The Transmission of business cycles: lessons from the 2004 enlargement of the EU and the adoption of the euro

Collection:
Mokslo publikacijos / Scientific publications
Document Type:
Straipsnis / Article
Language:
Anglų kalba / English
Title:
The Transmission of business cycles: lessons from the 2004 enlargement of the EU and the adoption of the euro
Authors:
In the Journal:
Economics of transition. 2019, Vol. 27, iss. 3, p. 729-743
Subject Category:
LT
Italija (Italy); Prancūzija (France); Slovakija (Slovakia); Slovėnija (Slovenia); Lietuva (Lithuania); Ekonomikos plėtra / Economic development; Pinigai. Valiuta / Money. Currency; Prekybos tinklas / Distributive trades.
Summary / Abstract:

ENThis paper evaluates the macroeconomic interdependencies of seven Central and Eastern European Countries (CEECs) with the Euro Area (EA) through trade relationship. We estimate a near-VAR model and simulate the responses of activity in those CEECs to output shocks for 12 former members of the EA before and after the 2004 enlargement of the European Union. During both periods, empirical results show that spillover effects come through the main economies of the EA: Germany, France and Italy. Furthermore, CEECs were more responsive to output shocks in the EA after 2004 than before (3.3 times more on average). Increases in spillover effects are larger for the three CEECs that adopted the Euro early (Slovenia, Slovakia and Estonia) than the other CEECs but without higher trade intensity with the EA. Our results show that trade effects are positive inside the same currency area but negative for the CEECs without the euro.

DOI:
10.1111/ecot.12212
ISSN:
0967-0750
Subject:
Ekonomika / Economics
Related Publications:
Convergence between the business cycles of Central and Eastern European countries and the Euro area. Baltic journal of economics. 2013, Vol. 13, no. 1, p. 63-74.
Permalink:
https://www.lituanistika.lt/content/89267
Updated:
2021-02-02 19:07:52
Metrics:
Views: 13
Export:
Download