EURONS INVERKAN PÅ EXPORT

Abstract

In early days, right after the introduction, the trade effects of the euro were of importance to examine. The results showed that the common currency was beneficial for trade between member states in the short run. But some authors claim that the euro effect would become larger in the long run. Sweden is an EU-country that has not implemented the euro, despite their obligation to do so. This puts the country in a special situation and many before me has used Sweden to examine the effects of the euro. However, the trade effects of the euro have not been in focus since the beginning of the 00s. This Bachelor thesis’s purpose is to examine if Sweden would have benefited from being a member of the EMU in the long run, by examine the euro’s effect on Swedish exports. Using Difference-in-Difference by comparing Sweden and Finland the results show that Sweden would have benefited from a membership in EMU in the short run, but above all in the long run. The results declare that Sweden’s exports to euro countries would have been higher in the long run.