Trade is measured on a gross sales basis while GDP is measured on a net sales basis, i.e. value added. The rapid internationalisation of production in the last two decades has meant that gross trade flows are increasingly unrepresentative of value added flows. This fact has important...

Trade is measured on a gross sales basis while GDP is measured on a net sales basis, i.e. value added. The rapid internationalization of production in the last two decades has meant that gross trade flows are increasingly unrepresentative of value added flows. This fact has important...

This paper reviews and reassesses the methodology and principal findings of the quot;Rose effect,quot; i.e., the trade effects of currency union, looking at both EMU and non-EMU currency unions. The consensus estimate suggests that the euro has already boosted intra-euro area trade by five to...