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Trade and the Euro: effects on bystanders

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  • Joakim Gullstrand
  • Karin Olofsdotter

Abstract

This article investigates trade effects of the euro focusing on the impact on bystanders. We use data for Swedish firms and examine the impact on exporting firms’ intensive and extensive margins of trade. Our result shows an overall increase in Swedish firms’ exports to the euro area after the introduction of the single currency, indicating that the euro has decreased trade costs also for outsiders. In addition, we find important heterogeneity in the sample, suggesting that it is the large majority of small firms that has increased trade flows with the Eurozone the most.

Suggested Citation

  • Joakim Gullstrand & Karin Olofsdotter, 2019. "Trade and the Euro: effects on bystanders," Applied Economics Letters, Taylor & Francis Journals, vol. 26(9), pages 726-730, May.
    • Handle: RePEc:taf:apeclt:v:26:y:2019:i:9:p:726-730
    DOI: 10.1080/13504851.2018.1489999
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