Campbell, Douglas L. (2011): Estimating the impact of currency unions on trade using a dynamic gravity framework.
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This paper revisits the early time series estimates of currency unions on trade from an historical perspective using a dynamic gravity equation and by conducting in-depth case studies of currency union breakups. The early large estimates were driven by omitted variables, as many currency union exits were coterminous with warfare, communist takeovers, coup d'etats, genocide, bloody wars of independence, various other geopolitical travesties, or were predated by trade collapses. Static gravity estimates are found to be sensitive to controlling for these omitted variables, while a dynamic gravity specification implies that currency unions do not increase trade.
|Item Type:||MPRA Paper|
|Original Title:||Estimating the impact of currency unions on trade using a dynamic gravity framework|
|Keywords:||Currency Unions, Trade, Dynamic Gravity, Decolonization|
|Subjects:||F - International Economics > F1 - Trade > F15 - Economic Integration
F - International Economics > F3 - International Finance > F33 - International Monetary Arrangements and Institutions
F - International Economics > F5 - International Relations and International Political Economy > F54 - Colonialism; Imperialism; Postcolonialism
|Depositing User:||Doug Campbell|
|Date Deposited:||22. Dec 2011 02:48|
|Last Modified:||16. Feb 2013 02:05|
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