6533b7d2fe1ef96bd125e2cb

RESEARCH PRODUCT

Effects of the European Monetary Union on High-Technology Exports

Mika NieminenKari HeimonenTimo Tohmo

subject

Economics and Econometricsyhteisvaluuttahigh technologyhuipputekniikkataloudelliset vaikutuksetknowledge-based economy0502 economics and businessEuropean integrationEconomicsBias correction050207 economicsexportskansainvälinen kauppateknologiateollisuus050205 econometrics Poisson pseudo-maximum likelihoodKnowledge economy05 social sciencesrahaliitotInternational economicsvientieuroEuropean monetary uniontradeKnowledge transferEuropean Monetary UniontietotalousCommon currency

description

AbstractOur study estimates the effects of the European Monetary Union (EMU) on high-technology (HT) export and assesses the potential knowledge spillovers of such trade. Irrespective of the importance of the HT trade channel, none of the previous studies in the literature focus on the effects of a common currency on HT trade. Increasing trade in the HT sector may lead to more efficient use of resources and help countries to move towards a knowledge-based economy. Moreover, it may lead to higher overall growth. After considering multilateral resistances, pair fixed effects and bias correction in the preferred (three-way bias-corrected) model, EMU membership becomes negative and statistically non-significant for HT exports. Furthermore, our findings indicate that the effect of the EMU on HT exports is country-specific, which lends support to the notion of non-homogenous knowledge transfer and country-related knowledge-based economic development within the EMU.

yearjournalcountryeditionlanguage
2021-03-18Journal of Industry, Competition and Trade
https://doi.org/10.1007/s10842-021-00354-8