Richard Frensch, Jan Hanousek, Evžen Kočenda, 09 February 2016

With the rise of global value chains, trade in intermediates now accounts for more than two-thirds of total trade. This column provides evidence that trade in parts and components of capital goods between new and old EU countries is driven by wage differences across countries. It further shows that wage differences play an important role in the ex ante investment decision to establish a new production network.

Lucian Cernat, 18 October 2014

Recent findings suggest that a small proportion of EU firms accounts for a disproportionate share of aggregate exports. This column argues, however, that a large number of EU exporting firms are small and medium enterprises (SMEs) and they have a non-negligible part in EU exports. Identifying the trade barriers SMEs face should, therefore, be among the EU trade priorities.

Jeffrey Frankel, 24 December 2008

Trade among euro members has increased 10-15% since the introduction of the euro, a far smaller effect than estimated prior to the currency's introduction. What explains the discrepancy between the European experience and previous history? This column explores the difficulty of explaining the difference.

Volker Nitsch, Mauro Pisu, 15 July 2008

The euro has increased trade within the currency union. This column summarises research exploring how firms’ exporting behaviours have been shaped by the euro.