Discussion paper

DP4341 A Meta-Analysis of the Effect of Common Currencies on International Trade

34 recent studies have investigated the effect of currency union on trade, resulting in 754 point estimates of the effect. This Paper is a quantitative attempt to summarize the current state of debate; meta-analysis is used to combine the disparate estimates. The chief findings are that: a) the hypothesis that there is no effect of currency union on trade can be rejected at standard significance levels; b) the combined estimate implies that a bilateral currency union increases trade by between 30% and 90%; and c) the estimates are heterogeneous and not consistently tied to most features of the studies.

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Citation

Rose, A (2003), “DP4341 A Meta-Analysis of the Effect of Common Currencies on International Trade”, CEPR Press Discussion Paper No. 4341. https://cepr.org/publications/dp4341