The assertion that monetary unions in general and EMU in particular have significant trade effects is consistent with the results of Glick and Rose (2016). However, the variable of the regional trade agreement, which was also included in the estimate, has so far limited the impact of each ATR. Table 4 shows what happens when heterogeneity between ATRs and CUs is allowed with different econometric specifications. Eicher, TS and Henn, C. 2011a. In search of WTO trade effects: preferential trade agreements strongly promote trade, but unevenly. Journal of the International Economy 83: 137-153. Conflicts of interest are γ and N, which are the partial effects of monetary union or regional trade agreements on trade. This specification ignores two related phenomena that may affect the impact of monetary union and the RTA on trade: (1) the effects of these forms of integration between i and j on other countries through so-called multilateral resistance effects and (2) general equilibrium effects on expenditure and production for all countries (see Anderson and van Wincoop , 2003; Baier and Bergstrand, 2009; Head and Mayer, 2014).

In this previous work, adherence to regional trade agreements was controlled by the inclusion of an aggregate measure reflecting the average impact of all regional trade agreements (ATRs). However, the aggregation of all these schemes does not allow for a possible heterogeneity of the effects of different regimes, such as the EU. In particular, this paper distinguishes between the impact of EU and other ATRs in order to explicitly analyse the impact of EU membership on the trade effects of EMU. It also assesses the impact of EMU and the EU on trade flows between old and new members. Given that most of these new members are transitional economies which, in terms of economic structure and development, are very different from those of the original members, there is reason to believe that the effects of EC and EMU accession could also be different. Joint agreements are renewed every three years and may receive minor updates more often. If an articulation agreement is not renewed at the end of their effective period, students who have already started the programme have an additional three years to join EMU in accordance with the agreement. If an agreement mentioned here has passed the deadline for its validity, which is on the last page of the Guide, contact Community College Relations at [email protected] or by phone at 734.487.6577. Since controlling the effects specific to a country and all its trading partners at the time is controlling the effects of the „ψ“, this equation does not contain temporary dyadic phenomena, but all monadian phenomena by country. Footnote 6 Therefore, (2) only the impact of specific phenomena, such as monetary union and the impact of the trade agreement on exports, can be assessed.

The final decision to create a common currency area was taken more than 25 years ago. With the Maastricht Treaty, EU Member States have set an important step in the integration process. They have reached an agreement on the establishment of a common monetary policy at EU level. On the other hand, economic and fiscal policy, although closely linked to the monetary system, has remained in the hands of the Member States. They were only required to carry out their economic policies in question and to comply with EU rules on sound public finances and balance-of-payments sustainability. There have been significant differences of opinion on the extent of the trade impact of the Economic and Monetary Union (EMU) in Europe or of a monetary union in which Member States use the same currency. In previous work, Glick and Rose (2002) have assessed the impact of trade between two countries on membership in a monetary union.