EMU impact of on third countries' exports: a gravity approach Gómez-Herrera, Estrella Milgram Baleix, Juliette Gravity equation International trade Exchange rate In this article we explore the impact of the euro adoption and the effect of the volatility of the real exchange rate on trade both on intra EMU trade and on EMU trade with third countries. To this end, we use a large database covering 93% of world trade that includes 80 countries during the period 1980-2009. We estimate a gravity equation using one of the most complete specifications in the literature to isolate the euro effect from other factors affecting trade, as regional trade agreements or exchange rate volatility. Our results show that the elimination of the volatility boosted export per se especially before 1999 and therefore, the possibility to peg to the euro could boost trade of third countries and between these third countries. 2014-05-06T08:38:37Z 2014-05-06T08:38:37Z 2012 report Gómez-Herrera, E.; Milgram Baleix, J. EMU impact of on third countries' exports: a gravity approach. Universidad de Granada. Departamento de Teoría e Historia Económica (2012). (The Papers; 10/26). [http://hdl.handle.net/10481/31579] http://hdl.handle.net/10481/31579 eng The Papers;10/26 http://creativecommons.org/licenses/by-nc-nd/3.0/ open access Creative Commons Attribution-NonCommercial-NoDerivs 3.0 License Universidad de Granada. Departamento de Teoría e Historia Económica