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Estimating the Euro Effects on Trade with Propensity Score Matching

Pandej Chintrakarn
Mahidol University International College (MUIC)

Review of International Economics, Vol. 16, Issue 1, pp. 186-198, February 2008

Abstract:
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.

Accepted Paper Series

Date posted: December 30, 2007 ; Last revised: March 26, 2008

Suggested Citation

Chintrakarn, Pandej, Estimating the Euro Effects on Trade with Propensity Score Matching. Review of International Economics, Vol. 16, Issue 1, pp. 186-198, February 2008. Available at SSRN: http://ssrn.com/abstract=1079383 or doi:10.1111/j.1467-9396.2007.00725.x

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Contact Information

Pandej Chintrakarn (Contact Author)

Mahidol University International College (MUIC) ( email )

999 Buddhamonthon 4 Road
Salaya, Nakhonpathom 73170
Thailand
66 (0) 2441 5090 (Phone)
66 (0) 2441 9745 (Fax)