Browsing by Author "Solakoglu, M. Nihat"

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Citation - WoS: 12
Citation - Scopus: 16
Exchange Rate Risk and International Trade: the Role of Third Country Effect
(Elsevier Science Sa, 2018) Tunc, Cengiz; Solakoglu, M. Nihat; Babuscu, Senol; Hazar, Adalet; 265921; 161529; 117425; 219046; 03.07. Yönetim Bilişim Sistemleri; 03. İktisadi ve İdari Birimler Fakültesi; 01. Çankaya Üniversitesi
Using the recently launched Exporter Dynamics Database of the World Bank, this paper empirically investigates the role of external exchange rate risk (third-country effect) on trade flows between countries. We find a strong positive influence of external exchange rate risk on exports to a specific destination. However, the effect is more observable in advanced destination countries, countries with low bilateral exchange rate volatility in comparison to external exchange rate volatility, and countries in which export is concentrated among a small number of firms. (C)2018 Elsevier B.V. All rights reserved.
Citation - WoS: 1
Citation - Scopus: 1
Exchange Rate Volatility and Firms' Export Decisions: Evidence From Exporter Dynamics Database
(Springer, 2024) Tunc, Cengiz; Solakoglu, M. Nihat; 03.07. Yönetim Bilişim Sistemleri; 03. İktisadi ve İdari Birimler Fakültesi; 01. Çankaya Üniversitesi
In this paper, we study the effects of bilateral exchange rate volatility on the extensive margin of export. More specifically, we explore the effect of bilateral exchange rate volatility on the number of exporters, new entrants to the export market, and exiters from the market using destination and sector-specific export data of 28 developing countries from 1997 to 2014 provided by the Exporter Dynamics Database of the World Bank. The estimation results show that bilateral exchange rate volatility generates a depressing effect on the extensive margin of export. However, the effect is more significant for the entrants and minor for the exiters. Looking at the asymmetric effects with respect to currency depreciations versus appreciations, we find that more significant depreciations of currencies over longer horizons intensify the depressing effect of the volatility on the extensive margin. When we disentangle the destination countries as advanced and developing countries, we find that volatility displays a more significant asymmetric effect in the sample of developing destination countries.
Citation - WoS: 6
Citation - Scopus: 5
Exchange Rate Volatility and Trade: External Exchange Rate Volatility Matters
(World Scientific Publ Co Pte Ltd, 2020) Babuscu, Senol; Hazar, Adalet; Solakoglu, M. Nihat; Tunc, Cengiz; 161529; 03.07. Yönetim Bilişim Sistemleri; 03. İktisadi ve İdari Birimler Fakültesi; 01. Çankaya Üniversitesi
We investigate the role of external exchange rate volatility in export in addition to the effect of bilateral exchange rate volatility using country-, sector-, and destination-specific detailed export data of the World Bank Exporter Dynamics Database. The results show that while the bilateral exchange rate volatility has a depressing effect on export, the external exchange rate volatility generates trade-promoting effect on export. However, the magnitude of the effect depends on trade intensity between countries. Furthermore, while the role of external exchange rate volatility diminished after the Global Financial Crisis, the effect of its volatility has become larger. Finally, external exchange rate volatility has a larger trade-promoting effect on export in the presence of high volatilities than the effect in the presence of low volatilities.
Sector-Level Competition and Export: Evidence From Exporter Dynamics Database
(World Scientific Publ Co Pte Ltd, 2019) Hazar, Adalet; Solakoglu, M. Nihat; Tunc, Cengiz; Babuscu, Senol; 161529; 03.07. Yönetim Bilişim Sistemleri; 03. İktisadi ve İdari Birimler Fakültesi; 01. Çankaya Üniversitesi
We study the effect of sector-level competition on export by utilizing the Exporter Dynamics Database of the World Bank that provides sector-level competition measure along with destination-specific detailed export data. The results of the analysis show a nonlinear effect of sector-level competition on export. While at less competitive sectors, an increase in competition depresses export, at highly competitive sectors, an increase in competition generates a trade-promoting effect on export. The observed nonlinear effect is robust across sectors and countries. Therefore, productivity of peer firms could generate negative effect on a firm's export performance contrary to the usual positive effect of a firm's own productivity.