Estimating the Euro Effects on Trade with Propensity Score Matching
Mahidol University International College (MUIC)
Review of International Economics, Vol. 16, Issue 1, pp. 186-198, February 2008
We investigate the effect of the euro on trade among EMU members. Using various semi-nonparametric methods based on matching, we find that the euro has a statistical and economic impact on trade. The results show that two countries sharing the euro currency trade somewhere between 9% and 14% more than other country-pairs. In addition, we find no evidence of trade diversion due to the euro.
Number of Pages in PDF File: 13
Date posted: December 30, 2007
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