The nonlinear impact of currency unions on bilateral trade

Hajime Katayama*, Mark Melatos

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)


Most gravity model specifications assume that a currency union varies the level of bilateral trade between members by a constant proportion. We demonstrate that a common currency also alters the slope of the relationship between bilateral trade and member country GDPs.

Original languageEnglish
Pages (from-to)94-96
Number of pages3
JournalEconomics Letters
Issue number1
Publication statusPublished - 2011 Jul


  • Common currency
  • Currency union
  • Gravity model

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics


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