Trade Effects of Monetary Non-Integration: Evidence from Denmark
(2024) NEKP01 20241Department of Economics
- Abstract
- This study examines the impact of monetary non-integration on trade flows, specifically focusing on Denmark and how Danish trade with the founding members of the Eurozone would have developed if Denmark would have adopted the Euro in 1999. We turn to the Synthetic Control Method (SCM) to create a synthetic Denmark that adopted the Euro in 1999 and find significant negative effects for Danish trade. While Danish exports are 3% lower, Danish imports are 18% lower than what they could have been had Denmark introduced the Euro in 1999, resulting in a treatment effect of -12% for bilateral trade with the Eurozone members. Lastly, our results are robust to various robustness checks, with the Difference-in-Differences estimates suggesting a... (More)
- This study examines the impact of monetary non-integration on trade flows, specifically focusing on Denmark and how Danish trade with the founding members of the Eurozone would have developed if Denmark would have adopted the Euro in 1999. We turn to the Synthetic Control Method (SCM) to create a synthetic Denmark that adopted the Euro in 1999 and find significant negative effects for Danish trade. While Danish exports are 3% lower, Danish imports are 18% lower than what they could have been had Denmark introduced the Euro in 1999, resulting in a treatment effect of -12% for bilateral trade with the Eurozone members. Lastly, our results are robust to various robustness checks, with the Difference-in-Differences estimates suggesting a higher treatment effect of monetary non-integration. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9161097
- author
- Endres, Kai LU and Greally, Cathal Patrick LU
- supervisor
- organization
- course
- NEKP01 20241
- year
- 2024
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Denmark, Eurozone, Trade, Synthetic Control Method, Monetary Integration
- language
- English
- id
- 9161097
- date added to LUP
- 2024-10-01 13:18:10
- date last changed
- 2024-10-01 13:18:10
@misc{9161097, abstract = {{This study examines the impact of monetary non-integration on trade flows, specifically focusing on Denmark and how Danish trade with the founding members of the Eurozone would have developed if Denmark would have adopted the Euro in 1999. We turn to the Synthetic Control Method (SCM) to create a synthetic Denmark that adopted the Euro in 1999 and find significant negative effects for Danish trade. While Danish exports are 3% lower, Danish imports are 18% lower than what they could have been had Denmark introduced the Euro in 1999, resulting in a treatment effect of -12% for bilateral trade with the Eurozone members. Lastly, our results are robust to various robustness checks, with the Difference-in-Differences estimates suggesting a higher treatment effect of monetary non-integration.}}, author = {{Endres, Kai and Greally, Cathal Patrick}}, language = {{eng}}, note = {{Student Paper}}, title = {{Trade Effects of Monetary Non-Integration: Evidence from Denmark}}, year = {{2024}}, }