Denomination composition of trade and trade balance: evidence from Turkey
APPLIED ECONOMICS, vol.37, no.10, pp.1177-1191, 2005 (SSCI, Scopus)
- Publication Type: Article / Article
- Volume: 37 Issue: 10
- Publication Date: 2005
- Doi Number: 10.1080/00036840500109159
- Journal Name: APPLIED ECONOMICS
- Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
- Page Numbers: pp.1177-1191
- Open Archive Collection: AVESIS Open Access Collection
- TED University Affiliated: No
Abstract
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.