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An Analysis of Risk Transfer and Trust Nexus in International Trade With Reference to Turkish Data
Abstract
International trade introduces a range of risks, which causes uncertainty over the timing of delivery and payment between exporters and importers. This chapter is a first attempt in dissecting Turkey's trade data in terms of risk allocation and trust between the parties involved. Breaking down Turkish export and import data for the years 2000 to 2018 according to methods of payment and use of currencies, the chapter first finds the risk is distributed unevenly between the exporter and the importer. Then findings are evaluated to open a new avenue of future research, constructed on the inquiry whether emerging economies like Turkey can establish trust in their trade with developed economies by using blockchain technology.
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