RELATİONSHİP BETWEEN REAL EXCHANGE RATE AND ECONOMIC ACTIVITY REPRESENTİNG ECONOMİC GROWTH:CAUSALITY ANALYSIS FOR TURKISH ECONOMY

Abstract

This article analyzes the affair between the real effective exchange rate and economic activity for the economy of Turkey country.As in the case of Uddin et al. (2014), which is the direction of the affair between real effective exchange rate and economic activity, the existence of a bidirectional relationship is generally determined. In this study,the presence of the affair between economic activity and the real effective exchange rate for Turkey's economy, Granger causality (Granger causality) was tested.The industrial production index and the real effective rate are used during the period of 1994: 01-2018: 07. According to the obtained results,unilateral relationship,from the real exchange rate to economic activity has been determined.