Working Papers
Trade and Exchange Rate Effects: Evidence from Firm-Level Data
No.
1403
Publisher
ERF
Date
October, 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 firms engaged in manufacturing and services activities, 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, for existing trade flows, more GVC-intensive production is found to attenuate the effect of an exchange change, especially for the services intensive 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