An Estimate of the Effect of Currency Unions

Abstract

Gravity-based cross-sectional evidence indicates that currency unions stimulate trade as much or more than do free trade areas. Thus currencies are a source of the home-country bias in trade. This paper extends such findings to estimate the ultimate benefits of currency unions, via trade, in terms of income per capita. We use a large data set of economic… (More)

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Cite this paper

@inproceedings{Frankel2000AnEO, title={An Estimate of the Effect of Currency Unions}, author={Jeffrey A. Frankel and Andrew Rose}, year={2000} }