Zooming Out: The Trade Effect of the Euro in Historical Perspective

By Helge Berger, Volker Nitsch. Social Science Research Network, 2008

202 citations recorded by the source corpus.

In this paper, we put the trade effect of the euro in historical perspective. Using a data set that includes 22 industrial countries from 1948 to 2003, we find strong evidence of a gradual increase in trade intensity between European countries over time. Once we control for this trend in trade integration, the euro's impact on trade disappears. Moreover, a significant part of the trend in European trade integration is associated with measurable policy changes in areas such as exchange rate policy and institutional integration.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/64c77347dbb45c0802df0d0f4442d4a9ab3479ae

Citations in the corpus

• The Euro Effect on Trade is not as Large as Commonly Thought (2007, unknown): “This is the main claim of the study, which is confirmed by the more recent study of Berger and Nitsch (2005). Finally, we briefly discuss the effects of allowing for τ ij on the other estimates in Table 2.”
• Rose effect and the euro: is the magic gone? (2010, unknown): “de Nardis & Vicarelli (2003a) Berger & Nitsch (2008)”
• Currency unions in prospect and retrospect (2010, unknown): “Although the methods used are quite different, our results reinforce those of Berger & Nitsch (2008), who also emphasized the need to account for the fact that the Euro-12 countries were already strongly integrated before the euro was created.”