The nonlinear impact of currency unions on bilateral trade

Hajime Katayama, Mark Melatos

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

Most gravity model specifications assume that a currency union varies the level of bilateral trade between members by a constant proportion. We demonstrate that a common currency also alters the slope of the relationship between bilateral trade and member country GDPs.

Original languageEnglish
Pages (from-to)94-96
Number of pages3
JournalEconomics Letters
Volume112
Issue number1
DOIs
Publication statusPublished - 2011 Jul

Fingerprint

Currency union
Bilateral trade
Model specification
Gravity model
Common currency
Proportion

Keywords

  • Common currency
  • Currency union
  • Gravity model

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

Cite this

The nonlinear impact of currency unions on bilateral trade. / Katayama, Hajime; Melatos, Mark.

In: Economics Letters, Vol. 112, No. 1, 07.2011, p. 94-96.

Research output: Contribution to journalArticle

Katayama, Hajime ; Melatos, Mark. / The nonlinear impact of currency unions on bilateral trade. In: Economics Letters. 2011 ; Vol. 112, No. 1. pp. 94-96.
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