s Trade in the Light of Inflation and Exchange Rate

This study investigates the impact of inflation and exchange rates on export in the light of the Turkish trade regime and policies between 1980 and 2014 are considered. Theoretical and practical experiences show that inflation and lower exchange rates can be used as important instruments for increasing export leading growth (Akalpler E., 2013, p.1). However, after applying the ordinary least squares (OLS)and augmented dickey fuller (ADF) unit root tests for the considered period to investigate the effects on the selected variables, the relationship between inflation and exports had no significant positive impact on the development of trade capacity. Similarly, when the inflation rates are considered for the unit root test, its critical values in the ADF test are higher. From the test results, it is concluded that inflation also has no positive effects on growth rate, as indicated in the ordinary least square method results