The Euro's Trade Effects

By Richard E. Baldwin. Social Science Research Network, 2006

208 citations recorded by the source corpus.

This paper reviews reassesses the methodology and principal findings of the “Rose effect”, i.e. the trade effects of currency union, looking at both EMU and non-EMU currency unions. The consensus estimate suggests that the euro has already boosted intra-euro area trade by five to ten percent. The paper discusses a gamut of models that might explain the Rose effect in Europe and suggests a series of empirical test that could help identify the economic mechanisms involved. JEL Classification: F12, C33, E0

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/7c66048f32163833df31f90de9431b737f6b8def

Citations in the corpus

• Rose effect and the euro: is the magic gone? (2010, unknown): “( Baldwin 2006, p. 36).”
• Patterns of export diversification in developing countries: intensive and extensive margins (2008, unknown): “First, on the difference between both margins of trade, Baldwin (2006) notes that the 6-digit classification is not fine enough to pick up on individual products.”
• The Eurozone and Political Economic Institutions (2016, unknown): “…the empirical evidence suggests that the euro made a substantial contribution to integration in all these areas (Bun & Klaassen 2002, 2007; Barr et al. 2003; Micco et al. 2003; Baldwin 2006; Blank & Buch 2007; Petroulas 2007; Baldwin et al. 2008; Coeurdacier & Martin 2009; De Sousa & Lochard 2011).”
• Reciprocal Trade Agreements in Gravity Models: A Meta-Analysis (2010, unknown): “The most recent gravity model estimations, though, tend to use panel data regression techniques,9 since cross-sectional and pooled regression models may be affected by the exclusion or mismeasurement of trading pair–specific variables (Baldwin, 2006).”
• Euro Effects on the Intensive and Extensive Margins of Trade (2006, unknown): “The recent currency union literature has been surveyed and critically examined by Baldwin (2006).”
• The European Union, the Euro, and Equity Market Integration (2010, unknown): “Second, the unbalanced nature of our panel data set, which grows over time as additional country-pairs are added to it, may raise concerns (see also Baldwin (2006)).”
• The geography of asset trade and the euro: insiders and outsiders (2009, unknown): “Interestingly, these two regularities resemble the results obtained in the recent literature (see Baldwin (2006), Flam and Nordstrom (2003)) on the impact of the euro on trade in goods: the euro acted as a decrease in transaction costs between euro countries but also between euro countries and the…”
• Euros and Zeros: The Common Currency Effect on Trade in New Goods (2006, unknown): “We focus on the 1994 to 2003 period since 2003 is the last available year and the data before 1994 is contaminated with issues concerning VAT fraud (see Baldwin 2006 for a discussion).”
• Supply-Chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses (2013, unknown): “10 See Baldwin (2006b) for a fuller analysis of the distinction.”