IDEAS home Printed from https://ideas.repec.org/p/zbw/ifwkwp/1137.html
   My bibliography  Save this paper

Trade effects of monetary integration in large, mature economies: a primer on the European Monetary Union

Author

Listed:
  • Vinhas de Souza, Lúcio

Abstract

The aim of this paper is to estimate the trade gains arising from the constitution ofa currency union for a set of economically large, developed nations who create a monetary union as a deliberate economic policy action: namely, for the members of the euro area. With a 1980-2001 sample, no consistent significant trade effects from the 1999 creation of EMU are found, using dummies for the 1999-2001 period. Treating EMU not as a single event but as a part of a long-term integration process, and representing it by a series of continuous cross-country interest differentials, the evidence seems to be stronger, but it does not seem to be conditional on any single, specific exchange rate arrangement.

Suggested Citation

  • Vinhas de Souza, Lúcio, 2002. "Trade effects of monetary integration in large, mature economies: a primer on the European Monetary Union," Kiel Working Papers 1137, Kiel Institute for the World Economy (IfW).
  • Handle: RePEc:zbw:ifwkwp:1137
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/17696/1/359593836.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    2. Christopher M. Meissner, 2003. "Exchange-Rate Regimes and International Trade: Evidence from the Classical Gold Standard Era," American Economic Review, American Economic Association, vol. 93(1), pages 344-353, March.
    3. Baer, Werner & Cavalcanti, Tiago & Silva, Peri, 2002. "Economic integration without policy coordination: the case of Mercosur," Emerging Markets Review, Elsevier, vol. 3(3), pages 269-291, September.
    4. Andrew K. Rose & Eric van Wincoop, 2001. "National Money as a Barrier to International Trade: The Real Case for Currency Union," American Economic Review, American Economic Association, vol. 91(2), pages 386-390, May.
    5. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, vol. 85(3), pages 615-623, June.
    6. Michael R. Pakko & Howard J. Wall, 2001. "Reconsidering the trade-creating effects of a currency union," Review, Federal Reserve Bank of St. Louis, issue May, pages 37-46.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Langhammer, Rolf J., 2005. "Jeder macht was er will, keiner macht was er soll: zur permissiven Haltung der Welthandelsordnung gegenüber regionalen Integrationsabkommen und deren Kosten," Open Access Publications from Kiel Institute for the World Economy 3784, Kiel Institute for the World Economy (IfW).
    2. Schweickert, Rainer & Thiele, Rainer, 2004. "From Washington to post-Washington? Consensus policies and divergent developments in Latin America and Asia," Kiel Discussion Papers 408, Kiel Institute for the World Economy (IfW).

    More about this item

    Keywords

    Currency Unions; EU; EMU; panel model; gravity equation;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:ifwkwp:1137. 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: (ZBW - German National Library of Economics). General contact details of provider: http://edirc.repec.org/data/iwkiede.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.