Denomination composition of trade and trade balance: evidence from Turkey
Date
2005Source Title
Applied Economics
Print ISSN
0003-6846
Electronic ISSN
1466-4283
Publisher
Routledge
Volume
37
Issue
10
Pages
1177 - 1191
Language
English
Type
ArticleItem Usage Stats
614
views
views
241
downloads
downloads
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. © 2005 Taylor & Francis Group Ltd.