Study on the Impact of the Euro on Trade and Foreign Direct Investment
The introduction of the euro was the world's largest economic â€˜experiment.' This experiment opens the door to a major advance in our understanding of how aÂ common currency affects economic activity. When it comes to the euro's trade effects the first contribution of this report is to refine â€œthe numberâ€ . Using the latest data and best empirical methodology, we confirm the received wisdom that the euro has promoted trade significantly, with the aggregate impact being in the range of 5% or so. The second main contribution of this report was to advance and refine our understanding of exact how the euro was boosting trade. The euro boosted trade inside the Eurozone since it lowered the relative price of traded goods coming from the Eurozone. The second main channel is the newly-trade goods channel. The third main contribution of the report concerns the euro's pro-FDI effects.
|Date of creation:||May 2008|
|Contact details of provider:|| Postal: Inter-institutional relations and communication Unit, B-1049 Brussels|
Fax: +32 2 298.08.23
Web page: https://ec.europa.eu/info/departments/economic-and-financial-affairs_en
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:euf:ecopap:0321. 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: (ECFIN INFO)
If references are entirely missing, you can add them using this form.