Volume Of Foreign Trade Research Articles

INVESTMENT AND INNOVATION MECHANISM OF COMPETITIVENESS FORMATION OF AGRICULTURAL ENTERPRISES IN CONDITIONS OF SUSTAINABLE DEVELOPMENT

Introduction. Structural changes in the national economy and modern economic conditions encourage agricultural enterprises to seek new approaches to ensuring the competitiveness of both products and the competitiveness of the enterprise as a whole. Unfavorable investment climate, imperfect innovation environment, lack of socio-economic influence of the state hinder the development of the agro-industrial sector, the use of foreign progressive experience in technology and organization of production, modern forms of management, which is a crucial basis for improving their efficiency and competitiveness. The purpose of this article is consideration and analysis of the essence of the investment and innovation mechanism to ensure the competitiveness of the agricultural enterprise in terms of sustainable development and identify key factors influencing the competitiveness of the enterprise. Results. The article considers issues regarding the investment and innovation mechanism of forming the competitiveness of agricultural enterprises. It is emphasized that the agro-industrial complex determines the specialization of Mykolaiv region in trade of grain and oilseeds, which poses a threat to the sustainable development of the region’s economy due to dependence on the world situation. The dynamics of foreign trade volumes by the enterprises of Mykolaiv region are analyzed, the main partner countries and export-oriented products of a vegetable origin are outlined. The structure of direct investments by the countries and by types of activity in the economy of Mykolaiv region in 2018 is considered. Attention is paid to the factors that hinder the attraction of investment in the field of agricultural production. Conclusions. It is determined that the mechanism of investment and innovation policy in the agricultural sector of the economy includes economic, organizational, legal and social measures. A number of measures to improve the investment and innovation mechanism to ensure the competitiveness of agricultural enterprises in Mykolaiv region are proposed. It is established that with the development of information and communication technologies, it is the smart specialization of the region that is able to intensify structural changes in the economy and increase the competitiveness of agricultural enterprises in terms of sustainable development. Key words: investment, innovation, competitiveness, enterprise, smart specialization.

Foreign Trade of the Democratic Republic of the Congo and the Share of Agricultural Products for Export

Despite its numerous resources, the Democratic Republic of the Congo is one of the poorest countries in the world. The DRC also has underutilised resources of arable land and good conditions for agricultural production. This study analysed changes in the volume of foreign trade in the DRC and assessed the share of its agricultural exports in the years 2015-2019. The analysis covered the volume of total imports and exports, as well as imports and exports by sector. The foreign trade balance and the dynamics of change in the years under analysis were calculated. Structural indicators as well as fixed and variable-based dynamic indices were used. As a result of the conducted research, fluctuations in the export of all goods were found along with a decrease in the export of numerous significant agriculturally produced goods: rubber, palm oil and medicinal plants.

Country Attractiveness: Analysis of the Main Factors

Attracting investment is a relevant issue for any economy. The aim of the research is to study the factors affecting the inflow of foreign direct investment (FDI) by the example of countries leading in attracting FDI and countries of the Eurasian Economic Union (EAEU). The author uses both qualitative and quantitative methods to analyze research data of other authors, reports of international organizations and the World Bank database. The author did econometric calculations using the application package Stata 14. A linear regression model using the least-squares method was built. The author selected several factors that presumably affect FDI inflows to the EAEU countries. The calculations were based on the combined panel data analysis model used in the BRICS and MINT countries, which allowed the author to calculate the degree of influence and significance of a number of variables of FDI inflows. The study shows that political stability is more important than the inflation rate, the volume of foreign trade and final consumption expenditure. The author concluded that poor institutional development hinders investment. In particular, the negative institutional factors are non-transparent regulation policy, the dominance of public property and the lack of proper investment protection system, low degree of rule of law and limitation of economic rights. Further study of issues related to attracting FDI should consider the trends of mass digitization since the introduction and implementation of digital technology are becoming an integral part of the competitiveness of the modern economy.

MACROECONOMIC FACTORS INFLUENCING THE DEVELOPMENT OF UKRAINE’S FOREIGN TRADE

The purpose of the study is to assess the relationship between Ukraine's foreign trade and its major macroeconomic indicators in the context of deepening globalization processes and increasing dependence of national economic development on exogenous determinants. In order to achieve this goal, the most important factors of influence of macro level on the scale of foreign trade turnover have been selected, the interval of observations has covered 1999-2018. Authors used the method of economic and mathematical modeling based on the E-Views software. A multifactor regression model has been constructed, tested for autocorrelation and heteroskedasticity; causal effects have been identified between foreign trade and the main macroeconomic indicators of combinatorial nature (both exogenous and endogenous), Ukraine’s foreign trade volumes has been forecasted up to 2023. Methodology. The study is based on the analyzed macroeconomic indicators for the period of 1999-2018, which made it possible to select those that showed up greatest impact on foreign trade. The results of the conducted modeling showed: high level achievement of foreign trade dynamics of Ukraine over the mentioned years, which exceeded similar indicators of dynamics of global trade; strong link between foreign trade, foreign direct investment and employment; revealing of a significant influence upon foreign trade of innovative activity of national business in industry as a dominant segment of the foreign sector of the country. As conclusions, the authors formulated a thesis on the need to strengthen institutional support for innovation and investment activities of national enterprises as a driver for scale-up and improvement of quality of Ukraine's trade relations with the entire world. It is determined that the multiplicative interaction of innovation and investment would diversify and complicate the commodity structure of exports, increase the level of its technological and innovative nature, and thus it is to allow to get rid of the established attitude to Ukraine on the trading map of the world as a supplier of low-tech raw materials. Practical implications. The main theoretical propositions, the authors’ conclusions presented in the article, are supposed to form a methodological basis for expert evaluation in substantiating the priorities of the state policy modernization regarding conditions and factors promoting the export-oriented sectors of the national economy. Value/originality. Prospects for further research in this sphere may be to assumed onto making an assess on risks (threats) and macroeconomic effects of foreign trade deterioration in the context of declining economic activity regarding importing countries of their domestic products, especially in the EU and the PRC, further weakening of external channels of investment and reducing the ability of businesses to innovate in deepening recessionary processes on the global and national levels.

Arap Baharı’nın Türkiye’ de odun esaslı levhaların dış ticaretine etkileri

Türkiye’nin Arap Baharı hareketlerinden etkilenen Cezayir, Fas, Libya, Mısır, Suriye ve Tunus ile Ortadoğu ülkeleri Filistin, Irak, İran ve İsrail ile siyasi, kültürel ve ekonomik ilişkileri ile uzun bir geçmişe sahiptir. Bu çalışmada, Türkiye ile yukarıda adı geçen ülkelerle odun esaslı levha (OEL) ürünlerinden MDF, yonga levha, melaminli yonga levha, kontrplak, OSB ve çimentolu yonga levhanın dış ticaretinin 2010-2019 arasındaki değişimi incelenmiştir. Varılan sonuçlara göre bu on ülke ile (bölge ülkeleri) 1.813.788.000 $’lık OEL ürünleri dış ticaret hacmi olup; bunun 1.810.965.000 $’lık kısmı ihracat, 2.823.000 $’lık kısmı ise ithalat olarak gerçekleşmiştir. Türkiye OEL ürünleri dış ticaretinde en çok İran (951.919.000 $), en az ise Filistin (13.000 $) ile alışveriş yapmıştır. Türkiye’nin OEL ürünleri dış ticaretinin İran, Irak, İsrail ve Filistin ile Arap Baharı hareketlerinden bağımsız geliştiği görüldü. Diğer ülkelerde aksine 2010’da düşmeye başladı, 2013’ten itibaren toparlanmaya başladı. Türkiye’nin bölge ülkelerine yaptığı OEL ürünleri ihracatı içinde en yüksek pay MDF’nin (1.558.512.000 $), en az ise OSB’nin (3.300.000 $) olmuştur. Türkiye’nin 2010-2019 en çok ve en az ithal ettiği OEL ürünleri sırasıyla kontrplak (2.597.000 $), en az ithal ettiği iki ürün ise 2000 dolarlık tutarlarla OSB ve çimentolu yonga levhadır.

Digitalization of Trade as a Factor of Development of Export Potential of the Republic of Belarus

The purpose of the article is to show how the digitalization of trade can lead to the development of the export potential of the Republic of Belarus. The article discloses theoretical approaches to digitalization of trade as a combination of traditional and new digital models of interaction between buyer and seller. The author presents the volume, commodity and geographical structure of foreign trade of the Republic of Belarus, lists the priorities and identifies the main prospects for the development of exports using modern digital platforms and the emergence of new digital goods and services. The advantages of paperless trade and the need to implement the main provisions of National Strategy for Sustainable Socio-Economic Development of the Republic of Belarus are indicated. The author proposes the ways of development of the export potential of the Republic of Belarus witch based on an analysis of the processes of digital transformation of Belarusian trade.

Savunma Sanayinin Gelişiminin İhracat-İthalat Dengesi Üzerindeki Etkileri

Ülkemiz, jeopolitik konumu gereği ekonomik ve askerî riskler altında bulunmaktadır. Tarihçemize bakıldığında da savunma sanayine önem verilmesi gereken bir konumda olduğumuz anlaşılmaktadır. Savunma sanayinin gelişimi kavramına bakıldığında ise iç ve dış kaynaklardan ihtiyaçların karşılanması ile gelişim sağlandığı görülmektedir. Savunma sanayindeki gelişmelerin tanımlanmasında literatürde alınan patentler ve istihdam oranı gibi değişkenler temel alınmaktadır. Bu değişkenleri tanımlayan ölçüm değerlerinden biri savunma harcamaları olup harcamaların, savunma ihtiyaçlarının iç veya dış kaynaklardan karşılanması için yapılıyor olması durumuna göre ekonomik büyümeye etkileri farklı olabilmektedir. Bu çalışmada, farklı zamanlarda literatürde yer alan araştırmalar derlenerek savunma sanayinin gelişimi için yapılan harcamaların önemli bir makroekonomik değişken olan ihracat-ithalat dengesi üzerindeki etkileri araştırılmıştır. Farklı dönemlerde yapılan araştırmalarda savunma sanayi için yapılan harcamaların, savunma sanayinde teknolojik düzey arttıkça hem kısa, hem de uzun vadede ihracat-ithalat dengesinde ihracat yönünde olumlu etki yaptığı gözlenmiştir. Dolayısı ile savunma sanayi yerelleştikçe dış ticaret hacminde ithalatın payı gittikçe düşmektedir.

PROSPECTS FOR INTEGRATION

This research allows us to consider the problem of transition to monetary integration between the countries participating in the EAEU from the importance standpoint of economic prerequisites. The practical significance of the work lies in the substantiation of the objective prerequisites for the formation and creation of a monetary union in the course of regional integration processes development. The statistical data on foreign investments in the EAEU countries, on the share of gross volumes of mutual trade in the total volume of foreign trade in the EAEU as a whole and in the EAEU member states, are given. Analysis of mutual trade and investment indicators showed an insufficient level of economic convergence in the EAEU, assessed from the standpoint of the mutual trade intensity and mutual foreign direct investment intensity. At the moment, the volumes and dynamics of trade and investment flow between the EAEU member states do not cause an objective need for a transition to monetary cooperation at the level of a currency union.

Ретроспективный анализ деятельности морских торговых портов СССР в условиях новой экономической политики (1921–1928 гг.)

The article highlights the specific features of implementing the new economic policy in the seaports of the USSR. The general laws of economic development of the commercial sea ports during the NEP period have been formulated. Statistical data on port capacity from the UK, Germany, Italy, the Netherlands, the USA, and France were used for the first time, and an assessment of the economic development of domestic sea ports was made in comparison with the above countries. It was stated that the drop in cargo turnover of the Soviet ports in relation to 1913 was the most significant, and the post-war restoration was slower in comparison with European ports, with the railway and inland water transport of the USSR. It was proved that the decrease in port turnover in the USSR was a consequence of a decrease in the foreign trade volume and short sea shipping. Maintaining the state monopoly of foreign trade, which in the NEP period transformed into the state capitalism, negatively affected outward and inward trade. The intensity of coastal shipping service grew slowly due to the low specialization of the regions. The seaport management system was studied; its centralization and similarity with the port management system of the Russian Empire were stated. There have been presented the study results of property relations in seaports. It was determined that the landowners in the ports were state departments represented by central ministries (people's commissariats), the owners of other property were state and sectorial governmental bodies, joint-stock companies with a predominance of state ownership. Sea trade ports were funded from the budget of the People's Commissariat of Communication Means. Port financing was ten times less than financing of railways and several times less than inland water transport financing

Current State of Russo-Chinese Investment Cooperation

China is traditionally a leading foreign trade partner of Russia. And its share in the total volume of foreign trade has a positive dynamics. At the same time, the dynamics of the Russo-Chinese investment cooperation sufficiently lags behind the dynamics of development of the Russo-Chinese foreign trade relations. At present, China considerably lags behind France, Germany, Great Britain and Italy in regard to direct investments in Russia’ economy. The major part of direct investments from China falls upon the mining and petrochemical industries, the wood and paper complex, the agriculture, and the real estate sphere. At the same time, the Chinese investors also implement several investment projects in the machine-building sphere. The Russo-Chinese cooperation has good prospects, especially in the sphere of implementing joint transport-logistic and infrastructural projects, as well as the projects in processing industry.

Dimensions of tax burden: a review on OECD countries

PurposeThe tax burden, defined as the ratio of the collected taxes in a particular period against the total product, is commonly used to determine the effect of fiscal and tax policies on the socioeconomic structure. The purpose of this study is to examine how the changes in some macroeconomic indicators affect the tax burden.Design/methodology/approachSystem generalized method of moments approach is used for 34 Organisation for Economic Co-operation and Development (OECD) members in the period of 1993-2016.FindingsBased on the research findings, variables such as income per capita, foreign trading volume, the capacity of employment, unemployment and economic share of industry sector effect tax burden in a statistically significant and positive direction. The reason that lies behind the positive effect of unemployment on tax burden is the fact that the sense of social state is not abandoned. Thus, it is predicted that the state will increase public transfer expenditures in the short term due to unemployment, this increase will impose a financial burden on the public sector both in the medium and long term and finally, there will be an increase in the tax burden.Originality/valueResults in the literature suggest that there are many reasons for increasing tax burden such as socio-economic development, financial and organizational structure and the globalization process. However, according to this study, it seems that gross domestic product per capita, the size of the industry sector, openness, employment capacity and unemployment rate also have a positive and significant effect on tax burden in the long run. Ultimately, these results demonstrate that tax burden, one of the most important indicators of the public sector size in the sample of the states and period in hand, is influenced positively by all independent variables and increases slightly but surely. These results suggest that the tax state is still a determinative factor in the socioeconomic field within its taxation tools.

Analysis of the dynamics of gross domestic product and external economic activity of the Russian Federation for 2013−2018

Currently, the Russian Federation is a significant geopolitical and economic player in the modern global world, it has its own interests and traditional partnerships with most states, including business representatives of those countries that are trying to restrain its development through restrictions and partial isolation from global development opportunities . Despite the sanctions and the unfavorable world market conditions, the Russian economy showed high plasticity, stability and adaptability to external changes, which was reflected in the positive dynamics of foreign trade growth in the existing conditions. Therefore, the purpose of this article was to conduct a comprehensive analysis of the dynamics of official statistics on economic growth and foreign trade in the Russian Federation for the period 2013-2018. To achieve this goal, the following tasks were solved: 1) an analysis of the dynamics of the gross domestic product of the Russian Federation for the period 2013-2018; 2) the role of foreign trade in the gross domestic product of the country is estimated through the calculation of foreign economic quotas; 3) analyzed the dynamics of foreign trade, imports and exports of the Russian Federation; 4) revealed the shares of product groups in the structure of exports and imports, as well as the most significant counterparties of the Russian Federation. The hypothesis of the study was the thesis of the interdependence of the volume of economic growth and foreign economic activity, including taking into account changes in foreign economic conditions. The article provides a retrospective analysis of the dynamics of economic growth in terms of nominal value and purchasing power parity, as well as the dynamics of foreign trade of the Russian Federation for the period 2013-2018. A preliminary forecast of foreign trade volumes for 2019 is given. The calculation of foreign economic, export and import quotas for the same period. The Russian specifics of the dynamics and structure of export supplies and import flows, as well as the structure of both imports and exports by counteragent countries and enlarged groups of the commodity nomenclature of foreign economic activity, are examined. For the period under review, the nominal GDP fell by 28.8%, while in terms of purchasing power parity, the Russian economy grew by 5.7% over the same period. At the same time, the largest drawdown in the economy occurred in the middle of the period; in recent years, the situation in the economy has improved. The role of foreign trade in the formation of GDP during the period was relatively stable, with the exception of 2018, when the foreign trade quota sharply increased (as well as export and import). The dynamics of foreign trade and export quotas in the Russian Federation are almost identical, while imports depend on export earnings. For the study period, foreign trade turnover of the Russian Federation decreased by 18.4%, export volumes decreased by 14.8%, import purchases decreased by 24.5%. The main problem of the economy and foreign economic activity remains its dependence on the export of mineral products.

СВІТОВІ ТРЕНДИ ТА ПЕРСПЕКТИВИ РОЗВИТКУ ПІДПРИЄМСТВ ЛЕГКОЇ ПРОМИСЛОВОСТІ УКРАЇНИ

У статті розглянуто сучасний стан та структура легкої промисловості. Досліджено місце у світовому рейтингу України, щодо умов ведення підприємницької діяльності та конкурентоспроможності в порівнянні із іншими країнами світу. Висвітлено позиції розвитку легкої промисловості України, ключові драйвери виробництва продукції та особливості в умовах нестабільного зовнішнього середовища. Досліджено показникидинаміки розвитку світової першості (ТОП-10) галузі легкої промисловості та показників їх капіталізації. Зазначено обсяги зовнішньої торгівлі України в розрізі текстильних готових виробів. Перелічено основні системні проблеми занепаду галузі та визначено стратегічні перспективи розвитку підприємств легкої промисловості України.

An expanded multiplier-accelerator model

Abstract. This paper revisits the standard multiplier-accelerator model, as advanced by Samuelson. While borrowing on the main assumptions of the multiplier-accelerator, we check the validity of Keynesian theory. Using higher-order difference equations and advanced-level mathematical techniques we solve the tax-augmented multiplier-accelerator model, as well as the open economy one. We find that the values of equilibrium national income are identical to the simple national-income model in the absence of the accelerator. We solve the simple multiplier-accelerator model both in present terms and withprolonged consumption. We solve for equilibrium consumption, tax, and imports which are unaffected by the accelerator. All results conform to Keynesian theory where investment, government spending and exports have a favorable multiplying effect on national income through their respective multipliers. The accelerator coefficient affects neither those multipliers, nor the income and the non-income tax multipliers. Expanding the multiplier-accelerator by the volume of foreign trade, taxation or both does not change the values of Keynesian variables. Adding an accelerator leaves optimal values unaffected but, more importantly, reinforces Keynesian theory. Keywords. Multiplier, Accelerator, Open economy, Difference equations, Keynesian national-income model, Tax multiplier, Exports multiplier. JEL. E12, C02, E21, E22.

Izvoz kao pokretač privrednog rasta Republike Srbije

In recent years, Serbian exports, accompanied by the inflow of foreign direct investment, have improved significantly, resulting in stronger economic growth. However, despite the positive predictions of the European Commission for further growth of exports and the increase of economic growth in Serbia, our economy is facing serious consequences caused by the COVID-19 pandemic, which is affecting the whole world. The paper aims at presenting the current macroeconomic picture of the Republic of Serbia through the analysis of import and export policy, the volume of foreign trade and their impact on economic growth. In relation to the set goals, the paper is divided into four thematic units, with conclusions and possible recommendations at the end. Special emphasis was placed on exports, its development opportunities and improving competitiveness, as well as the presentation of recommendations within the Serbia's New Growth Agenda. The subject of this paper is based on theoretical data analysis, through descriptive and comparative methods as well as the synthesis of theoretical and empirical facts. For this research the primary empirical data were collected from various relevant sources.

EXPORT-IMPORT OPERATIONS OF THE USSR AND CUSTOMS ACTIVITIES IN THE PERIOD 1941–1945

Introduction. TThe question of the functioning of the customs system during World War II is one of the little-studied but extremely interesting pages in the history of domestic finance, because foreign economic activity did not stop for a single day during the hostilities. The purpose is research on the organization of export-import operations in the USSR during 1941–1945 in the context of their scope and features of implementation and clarification of the role and importance of the customs service in ensuring these processes. Methods. In the course of work on the article were used general and special research methods: analysis, generalization, statistical, graphical, tabular. Results. The article deals with the issue of the USSR foreign economic activity during the active fighting with Germany. It is found that for objective reasons, Soviet imports were 19 times the majority of exports. This trend was absolutely natural, because the country, having suffered huge losses at the initial stage of the war, needed weapons, strategic raw materials, industrial equipment, food, fuel and more. The issue of the organization of import deliveries from the Allied countries was raised on June 29, 1941. Due to the beginning of the armed aggression of Germany, the western direction of foreign trade of the USSR was closed, both on land routes and in the waters of the Baltic and Black seas. When analyzing indicators of imports, it should be understood that the bulk of the revenue, both in physical terms and in value, falls on land-lease – forms of military-economic assistance to allied countries, first and foremost, from the US, which was a free supply of military machinery, vehicles, equipment and equipment, technologies, materials, fuel, food required for combat in World War II. Under these conditions, the importance of the customs service, which, in times of war, exercised control over export-import operations, movement across the customs border of cargoes, vehicles, passengers, postal items; fought smuggling and losses in foreign trade; administer customs payments. The factors that led to the activities of customs authorities in 1941–1945 were: conduct of hostilities; repeated decrease in foreign trade volumes; change of structure of export and import (reorientation on military and strategic goods and cargoes); reduction of passenger traffic; organization of delivery on the system of a lease-lease. The main burden of customs clearance and control fell in the customs of the northern (Arkhangelsk and Murmansk), southern (Baku, Julfin, Gaudan) and Far Eastern (Vladivostok) regions. With the start of hostilities, in the territory of Ukraine, the customs were liquidated, but from January 1944 the process of their restoration in the liberated port cities began.

Uticaj globalnih trendova na spoljnu trgovinu Srbije

This paper analyzes the current key processes in the global economy: decline in international trade, rising protectionism and shortening of global production chains. The specific aim is to determine the effects of these global trends on Serbian foreign trade. The proposed hypotheses are 1) Decline in the volume of Serbian foreign trade can be expected to be sharper than global indicators and 2) The reduced volume of trade both in Serbia and globally will tend to continue for many years to come. Using statistical analysis for different types of data, linear regression and case study, the research has confirmed the first hypothesis. The coefficients obtained bz linear regression were applied to the WTO projections for global trade in 2020 and 2021. It was found that the expected decline in Serbia's foreign trade is almost twice the world average. The second hypothesis is proven by the analysis of the economic causes of the main global trends, which have proven to be structural to the greatest extent, hence long-term.

Functioning of foreign exchange markets in modern conditions

In the article the author considers the dynamics of average daily foreign exchange market turnover. It is revealed that the evolution of foreign exchange trading volumes continues to be dominated mostly by fi nancial institutions’ motives as opposed to needs arising directly from real economic activity. Geographical distribution and structure of average daily foreign exchange market turnover by foreign exchange instrument, counterparty, currency, currency pairs, location of transactions are analyzed. At end of the article, the author concludes that the process of internationalization of world economic relations is slowing down.

Considering seasonal fluctuations on balancing time series with the use of artificial neural networks when forecasting US imports from the PRC

The paper’s objective is to propose a particular methodology to be used to regard seasonal fluctuations on balancing time series while using artificial neural networks based on the example of imports from the People's Republic of China (PRC) to the USA (US). The difficulty of forecasting the volume of foreign trade is usually given by the limitations of many conventional forecasting models. For the improvement of forecasting it is necessary to propose an approach that would hybridize econometric models and artificial intelligence models. Data for an analysis to be conducted are available on the World Bank website, etc. Information on US imports from the PRC will be used. Each forecast is given by a certain degree of probability which it will be fulfilled with. Although it appeared before the experiment that there was no reason to include the categorical variable to reflect seasonal fluctuations of the USA imports from the PRC, the assumption was not correct. An additional variable, in the form of monthly value measurements, brought greater order and accuracy to the balanced time series.

The financial and non-financial contribution of Turkish banking sector on foreign trade of countries: cointegration analysis and TEB business case

Purpose- Turkey, along with the economic decisions of January 24 in 1980, has begun to apply liberal trade policies. After 1980s foreign trade volumes and capital movements has begun to experience severe accelerations. The banking system has become the major mediator of this period. The banks have very important roles, such as brokering foreign trade transactions, following export commitments, allocating loans to exporters, opening letters of credit, informing companies of the legislative point of view as well as providing consultancy services; in other words, they continue to fulfill the functions that do not generate income by non-financial means. The aim of this research is to analyze the contribution of the banking system on foreign trade of the countries with the help of taking Turk Ekonomi Bankasi (TEB) as a business case and search the cointegration between Eximbank loans (exports supporting product) and letter of credit and bank acceptance (imports supporting product) and volume of foreign trade for Turkey Methodology- ARDL, FMOLS and DOLS methods for the period 2001-2018 are used for the empirical analysis, before cointegration analysis Zivot Adrews, ADF (Augmented Dickey Fuller), PP (Phillip Perron), KPSS are used as unit root tests, CUSUM and CUSUM square tests are used for determining the stability of the coefficients and taking Turk Ekonomi Bankasi a business case for analyzing the non-financial contribution of the sector on foreign trade Findings- It was concluded that a 1% increase in the credit volume in the long term caused an increase in the foreign trade volume between 0.88% and 95%. Conclusion- It was concluded that a 1% increase in the credit volume in the long term caused an increase in the foreign trade volume between 0.88% and 95%. Especially result gained on empirical part of the paper shows us once again how important it is for banks, one of the most important actors in the financial systems of the countries, to continue their activities effectively.