Measuring the Trade Effects of EMU

Author/Editor:

Hamid Faruqee

Publication Date:

August 1, 2004

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper examines the impact of European Economic and Monetary Union (EMU) on trade within the euro area. Using panel data for 22 industrial countries, the analysis estimates the effect of the euro's arrival on area-wide trade compared to bilateral trade flows between other industrial countries. Controlling for other influences according to the "gravity" model of trade, the panel analysis employs cointegration techniques to obtain reliable point estimates of EMU trade effects. Cross-country differences with respect to EMU trade gains and underlying factors accounting for these differences are also further explored.

Series:

Working Paper No. 04/154

Subject:

English

Publication Date:

August 1, 2004

ISBN/ISSN:

9781451857269/1018-5941

Stock No:

WPIEA1542004

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

29

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