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The EMU effect on trade: A re-assessment accounting for staggered treatment adoption

Author

Listed:
  • Carmen Díaz-Mora

    (University of Castilla-La Mancha.)

  • Silviano Esteve-Pérez

    (University of Valencia and INTECO Joint Research Unit UJI-UV)

  • Salvador Gil-Pareja

    (Salvador Gil-Pareja, Facultad de Economía, Departamento de Estructura Económica, Av. de los Naranjos s/n, C.P. 46022, Valencia, Spain.)

  • Fernando Ríos-Avila

    (Levy Economics Institute of Bard College.)

Abstract

This paper estimates the EMU effect on trade accounting for heterogeneous effects across space and time. To that end, we use an extended two-way fixed effect estimator for staggered difference-in-differences within the structural gravity model. The average EMU impact on trade between members taking into account the heterogeneity of the treatment effect at the cohort-year level is positive (close to 20%) but very similar to that found using the standard two-way fixed effects estimator. However, the new approach allows us to analyze the EMU impact by cohorts and by periods from treatment, which reveals heterogeneity in the results and provides new insights into the study of the impact of EMU.

Suggested Citation

  • Carmen Díaz-Mora & Silviano Esteve-Pérez & Salvador Gil-Pareja & Fernando Ríos-Avila, 2024. "The EMU effect on trade: A re-assessment accounting for staggered treatment adoption," Working Papers 2407, Department of Applied Economics II, Universidad de Valencia.
    • Handle: RePEc:eec:wpaper:2407
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Keywords: EMU; gravity equation; staggered difference-in-differences; heterogeneity;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

    NEP fields

    This paper has been announced in the following NEP Reports:

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