Quotation Badinger, Harald, Breuss, Fritz. 2009. Country size and the trade effects of the euro. Weltwirtschaftliches Archiv (Review of World Economics) 145 (2): 207-223.




This paper investigates whether small countries gain relatively more than large countries from an ‘expansion’ of their market through the creation of a singe currency. The introduction of the euro offers a particularly valuable source to test this hypothesis, which we motivate using the theoretical model by Casella of the year 1996. Our results from a panel data analysis, using both aggregate and disaggregated trade data, point to a statistically significant but quantitatively moderate small country bonus. On average, the euro has led to an improvement of the small euro area’s relative export performance by 3-9%.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Weltwirtschaftliches Archiv (Review of World Economics)
Citation Index SSCI
WU Journalrating 2009 A
Language English
Title Country size and the trade effects of the euro
Volume 145
Number 2
Year 2009
Page from 207
Page to 223
Reviewed? Y
URL http://www.springerlink.com/content/g68n1w040j3l/?p=5e0fcd22e17d42a9bd8a3972fff2d0d8&pi=0


Badinger, Harald (Details)
Breuss, Fritz (Details)
Institute for International Economics IN (Details)
Europainstitut (Badinger) (Former organization)
Research areas (ÖSTAT Classification 'Statistik Austria')
5115 European integration (Details)
5300 Economics (Details)
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