Loading in 2 Seconds...
Loading in 2 Seconds...
A meta- analysis of the effect of Common Currencies on International Trade . Andrew k. Rose and T.D. Stanley Presented by: María del Carmen Ramos Herrera . Introduction Meta- Analysis across studies Publication Selection and Meta- Regression Analysis Conclusions
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Andrew k. Rose and T.D. Stanley
María del Carmen Ramos Herrera.
The current interest in the trade effect of common currencies began with Rose (2000)
Tijt : the natural logarithm of trade between countries i and j at time t.
The surprising and interesting finding is that currency union seemed to have a very large effect on trade.
To estimate the coefficient of interest more accurately
Rose and Stanley analyze 34 papers and 754 differents estimates of gamma.
There are a sufficient number of studies that have provided estimates of the effect of currency union trade and Meta- Analysis seems an appropiate way to summarize the current state of the literature.
However, Fisher’s test for overall effect is inappropiate for this and perhaps all areas of economic research.
Then other tests for overall effects are needed. (Table 1).
What does mean?
Positive trade effect
Table 2: Reports the fixed- effects estimates for gamma when studies are omitted from meta-analysis one by one.
There is little indication that any single studies is especially influential in driving this result.
The random effect estimator is one way to accommodate heterogeneity.
Because insignificant findings tend to be suppressed.
To corroborate this pictographic identification of publication bias, we use an MRA of the t-value versus precision.
Then, after accommodating publication bias, an economically significant trade effect of monetary union remains.
Fourth, as expected, a number of research characteristics are found to have a significant effect on the reported common currency effect.
If there is a common, systematic bias across the entire literature, meta-analysis has no way to distinguish it from an a unique empirical effect.
THANK YOU VERY MUCH
FOR YOUR ATTENTION