Trade effects of the EMU: A panel data study of the importance of exchange rate volatility
This essay investigates the impact on trade flows of the formation of the European Monetary Union (EMU) and whether countries with differences in the degree of exchange rate volatility prior to the adoption of the euro have experienced such trade effects to different extents. The gravity model forms the basis for the study, which is performed using a fixed effects-method on panel data from 24 OECD