Abstract
This paper presents an updated meta-analysis of the effect of currency unions on trade, focusing on the Euro area. Using meta-regression methods such as funnel asymmetry test, evidence for strong publication bias is found.
The estimated underlying effect for currency unions other than Eurozone reaches about 50%. However, the Euro's trade promoting effect corrected for publication bias is insignificant according to the meta-regression analysis and significant but very small (1%--6%) using the trim and fill method.
The Rose effect literature shows signs of the economics research cycle: reported t-statistic is a quadratic function of publication year. Explanatory meta-regression (robust fixed effects and random effects) suggests that results published by some authors might be predictable and that outcomes are systematically dependent on study design (usage of panel data, short- or long-run nature, number of countries in the dataset).