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Euroland - The effect of Euro on international trade: Are there winners and losers in this ''Euro-game''?
Dalarna University, School of Technology and Business Studies, Economics.
2014 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

This paper examines whether European Monetary Union (EMU) countries share fairly the effect of their membership in Eurozone (EZ) or whether are winners and losers in this ''Euro-game''. By using panel data of 27 European Union (EU) Member States for the period 2001-2012 in the context of a gravity model, we focus on estimating the Euro’s effect on bilateral trade and we detect whether this effect differs across the Member States of EZ. Two estimation methods are applied: Pooled OLS estimator and Fixed Effects estimator. The empirical results come to the conclusion that the individual country effects differ and are statistically significant, indicating that EMU’s effect on trade differs across the Member States of EZ. The overall effect of the Euro is statistically insignificant, regardless the estimation method, demonstrating that the common European currency may have no effect on bilateral trade.

Place, publisher, year, edition, pages
2014. , 29 p.
Keyword [en]
European Union, Euro, gravity model, trade effects
National Category
URN: urn:nbn:se:du-13856OAI: diva2:702906
Available from: 2014-03-18 Created: 2014-03-04 Last updated: 2014-03-18Bibliographically approved

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