Abstract
The aim of the present paper is to study the effects of euro adoption on the trade of goods and services. For this purpose, a panel regression model is estimated for the seven euro area Member States from Central, Eastern and Southern Europe that have most recently adopted the single currency. The studied period covers the years from 2003 to 2018. The results indicate that euro area membership led to an increase in both the exports (by 3.3%) and the imports (by 2.8%) of the selected countries and for the chosen time period. This paper contributes to the existing literature by empirically examining the effect of euro area membership on trade, by covering the newly joined Member States.
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