Trade Volume Effects of the Euro: Aggregate and Sector Estimates

Harry Flam () and Håkan Nordström ()
Additional contact information
Harry Flam: Institute for International Economic Studies, Stockholm University, Postal: Stockholm University, S-106 69 Stockholm, Sweden
Håkan Nordström: Kommerskollegium, Postal: Kommerskollegium, Box 6803, 113 86 Stockholm

No 746, Seminar Papers from Stockholm University, Institute for International Economic Studies

Abstract: The gravity model is used to estimate the trade volume effects of the creation of the European currency union. The euro is estimated to have raised the level of aggregate trade between euro countries in 1998-2002 compared to 1989-1997 by 15 per cent and the level of trade with outside countries by 8 per cent. The effect is clearly increasing over time. Estimates for one-digit SITC sectors yield a concentration of effects to highly processed manufactures, indicating that the spillover is caused by increasing vertical specialization across countries.

Keywords: - (search for similar items in EconPapers)
JEL-codes: F10 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-eec and nep-int
Date: 2006-06-01
View list of references View citations in EconPapers

Downloads: (external link)
http://www.iies.su.se/publications/seminarpapers/746.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
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: http://EconPapers.repec.org/RePEc:hhs:iiessp:0746

Access Statistics for this paper

More papers in Seminar Papers from Stockholm University, Institute for International Economic Studies
Address: Institute for International Economic Studies, Stockholm University, S-106 91 Stockholm, Sweden
Contact information at EDIRC.
Series data maintained by Jinfeng Ge ().