Trade Effects of Monetary Integration in Large, Mature Economies: A Primer on the European Monetary Union

Lucio Vinhas de Souza ()

Kiel Working Papers from Kiel Institute for the World Economy

Abstract: The aim of this paper is to estimate the trade gains arising from the constitution of a 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.

Keywords: Currency Unions; EU; EMU; panel model; gravity equation (search for similar items in EconPapers)
JEL-codes: F15 F33 (search for similar items in EconPapers)
Date: 2002-12
View list of references View citations in EconPapers

Downloads: (external link)
http://www.ifw-members.ifw-kiel.de/publications/tr ... ry-union/kap1137.pdf (application/pdf)

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:kie:kieliw:1137

Access Statistics for this paper

More papers in Kiel Working Papers from Kiel Institute for the World Economy
Series data maintained by Dieter Stribny ().