The exchange rate and the balance of trade: The Turkish experience

In this article, we examine the responsiveness of Turkey's trade balance to devaluation accompanied by trade liberalisation. Our results show that the trade balance was responsive to changes in the exchange rare that were brought about by the economic reforms introduced in the 1980s, suggesting that exchange rare policy was able to create and maintain a satisfactory balance of trade position in the 1980s and early 1990s.