Does a Currency Union Affect Trade? The Time Series Evidence

Reuven Glick and Andrew Rose

No 2001-13, Working Paper Series from Federal Reserve Bank of San Francisco

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 near doubling in bilateral trade.

Keywords: Foreign exchange; Trade (search for similar items in EconPapers)
JEL-codes: F15 F33 (search for similar items in EconPapers)
Pages: 26
Date: 2001-09-01
Note: PDF date: Revised Draft: September 25, 2001.
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Citations: View citations in EconPapers (5)

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Related works:
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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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedfwp:2001-13

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DOI: 10.24148/wp2001-13

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