Year: 2001
Type: article
Abstract: Does leaving a currency union reduce international trade? We answer this question using a large annual panel data set covering 217 countries from 1948 through 1997. During this sample a large number of countries left currency unions; they experienced economically and statistically significant declines in bilateral trade, after accounting for other factors. Assuming symmetry, we estimate that a pair of countries that starts to use a common currency experiences a near doubling in bilateral trade.
DOI: 10.24148/wp2001-13
Authors: Federal Reserve Bank of San Francisco, Reuven Glick, Andrew K. Rose, UC Berkeley
Language: English
Topic: Global trade and economics
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W2595763694