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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
To study the effect of the euro on international goods trade one typically estimates a panel model for the level of … euro is only present at the end of the sample, this may have led to an upward bias in existing euro estimates to help … have different effects across country-pairs. Data on industrialized countries over 1967-2002 show the existing euro effects …
Persistent link: https://www.econbiz.de/10011334328
Persistent link: https://www.econbiz.de/10003275872
Persistent link: https://www.econbiz.de/10002929258
This paper presents an updated meta-analysis of the effect of currency unions on trade, focusing on the Euro area …-regression analysis, the Euro's trade promoting effect corrected for publication bias is insignificant. The Rose effect literature shows …
Persistent link: https://www.econbiz.de/10013150363
The consensus back in 2008 – ten years after the introduction of the euro – was that the adoption of a common currency … had made a limited impact of around 2% in total on the trade flows of the first wave of euro area countries (Baldwin et al …., 2008). Since then, six more countries have joined the euro area, and firms have internationalised their production …
Persistent link: https://www.econbiz.de/10012650865
others used the gravity model on a much smaller data set to estimate the effects of the euro on trade among its members. The … were estimated in the euro's first four years hold up in the second four years? The answer is yes. Second, and more … explanations for the gap between 15% and 200%. First, lags. The euro is still very young. Second, size. The European countries are …
Persistent link: https://www.econbiz.de/10013147968
studies examining the effect of euro on bilateral trade and we found that publication bias in this area of research is … diminishing. This study finds the effect of euro on bilateral trade to be between 2 and 6%. Using meta regression we conclude that …
Persistent link: https://www.econbiz.de/10011568610
The consensus back in 2008 – ten years after the introduction of the euro – was that the adoption of a common currency … had made a limited impact of around 2% in total on the trade flows of the first wave of euro area countries (Baldwin et al …., 2008). Since then, six more countries have joined the euro area, and firms have internationalised their production …
Persistent link: https://www.econbiz.de/10013324209
Although entering a currency union involves both costs and benefits, an increasing body of research is finding that the benefits – in terms of international trade creation – are remarkably large. For example, Rose (2000) suggests that countries can up to triple their trade by joining a...
Persistent link: https://www.econbiz.de/10013103877