The effects of household spending and confidence indices on international trade in the context of asymmetric information: from an import and export perspective

International trade is a phenomenon that has a significant impact on day by day domestic domestic economic indicators. Given that trade has become an increasingly global structure, the relationship between international trade and macroeconomic indicators should be examined in the context of asymmetric information. Although international trade and asymmetric information theory have been the subject of much research in the literature, there are not enough studies to examine international trade in asymmetric information. The aim is therefore to examine the impact of budgetary expenditure and confidence indices on international trade. In the research Data collected from World Bank database for Turkey and relationship between import and export confidence index with central bank record were examined from the point of view of international trade. For the research data, unit root and co-integration tests were performed, followed by relational screening and causal tests. According to the findings of the study, import and export data in the context of international trade data directly affect household expenditures in terms of regulation of economy and liquidity within the country. However, this is not the case for the confidence index. Both import data and export data do not affect the confidence index. In this context, it can be stated that especially import data in international trade affect household expenditures in a positive and indirect way.

Keywords

asymmetric information, international trade, confidence index, budget expenditure