Trade in Services: The Elasticity Approach for The Case of Turkey

Ketenci, Natalya; Uz, Idil

doi:10.1080/08853908.2010.491419

Cited by 8 publications

(5 citation statements)

References 32 publications

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“…Strong support was found for the conclusion that the short-run exchange rates do not play a very important role in the long-run behavior of import and export demand. This is in contrast to studies on export and import demand functions for services, where for example Ketenci and Uz (2010) found that short-run exchange rate elasticities of export and the import of services are highly elastic compared with inelastic long-run exchange rate elasticities in Turkey. In all countries, the short run exchange rate elasticities in export and import demand functions were found highly inelastic, nearly zero.…”

Section: Error Correction Modelcontrasting

confidence: 96%

Trade Elasticities, Commodity Prices, and the Global Financial Crisis

Ketenci¹

2014

Global Journal of Emerging Market Economies

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The effect of the global financial crisis on the international trade patterns of developed countries has been one of the main focuses of recent scholarship. However, world trade depends evermore on emerging markets increases every day. Therefore, it is important to study the level of the negative effect of the crisis on emerging economies and the level of their recovery potential. This paper empirically studies the effects of the financial crisis on trade elasticities of BRIICS (Brazil, Russia, India, Indonesia, China, and South Africa) countries and Turkey. The imperfect substitute model (Goldstein & Khan, 1985) for the export and import demand functions is used. Additionally, the extended model is estimated where commodity price index is employed. The autoregressive distributed lag (ARDL) approach to cointegration is applied to test the cointegration relationships between exports and imports and their determinants, and in order to estimate the export and import elasticities in the countries under examination. The empirical results provide enough evidence to conclude that changes in the exchange rate and in commodity prices did not play significant role in export and import demand functions before and after the global financial crisis. However, foreign and domestic incomes are found highly significant and elastic in export and import demand functions, respectively. It is found as well that the global financial crisis had increasing effect on export and import responsiveness to foreign and domestic incomes respectively, except for Turkey and Brazil in the export demand function and South Africa in the import demand function.

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Section: Error Correction Modelcontrasting

confidence: 96%

Trade Elasticities, Commodity Prices, and the Global Financial Crisis

Ketenci¹

2014

Global Journal of Emerging Market Economies

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“…That is, 1(1), which implies the existence of unit root. This is consistent with the findings of Ketenci and Uz (2010). .rrcm tne Johansen cointegration test results represented in table 10, we found strong evidence of the cointegrating reiatior.sni.…”

Section: Estimating Price and Income Elasticities Of Trade In Service...supporting

confidence: 93%

“…We found strong evidence of positive values for income elasticities. Additionally, in contrast to Ketenci and Uz (2010), we found that income elasticity for export is significantly greater than income elasticity for import of services.…”

Section: Icontrasting

confidence: 87%

“…That is, simple crossborder supply, supply on the domestic market to a foreign consumer, supply by a commercial presence abroad, and supply by means of cross-border movements of people providing services. The World Trade Organization (WTO) has promoted trade in services through GATS, which established a system of international trade rules for the service sector (Ketenci and Uz, 2010).…”

Section: Introductionmentioning

confidence: 99%

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Estimating Price and Income Elasticities of Trade in Services in Nigeria

Babatunde

2016

IJSS

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The study estimated the elasticity of trade in services to real exchange rates and income in Nigeria. Adopting the imperfect substitutes model, the empirical findings revealed an inelastic real exchange rate and income elasticities in export and import of services functions in the long and short run. However, the value of income elasticity significantly exceeds the value of real exchange rate elasticity. The results for the long and short run coefficient estimates are broadly consistent across alternative estimators with some exceptions. While the real exchange rate have a significant future impact on export of services, domestic income was found to be the major driver of future import of services in Nigeria. There is a need to formulate and implement government policies that can enhance the tradability of services in Nigeria and abroad.

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“…Employing a VAR model to investigate the exchange rate propagation mechanisms to real exports of U.S. services and agricultural sectors on monthly data from 1992:1 to 2009:12, Ojede (2015) found that exchange rate shocks impact services exports more than they do on agricultural exports. However, Ketenci and Uz (2010) empirical findings revealed that the real exchange rate is not a significant determinant for the trade in services. Other studies such as Prieto et al (2011) revealed that internet penetration is a significant determinant of trade in services in the importing country as opposed to the exporter.…”

Section: Empirical Literature On Trade In Services and Exchange Ratementioning

confidence: 90%

Exchange Rate and Trade in Services Nexus in Nigeria: A Non-Linear ARDL Approach

Audu¹,

Obiezue²

2022

AJBE

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A nonlinear ARDL model is employed to investigate the asymmetric drivers of non-oil trade in services between Nigeria and Netherlands. A significant number of past studies have concentrated their attention on the elasticity of trade in services to real exchange rates and income as well as on non-oil export, total export trade or import, yet none have delve into asymmetric relationship. This study aims to fills this void. Our result shows that the effects of exchange rate variations have both positive and negative displays with more negative asymmetry. This provides further insights in the nature of service asymmetries. (JEL Codes: C22, D43, E31, L71, Q41) Keywords: asymmetric cointegration, exchange rate adjustment, disaggregated, services

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Trade in Services: The Elasticity Approach for The Case of Turkey

Abstract: This study includes the analysis of global trade in the services

Cited by 8 publications

References 32 publications

Trade Elasticities, Commodity Prices, and the Global Financial Crisis

Trade Elasticities, Commodity Prices, and the Global Financial Crisis

Estimating Price and Income Elasticities of Trade in Services in Nigeria

Exchange Rate and Trade in Services Nexus in Nigeria: A Non-Linear ARDL Approach

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