• Media type: Report; E-Book
  • Title: Trade effects of monetary integration in large, mature economies: a primer on the European Monetary Union
  • Contributor: Vinhas de Souza, Lúcio [Author]
  • Published: Kiel: Kiel Institute for World Economics (IfW), 2002
  • Language: English
  • Keywords: gravity equation ; panel model ; Europäische Wirtschafts- und Währungsunion ; EU-Staaten ; Currency Unions ; Außenhandelseffekt ; EU ; Schätzung ; Gravitationsmodell ; Wirtschaftsintegration ; EMU
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  • Description: The aim of this paper is to estimate the trade gains arising from the constitution ofa currency union for a set of economically large, developed nations who create a monetary union as a deliberate economic policy action: namely, for the members of the euro area. With a 1980-2001 sample, no consistent significant trade effects from the 1999 creation of EMU are found, using dummies for the 1999-2001 period. Treating EMU not as a single event but as a part of a long-term integration process, and representing it by a series of continuous cross-country interest differentials, the evidence seems to be stronger, but it does not seem to be conditional on any single, specific exchange rate arrangement.
  • Access State: Open Access