We investigate how adopting the euro affects exports using firm-level data from Slovakia and Estonia. In contrast to … to exchange rate volatility. We find the euro has a strong pro-trade effect in Slovakia, which switched to the euro from … a floating exchange rate, while it has almost no effect in Estonia, which had a fixed exchange rate to the euro prior to …

the World Bank. Using the probit model we analyze whether the accession of Slovenia and Slovakia to the Eurozone did … common currency increases the export activity of individual firms. In particular, we refer to the new strand in the trade … theory, based on the Melitz (2003) model, in which propensity to export depends on productivity and costs of exporting. There …