Breaking Badly: The Currency Union Effect on Trade

Douglas Campbell and Aleksandr Chentsov ()
Additional contact information
Aleksandr Chentsov: New Economic School

No w0281, Working Papers from New Economic School (NES)

Abstract: As several European countries debate entering, or exiting, the euro, a key policy question is how much currency unions (CUs) affect trade. Despite the longstanding academic debate on the topic, even recent research has continued to find that CUs exert a large effect on trade. We find, by contrast, that the sizeable recent estimated impact of CUs on trade is driven by other major geopolitical events and is also sensitive to dynamic controls. Overall, we estimate that the impact of CUs on trade is typically indistinct from zero, depending on the specification and controls, but with fairly large standard errors.

Keywords: Euro; Currency Union Effect; Gravity Estimation (search for similar items in EconPapers)
JEL-codes: F15 F33 F54 (search for similar items in EconPapers)
Pages: 59 pages
Date: 2021-01
New Economics Papers: this item is included in nep-eec, nep-int, nep-mon and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.nes.ru/files/Preprints-resh/WP281.pdf (application/pdf)

Related works:
Journal Article: Breaking badly: The currency union effect on trade (2023)
Working Paper: Breaking Badly: The Currency Union Effect on Trade (2020)
Working Paper: Breaking Badly: The Currency Union Effect on Trade (2017)
Working Paper: Breaking Badly: The Currency Union Effect on Trade (2017)
Working Paper: Breaking Badly: The Currency Union Effect on Trade (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:abo:neswpt:w0281

Access Statistics for this paper

More papers in Working Papers from New Economic School (NES) Contact information at EDIRC.
Bibliographic data for series maintained by Vladimir Ivanyukhin ( this e-mail address is bad, please contact ).