The Effect of Foreign Exchange Regimes on the Flow of Commerce of Sporting Goods Group in the D8 Countries: Panel Data Approach

One of the most important and most influential topics in macroeconomics and international economics is the choice of foreign exchange regime. The type of foreign exchange regime affects a wide range of economic variables in each country. Foreign exchange revenues on oil exports increase the importance of foreign exchange regime and foreign exchange policies. Also, the exchange rate is an important factor in the rise and fall of commerce in the countries. This study aimed at investigating the foreign exchange regimes on the flow of commerce of sporting goods group in 1993-2013 in D8 countries using a panel data approach. Data sources were World Bank, the WTO, the IMF and international information center. Stata 12 software was used for data analysis. The results showed that trade, distance, population, colonization and having a common border had a positive effect and a joint business agreement, nominal exchange rate, consolidated variable of consumer price index, effective exchange rate and GDP had a negative effect on the flow of sporting goods group commerce. Trade and nominal exchange rate were not statistically significant and other variables were statistically significant at a confidence level of 10%.