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Estimating the Euro Effects on Trade with Propensity Score Matching

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  • Pandej Chintrakarn

Abstract

We investigate the effect of the euro on trade among EMU members. Using various semi‐nonparametric methods based on matching, we find that the euro has a statistical and economic impact on trade. The results show that two countries sharing the euro currency trade somewhere between 9% and 14% more than other country‐pairs. In addition, we find no evidence of trade diversion due to the euro.

Suggested Citation

  • Pandej Chintrakarn, 2008. "Estimating the Euro Effects on Trade with Propensity Score Matching," Review of International Economics, Wiley Blackwell, vol. 16(1), pages 186-198, February.
    • Handle: RePEc:bla:reviec:v:16:y:2008:i:1:p:186-198
    DOI: 10.1111/j.1467-9396.2007.00725.x
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    References listed on IDEAS

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