The Relationship Between the Exchange Rate, Terms of Trade and Employment in Turkey
The objective of this paper is to analyze the impact of real exchange rate (RER) on employment and real wage using quarterly disaggregated data (ISIC Rev 4 classification) composed of 19 industries in Turkey from 2010 to 2017. This study employed the Fixed Effect Model, where industry-specific effec...
| Main Authors: | , , |
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| Format: | Online |
| Language: | eng |
| Published: |
Universidad Pedagógica y Tecnológica de Colombia
2022
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| Online Access: | https://revistas.uptc.edu.co/index.php/cenes/article/view/14251 |
| _version_ | 1801705969196990464 |
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| author | Salah Uddin, Muhammad Ahmed, Zobayer Hasan, Mahadi |
| author_facet | Salah Uddin, Muhammad Ahmed, Zobayer Hasan, Mahadi |
| author_sort | Salah Uddin, Muhammad |
| collection | OJS |
| description | The objective of this paper is to analyze the impact of real exchange rate (RER) on employment and real wage using quarterly disaggregated data (ISIC Rev 4 classification) composed of 19 industries in Turkey from 2010 to 2017. This study employed the Fixed Effect Model, where industry-specific effects are used to control heterogeneity within the industry. The results reflect that currency appreciation negatively affects employment, though insignificant, whereas it has a remarkably positive impact on real wage. Although the terms of trade have no visible impact on employment and real wages, the study uniquely finds that the effects of the larger industries on employment are distinctly adverse. Nevertheless, the interaction between currency appreciation and the top 25 per cent larger industries indicates a moderate increase in employment. The findings reflect that the appreciation of the domestic currency causes employment to decrease at the industry level. The originality of this paper includes the effects of the terms of trade and interaction with currency appreciation in larger industries using the Fixed Effect Model approach. |
| format | Online |
| id | oai:oai.revistas.uptc.edu.co:article-14251 |
| institution | Revista Apuntes del Cenes |
| language | eng |
| publishDate | 2022 |
| publisher | Universidad Pedagógica y Tecnológica de Colombia |
| record_format | ojs |
| spelling | oai:oai.revistas.uptc.edu.co:article-142512023-09-20T21:28:17Z The Relationship Between the Exchange Rate, Terms of Trade and Employment in Turkey La relación entre el tipo de cambio, los términos de intercambio y el empleo en Turquía Salah Uddin, Muhammad Ahmed, Zobayer Hasan, Mahadi Employment Exchange Rate Terms of Trade Real Wage Turkey Empleo tasa de cambio términos de intercambio salario real Turquía The objective of this paper is to analyze the impact of real exchange rate (RER) on employment and real wage using quarterly disaggregated data (ISIC Rev 4 classification) composed of 19 industries in Turkey from 2010 to 2017. This study employed the Fixed Effect Model, where industry-specific effects are used to control heterogeneity within the industry. The results reflect that currency appreciation negatively affects employment, though insignificant, whereas it has a remarkably positive impact on real wage. Although the terms of trade have no visible impact on employment and real wages, the study uniquely finds that the effects of the larger industries on employment are distinctly adverse. Nevertheless, the interaction between currency appreciation and the top 25 per cent larger industries indicates a moderate increase in employment. The findings reflect that the appreciation of the domestic currency causes employment to decrease at the industry level. The originality of this paper includes the effects of the terms of trade and interaction with currency appreciation in larger industries using the Fixed Effect Model approach. El objetivo de este artículo es analizar el impacto del tipo de cambio real (TCR) en el empleo y el salario real utilizando datos desagregados trimestrales (clasificación ISIC Rev 4) compuestos por 19 industrias en Turquía de 2010 a 2017. Se empleó un modelo de efectos fijos, donde los efectos específicos de la industria se utilizan para controlar la heterogeneidad dentro de aquella. Los resultados reflejan que la apreciación de la moneda afecta negativamente al empleo, aunque de manera insignificante, mientras que tiene un impacto notablemente positivo en el salario real. Aunque los términos de intercambio no tienen un impacto visible en el empleo y los salarios reales, el estudio encuentra de manera única que los efectos de las industrias más grandes en el empleo son claramente adversos. No obstante, la interacción entre la apreciación de la moneda y el 25 % de las principales industrias más grandes indica un aumento moderado del empleo. Los hallazgos reflejan que la apreciación de la moneda nacional hace que el empleo disminuya en la industria. La originalidad de este documento incluye los efectos de los términos de intercambio y la interacción con la apreciación de la moneda en industrias más grandes utilizando el enfoque del modelo de efectos fijos. Universidad Pedagógica y Tecnológica de Colombia 2022-07-25 info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion Peer reviewed Article application/pdf text/xml https://revistas.uptc.edu.co/index.php/cenes/article/view/14251 10.19053/01203053.v41.n74.2022.14251 Apuntes del Cenes; Vol. 41 No. 74 (2022); 177-200 Apuntes del Cenes; Vol. 41 Núm. 74 (2022); 177-200 2256-5779 0120-3053 eng https://revistas.uptc.edu.co/index.php/cenes/article/view/14251/12065 https://revistas.uptc.edu.co/index.php/cenes/article/view/14251/13424 Copyright (c) 2022 Muhammad Salah Uddin http://creativecommons.org/licenses/by-nc-sa/4.0 |
| spellingShingle | Employment Exchange Rate Terms of Trade Real Wage Turkey Empleo tasa de cambio términos de intercambio salario real Turquía Salah Uddin, Muhammad Ahmed, Zobayer Hasan, Mahadi The Relationship Between the Exchange Rate, Terms of Trade and Employment in Turkey |
| title | The Relationship Between the Exchange Rate, Terms of Trade and Employment in Turkey |
| title_alt | La relación entre el tipo de cambio, los términos de intercambio y el empleo en Turquía |
| title_full | The Relationship Between the Exchange Rate, Terms of Trade and Employment in Turkey |
| title_fullStr | The Relationship Between the Exchange Rate, Terms of Trade and Employment in Turkey |
| title_full_unstemmed | The Relationship Between the Exchange Rate, Terms of Trade and Employment in Turkey |
| title_short | The Relationship Between the Exchange Rate, Terms of Trade and Employment in Turkey |
| title_sort | relationship between the exchange rate terms of trade and employment in turkey |
| topic | Employment Exchange Rate Terms of Trade Real Wage Turkey Empleo tasa de cambio términos de intercambio salario real Turquía |
| topic_facet | Employment Exchange Rate Terms of Trade Real Wage Turkey Empleo tasa de cambio términos de intercambio salario real Turquía |
| url | https://revistas.uptc.edu.co/index.php/cenes/article/view/14251 |
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