AN EMPIRICAL STUDY ABOUT THE IMPACT OF THE CHANGE IN EXCHANGE RATE ON FOOD EXPENSES IN TURKEY
TÜRKİYE’DE DÖVİZ KURU DEĞİŞİMİNİN GIDA HARCAMALARI-NA ETKİSİ ÜZERİNE AMPİRİK BİR ÇALIŞMA

Author : Rıdvan KARACAN
Number of pages : 142-152

Abstract

Food expenditures have a great percentage among the household consumption expenditures in Turkey. The compulsory nature of food consumption affects food expenditures in case of increase and decrease in food prices. This effect depends on the changes in exchange rate. The aim of this study ,in fact, is to prove this claim. In this context, the Vector Autoregressive Model ( VAR) was set by using the annual data for the period 1995-2015, for the relation between the changes in exchange rate and food expenses in Turkish economy. The topic was first handled in theory, later the econometric analysis was done by briefly defining variables in the model along with the model to be used. According to the statistical finding obtained from the analysis, there is a functional relation between exchange rate and food expenses for the related time period in Turkey.

Keywords

Exchange Rate, Food Expenses, The VAR Model, Turkey

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