Economic Journal of Emerging Markets
Volume 17 Issue 1, 2025

The role of productivity, wages, demand, and exchange rates on export performance: Evidence from the Turkish manufacturing industry

Koluman, Ahmet (Unknown)
Kaplan, Fatih (Unknown)



Article Info

Publish Date
29 Apr 2025

Abstract

Purpose — This study explores the determinants of export performance in the Turkish manufacturing industry by examining the effects of productivity, wages, demand, and sector-specific real effective exchange rates from 2006 to 2019.Methods — Using firm-level export data across 21 manufacturing sectors, the study applies a Fixed-Effects model with Driscoll-Kraay standard errors to address heteroscedasticity, autocorrelation, and cross-sectional dependence. Endogeneity concerns are mitigated using Two-Step System GMM estimation, complemented by Moment Quantile Regression (MQR) for robustness checks across the export distribution.Findings — The results reveal that higher productivity, increased wages, and stronger external demand significantly enhance exports, while currency appreciation adversely affects export performance. Productivity emerges as the most influential factor.Implication — Productivity enhancement, stable exchange rate management, and workforce development support export-driven growth. Targeted policies that strengthen sectoral competitiveness and expand foreign market access are essential for sustaining manufacturing exports.Originality — This study departs from traditional macro-level analyses by constructing sector-specific indices for real exchange rates and external demand. It offers a more granular and precise understanding of export dynamics. The methodological rigor combines static and dynamic panel estimators to ensure robustness and advance empirical insights into firm-level export behavior.

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Journal Info

Abbrev

JEP

Publisher

Subject

Economics, Econometrics & Finance

Description

The Economic Journal of Emerging Markets (EJEM) is a peer-reviewed journal which provides a forum for scientific works pertaining to emerging market economies. Published every April and October, this journal welcomes original research papers on all aspects of economic development issues. The journal ...