Estimating the trade effects from Finland’s membership in the Euro: What are the lessons for Sweden?

Abstract: The European Monetary Union was formed over a decade ago with a mission to create a single market with a single currency for the European Union members. Today only 19 out of the European Union members have adopted the official common currency, the Euro. The purpose for this thesis is to asses how the Euro has effected Finland’s exports during the time period 1995-2014. This has been estimated through a gravity model including a Euro dummy variable. The Euro is found to be effecting Finland’s exports negatively indicating that the lesson for Sweden is to remain outside of the Eurozone.