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dc.contributor.authorVicarelli, Claudioen_US
dc.contributor.authorDe Santis, Robertaen_US
dc.contributor.authorDe Nardis, Sergioen_US
dc.description.abstractIn this paper we study the effect of the single currency across industries for euro area members. Thisanalysis may help to shed light on the main factors influencing the euro effect on trade flows. We intendto verify whether these factors are specific to individual sectors and/or countries or common to the entireeuro area. We use a dynamic specification of an augmented gravity equation. Following the most recenteconometric literature, we apply a ?System GMM? dynamic panel data estimator (Blundell and Bond,1998) to avoid inconsistency and biases in the estimates, and introduce controls for heterogeneity.Our preliminary results indicate some heterogeneity at country level. Despite statistically pro-trade effectsin the majority of the EMU members, at sectoral level there are some countries in which the impact of theeuro has been negative. The pro-trade effects are mainly concentrated in scale intensive industries.Industrial specialization and location of these industries, together with other factors (i.e. differences infactor endowments, product regulations across countries), may have determined ?the winners and thelosers? in the monetary integration process.These preliminary findings are in line with those of the few other studies on this issue. In particular, thisrecent literature seems consistent with Baldwin?s (2006) ?new good? hypothesis. However, in ourestimates the magnitude of these effects are lower, probably because of our empirical strategy. Moreover,the sector/country analysis points out that other specific factors have been in place in shaping differentlythe euro effect on trade.en_US
dc.publisher|aKiel Institute for the World Economy (IfW) |cKiel-
dc.relation.ispartofseries|aEconomics Discussion Papers / Institut für Weltwirtschaft |x2008-1en_US
dc.subject.keywordInternational tradeen_US
dc.subject.keywordcurrency unionsen_US
dc.subject.keywordgravity modelsen_US
dc.subject.keyworddynamic panel dataen_US
dc.subject.keywordBlundell-Bond estimatesen_US
dc.titleThe Single Currency's Effects on Eurozone Sectoral Trade: Winners and Losers?en_US
dc.typeWorking Paperen_US

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