ERF 26th Annual Conference
Trade and Exchange Rate Effects: Evidence from Firm-Level Data
No.
ERF26_47
Publisher
ERF
Date
June, 2020
Topic
F1. Trade
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.
Research Fellows
Nergiz Dincer
Professor, Department of Economics and Vice Director,...
Authors
Anirudh Shingal
Senior Fellow, Indian Council for Research on...
Research Fellows
Ayça Tekin-Koru
Dean, TEDU Graduate School, Ankara, Turkey