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The Euro Effect on Eurozone Exports

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  • Meriem Bouchoucha

Abstract

In this article, we examine the impact of the real effective exchange rate for several countries in the Euro area over the period before and after the introduction of the euro. Based on ARDL modeling techniques, we estimate the long-run and short-run relationships between exports volumes and a number of key variables, namely Real Effective Exchange Rate, weighted GDP and Output Gap. This article is particularly oriented towards the study of long-term relationships between the exchange rate and global exports performance, on the one hand; and between exchange rates and intra-European exports performance, on the other. Two measures of exchange rate are considered: a global real exchange rate to investigate the impact of exchange rates on overall exports and an intra European real exchange rate calculated to detect its effect on intra-European trade. The study shows that there is a big difference between the impact of exchange rates on exports before and after the establishment of the European Monetary Union on the one hand , and between the impacts of exchange rates on intra-European global exports on the other hand.

Suggested Citation

  • Meriem Bouchoucha, 2015. "The Euro Effect on Eurozone Exports," International Economic Journal, Taylor & Francis Journals, vol. 29(3), pages 399-418, September.
    • Handle: RePEc:taf:intecj:v:29:y:2015:i:3:p:399-418
    DOI: 10.1080/10168737.2015.1020324
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    References listed on IDEAS

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    1. Berger, Helge & Nitsch, Volker, 2008. "Zooming out: The trade effect of the euro in historical perspective," Journal of International Money and Finance, Elsevier, vol. 27(8), pages 1244-1260, December.
    2. Baldwin, Richard E. & Skudelny, Frauke & Taglioni, Daria, 2005. "Trade effects of the euro: evidence from sectoral data," Working Paper Series 446, European Central Bank.
    3. Campbell, Douglas L., 2011. "Estimating the impact of currency unions on trade using a dynamic gravity framework," MPRA Paper 35531, University Library of Munich, Germany.
    4. Mr. Jarkko Turunen & Mr. Richard T. Harmsen & Mr. Tamim Bayoumi, 2011. "Euro Area Export Performance and Competitiveness," IMF Working Papers 2011/140, International Monetary Fund.
    5. Campbell, Douglas L., 2011. "Estimating the impact of currency unions on trade using a dynamic gravity framework," MPRA Paper 35531, University Library of Munich, Germany.
    6. Filippo Di Mauro & Katrin Forster, "undated". "Globalisation and the competitiveness of the Euro area," Working Papers 5, Department of the Treasury, Ministry of the Economy and of Finance.
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    Cited by:

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    2. Mindaugas Butkus & Henrikas Karpavičius & Kristina Matuzevičiūtė, 2018. "Do Free Trade Regimes and Common Currency Drive Export Growth?," Prague Economic Papers, Prague University of Economics and Business, vol. 2018(6), pages 654-667.
    3. Hope, David, 2016. "Estimating the effect of the EMU on current account balances: A synthetic control approach," European Journal of Political Economy, Elsevier, vol. 44(C), pages 20-40.
    4. Yu HSING, 2019. "Is real depreciation or more government deficit expansionary? The case of Macedonia," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(618), S), pages 51-60, Spring.
    5. repec:prg:jnlpep:v:preprint:id:663:p:1-14 is not listed on IDEAS
    6. repec:agr:journl:v:1(618):y:2019:i:1(618):p:51-60 is not listed on IDEAS
    7. Yadav, Alok Kumar & Chattopadhyay, Utpal, 2024. "Determinants of India's cotton export performance: An empirical analysis," International Economics, Elsevier, vol. 179(C).
    8. ALIN MARIUS ANDRIES & Simona MUTU, 2017. "Bank Business Models And Performance During Crisis In Central And Eastern Europe," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 20, pages 79-113, December.

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