Data Documentation for "Exchange Rate Fluctuations and Trade Flows: Evidence from the European Union"
Variables
Border = common border dummy.
Dev_nom = standard deviation of the first differences of the logarithmic nominal rate.
Dev_real = standard deviation of the first differences of the logarithmic real rate.
Distance = log of air distance between capitals (exceptions are Frankfurt and Milan).
EU = EU dummy.
ERM = ERM dummy.
EFTA = EFTA dummy.
GDP= log of the product of the GDP for the two countries.
Inst = sum of the squares of the three month logarithmic forward errors.
Lang2 = common language dummy.
Pop = log of product of the populations of the two countries.
Pair = country pair number
Trade = log of sum of bilateral exports between the two countries.
Programs to estimate most of the regressions in the paper are in the do files for Stata.