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Does the Common Currency Increase Exports? Evidence from Firm-Level Data

Author

Listed:
  • Cieślik Andrzej

    (Faculty of Economic Sciences, University of Warsaw)

  • Michałek Jan

    (Faculty of Economic Sciences, University of Warsaw)

  • Michałek Anna

    (European Central Bank)

Abstract

The main goal of this paper is to investigate empirically whether the adoption of the common currency increases the export activity of individual frms using the probity model. There are many studies that seek to estimate the aggregate trade effects of the adoption of the euro by the “outside” EU countries, which are based on the gravity model. In contrast to the existing literature we use an alternative micro econometric approach based on firm level data compiled by the EBRD and the World Bank. We demonstrate that the propensity to export of individual frms from Slovenia and Slovakia increased after the accession of those countries to the Eurozone.

Suggested Citation

  • Cieślik Andrzej & Michałek Jan & Michałek Anna, 2014. "Does the Common Currency Increase Exports? Evidence from Firm-Level Data," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 41(1), pages 8-22, March.
    • Handle: RePEc:vrs:ijomae:v:41:y:2014:i:1:p:8-22:n:1
    DOI: 10.2478/ijme-2014-0034
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    References listed on IDEAS

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    1. Bąk Henryk & Maciejewski Sebastian, 2015. "Endogeneity and Specialization in the European Monetary Union," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 46(1), pages 7-40, June.

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    More about this item

    Keywords

    Export; Eurozone; frm level data;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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