Examining the Relationship between Exchange Rate and Housing Sales to Foreigners in Turkiye
Session
Management, Business and Economics
Description
Exchange rate is important for national economies. The exchange rate also affects the foreign investors' decision to invest in the country. A high exchange rate will increase the purchasing power of foreigners, while a low exchange rate will reduce the purchasing power of foreigners. The exchange rate is also effective in the purchase of housing by foreign investors in the country. The increase in the exchange rate (the depreciation of the national currency) increases the purchasing power of foreign investors and enables them to buy more goods and services. In the study, the effect of exchange rate on foreigners' housing purchases is examined. The variables of exchange rate (ER) and the amount of housing purchased by foreigners (HS) for the period of 2013 January-2023 May in Turkey were analyzed with the help of VAR model and Granger causality tests. Result of the analysis, the cointegration between the variables and the causality from the exchange rate variable to the variable of the amount of housing purchased by foreigners were determined.
Keywords:
Exchange Rate, Housing Sales, VAR model
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-550-95-6
Location
UBT Lipjan, Kosovo
Start Date
28-10-2023 8:00 AM
End Date
29-10-2023 6:00 PM
DOI
10.33107/ubt-ic.2023.163
Recommended Citation
SOYDAL, Haldun and ACAR, Mustafa Serdar, "Examining the Relationship between Exchange Rate and Housing Sales to Foreigners in Turkiye" (2023). UBT International Conference. 17.
https://knowledgecenter.ubt-uni.net/conference/IC/MBE/17
Examining the Relationship between Exchange Rate and Housing Sales to Foreigners in Turkiye
UBT Lipjan, Kosovo
Exchange rate is important for national economies. The exchange rate also affects the foreign investors' decision to invest in the country. A high exchange rate will increase the purchasing power of foreigners, while a low exchange rate will reduce the purchasing power of foreigners. The exchange rate is also effective in the purchase of housing by foreign investors in the country. The increase in the exchange rate (the depreciation of the national currency) increases the purchasing power of foreign investors and enables them to buy more goods and services. In the study, the effect of exchange rate on foreigners' housing purchases is examined. The variables of exchange rate (ER) and the amount of housing purchased by foreigners (HS) for the period of 2013 January-2023 May in Turkey were analyzed with the help of VAR model and Granger causality tests. Result of the analysis, the cointegration between the variables and the causality from the exchange rate variable to the variable of the amount of housing purchased by foreigners were determined.