Lin, Ching-Yi; Bergin, Paul - Society for Economic Dynamics - SED - 2011
A currency union’s ability to increase international trade is one of the most debated questions in international … macroeconomics. This paper studies the dynamics of these trade effects. As empirical motivation, we find that the extensive margin of … trade (entry of new firms or goods) in the eurozone responded several years prior to implementation of the European monetary …