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Author: Ivan Eugeniev Tchinkov Publisher: ISBN: Category : Endogenous growth (Economics) Languages : en Pages : 0
Book Description
The first paper uses European data to estimate the euro effect on bilateral trade. An extended gravity model and a variety of fixed effects estimators are used to robustly quantify the results. The estimates are then compared to similar ones obtained with both European and non-European data. The findings are consistent with previous studies - the euro has increased bilateral trade by between 9% and 38% for the first 10 years. The link between the euro and trade is crucial for analysing the benefits of common currencies in terms of business cycle synchronization and standards of living. The results strengthen the argument in favour of common currencies in general, and euro adoption in particular. The second paper uses European data to estimate the effect of trade on income. A growth equation and an instrumental variable approach are used in a Two-Stage-Least-Squares regression. The estimates are then compared to similar ones obtained with non-European data. The findings are consistent with previous studies - a 1% increase in the trade to GDP ratio increases income by between .25% and 1.21% . This result provides a link between the euro, trade and income. In particular, it suggests that more trade, resulting from common currencies, increases standards of living. The finding is of utmost policy relevance for countries considering joining a common currency in general and the euro in particular. The third paper investigates to what extent prices become more flexible after a country adopts the euro. If price flexibility is significantly enhanced, it can potentially offset some of the negative effects of a common currency, such as the lack of monetary independence and exchange rate adjustment in the face of asymmetric shocks. Thus, one of the main drawbacks of a monetary union would be discredited. The evidence suggests a small positive effect of the euro on price flexibility based on time-series micro data from six euro countries.
Author: Ivan Eugeniev Tchinkov Publisher: ISBN: Category : Endogenous growth (Economics) Languages : en Pages : 0
Book Description
The first paper uses European data to estimate the euro effect on bilateral trade. An extended gravity model and a variety of fixed effects estimators are used to robustly quantify the results. The estimates are then compared to similar ones obtained with both European and non-European data. The findings are consistent with previous studies - the euro has increased bilateral trade by between 9% and 38% for the first 10 years. The link between the euro and trade is crucial for analysing the benefits of common currencies in terms of business cycle synchronization and standards of living. The results strengthen the argument in favour of common currencies in general, and euro adoption in particular. The second paper uses European data to estimate the effect of trade on income. A growth equation and an instrumental variable approach are used in a Two-Stage-Least-Squares regression. The estimates are then compared to similar ones obtained with non-European data. The findings are consistent with previous studies - a 1% increase in the trade to GDP ratio increases income by between .25% and 1.21% . This result provides a link between the euro, trade and income. In particular, it suggests that more trade, resulting from common currencies, increases standards of living. The finding is of utmost policy relevance for countries considering joining a common currency in general and the euro in particular. The third paper investigates to what extent prices become more flexible after a country adopts the euro. If price flexibility is significantly enhanced, it can potentially offset some of the negative effects of a common currency, such as the lack of monetary independence and exchange rate adjustment in the face of asymmetric shocks. Thus, one of the main drawbacks of a monetary union would be discredited. The evidence suggests a small positive effect of the euro on price flexibility based on time-series micro data from six euro countries.
Author: Richard E. Baldwin Publisher: Centre for Economic Policy Research ISBN: 189812891X Category : Commerce Languages : en Pages : 126
Book Description
Annotation. "This report marshals the best available empirical evidence on the size and nature of the euro's pro-trade effects and groups the policy implications of these findings into two broad categories - lessons for potential joiners; and lessons for the euro area's current members and its economic management."--Jacket.
Author: Richard E. Baldwin Publisher: ISBN: Category : Business Languages : en Pages : 148
Book Description
Recoge: 1. Introduction - 2. The essential toolkit: gravity equation theory and econometrics - 3. Trade pricing effects of the euro - 4. Firm level evidence on the euro's trade effect - 5. The newly-traded goods hypothesis: evidence from the trade data - 6. The impact of the euro on foreign direct investment and cross-border mergers and acquisitions - 7. Discussion of channels and the specific questions - 8. Concluding remarks.
Author: Olena Ogrokhina Publisher: ISBN: Category : Economics Languages : en Pages :
Book Description
This dissertation consists of three essays on the persistence and convergence of prices in the European Union. In the first essay I study price differentials in the Eurozone by comparing prices for specific goods between European cities, and estimate their persistence. The second essay tests the effect of the single market and single currency (euro) on price convergence in the European Union. The third essay tests the effect of trade on price convergence. In my first essay, using the Economist Intelligence Unit data I find that the Southern countries of the Eurozone have consistently lower prices. While the Core states such as Germany and France are more expensive, price differentials within the Core are very low. Using panel data I estimate the persistence of deviations from the Law of One Price by employing linear and nonlinear panel unit root tests that account for contemporaneous as well as serial correlation. Based on the linear test, the estimated half-lives of the deviations from the Law of One Price are 13 months for traded goods and 15 months for non-traded goods. Price differentials for certain traded goods revert to parity at different speeds, for example prices for food adjusts much faster than for cars. Splitting the data series for individual goods into stationary and non-stationary components reduces the half-lives to 3 months for traded goods and 5 months for non-traded goods. The results of the nonlinear test suggest that the speed of reversion to parity is constant and independent of the size of the deviations, which implies prices based on good-specific data adjust in a linear rather than a nonlinear fashion. The implementation of international treaties in the European Union was expected to promote integration of consumer markets. In my second essay, I analyze the convergence of prices for a range of traded goods. Large price differentials remain across Europe. Using high income non-euro European countries as a control group, I test the effect of the euro and the earlier implemented Single European Act on the convergence of prices in the European Union. Using a difference-in-difference estimation strategy, I find that the Single European Act, rather than the common currency, reduced price differentials and promoted price convergence. Wide price differences still exist across the members of the European Union. While differentials among the ``old'' EU members have changed little over time, large price differentials between the Eastern and Central EU and the Eurozone have reduced significantly, with prices completely converging to the levels of the Southern EU. In my third essay I test the effect of trade on price differentials. The fixed effects estimate shows strong correlation between price differentials and bilateral trade, a 1\% increase in bilateral trade reduces price differences by 9\%. This finding is completely driven by the Eastern and Central EU. Since the relationship between the price differentials and trade can go in either direction, an instrument is required to estimate a causal relationship. Instrumental-variables strategy shows that the effect of trade on price differentials for the Eastern and Central EU is even larger, at 13\%, yet insignificant for the remaining EU members.
Author: Nagwa Riad Publisher: International Monetary Fund ISBN: 1463973101 Category : Business & Economics Languages : en Pages : 87
Book Description
Changing Patterns of Global Trade outlines the factors underlying important shifts in global trade that have occurred in recent decades. The emergence of global supply chains and their increasing role in trade patterns allowed emerging market economies to boost their inputs in high-technology exports and is associated with increased trade interconnectedness.The analysis points to one important trend taking place over the last decade: the emergence of China as a major systemically important trading hub, reflecting not only the size of trade but also the increase in number of its significant trading partners.
Author: Piotr Stryszowski Publisher: ISBN: 9789291562060 Category : Languages : en Pages : 130
Book Description
This study offers unique up-to-date analysis of the impact on global trade of counterfeit and pirated products, known as "fakes" by the general public. Using statistical analysis and drawing on a global dataset covering almost half million customs data on seizures, the study estimates the huge share of international trade commandeered by counterfeit and pirated goods. In 2013, international trade in such products represented up to 2.5% of world trade, or as much as USD 461 billion. This is the equivalent of the GDP of Austria, or the combined GDP of Ireland and the Czech Republic. Above all, it highlights that right holders, governments and the formal economy as a whole suffer from significant economic and social losses. It also gives an idea about the potential financial revenues collected by criminal networks that are behind such trade.^More specifically, counterfeit and pirated products amounted to up to 5 % of imports in 2013 in the European Union, or as much as EUR 85 billion (USD 116 billion). This suggests that the relative impact of counterfeiting is twice as high for a group of developed countries, such as the EU, than it is for the world as a whole. The scope of the phenomenon appears to be greater than a decade ago. Back in 2008, a previous OECD study estimated that counterfeit and pirated goods accounted for up to 1.9 % of world imports, or up to USD 200 billion, relying on the best data and more limited methods available at that time. In the context of today's revival of international trade in the global economy, there is no shortage of opportunities for counterfeiters and criminals. Counterfeit and pirated trade is a major threat to any modern, knowledge-based economy. Counterfeiting and piracy matter in an innovation driven global economy.^Intellectual property (IP) is a key value generator for firms, helping them succeed in competitive markets. At the macroeconomic level, IP protection and enforcement is one of the main drivers of innovation, which contributes to long term economic growth. Given the fundamental economic importance of IP, counterfeiting and piracy must be directly targeted as a threat to sustainable IP-based business models.
Author: European Commission. Directorate-General for Economic and Financial Affairs Publisher: European Communities ISBN: 9789279083846 Category : Business & Economics Languages : en Pages : 328
Book Description
This publication series appears six times a year, and contains important reports and communications from the Commission to the Council and the European Parliament on the economic situation and developments.
Author: Michael Emerson Publisher: ISBN: 9780198773245 Category : Business & Economics Languages : en Pages : 356
Book Description
The European Community is negotiating a new treaty to establish the constitutional foundations of an economic and monetary union in the course of the 1990s. This study provides the only comprehensive guide to the economic implications of economic and monetary union. The work of an economist inside the Commission of the European Community, it reflects the considerations influencing the design of the union. The study creates a unique bridge between the insights of modern economic analysis and the work of the policy makers preparing for economic and monetary union.
Author: Stephen Broadberry Publisher: Cambridge University Press ISBN: 1139448358 Category : History Languages : en Pages : 363
Book Description
This unique volume offers a definitive new history of European economies at war from 1914 to 1918. It studies how European economies mobilised for war, how existing economic institutions stood up under the strain, how economic development influenced outcomes and how wartime experience influenced post-war economic growth. Leading international experts provide the first systematic comparison of economies at war between 1914 and 1918 based on the best available data for Britain, Germany, France, Russia, the USA, Italy, Turkey, Austria-Hungary and the Netherlands. The editors' overview draws some stark lessons about the role of economic development, the importance of markets and the damage done by nationalism and protectionism. A companion volume to the acclaimed The Economics of World War II, this is a major contribution to our understanding of total war.
Author: Andreas Jobst Publisher: International Monetary Fund ISBN: 1475524471 Category : Business & Economics Languages : en Pages : 48
Book Description
More than two years ago the European Central Bank (ECB) adopted a negative interest rate policy (NIRP) to achieve its price stability objective. Negative interest rates have so far supported easier financial conditions and contributed to a modest expansion in credit, demonstrating that the zero lower bound is less binding than previously thought. However, interest rate cuts also weigh on bank profitability. Substantial rate cuts may at some point outweigh the benefits from higher asset values and stronger aggregate demand. Further monetary accommodation may need to rely more on credit easing and an expansion of the ECB’s balance sheet rather than substantial additional reductions in the policy rate.
Author: Ivan Eugeniev Tchinkov
Author: Ivan Eugeniev Tchinkov
Author: Richard E. Baldwin
Author: Richard E. Baldwin
Author: Olena Ogrokhina
Author: Nagwa Riad
Author: Piotr Stryszowski
Author: European Commission. Directorate-General for Economic and Financial Affairs
Author: Michael Emerson
Author: Stephen Broadberry
Author: Andreas Jobst