Research Information System
Business and Economics Research Journal , vol.12, no.3, pp.491-507, 2021 (Peer-Reviewed Journal)
This study investigates the relationship between industrial employment and
producer price index-based real effective exchange rate, over the period 2009M01-
2019M10, by employing the autoregressive distributed lag cointegration procedure, for
the Turkish economy. The empirical findings support the existence of a positive
relationship between the appreciation of the producer price index-based real effective
exchange rate and an increase in industrial employment. Accordingly, a 1% appreciation
of the producer price index-based real effective exchange rate leads to a 0.092%
increase in industrial employment. This finding supports the dominance of the
“imported input” channel over the other transmission channels for Turkey at the
industry level.