Euro Effects on the Intensive and Extensive Margins of Trade
Stockholm University - Institute for International Economic Studies (IIES); CESifo (Center for Economic Studies and Ifo Institute)
Swedish Board of Trade
CESifo Working Paper Series No. 1881
We estimate that the euro has increased trade within the eurozone by about 26 percent and trade between the eurozone and outsiders by about 12 percent on average for the years 2002-2005 compared to 1995-1998. The percentage increases were smaller for products that were exported every year during the sample period than for products that were not, indicating significant and substantial effects on the extensive margin of trade. The euro effects were concentrated to semi-finished and finished products, in particular to industries with highly processed products such as pharmaceuticals and machinery.
Number of Pages in PDF File: 50
JEL Classification: F1
Date posted: January 12, 2007