The Euro's Trade Effect: A Meta‐analysis

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The effect of common currency on bilateral trade also called Rose effect has been examined extensively in past decade. There is a huge variance of results in primary research which drives a large debate. Using meta-analysis we exploit 51 studies and 3254 estimates of rose effect and provide empirical review. Our results are in contrast with the most recent studies examining the effect of euro on bilateral trade and we found that publication bias in this area of research is diminishing. This study finds the effect of euro on bilateral trade to be between 2 and 6%. Using meta regression we conclude that data source, data structure and control variables are significantly affecting the estimated effect size, but estimation technique used does not. Terms of use: Documents in

Return to schooling in China: a large meta-analysis

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Currency Unions and Global Value Chains: The Impact of the Euro on the Italian Value Added Exports

“…Estimates of the EMU trade effect vary in magnitude going from + 50% (Glick and Rose 2016;Glick and Rose 2016;Larch et al 2017) to a null or even negative effect (Santos Silva and Tenreyro 2010;Baldwin and Taglioni 2007;Berger and Nitsch 2008;Figueiredo et al 2016;Mika and Zymek 2018;Hou 2020). Recent surveys provided in Rose (2016) and Polák (2018) highlight different data sources and different techniques. As far as the data are concerned, Hou (2020) estimates the trade effects of the EMU using trade data retrieved from IMF DOTS and UN Comtrade databases and finds that different data sources can even cause opposite signs for the coefficient.…”

“…The introduction of the euro is expected to affect trade with a positive effect because currency conversion costs and exchange rate uncertainty with other euro members are eliminated. Accordingly, a large body of applied literature on international trade has been devoted to assessing the impact of the adoption of the euro on trade: estimates vary widely across studies and often have ambiguous results (see the survey by Baldwin et al 2008, and more recently Rose 2017, andPolák 2018).…”