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Journal of Economic Integration 2005 September;20(3) :567-589.
The Impact of the Exchange Rate Regime on Exports: Evidence from the European Monetary System
Stilianos Fountas and 
Kyriacos Aristotelous 
University of Macedonia
Otterbein College
Copyright ©2005 Journal of Economic Integration
We employ the econometric techniques of multivariate cointegration and error-correction models to investigate the impact of the creation of the European Monetary System (EMS) on the volume of intra-European Union (EU) exports for eight EU countries. We find that for Ireland the EMS boosted the volume of intra-EU exports, whereas for Belgium, Denmark, and Germany, the EMS led to a decline in intra-EU exports. In the rest of the countries, there has not been a significant effect. Another important result is that, more often than not, the short-run impact of exchange rate volatility on the volume of intra-EU exports is insignificant.

JEL Classification
F14: Empirical Studies of Trade
F33: International Monetary Arrangements and Institutions
Keywords: Exchange rate regime | Exchange Rate Volatility | Exports | European monetary system
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