On the Bi- and Uni-lateral Trade Effects of EMU Membership

Mario Larch, Joschka Wanner and Yoto Yotov

No 2018-4, School of Economics Working Paper Series from LeBow College of Business, Drexel University

Abstract: We propose a simple theoretically consistent adjustment for structural gravity estimations of the EMU impact on international trade. Our methods result in two contributions to the related literature. First, we show that proper control for intra-national trade flows leads to larger, positive, and statistically significant bilateral EMU effects. Second, the introduction of intra-national trade flows enables us to identify unilateral EMU effects on trade between members and non-member countries. The unilateral effects are also positive, sizable and statistically significant.

Keywords: Currency Unions; Euro Effects; EMU; Unilateral EMU Effect; Structural Gravity Models (search for similar items in EconPapers)
JEL-codes: F10 F14 F15 F33 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2018-04-30
New Economics Papers: this item is included in nep-eec and nep-int
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:drxlwp:2018_004

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