Trade and the Euro: Effects on Bystanders

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Trade and the Euro: Effects on Bystanders. / Gullstrand, Joakim; Olofsdotter, Karin.

In: Applied Economics Letters, Vol. 26, No. 9, 2019, p. 726-730.

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TY - JOUR

T1 - Trade and the Euro: Effects on Bystanders

AU - Gullstrand, Joakim

AU - Olofsdotter, Karin

PY - 2019

Y1 - 2019

N2 - 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.

AB - 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.

U2 - 10.1080/13504851.2018.1489999

DO - 10.1080/13504851.2018.1489999

M3 - Article

VL - 26

SP - 726

EP - 730

JO - Applied Economics Letters

JF - Applied Economics Letters

SN - 1466-4291

IS - 9

ER -