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V. Anadolu International Conference in Economics, May 11-13, 2017, Eskişehir, Turkey. An analysis of Exchange Rate Volatility on Sectoral Turkish Exports by Panel Quantile Regression 1 2 3 Halil İbrahim Akıl , Bülent Güloğlu , Murat Güven ,Fuat Erdal 4 Abstract This papers aims to investigate the role of the exchange rate volatility on Turkish exports. We employ both quantile panel data regression and fixed effect model for a transformed export model. The data cover five main sectors; agricultural and forestry, manufacturing, mining and quarrying wholesale and retail trade, fishing (ISIC classification) and span the period 2001-2016 in which the flexible exchange rate regime is adopted in Turkey. Since we especially want to see the effects of the recent global crisis (2008) on the level of volatility shock, we employ a dummy variable to take into account the crisis period. The results reveal important findings: firstly, the impact of the exchange rate volatility differs significantly across each quantiles of exports. Secondly, controlling the data after the period for crisis affected the significance of the volatility shock. Thirdly, our estimations indicate that the level of Turkish export’s elasticity of the reel exchange rate and foreign income in the last decade, highly dominating the export volume, which are found to be negative and positive respectively. Our findings also present a perspective to understand how the performance of the Turkish Central Bank for the foreign exchange rate stability matter for the risk averse agents. Keywords:Exchange rate volatility, Sectoral level export, Turkey, Panel quantile regression Jel Codes:E40, O40 1 University of Winsconsin [email protected] Istanbul Technical University [email protected] 3 Corresponding Author. Istanbul Technical University [email protected] 4 Istanbul Technical University [email protected] 2