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The Impact of Euro Adoption on Export Performance: Comparison of the Czech Republic and Slovakia

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  • Oliver Polyak

    (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic)

Abstract

The present paper is focused on the impact of introducing the common European currency on export performance. There has been a lot written about the possible effects of euro adoption on economies of the first eurozone participants. The contribution of this research is that we explore the impact of euro introduction on Slovakia, in comparison to the Czech Republic which still uses its own national currency. Our findings suggest that the export performance and other export-related indicators evolved largely in parallel in both countries. Positive trade effects brought about by the introduction of the euro are rather moderate – up to 5%. The results to some extent do confirm the existence of the so called ‘Rose effect’ – the effect that two countries sharing the same currency trade more than they would otherwise.

Suggested Citation

  • Oliver Polyak, 2014. "The Impact of Euro Adoption on Export Performance: Comparison of the Czech Republic and Slovakia," Working Papers IES 2014/04, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Feb 2014.
    • Handle: RePEc:fau:wpaper:wp2014_04
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    File URL: http://ies.fsv.cuni.cz/sci/publication/show/id/5037/lang/cs
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    References listed on IDEAS

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    More about this item

    Keywords

    competitiveness; euro adoption; export; Czech Republic; Slovakia;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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