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

See all articles by Pandej Chintrakarn

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