THE MODERATING EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORT DIVERSIFICATION AND ECONOMIC GROWTH NEXUS IN THE G7 COUNTRIES

İbrahim Nandom YAKUBU, (Yıldırım Beyazıt Üniversitesi, Sosyal Bilimler Enstitüsü, Maliye Bölümü, Ankara, Türkiye)
Ayhan KAPUSUZOĞLU, (Ankara Yıldırım Beyazıt Üniversitesi, İşletme Fakültesi, Finans ve Bankacılık Bölümü, Ankara, Türkiye)
Nildağ Başak CEYLAN (Ankara Yıldırım Beyazıt Üniversitesi, İşletme Fakültesi, Finans ve Bankacılık Bölümü, Ankara, Türkiye)
Journal of research in business (online)
3 1
Yıl: 2022 Cilt: 7 Sayı: 1 Sayfa Aralığı: 195 - 207 Metin Dili: İngilizce DOI: 10.54452/jrb.1041057 İndeks Tarihi: 13-01-2023

THE MODERATING EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORT DIVERSIFICATION AND ECONOMIC GROWTH NEXUS IN THE G7 COUNTRIES

Öz:
This paper examines the nexus between export diversification and economic growth in the G7 countries and how exchange rate volatility affects this relationship. Using data spanning from 1995 to 2018, the study applies the fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) techniques to examine the long-run impact of export diversification on economic growth. The results show that export diversification significantly enhances economic growth in the G7 countries. Nonetheless, the growth-enhancing effect of export diversification is inimically affected by exchange rate volatility. We also document that trade openness significantly accelerates growth which supports the trade-led growth hypothesis in the bloc. The study recommends that export diversification should be prioritized in enacting strategies for stimulating and sustaining long-term economic growth in the G7 alliance. A policy agenda to lessen trade restrictions will also increase international trade activities, and therefore leads to long-term economic growth in the bloc.
Anahtar Kelime: Export diversification exchange rate volatility economic growth G7 countries

G7 ÜLKELERİNDE DÖVİZ KURU OYNAKLIĞININ İHRACAT ÇEŞİTLENDİRMESİ VE EKONOMİK BÜYÜME İLİŞKİSİ ÜZERİNDEKİ YÖNLENDİRİCİ ETKİSİ

Öz:
Bu çalışmada, G7 ülkeleri için ihracat çeşitlendirmesi ile ekonomik büyüme arasındaki uzun dönemli ilişki ve döviz kuru oynaklığının bu ilişkiyi nasıl etkilediği incelenmektedir. Çalışmada, 1995-2018 dönemi için Tam Düzeltilmiş En Küçük Kareler (TDEKK) ve Dinamik En Küçük Kareler (DEKK) tekniklerini uygulanmıştır. Çalışmanın sonuçları, ihracat çeşitlendirmesinin G7 ülkelerinde ekonomik büyümeyi önemli ölçüde artırdığını göstermektedir. Bununla birlikte, ihracat çeşitlendirmesinin büyümeyi artırıcı etkisinin döviz kuru oynaklığından olumsuz olarak etkilendiği ortaya konulmuştur. Ayrıca, ticari dışa açıklığın büyümeyi önemli ölçüde hızlandırdığı ortaya konulmuştur. Literatürde, G7 ülkelerindeki ihracat çeşitlendirmesi ve ekonomik büyüme ilişkisini inceleyen spesifik bir çalışma olmaması bu çalışmanın özgün değerini oluşturmaktadır. Buna ek olarak, literatür ayrıntılı olarak incelendiğinde döviz kuru oynaklığının ihracat çeşitlendirme-büyüme bağlantısı üzerindeki düzenleyici etkisini dikkate alan spesifik bir çalışmanın bulunmaması sebebiyle de çalışmanın literatüre katkı sağlayacağı ifade edilebilir.
Anahtar Kelime: İhracat çeşitlendirmesi döviz kuru oynaklığı ekonomik büyüme G7 ülkeleri

Belge Türü: Makale Makale Türü: Araştırma Makalesi Erişim Türü: Erişime Açık
  • Aditya, A., & Acharyya, R. (2013). Export diversification, composition, and economic growth: Evidence from cross-country analysis. The Journal of International Trade & Economic Development, 22(7), 959-992.
  • Ahiabor, G., & Amoah, A. (2019). Examining the effect of real effective exchange rate volatility on economic growth: Evidence from Ghana. Journal of Economics and Economic Education Research, 20(1), 1-14.
  • Akhter, M. (2015). The impact of export and import on economic growth in Bangladesh. World Vision, 9(1), 66-81.
  • Alagidede, P., & Ibrahim, M. (2017). On the causes and effects of exchange rate volatility on economic growth: Evidence from Ghana. Journal of African Business, 18(2), 169-193.
  • Ali, B. J., Hasan, H., & Oudat, M. S. (2021). Relationship among export, import and economic growth: Using co- integration analysis. Psychology and Education Journal, 58(1), 5126-5134.
  • Altun, M., & Benli, M. (2021). İhracatta Ürün Çeşitliliği ve Türkiye’nin Büyüme Performansı. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, (67), 138-158.
  • Baek, J. (2013). Does the exchange rate matter to bilateral trade between Korea and Japan? Evidence from commodity trade data. Economic Modelling, 30(C), 856-862.
  • Bahmani-Oskooee, M., & Harvey, H. (2011). Exchange-rate volatility and industry trade between the US and Malaysia. Research in International Business and Finance, 25(2), 127-155.
  • Balsalobre-Lorente, D., Driha, O. M., Bekun, F. V., & Osundina, O. A. (2019). Do agricultural activities induce carbon emissions? The BRICS experience. Environmental Science and Pollution Research, 26(24), 25218- 25234.
  • Barguellil, A., Ben-Salha, O., & Zmami, M. (2018). Exchange rate volatility and economic growth. Journal of Economic Integration, 33(2), 1302-1336.
  • Benli, M. (2020). Export diversification and economic growth: Evidence from emerging economies. Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, (55), 285-298.
  • Cadot, O., Carrère, C., & Strauss-Kahn, V. (2011). Export diversification: what’s behind the hump? Review of Economics and Statistics, 93(2), 590-605.
  • Chandra, V., Boccardo, J., & Osorio, I. (2007). Export diversification and competitiveness in developing countries. World Bank, Washington, DC.
  • Devkota, M. L. (2019). Impact of export and import on economic growth: Time series evidence from India. Dynamic Econometric Models, 19, 29-40.
  • Duru, I. U., & Ehidiamhen, P. O. (2018). Empirical investigation of the impact of export diversification on economic growth: Evidence from Nigeria, 1980-2016. Journal of Economics, Management and Trade, 21(7), 1-24.
  • Ferreira, G. F., & Harrison, R. W. (2012). From coffee beans to microchips: Export diversification and economic growth in Costa Rica. Journal of Agricultural and Applied Economics, 44(4), 517-531.
  • Finger, J. M., & Kreinin, M. E. (1979). A measure of export similarity and its possible uses. The Economic Journal, 89(356), 905-912.
  • Fu, D., Wu, Y., & Zhang, Y. (2019). Does export diversification matter for China’s regional growth?. The Singapore Economic Review, 64(4), 863-882.
  • Gylfason, T. (2017). From double diversification to efficiency and growth. Comparative Economic Studies, 59(2), 149-168.
  • Hamed, K., Hadi, D., & Hossein, K. (2014). Export diversification and economic growth in some selected developing countries. African Journal of Business Management, 8(17), 700-704.
  • Heckscher, E.F. (1919). Utrikshandelns verkan pa inkomstfoerdelningen, Ekonomist Tradskrift, 21, Del 2, 1-32 (The effect of foreign trade on the distribution of income, in Readings in the Theory of International Trade; Ellis, H.S., Metzler, L.A., Eds.; Blakiston: Philadelphia, PA, USA, 272-300)
  • Hodey, L. S., Oduro, A. D., & Senadza, B. (2015). Export diversification and economic growth in sub-Saharan Africa. Journal of African Development, 17(2), 67-81.
  • Jongwanich, J. (2020). Export diversification, margins and economic growth at industrial level: Evidence from Thailand. The World Economy, 43(10), 2674-2722.
  • Kadyrova, A. (2011).The effect of export diversification on country growth. MA Thesis, Department of Economics, Central European University, Budapest, Hungary.
  • Kuznets, S. (1971). Notes on stage of economic growth as a system determinant. University of California Press, Berkeley.
  • Lee, D., & Zhang, H. (2019). Export diversification in low-income countries and small states: Do country size and income level matter? Working Paper No. 19-118. International Monetary Fund, Washington, DC.
  • Matthee, M., & Naude, W. (2007). Export diversity and regional growth: Empirical evidence from South Africa. Research paper no. 2007/11. UNU-WIDER, United Nations University (UNU), Japan.
  • Morina, F., Hysa, E., Ergün, U., Panait, M., & Voica, M. C. (2020). The effect of exchange rate volatility on economic growth: Case of the CEE countries. Journal of Risk and Financial Management, 13(8), 177.
  • Mudenda, C., Choga, I., & Chigamba, C. (2014). The role of export diversification on economic growth in South Africa. Mediterranean Journal of Social Sciences, 5(9), 705-712.
  • Nguyen, T. H. (2016). Impact of export on economic growth in Vietnam: Empirical research and recommendations. International Business and Management, 13(3), 45-52.
  • Ohlin, B. (1933). Interregional and international trade. Harvard University Press, Cambridge.
  • Okyere, I., & Jilu, L. (2020). The impact of export and import to economic growth of Ghana. European Journal of Business and Management, 12(21), 130-138.
  • Ozata, E. (2020). The effect of exchange rate volatility on economic growth in Turkey. Journal of Business Economics and Finance, 9(1), 42-51.
  • Pesaran, M. H. (2004). General diagnostic tests for cross section dependence in panels. IZA Discussion Paper No. 1240. The Institute for the Study of Labor, Bonn.
  • Pesaran, M. H. (2007). A simple panel unit root test in the presence of cross section dependence. Journal of Applied Econometrics, 22(2), 265-312.
  • Rath, B. N., & Akram, V. (2017). Export diversification and total factor productivity growth in case of South Asian region. Journal of Social and Economic Development, 19(1), 196-210.
  • Ricardo, D. (1891). On the principles of political economy and taxation. J. M’Creery Publishers, London.
  • Sahin, B. E. (2019). Impact of high technology export on economic growth: An analysis on Turkey. Journal of Business Economics and Finance, 8(3), 165-172.
  • Siswana, S., & Phiri, A. (2021). Is export diversification or export specialization responsible for economic growth in BRICS countries? The International Trade Journal, 35(3), 243-261.
  • Sultanuzzaman, M. R., Fan, H., Akash, M., Wang, B., & Shakij, U. S. M. (2018). The role of FDI inflows and export on economic growth in Sri Lanka: An ARDL approach. Cogent Economics & Finance, 6(1), 1-17.
  • Temiz Dinç, D., & Gökmen, A. (2019). Export-led economic growth and the case of Brazil: An empirical research. Journal of Transnational Management, 24(2), 122-141.
  • Umaru, H., Aguda, N. A., & Davies, N. O. (2018). The effects of exchange rate volatility on economic growth of West African English-speaking countries. International Journal of Academic Research in Accounting, Finance and Management Sciences, 8(4), 131-143.
  • Yama, M., & Wani, N. U. H. (2021). Nexus between export diversification and economic growth: A case study of Afghanistan. Kardan Journal of Economics and Management Sciences, 4(1), 1-24.
APA Yakubu I, KAPUSUZOGLU A, CEYLAN N (2022). THE MODERATING EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORT DIVERSIFICATION AND ECONOMIC GROWTH NEXUS IN THE G7 COUNTRIES. , 195 - 207. 10.54452/jrb.1041057
Chicago Yakubu Ibrahim Nandom,KAPUSUZOGLU AYHAN,CEYLAN NILDAG BASAK THE MODERATING EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORT DIVERSIFICATION AND ECONOMIC GROWTH NEXUS IN THE G7 COUNTRIES. (2022): 195 - 207. 10.54452/jrb.1041057
MLA Yakubu Ibrahim Nandom,KAPUSUZOGLU AYHAN,CEYLAN NILDAG BASAK THE MODERATING EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORT DIVERSIFICATION AND ECONOMIC GROWTH NEXUS IN THE G7 COUNTRIES. , 2022, ss.195 - 207. 10.54452/jrb.1041057
AMA Yakubu I,KAPUSUZOGLU A,CEYLAN N THE MODERATING EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORT DIVERSIFICATION AND ECONOMIC GROWTH NEXUS IN THE G7 COUNTRIES. . 2022; 195 - 207. 10.54452/jrb.1041057
Vancouver Yakubu I,KAPUSUZOGLU A,CEYLAN N THE MODERATING EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORT DIVERSIFICATION AND ECONOMIC GROWTH NEXUS IN THE G7 COUNTRIES. . 2022; 195 - 207. 10.54452/jrb.1041057
IEEE Yakubu I,KAPUSUZOGLU A,CEYLAN N "THE MODERATING EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORT DIVERSIFICATION AND ECONOMIC GROWTH NEXUS IN THE G7 COUNTRIES." , ss.195 - 207, 2022. 10.54452/jrb.1041057
ISNAD Yakubu, Ibrahim Nandom vd. "THE MODERATING EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORT DIVERSIFICATION AND ECONOMIC GROWTH NEXUS IN THE G7 COUNTRIES". (2022), 195-207. https://doi.org/10.54452/jrb.1041057
APA Yakubu I, KAPUSUZOGLU A, CEYLAN N (2022). THE MODERATING EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORT DIVERSIFICATION AND ECONOMIC GROWTH NEXUS IN THE G7 COUNTRIES. Journal of research in business (online), 7(1), 195 - 207. 10.54452/jrb.1041057
Chicago Yakubu Ibrahim Nandom,KAPUSUZOGLU AYHAN,CEYLAN NILDAG BASAK THE MODERATING EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORT DIVERSIFICATION AND ECONOMIC GROWTH NEXUS IN THE G7 COUNTRIES. Journal of research in business (online) 7, no.1 (2022): 195 - 207. 10.54452/jrb.1041057
MLA Yakubu Ibrahim Nandom,KAPUSUZOGLU AYHAN,CEYLAN NILDAG BASAK THE MODERATING EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORT DIVERSIFICATION AND ECONOMIC GROWTH NEXUS IN THE G7 COUNTRIES. Journal of research in business (online), vol.7, no.1, 2022, ss.195 - 207. 10.54452/jrb.1041057
AMA Yakubu I,KAPUSUZOGLU A,CEYLAN N THE MODERATING EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORT DIVERSIFICATION AND ECONOMIC GROWTH NEXUS IN THE G7 COUNTRIES. Journal of research in business (online). 2022; 7(1): 195 - 207. 10.54452/jrb.1041057
Vancouver Yakubu I,KAPUSUZOGLU A,CEYLAN N THE MODERATING EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORT DIVERSIFICATION AND ECONOMIC GROWTH NEXUS IN THE G7 COUNTRIES. Journal of research in business (online). 2022; 7(1): 195 - 207. 10.54452/jrb.1041057
IEEE Yakubu I,KAPUSUZOGLU A,CEYLAN N "THE MODERATING EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORT DIVERSIFICATION AND ECONOMIC GROWTH NEXUS IN THE G7 COUNTRIES." Journal of research in business (online), 7, ss.195 - 207, 2022. 10.54452/jrb.1041057
ISNAD Yakubu, Ibrahim Nandom vd. "THE MODERATING EFFECT OF EXCHANGE RATE VOLATILITY ON EXPORT DIVERSIFICATION AND ECONOMIC GROWTH NEXUS IN THE G7 COUNTRIES". Journal of research in business (online) 7/1 (2022), 195-207. https://doi.org/10.54452/jrb.1041057
Sayfa Oluşturulma Tarihi
24-04-2024 5:30

İLETİŞİM

TÜBİTAK ULAKBİM TR Dizin

Yüzüncüyıl, İşçi Blokları Mahallesi

Muhsin Yazıcıoğlu Caddesi No:51/C

06530 Çankaya / ANKARA +90 (312) 298 92 00

trdizin@tubitak.gov.tr

TÜBİTAK ULAKBİM Ulusal Akademik Ağ ve Bilgi Merkezi Cahit Arf Bilgi Merkezi © Tüm Hakları Saklıdır. Gizlilik Politikası Kullanım Şartları