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 … explain the upward trend. To correct for that, we extend the panel model (a gravity model) by including a time trend that may …

In this paper we present new evidence on the aggregate effect of the euro on trade using data for 26 OECD countries for … the period 1967–2008. We strive to fill the gaps present in the previous literature through a second-generation panel … deterministic and the cointegrating vector in the time dimension. This approach allows us to put the adoption of the euro by EMU …