We estimate an augmented gravity model using a firm-level database on Turkish firms to revisit the trade-exchange rate relationship over 2003-2015 at the intensive export margin. Besides several additional layers of analysis made possible by unique attributes of our firm-level database, we also examine exchange rate effects separately for the manufacturing and services sectors, which is a significant departure from existing literature. Our findings suggest considerable heterogeneity in the exchange rate effects on exports at the intensive margin. On the whole, there is more evidence for a positive effect of currency depreciation at the intensive margin than for the countervailing effect of GVC-integration, especially for services firms in the sample.
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Research Fellows
Nergiz Dincer
Professor, Department of Economics and Vice Director,...
![Trade and Exchange Rate Effects: Evidence from Firm-Level Data](https://erf.org.eg/app/uploads/2020/09/1600352065_913_41461_anirudhshingal_nl-150x150.jpg)
Authors
Anirudh Shingal
Senior Fellow, Indian Council for Research on...
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Research Fellows
Ayça Tekin-Koru
Director of the Trade Research Center and...