Abstract:
We employ the econometric techniques of multivariate cointegration and errorcorrection
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 France, Germany and Ireland, the EMS boosted the
volume of intra-EU exports. In the rest of the countries, there has not been a
significant effect. Another important result is that exchange rate volatility had no
statistically significant long-run or short-run effect on the volume of intra-EU exports
in the majority of the countries in our study.
