TY - JOUR
T1 - Intra and offshore trade in the euro zone and trade imbalances
AU - Kim, Jong Hee
AU - Kim, Joocheol
PY - 2014/10
Y1 - 2014/10
N2 - By examining trade imbalances using 40 countries including Euro-zone countries, we show that the trade imbalance has been exacerbated after joining the Euro zone for the member countries, and the intra trade has greater impact on the imbalance than the offshore trade. For the trade between northern countries and southern countries in the Euro-zone, the imbalance worsens after joining the Euro zone. The bilateral gaps in the government expenditure and the unemployment have significant effect. Excessive government expenditure leads to the increase in the trade imbalance.
AB - By examining trade imbalances using 40 countries including Euro-zone countries, we show that the trade imbalance has been exacerbated after joining the Euro zone for the member countries, and the intra trade has greater impact on the imbalance than the offshore trade. For the trade between northern countries and southern countries in the Euro-zone, the imbalance worsens after joining the Euro zone. The bilateral gaps in the government expenditure and the unemployment have significant effect. Excessive government expenditure leads to the increase in the trade imbalance.
KW - bilateral gaps
KW - intra-regional trade
KW - trade imbalance
KW - vulnerability
UR - http://www.scopus.com/inward/record.url?scp=84904762290&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84904762290&partnerID=8YFLogxK
U2 - 10.1080/13504851.2014.907475
DO - 10.1080/13504851.2014.907475
M3 - Article
AN - SCOPUS:84904762290
SN - 1350-4851
VL - 21
SP - 1060
EP - 1064
JO - Applied Economics Letters
JF - Applied Economics Letters
IS - 15
ER -
