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The euro's effect on trade: an analysis of "old" and "new" EMU members
Review of Economics and Institutions
View Archive Info| Field | Value | |
| Title |
The euro's effect on trade: an analysis of "old" and "new" EMU members
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| Creator |
Mensah, Isaac
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| Subject |
international trade; Economic integration
Gravity model; bilateral export; poisson; euro F4; F14; F15; F33; C33 |
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| Description |
This paper provides new empirical evidence of the ``euro effect" on bilateral trade by allowing for a heterogeneous impact on ``new" and ``old" EMU members. By applying a Poisson estimator and focusing on a sample of 38 countries, our results show a positive but statistically insignificant euro’s effect on bilateral exports. However, disaggregating this effect, we report a relatively large euro’s effect on bilateral trade for the “new” EMU countries. We also find no evidence of trade diversion, thus corroborating existing evidence. These results are robust to a number of sensitivity checks and, especially, to the use of a larger sample of countries. Finally, using country-pair and country-industry-pair data, our results indicate a reduction in export concentration in the bilateral trade of ``old" EMU countries. Instead, we find an increase in concentration in trade between ``new" and ``old" EMU countries.
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| Publisher |
University of Perugia
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| Contributor |
Ca' Foscari University of Venice
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| Date |
2019-07-29
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://www.rei.unipg.it/rei/article/view/289
10.5202/rei.v10i1.289 |
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| Source |
Review of Economics and Institutions; Vol 10, No 1 (2019)
2038-1379 2038-1344 |
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| Language |
eng
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| Relation |
http://www.rei.unipg.it/rei/article/view/289/191
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