The role of productivity, wages, demand, and exchange rates on export performance: Evidence from the Turkish manufacturing industry
Purpose — This study explores the determinants of export performance in the Turkish manufacturing industry by examining the effects of productivity, wages, demand, and sector-specific real effective exchange rates from 2006 to 2019. Methods — Using firm-level export data across 21 manufacturing sec...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Universitas Islam Indonesia
2025-04-01
|
| Series: | Economic Journal of Emerging Markets |
| Subjects: | |
| Online Access: | https://journal.uii.ac.id/JEP/article/view/37378 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850043157392130048 |
|---|---|
| author | Ahmet Koluman Fatih Kaplan |
| author_facet | Ahmet Koluman Fatih Kaplan |
| author_sort | Ahmet Koluman |
| collection | DOAJ |
| description |
Purpose — This study explores the determinants of export performance in the Turkish manufacturing industry by examining the effects of productivity, wages, demand, and sector-specific real effective exchange rates from 2006 to 2019.
Methods — Using firm-level export data across 21 manufacturing sectors, the study applies a Fixed-Effects model with Driscoll-Kraay standard errors to address heteroscedasticity, autocorrelation, and cross-sectional dependence. Endogeneity concerns are mitigated using Two-Step System GMM estimation, complemented by Moment Quantile Regression (MQR) for robustness checks across the export distribution.
Findings — The results reveal that higher productivity, increased wages, and stronger external demand significantly enhance exports, while currency appreciation adversely affects export performance. Productivity emerges as the most influential factor.
Implication — Productivity enhancement, stable exchange rate management, and workforce development support export-driven growth. Targeted policies that strengthen sectoral competitiveness and expand foreign market access are essential for sustaining manufacturing exports.
Originality — This study departs from traditional macro-level analyses by constructing sector-specific indices for real exchange rates and external demand. It offers a more granular and precise understanding of export dynamics. The methodological rigor combines static and dynamic panel estimators to ensure robustness and advance empirical insights into firm-level export behavior.
|
| format | Article |
| id | doaj-art-dc0fe8a3f84d4b528ef9db6b32bb4246 |
| institution | DOAJ |
| issn | 2086-3128 2502-180X |
| language | English |
| publishDate | 2025-04-01 |
| publisher | Universitas Islam Indonesia |
| record_format | Article |
| series | Economic Journal of Emerging Markets |
| spelling | doaj-art-dc0fe8a3f84d4b528ef9db6b32bb42462025-08-20T02:55:17ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2025-04-0117110.20885/ejem.vol17.iss1.art7The role of productivity, wages, demand, and exchange rates on export performance: Evidence from the Turkish manufacturing industryAhmet Koluman0Fatih Kaplan1Tarsus Üniversitesi, Mersin, TurkeyTarsus Üniversitesi, Mersin, Turkey Purpose — This study explores the determinants of export performance in the Turkish manufacturing industry by examining the effects of productivity, wages, demand, and sector-specific real effective exchange rates from 2006 to 2019. Methods — Using firm-level export data across 21 manufacturing sectors, the study applies a Fixed-Effects model with Driscoll-Kraay standard errors to address heteroscedasticity, autocorrelation, and cross-sectional dependence. Endogeneity concerns are mitigated using Two-Step System GMM estimation, complemented by Moment Quantile Regression (MQR) for robustness checks across the export distribution. Findings — The results reveal that higher productivity, increased wages, and stronger external demand significantly enhance exports, while currency appreciation adversely affects export performance. Productivity emerges as the most influential factor. Implication — Productivity enhancement, stable exchange rate management, and workforce development support export-driven growth. Targeted policies that strengthen sectoral competitiveness and expand foreign market access are essential for sustaining manufacturing exports. Originality — This study departs from traditional macro-level analyses by constructing sector-specific indices for real exchange rates and external demand. It offers a more granular and precise understanding of export dynamics. The methodological rigor combines static and dynamic panel estimators to ensure robustness and advance empirical insights into firm-level export behavior. https://journal.uii.ac.id/JEP/article/view/37378Manufacturing industrysectoral exportpanel dataTürkiye |
| spellingShingle | Ahmet Koluman Fatih Kaplan The role of productivity, wages, demand, and exchange rates on export performance: Evidence from the Turkish manufacturing industry Economic Journal of Emerging Markets Manufacturing industry sectoral export panel data Türkiye |
| title | The role of productivity, wages, demand, and exchange rates on export performance: Evidence from the Turkish manufacturing industry |
| title_full | The role of productivity, wages, demand, and exchange rates on export performance: Evidence from the Turkish manufacturing industry |
| title_fullStr | The role of productivity, wages, demand, and exchange rates on export performance: Evidence from the Turkish manufacturing industry |
| title_full_unstemmed | The role of productivity, wages, demand, and exchange rates on export performance: Evidence from the Turkish manufacturing industry |
| title_short | The role of productivity, wages, demand, and exchange rates on export performance: Evidence from the Turkish manufacturing industry |
| title_sort | role of productivity wages demand and exchange rates on export performance evidence from the turkish manufacturing industry |
| topic | Manufacturing industry sectoral export panel data Türkiye |
| url | https://journal.uii.ac.id/JEP/article/view/37378 |
| work_keys_str_mv | AT ahmetkoluman theroleofproductivitywagesdemandandexchangeratesonexportperformanceevidencefromtheturkishmanufacturingindustry AT fatihkaplan theroleofproductivitywagesdemandandexchangeratesonexportperformanceevidencefromtheturkishmanufacturingindustry AT ahmetkoluman roleofproductivitywagesdemandandexchangeratesonexportperformanceevidencefromtheturkishmanufacturingindustry AT fatihkaplan roleofproductivitywagesdemandandexchangeratesonexportperformanceevidencefromtheturkishmanufacturingindustry |