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On the Persistence of Trade Imbalances: Evidence from Europe

Nitsch, Volker and Berger, Helge :
On the Persistence of Trade Imbalances: Evidence from Europe.
In: Darmstadt Discussion Papers in Economics, 217. Darmstadt
[Report], (2013)

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Item Type: Report
Title: On the Persistence of Trade Imbalances: Evidence from Europe
Language: English
Abstract:

Does exchange rate variability affect the speed of external adjustment? We study bilateral trade balances for a sample of 18 European countries over the period from 1948 through 2008. We find that, with the introduction of the euro, trade imbalances among euro area members widened considerably, even after allowing for permanent asymmetries in trade competitiveness within pairs of countries or in the overall trade competitiveness of individual countries. Intra-euro area imbalances also seem to have become more persistent with the introduction of the euro. Greater persistence is partially linked to economic and regulatory inflexibilities, such as fiscal restrictions and labor market rigidities.

Series Name: Darmstadt Discussion Papers in Economics
Volume: 217
Place of Publication: Darmstadt
Uncontrolled Keywords: imbalances, trade balance, trade surplus, trade deficit, persistence, euro, EMU,European integration
Classification DDC: 300 Sozialwissenschaften > 330 Wirtschaft
Divisions: 01 Law and Economics
01 Law and Economics > Volkswirtschaftliche Fachgebiete
01 Law and Economics > Volkswirtschaftliche Fachgebiete > International Economics
Date Deposited: 11 Apr 2013 11:15
Last Modified: 26 Jan 2016 14:42
URN: urn:nbn:de:tuda-tuprints-47094
Additional Information:

JEL Code: F15; F16; F32; F36; F42

Additional Information:

JEL Code: F15; F16; F32; F36; F42

URI: http://tuprints.ulb.tu-darmstadt.de/id/eprint/4709
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