6533b857fe1ef96bd12b3bce

RESEARCH PRODUCT

EMU and the Euro-Mediterranean Dialogue: Trade Interdependence between Mediterranean and Euro-area Countries

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description

Economic interdependence and trade encourage international dialogue and represent a base for reducing international conflicts. Hence, international co-operation for the reduction of barriers to trade and capital flows can be important not only in inducing economic progress, but also in promoting peace (Polachek and Siegle 2006). In this respect, the introduction of the euro represents an epochal event for both the participants in the single European currency and for their external partners, and in particular those in neighbouring regions. However, whilst a large body of literature has focused on analysing the first, in particular, with respect to the impact of the euro on intra-regional trade, little effort has been devoted to investigating the role of the euro in shaping the relations of the EMU members with their non-EMU partners.