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Unpublished Paper
The Impact Of The Euro On Trade: The (Early) Effect Is Not So Large
ENEPRI Working Paper n.17 (2003)
  • Claudio Vicarelli
  • Sergio de Nardis
Abstract

We investigate the impact of adoption of the euro on the commercial transactions of EMU countries. Since the EMU is a relatively new phenomenon, we use a panel estimation of the gravity equation in a dynamic framework allowing for short run effects like trade persistence. Our main finding is that adoption of the euro has had a positive but not exorbitant impact on bilateral trade among European countries (ranging between 9 and 10%), which is much lower than that derivable from recent literature relative to a larger and heterogeneous set of countries.

Keywords
  • Bilateral,
  • Economic Integration,
  • Dynamic Panel data.
Disciplines
Publication Date
February, 2003
Citation Information
Claudio Vicarelli and Sergio de Nardis. "The Impact Of The Euro On Trade: The (Early) Effect Is Not So Large" ENEPRI Working Paper n.17 (2003)
Available at: http://works.bepress.com/claudio_vicarelli/7/