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Country size and the trade effects of the euro


Badinger, Harald; Breuss, Fritz


Bitte beziehen Sie sich beim Zitieren dieses Dokumentes immer auf folgenden Persistent Identifier (PID):http://nbn-resolving.de/urn:nbn:de:0168-ssoar-203203

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Abstract This paper investigates whether small countries gain relatively more than large countries from an 'expansion' of their market through the creation of a single currency. The introduction of the euro offers a particularly valuable source to test this hypothesis, which we motivate using the theoretical model by Casella of the year 1996. Our results from a panel data analysis, using both aggregate and disaggregated trade data, point to a statistically significant but quantitatively moderate small country bonus. On average, the euro has led to an improvement of the small euro area’s relative export performance by 3–9%.
Thesaurusschlagwörter Euro
Klassifikation Volkswirtschaftslehre; Wirtschaftssektoren
Freie Schlagwörter Country size; Trade; C33; F12; F15
Sprache Dokument Englisch
Publikationsjahr 2009
Seitenangabe S. 207-223
Zeitschriftentitel Review of World Economics, 145 (2009) 2
DOI http://dx.doi.org/10.1007/s10290-009-0013-6
Status Postprint; begutachtet (peer reviewed)
Lizenz PEER Licence Agreement (applicable only to documents from PEER project)