This paper estimates an import demand function for the euro area vis-a-vis its main extra-area trading partners which takes into account the possible impact of both intra and extra-euro area exchange rate uncertainty.

How can we best explain the behavior of exports into Britain and Germany from 1975 to 1995? Our study uses a highly disaggregated data det to find some evidence of hysteresis in trade flows (rather stronger for German imports than for British) and the role of technology proxies, particularly...