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A non-parametric re-assessment of the trade effects of the euro using value added data

Author

Listed:
  • Pierluigi Montalbano

    (Department of Social Sciences and Economics, Sapienza University of Rome (IT); Department of Economics, Sussex University (UK).)

  • Silvia Nenci

    (Department of Economics, Rome Tre University (IT).)

  • Laura Dell'Agostino

    (Department of Management, Economics and Industrial Engineering, Politecnico di Milano (IT).)

Abstract
This work presents an original contribution to the debate on the trade effects of the euro, recently revamped by Glick and Rose (2016). It provides a re-assessment of the effects of the euro by focusing on trade in value added and applying non-parametric matching techniques that control for non-linearity-with-self-selection. In line with Persson (2001), we show a less positive post-assessment of the euro effect on intra-EMU trade flows. However, we detect a robust positive impact of the euro on trade shares in selected value added components net to the single market effect. These results are robust to a large set of sensitivity checks.

Suggested Citation

  • Pierluigi Montalbano & Silvia Nenci & Laura Dell'Agostino, 2019. "A non-parametric re-assessment of the trade effects of the euro using value added data," Working Papers 9/19, Sapienza University of Rome, DISS.
    • Handle: RePEc:saq:wpaper:9/19
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    trade in value added; monetary union; global value chains; production fragmentation; euro; non-parametric estimates.;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions

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