Title: The impact of EMU on trade flows
Authors: De Grauwe, Paul ×
Skudelny, Frauke #
Issue Date: 2000
Publisher: J c b mohr
Series Title: Weltwirtschaftliches archiv-review of world economics vol:136 issue:3 pages:381-402
Abstract: In this paper we quantify the impact of exchange rate volatility on trade flows within the EU with the help of a gravity trade model. We consider bilateral instead of total exports, and we use panel data. Moreover, we introduce dynamics into the model, taking lagged exports as explanatory variable. The estimation of this model for the period 1962-1995 leads to significant negative coefficients for the proxy of exchange rate variability. We use these estimates to calculate the potential trade-creating effect of a monetary union, setting the exchange rate volatility equal to zero. JEL no. F15, F41, F31.
ISSN: 0043-2636
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Center of International Economics, Leuven
Department of Economics, Leuven - miscellaneous
× corresponding author
# (joint) last author

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