Scandinavian Working Papers in Economics

Seminar Papers,
Stockholm University, Institute for International Economic Studies

No 750: Euro Effects on the Intensive and Extensive Margins of Trade

Harry Flam () and Håkan Nordström ()
Additional contact information
Harry Flam: Institute for International Economic Studies, Stockholm University, Postal: Stockholm University, S-106 69 Stockholm, Sweden
Håkan Nordström: Swedish Board of Trade

Abstract: We estimate that the euro has increased trade within the eurozone by about 26 per cent and trade between the eurozone and outsiders by about 12 per cent on average for the years 2002-2005 compared to 1995-1998. The percentage increases were maller for products that were exported every year during the sample period than for products that were not, indicating significant and substantial effects on the extensive margin of trade. The euro effects were concentrated to semi-finished and finished products, in particular to industries with highly processed products such as pharmaceuticals and machinery.

Keywords: -

JEL-codes: F10

48 pages, December 1, 2006

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