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diversion for non-Eurozone EU members with sizeable overall increase comparable to that of members …
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diversion for non-Eurozone EU members with sizeable overall increase comparable to that of members …
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considering two main channels: the relative price channel (the euro boosted trade inside the Eurozone since it lowered the … relative price of traded goods coming from the Eurozone), and the newly-trade goods channel (the euro induced firms to export a … wider range of their products to the Eurozone) - an hypothesis confirmed by the use of four firm-level data sets. Lastly …
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This paper contributes to the literature on the impact of EMU on trade, adding two new elements. First, we propose a theoretical model for explaining how the euro could have increased trade by the large amounts found in the empirical literature. Second, we propose a sectoral dataset to test the...
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