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Federal Reserve Bank of San Francisco
Working Paper Series
Currency Unions and Regional Trade Agreements: EMU and EU Effects on Trade
Reuven Glick
Abstract

The effects of the European Economic and Monetary Union (EMU) and European Union (EU) on trade are separately estimated using an empirical gravity model. Employing a panel approach with both time-varying country and dyadic fixed effects on a large span of data (across both countries and time), it is found that EMU and EU each significantly boosted exports. EMU expanded European trade by 40% for the original members, while the EU increased trade by almost 70%. Newer members have experienced even higher trade as a result of joining the EU, but more time is necessary to see the effects of their joining EMU.


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Reuven Glick, Currency Unions and Regional Trade Agreements: EMU and EU Effects on Trade, Federal Reserve Bank of San Francisco, Working Paper Series 2016-27, 28 Oct 2016.
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Note: Draft: October 6, 2016. Data available under "Currency Unions and Trade: A Post-EMU Reassessment" at: http://faculty.haas.berkeley.edu/arose/RecRes.htm#Software
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DOI: 10.24148/wp2016-27
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