Does a Currency Union Affect Trade? The Time Series Evidence

Reuven Glick and Andrew Rose

No 8396, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Does leaving a currency union reduce international trade? We answer this question using a large annual panel data set covering 217 countries from 1948 through 1997. During this sample a large number of countries left currency unions; they experienced economically and statistically significant declines in bilateral trade, after accounting for other factors. Assuming symmetry, we estimate that a pair of countries that starts to use a common currency experiences a doubling in bilateral trade.

JEL-codes: F15 F33 (search for similar items in EconPapers)
Date: 2001-07
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Published as Glick, Reuven and Andrew K. Rose. "Does A Currency Union Affect Trade? The Time-Series Evidence," European Economic Review, 2002, v46(6,Jun), 1125-1151.

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Journal Article: Does a currency union affect trade? The time-series evidence (2002)
Working Paper: Does a Currency Union Affect Trade? The Time Series Evidence (2001)
Working Paper: Does a currency union affect trade? the time series evidence (2001)
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