Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/153375
Authors: 
Cafiso, Gianluca
Year of Publication: 
2008
Series/Report no.: 
ECB Working Paper 941
Abstract: 
This paper assesses the Euro’s influence upon European trade by estimating two different indicators. The first is the so-called “Rose Effect”, while the second is the “Border Effect”. The former measures how much a country within a currency union trades more with its partners than with non-member countries, the latter measures the integration of a country with its trade partners. This study of the Euro’s influence by means of the Border Effect is a novelty in the literature, it reveals that the Euro’s influence upon trade is not so clear as papers focused only on the Rose Effect claim. This casts doubts about the consequences of the Euro introduction for the European Single Market. Both indicators are estimated by means of a gravity model for bilateral trade flows using a panel of manufacture exports among twenty-four OECD countries.
Subjects: 
Border Effect
euro
European Integration
Rose effect
Trade
JEL: 
F10
F14
F15
Document Type: 
Working Paper

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