and nominal exchange rates are used, where Ireland, Portugal, Spain, Greece, Poland, Czech Republic, Slovenia and Hungary … for Poland are identified. Conversely, for Slovenia, Hungary, Ireland and Spain merely short-term links resulted … are included in the analysis. From the cointegration analysis and VAR analysis both long-term links and short-term links …

investment and a relationship between trade and exchange rate volatility that depend on the sign of bilateral trade balances …. Using a simulation-based technique, we find that estimates of FDI effects of EMU range between 18.5% for Poland and 30% for … Hungary. …