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EMU and Trade : A PPML re-assessment with intra-national trade flows

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EMU and Trade : A PPML re-assessment with intra-national trade flows

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Esteve-Pérez, Silviano; Gil Pareja, Salvador; Llorca Vivero, Rafael; Martínez Serrano, José Antonio

Aquest document és un/a article, creat/da en: 2020

Since Rose's (2000) path-breaking study, a lot of studies have been carried out on the effect of currency unions on trade. Both Rose's striking finding that sharing a currency union more than triples trade between countries and the creation of the euro have propelled an intense debate on this issue and, in particular, about the effect of the Economic and Monetary Union (EMU) on trade. More than 50 papers have examined the effect of EMU on bilateral trade flows given that it is, by far, the most important monetary union. However, so far the results vary greatly across studies and even the most recent articles provide mixed results. Whereas Glick and Rose (2016) and Larch, Wanner, and Yotov (2018) find a positive EMU effect on trade, Mika and Zymek (2018) and Larch, Wanner, Yotov, and Zylkin (2019) provide no evidence of a positive effect on trade. Therefore, the debate is still ongoing.

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