The impact of the euro adoption on the complexity of goods in Slovenian exports
The aim of this paper is to verify the impact of the euro adoption on the complexity of goods in Slovenian exports. To the best knowledge of the authors, it is the first study on the consequences that the elimination of a national currency may have for that feature of trade. According to the Rica...
| Main Authors: | , |
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| Format: | Article |
| Language: | deu |
| Published: |
Faculty of Economics University of Rijeka
2017-06-01
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| Series: | Zbornik radova Ekonomskog fakulteta u Rijeci : časopis za ekonomsku teoriju i praksu |
| Subjects: | |
| Online Access: | https://www.efri.uniri.hr/sites/efri.uniri.hr/files/cr-collections/2/01-gabrielczak-serwach-2017-1-1498687282.pdf |
| Summary: | The aim of this paper is to verify the impact of the euro adoption on the complexity
of goods in Slovenian exports. To the best knowledge of the authors, it is the first
study on the consequences that the elimination of a national currency may have for
that feature of trade. According to the Ricardian and Hechscher-Ohlin models of
trade, such a policy decision (seen as an example of trade liberalization) may lead
to specialization in the production of either more or less sophisticated goods – the
outcome depends on the country’s technology and factor endowment. At the same
time, increased FDI flows may make a particular economy more engaged in
international production chains, with an ambiguous influence on export complexity.
Given the fact that it is impossible to (a priori) theoretically predict the impact of
monetary integration on export complexity, it is reasonable to search for the effects
of the integration empirically. The authors used the Synthetic Control Method to
compare the actual levels of export complexity in Slovenia after the adoption of the
euro with the counterfactual scenario with Slovenia not entering the Eurozone. The
results indicate that membership in the European Monetary Union (EMU) led to a
temporary increase in the complexity of exported goods. |
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| ISSN: | 1331-8004 1846-7520 |