Akademik Veri Yönetim Sistemi
Çankırı Karatekin Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, cilt.10, sa.1, ss.179-209, 2020 (Hakemli Dergi)
In previous studies, exchange rate fluctuations have been an important factor affecting real sectorof economies as economies have become more open. Most studies have focused on its tradeimpact. However, through different channels, exchange rate movements can also influenceunemployment. This study aims to analyze the effect of exchange rate and its volatility onunemployment for Turkey over the period from 2005 to 2019 by using quarterly data. As asolution for possible endogeneity problem, VAR analysis was performed. Results show thatalthough exchange rate fluctuations do not affect unemployment, exchange rate volatilitysignificantly increases unemployment. Therefore, different policy measures should be employed toreduce exchange rate volatility or its effect on unemployment or both.