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.
Trade and Exchange Rate Effects: Evidence from Firm-Level Data

Research Fellows

Nergiz Dincer

Professor, Department of Economics and Vice Director,...

Trade and Exchange Rate Effects: Evidence from Firm-Level Data

Authors

Anirudh Shingal

Senior Fellow, Indian Council for Research on...

Trade and Exchange Rate Effects: Evidence from Firm-Level Data

Research Fellows

Ayça Tekin-Koru

Dean, TEDU Graduate School, Ankara, Turkey