The Geography of Asset Trade and the Euro: Insiders and Outsiders

  title={The Geography of Asset Trade and the Euro: Insiders and Outsiders},
  author={Nicolas Coeurdacier and Philippe Martin},
  journal={International Finance eJournal},
This paper analyzes the determinants of cross-border asset trade on cross-country data and a Swedish data set. We focus our analysis on the impact of the euro for the determinants of trade in bonds, equity and banking assets. With the help of a theoretical model, we disentangle the different effects that the euro may have on cross-border asset holdings for both euro zone countries and countries outside of the euro zone. We find evidence that the euro implies 1) a unilateral financial… 
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