AMPIRIC APPLICATION FOR THE RELATIONSHIP BETWEEN REAL EXCHANGE EXCHANGE AND FOREIGN TRADE ROLLS IN DEVELOPING COUNTRIES

From the 1980s onwards, liberalization tendencies in the world economy increased, and export-oriented economic development policies were adopted from import substitutionist policies. One of the variables that politicians try to control macroeconomic variables in order to increase exports is exchange rates. Because the foreign exchange rates directly affect the current account balance. Rate system is basically divided into the form of real and flexible exchange rates. Especially politicians, to increase exports in a flexible exchange rate system uses as a critical policy tool. Hence the importance of factors affecting the exchange rates flexible exchange rate system is increasing. Study aims to examine the relationship between real exchange rate and macroeconomic variables in developing countries, especially the terms of trade. After the theoretical framework, a model will be formed in order to examine the relationship between the variables and data of the variables will be collected and econometric analysis will be performed