Rose effect versus border effect: the Euro's impact on trade

C-Tier
Journal: Applied Economics
Year: 2011
Volume: 43
Issue: 13
Pages: 1691-1702

Score contribution per author:

1.009 = (α=2.02 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The purpose of this article is to test the common finding of a positive 'Rose Effect' (RE) in the case of the Euro through a comparison with an indicator of integration among the Euro Zone (EZ) countries: the 'Border Effect' (BE). This study of the Euro's impact using both the RE and the BE is a novelty in the literature. Our findings cast doubts about the supposed trade-costs reduction caused by the Euro, reduction which is the main explanation of the positive RE estimated in several works. Both indicators are estimated by means of a gravity model for bilateral trade flows using a panel of manufacture exports and production figures.

Technical Details

RePEc Handle
repec:taf:applec:v:43:y:2011:i:13:p:1691-1702
Journal Field
General
Author Count
1
Added to Database
2026-01-25