Currency Unions in Africa: Is the Trade Effect Substantial Enough to Justify their Formation?
Abstract
Using estimates that currency unions double trade, we quantify the welfare effects of forming currency unions for the African regional economic communities and for the African Union as a whole. The potential increase in trade is shown to be small, and much less than that resulting from the adoption of the euro. Allowing for increased African trade does not overturn the negative assessment of African currency unions, due to asymmetries in countries' terms-of-trade shocks and their degree of fiscal discipline. Copyright 2007 The Author.Download Info
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Bibliographic Info
Article provided by Wiley Blackwell in its journal World Economy.
Volume (Year): 31 (2008)
Issue (Month): 4 (04)
Pages: 533-547
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- George S. Tavlas, 2009.
"The Benefits And Costs Of Monetary Union In Southern Africa: A Critical Survey Of The Literature,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 23(1), pages 1-43, 02.
- George S. Tavlas, 2008. "The Benefits and Costs of Monetary Union in Southern Africa: A Critical Survey of the Literature," Working Papers 70, Bank of Greece.
- Tomáš Havránek, 2009. "Rose Effect and the Euro: The Magic is Gone," Working Papers IES 2009/20, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Aug 2009.
- Issiaka Coulibaly & Blaise Gnimassoun, 2012. "Optimality of a monetary union : New evidence from exchange rate misalignments in West Africa," EconomiX Working Papers 2012-37, University of Paris West - Nanterre la Défense, EconomiX.
- Gilles Duffrenot & Kimiko Sugimoto, 2010. "Pegging the future West African single currency in regard to internal/external competitiveness: a counterfactual analysis," William Davidson Institute Working Papers Series wp974, William Davidson Institute at the University of Michigan.
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