Estimating the Euro Effects on Trade with Propensity Score Matching

Chintrakarn, Pandej

doi:10.1111/j.1467-9396.2007.00725.x

Estimating the Euro Effects on Trade with Propensity Score Matching

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

13 Pages Posted: 30 Dec 2007

Pandej Chintrakarn

Mahidol University International College (MUIC)

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.

Suggested Citation: 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: https://ssrn.com/abstract=1079383 or http://dx.doi.org/10.1111/j.1467-9396.2007.00725.x