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How do trade costs affect international trade? This paper offers a new approach. We rely on a flexible gravity equation that predicts variable trade cost elasticities, both across and within country pairs. We apply this framework to the effect of currency unions on international trade. While we...
Persistent link: https://www.econbiz.de/10011867116
of the euro area. With a 1980-2001 sample, no consistent significant trade effects from the 1999 creation of EMU are … found, using dummies for the 1999-2001 period. Treating EMU not as a single event but as a part of a long-term integration …
Persistent link: https://www.econbiz.de/10011472291
To study the effect of the euro on international goods trade one typically estimates a panel model for the level of trade. Trade levels increase over time, and we show that this is not fully explained by the included regressors. Because the euro is only present at the end of the sample, this may...
Persistent link: https://www.econbiz.de/10011334328
A major economic reason for the introduction of the euro was its supposedly positive effect on intra-EMU trade …. Existing studies examine this suspicion indirectly using non-EMU data and report ambiguous results. We estimate the euro …-effect directly from data that include EMU observations. Using a dynamic panel model for annual bilateral exports, we find that the …
Persistent link: https://www.econbiz.de/10011327839
European treaty. Moreover, as long as the distance to the core of the EMU countries is still large, real convergence criteria …
Persistent link: https://www.econbiz.de/10010508238
impact on "new" and "old" EMU members. By applying a Poisson estimator and focusing on a sample of 38 countries, our results … relatively large euro's effect on bilateral trade for the "new" EMU countries. We also and no evidence of trade diversion, thus …
Persistent link: https://www.econbiz.de/10011772025
This paper examines the impact of European Economic and Monetary Union (EMU) on trade within the euro area. Using panel …;gravityquot; model of trade, the panel analysis employs cointegration techniques to obtain reliable point estimates of EMU trade effects …. Cross-country differences with respect to EMU trade gains and underlying factors accounting for these differences are also …
Persistent link: https://www.econbiz.de/10012783136
majority of the EMU members, at sectoral level there are some countries in which the impact of the euro has been negative. The …
Persistent link: https://www.econbiz.de/10012725827
We re-visit the evidence about the trade benefits of European Monetary Union (EMU), focusing on the experience of … there is no robust evidence of a euro effect, there is evidence that intra-EU trade flows have expanded faster than the … significant boost to their trade from joining EMU. …
Persistent link: https://www.econbiz.de/10011597238
Persistent link: https://www.econbiz.de/10014048986