More documents from Havránek, Tomáš
More documents from Review of World Economics

Export to your Reference Manger

Please Copy & Paste



Bookmark and Share

Rose effect and the euro: is the magic gone?

[journal article]

Havránek, Tomáš

fulltextDownloadDownload full text

(465 KByte)

Citation Suggestion

Please use the following Persistent Identifier (PID) to cite this document:

Further Details
Abstract This paper presents an updated meta-analysis of the effect of currency unions on trade, focusing on the euro area. Using meta-regression methods such as the funnel asymmetry test, evidence for strong publication bias is found. The estimated underlying effect for currency unions other than the eurozone reaches more than 60%. However, according to the meta-regression analysis, the euro’s trade promoting effect corrected for publication bias is insignificant. The Rose effect literature shows signs of the economics research cycle: reported t-statistic is a quadratic concave function of the publication year. Explanatory meta-regression (robust fixed effects and random effects), that can explain about 70% of the heterogeneity in the literature, suggests that results published by some authors might consistently differ from the mainstream output and that study outcomes are systematically dependent on study design (usage of panel data, short- or long-run nature, number of countries in the data set).
Keywords Euro; monetary union; Euro
Classification Political Economy; Economic Statistics, Econometrics, Business Informatics
Free Keywords Rose effect; Trade; Currency union; Meta-analysis; Publication bias; C42; F15; F33; Außenhandelseffekt; Publikationsanalyse; Meta-Analyse
Document language English
Publication Year 2010
Page/Pages p. 241-261
Journal Review of World Economics, 146 (2010) 2
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)