Arbeitspapier
Has the Euro increased Trade?
A major economic reason for the introduction of the euro was its supposedly positive effect on intra-EMU trade. Existing studies examine this suspicion indirectly using non-EMU data and report ambiguous results. We estimate the euro-effect directly from data that include EMU observations. Using a dynamic panel model for annual bilateral exports, we find that the euro has significantly increased trade, with an effect of 4% in the first year and cumulating to around 40% in the long-run. These estimates can be useful in the debates on whether to join the euro in countries such as the U.K.
- Language
-
Englisch
- Bibliographic citation
-
Series: Tinbergen Institute Discussion Paper ; No. 02-108/2
- Classification
-
Wirtschaft
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Economic Integration
International Monetary Arrangements and Institutions
- Subject
-
Currency union
dynamic panel data model
EMU
exports
imperfect substitutes model.
Eurozone
Euro
Internationale Wirtschaft
Panelforschung
EU-Staaten
- Event
-
Geistige Schöpfung
- (who)
-
Bun, Maurice J.G.
Klaassen, Franc J.G.M.
- Event
-
Veröffentlichung
- (who)
-
Tinbergen Institute
- (where)
-
Amsterdam and Rotterdam
- (when)
-
2002
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Bun, Maurice J.G.
- Klaassen, Franc J.G.M.
- Tinbergen Institute
Time of origin
- 2002
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