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Estimating the Euro Effects on Trade with Propensity Score Matching

13 Pages Posted: 30 Dec 2007  

Pandej Chintrakarn

Mahidol University International College (MUIC)


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

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

Pandej Chintrakarn (Contact Author)

Mahidol University International College (MUIC) ( email )

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

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