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The Effect of the Single Currency on Exports: Comparative Firm-Level Evidence

Author

Listed:
  • Tibor Lalinsky

    (National Bank of Slovakia)

  • Jaanika Meriküll

    (Bank of Estonia and University of Tartu)

Abstract
We investigate how adopting the euro affects exports using firm-level data. In contrast to previous studies, we focus on two countries, Slovakia and Estonia, which adopted the single currency individually and had different exchange rate regimes. The results highlight the importance of the transaction costs channel related to exchange rate volatility. The euro changeover has a strong pro-exports effect for a country with a floating exchange rate, while it has almost no effect for a country with a fixed exchange rate to the euro. The export effect manifests itself mainly through the intensive margin and is heterogeneous across firms, with more productive firms and smaller exporters benefiting the most.

Suggested Citation

  • Tibor Lalinsky & Jaanika Meriküll, 2021. "The Effect of the Single Currency on Exports: Comparative Firm-Level Evidence," International Journal of Central Banking, International Journal of Central Banking, vol. 17(3), pages 203-239, September.
    • Handle: RePEc:ijc:ijcjou:y:2021:q:3:a:5
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    Cited by:

    1. Tibor Lalinsky & Jaanika Meriküll, 2021. "The Effect of the Single Currency on Exports: Comparative Firm-Level Evidence," International Journal of Central Banking, International Journal of Central Banking, vol. 17(3), pages 203-239, September.
    2. repec:cnb:ocpubv:as22 is not listed on IDEAS
    3. Bod, Péter Ákos & Pócsik, Orsolya & Neszmélyi, György Iván, 2020. "Az euró és a szlovák gazdaság [The Euro and the Slovak Economy]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 321-351.
    4. repec:cnb:ocpubv:as23 is not listed on IDEAS

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    More about this item

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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