Abstract
In this study, the relationship between exchange rate uncertainty and
Turkey’s foreign trade performance is analyzed using monthly data from
2002:01 to 2017:12 via Structural VAR (SVAR) model. The empirical results
indicate that domestic income and import have more impact on Turkey’s
export. Moreover, domestic income, exchange rate and exchange rate
uncertainty are effective on Turkey’s import. These results imply that
Turkey’s export is dependent on imported inputs more than the exchange
rate and exchange rate uncertainties.