Measuring the trade effects of the euro in Central and Eastern Europe
We study trade effects of the euro adoption in Central and Eastern Europe (CEE). We employ a gravity model that controls for an extended set of trade theory and policy variables. The gravity model is estimated using the panel data approach on a sample of Organisation for Economic Co-operation and Development (OECD) and CEE countries trading with the rest of the world during the period 1993--2008. We find that the adoption of the euro results in trade expansion for the CEE countries. This result is driven by elimination of exchange rate volatility and accession to the European Economic and Monetary Union (EMU). However, our forecasts show that this effect is short-lived.
Volume (Year): 21 (2012)
Issue (Month): 1 (November)
|Contact details of provider:|| Web page: http://www.tandfonline.com/RJTE20 |
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RJTE20|
When requesting a correction, please mention this item's handle: RePEc:taf:jitecd:v:21:y:2012:i:1:p:25-49. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.