151. Intra and offshore trade in the euro zone and trade imbalances
- Author
-
Jong Hee Kim and Joocheol Kim
- Subjects
Economic integration ,Economics and Econometrics ,business.industry ,health care facilities, manpower, and services ,media_common.quotation_subject ,Vulnerability ,Balance of trade ,social sciences ,International economics ,International trade ,Government expenditure ,humanities ,International free trade agreement ,Unemployment ,Economics ,population characteristics ,Submarine pipeline ,business ,health care economics and organizations ,media_common - Abstract
By examining trade imbalances using 40 countries including Euro-zone countries, we show that the trade imbalance has been exacerbated after joining the Euro zone for the member countries, and the intra trade has greater impact on the imbalance than the offshore trade. For the trade between northern countries and southern countries in the Euro-zone, the imbalance worsens after joining the Euro zone. The bilateral gaps in the government expenditure and the unemployment have significant effect. Excessive government expenditure leads to the increase in the trade imbalance.
- Published
- 2014
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