Is there a “euro effect” on trade? New evidence using gravity equations with panel cointegration techniques
"...We argue that the creation of the EMU is best interpreted as a continuation, or culmination, of a series of policy changes that have led over the last four decades to greater economic integration among the countries that now constitute the EMU. We find strong evidence of a gradual increase in trade intensity between European countries as well as pervasive cross section dependence. Once we control for both, dependence and this (breaking) trend in trade integration, the effect of the formation of the EMU fades out in line with most recent empirical literature....