Estimating the Euro Effects on Trade with Propensity Score Matching*

Pandej Chintrakarn

62 citations0/0 files storedReview of International Economics

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Global trade and economics Monetary Policy and Economic Impact Global Financial Crisis and Policies

Abstract

Abstract We investigate the effect of the euro on trade among EMU members. Using various semi‐nonparametric methods based on matching, we find that the euro has a statistical and economic impact on trade. The results show that two countries sharing the euro currency trade somewhere between 9% and 14% more than other country‐pairs. In addition, we find no evidence of trade diversion due to the euro.

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References

1999Networks versus markets in international trade 2000One money, one market: the effect of common currencies on trade 1997The Regionalization of the World Economy 2001Business and Social Networks in International Trade 1999One Money, One Market: Estimating the Effect of Common Currencies on Trade 1995Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?2003The currency union effect on trade: early evidence from EMU 2004A Meta-Analysis of the Effect of Common Currencies on International Trade

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