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Impact of Euro Adoption on Emerging European Countries

Author

Listed:
  • Irena Vodenska

    (Boston University, USA)

  • Lou Chitkushev

    (Boston University, USA)

Abstract

We study the impact of the euro on emerging European countries by investigating three country groups: (1) seventeen Eurozone countries, (2) seven EU Eastern and Central European (ECE) members using local currencies, and (3) six EU Candidates. We analyze macroeconomic indicators and propose models to investigate whether similar or different indicators influence sovereign debt for each group. We find that exports and unemployment are positively related to sovereign debt while market capitalization shows negative relation with sovereign debt. We argue that the recent European sovereign debt crisis has raised serious challenges for the Eurozone, and propose that EU ECE members and eu candidates delay the adoption of the euro.

Suggested Citation

  • Irena Vodenska & Lou Chitkushev, 2013. "Impact of Euro Adoption on Emerging European Countries," Management, University of Primorska, Faculty of Management Koper, vol. 8(1), pages 49-70.
    • Handle: RePEc:mgt:youmng:v:8:y:2013:i:1:p:49-70
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    References listed on IDEAS

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    Cited by:

    1. Cristian Păun, 2016. "The Adoption Of Euro In Case Of Romania: The Main (Counter) Arguments," Review of Social and Economic Issues, Romanian-American University, vol. 1(3), pages 76-94, march.

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