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Abstract

EU enlargement revives the debate around the participation to the EMU. We use a gravity model to see whether informal barriers have changed over a ten-year period covering the creation of the EMU, and whether their impact on European member countries’ agricultural and food trade has been modified. We find that it has led to lower information costs. We observe a diminishing marginal trade impact of both information and institutional barriers: the lower the level of these barriers, the lower the magnitude of their impact on trade. But this finding can not be directly attributed to the introduction to the Euro.

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