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The main objective of the study is to determine financial relations between principal macro-economic indicators in Turkey empirically. In this respect, it is necessary to examine whether there is a pass-through effect of inflation and interest rate on the exchange rate and to examine the relation between inflation and interest rate. The period between April 2018 and January 2003 is used in the analysis, data on average monthly exchange rate, inflation and interest rates. In the study, cointegration analysis was done with ARDL bound test approach and then was done also causality analysis with Toda-Yamamoto test. According to the findings obtained from the study it has been found to be unidirectional causality from exchange rate to inflation and interest rates. According to the results, the effect of the exchange rate on the interest rate and inflation is valid. On the other hand according to the findings it has been identified cointegration relationship between interest rates and inflation in Turkey and concludes that the verification of the Fisher hypothesis has been reached. [ABSTRACT FROM AUTHOR]

In this article the relationship between FDI inflow to Turkey and Turkey’s export performance is analyzed. The lack of studies in Turkey about this issue constitutes the main motivation behind this study. The effect of FDI on exports was analyzed through the Granger Causality Test (GCT) (for the period of 1992:1-2009:7) and the VAR Analyses. As a result of the GCT, a unidirectional causality from FDI to exports was found. According to the results of export variance decomposition, it is observed that exports are under the influence of exports' own lagged values. FDI plays 6 percent role in export changes. This finding corresponds to the finding that FDI causes exports. 74 percent of FDI changes arises from FDI, 10 percent from Interest Rates, and 8 percent from Exchange Rate. While Openness Ratio's explanatory level for FDI is 2 percent, other variables are not significant in explaining FDI changes. According to these results, interest rates in the country, exchange rates, and openness ratio are main incentives behind FDI. [ABSTRACT FROM AUTHOR]