Export Potential of SMEs and Euro Adoption in the Czech Republic

Mojmír Helísek

European Research Studies Journal, 2013, vol. XVI, issue 4, 71-78

Abstract: The objective of this essay is to access the expected impact of the euro substitution for the Czech crown on exports of small and medium sized enterprises. The assessment has led to a theoretical definition of the transmission mechanism concerning the impact of the currency change on exports. It is the trade effect, transmitted through the elimination of certain transaction costs and exchange rate risk. This effect may also be promoted by the Rose Effect, specifically via SMEs. The Rose Effect is unlikely. This results from 1) currently high share of exports of SMEs in total export that corresponds to the share of GDP generated within the SME sector; 2) above-average share of Czech SMEs that export today.

Keywords: Euro Area; Trade Effect; Transaction Costs; Exchange Rate Risk; Rose Effect (search for similar items in EconPapers)
JEL-codes: F14 F15 M16 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ers:journl:v:xvi:y:2013:i:4:p:71-78

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