Türk D Ticareti ve Ekonomi Politikalar Aras ndaki Nedensellik li kileri

This paper examines fiscal policy, monetary policy and real exchange rate in Turkish foreign trade from global point of view. While importance of foreign trade is rapidly increasing in the globalization age at the world, active policy applications have undergone extremely significant implications. In this paper relation between foreign trade and real exchange rate, budget deficit and M1 money supply is thoroughly examined with causality tests. For these variables first of all ADF unit root tests are carried out. All of them are found to be same degree integrated. Than, long run relations among the variables are examined with VAR analysis. Provided with the long run relation, VAR is estimated. Finally Granger causality tests based on VAR. Keywords: Foreign trade, real exchange rate, monetary policy, fiscal policy, impossible trinity