Bilateral imbalances in Europe

Helge Berger () and Volker Nitsch

No 214, Darmstadt Discussion Papers in Economics from Darmstadt University of Technology, Department of Law and Economics

Abstract: This paper examines the association between trade and financial linkages among European countries. We find that, with the introduction of the euro, trade imbalances among euro area members widened considerably, even after allowing for permanent asymmetries in trade competitiveness within pairs of countries or in the overall trade competitiveness of individual countries. Moreover, there is a significant relationship between patterns of trade and bilateral financial linkages, especially within the euro area; a surplus of a country in a bilateral trade relationship is typically accompanied by a country's positive net financial position vis-à-vis the respective partner country.

Keywords: trade balance; international investment position; euro; EMU; European integration (search for similar items in EconPapers)
JEL-codes: F15 F16 F32 F36 F42 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Bilateral Imbalances in Europe * (2013)
Working Paper: Bilateral Imbalances in Europe (2012)
Working Paper: Bilateral Imbalances in Europe (2012)
Working Paper: Bilateral Imbalances in Europe (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:darddp:dar_58438

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