Denomination composition of trade and trade balance: evidence from Turkey

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Berument H., Dinçer N. N.

APPLIED ECONOMICS, cilt.37, sa.10, ss.1177-1191, 2005 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 37 Sayı: 10
  • Basım Tarihi: 2005
  • Doi Numarası: 10.1080/00036840500109159
  • Dergi Adı: APPLIED ECONOMICS
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.1177-1191
  • TED Üniversitesi Adresli: Hayır

Özet

The currency denominations of a country's exports and imports are not necessarily the same. If this is the case, then a change in the exchange rate parity among major currencies will affect the trade balance. The empirical evidence provided from Turkey - where exports are mostly denominated in Euros and imports are mostly denominated in USD - suggests that an appreciation of the Euro against the USD would increase the output in the long-run, appreciate the local currency and improve the trade balance for the 1985:01 2003:07 period.