When, how fast and by how much do trade costs change in the euro area?

Helmut Herwartz and Henning Weber ()

No 2008,17, Economics Working Papers from Christian-Albrechts-University of Kiel, Department of Economics

Abstract: Microfoundations of the euro's effect on euro area trade hinge on the timing, the speed and the size of adjustment in trade costs. We estimate timing, speed and size of adjustment in trade costs for sectoral trade data. Our approach allows for sector specific impacts of trade costs on sectoral trade while controlling for unobserved but time-variant variables at the sector level. We find that, due to falling trade costs, trade within the euro area increases between the years 2000 and 2003 by 10 to 20 percent compared with trade between European countries that are not members of the euro area. Adjustment of individual sectors is extremely fast whereas aggregate adjustment spreads out because different sectors adjust at distinct times. --

JEL-codes: F42 F13 F33 C33 C31 F15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-eec, nep-int and nep-opm
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://econstor.eu/bitstream/10419/27672/1/EWP-2008-17.pdf (application/pdf)

Related works:
Working Paper: When, How Fast and by How Much do Trade Costs change in the Euro Area? (2008)
Working Paper: When, how fast and by how much do trade costs change in the euro area? (2008)
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:zbw:cauewp:7412

Access Statistics for this paper

More papers in Economics Working Papers from Christian-Albrechts-University of Kiel, Department of Economics
Contact information at EDIRC.
Series data maintained by ZBW - German National Library of Economics ().