Determining Factors of Turkey's Export Performance: An Empirical Analysis

Turkey has witnessed a rapid development in exports sectors over the last decades. Using annual data for 1980-2010 period we have examined the determinants of Turkey's export performance. Results of the analysis reveal that demand for export increases when domestic currency remains depreciated. According to estimations, export supply is positively related to the domestic relative price of exports whereas domestic demand affects export supply negatively. Foreign direct investment and external income level turned out insignificant. Turkey's export performance has been positively affected from economic crisis in 2001, which motivated the searches for new markets and hence exports expansion.