Publication detail

The Euro’s Trade Effect: A Meta-Analysis

Author(s): Mgr. Petr Polák MSc. Ph.D.,
Type: IES Working Papers
Year: 2016
Number: 22
Published in: IES Working Papers 22/2016
Publishing place: Prague
Keywords: Rose effect, euro, trade, meta-analysis, publication bias
JEL codes: C83, O12, O32, D24
Suggested Citation: Polak P. (2016). "The Euro’s Trade Effect: A Meta-Analysis” IES Working Paper 22/2016. IES FSV. Charles University.
Grants: Meta-Analysis and The Elasticity of Trade with Respect to Trade Costs
Abstract: The effect of common currency on bilateral trade also called Rose effect has been examined extensively in past decade. There is a huge variance of results in primary research which drives a large debate. Using meta-analysis we exploit 51 studies and 3254 estimates of rose effect and provide empirical review. Our results are in contrast with the most recent studies examining the effect of euro on bilateral trade and we found that publication bias in this area of research is diminishing. This study finds the effect of euro on bilateral trade to be between 2 and 6%. Using meta regression we conclude that data source, data structure and control variables are significantly affecting the estimated effect size, but estimation technique used does not.
Downloadable: wp_2016_22_polak


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