Denomination composition of trade and trade balance: evidence from Turkey |
| |
Authors: | Hakan Berument Nergiz Dincer |
| |
Institution: | 1. Department of Economics , Bilkent University , 06800 Ankara, Turkey;2. State Planning Organization , Necatibey cad. No:108, Room:1016, 06100 Ankara, Turkey |
| |
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. |
| |
Keywords: | |
|
|