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Foreign trade hysteresis: An empirical essay Turkish case

Koray Yıldırım(ÇUKUROVA ÜNİVERSİTESİ)0000-0002-2524-1746
Neşe Algan(ÇUKUROVA ÜNİVERSİTESİ)0000-0001-7989-1114
Harun Bal(ÇUKUROVA ÜNİVERSİTESİ)0000-0003-0878-8253
Pages
73–88
Publication Date
2025-02-04
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

As a matter of fact, hysteresis effects caused by sunk costs are determinant in the sustainability of the current account deficit.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:The permanent effects of temporary shocks in exchange rates on foreign trade flows are defined as hysteresis.
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Key Findings & Data:In this study, hysteresis is analyzed on the basis of exchange rate and import relationship.
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Conclusion & Impact:As a matter of fact, hysteresis effects caused by sunk costs are determinant in the sustainability of the current account deficit.
🔬Design:Araştırma Makalesi
📍Scope:Comprehensive Sample
⚙️Variables:Hysteresis · Foreign Trade · Sunk Cost

Abstract

The permanent effects of temporary shocks in exchange rates on foreign trade flows are defined as hysteresis. In this study, hysteresis is analyzed on the basis of exchange rate and import relationship. Empirical findings point to the validity of hysteresis in the Turkish economy. Sunk costs are the main dynamics of hysteresis in the Turkish economy. As a matter of fact, hysteresis effects caused by sunk costs are determinant in the sustainability of the current account deficit.

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Cite This Article

Yıldırım, K., Algan, N., Bal, H. (2025). Foreign trade hysteresis: An empirical essay Turkish case. Ege Akademik Bakış Dergisi, Cilt: 25 Sayı: 1, 73–88. https://doi.org/10.21121/eab.20250105

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