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Determinants of the Public's Preference for a Referendum on Monetary Union

Author

Listed:
  • Steven Buigut

    (American University in Dubai)

Abstract

Public support is crucial for the success of a monetary union. An aspect of the monetary unification process that could influence public support is how the decision to participate is made. This article analyzes the determinants of the public's preference for a referendum on the adoption of a common currency. The survey data used is from Kenya, a member of the East African Community (EAC) which currently is pursuing a monetary union. The results suggest a younger public increases the probability that a referendum will be the preferred method. Sharing a language or culture with communities in other member countries increases the probability that a referendum is preferred, while a more favorable appraisal of the effects of monetary union decreases the probability of choosing the referendum.

Suggested Citation

  • Steven Buigut, 2008. "Determinants of the Public's Preference for a Referendum on Monetary Union," Economics Bulletin, AccessEcon, vol. 6(46), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-08f30069
    as

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    File URL: http://www.accessecon.com/pubs/EB/2008/Volume6/EB-08F30069A.pdf
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    References listed on IDEAS

    as
    1. Neven T Valev, 2006. "From a Currency Board to the Euro: Public Attitudes Toward Unilateral Euroisation in Bulgaria1," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 48(3), pages 480-496, September.
    2. Robert Barro & Silvana Tenreyro, 2007. "Economic Effects Of Currency Unions," Economic Inquiry, Western Economic Association International, vol. 45(1), pages 1-23, January.
    3. Alberto Alesina & Robert J. Barro, 2002. "Currency Unions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(2), pages 409-436.
    4. Hayo, Bernd, 1999. "Knowledge and Attitude Towards European Monetary Union," Journal of Policy Modeling, Elsevier, vol. 21(5), pages 641-651, September.
    5. Jeffrey Frankel & Andrew Rose, 2002. "An Estimate of the Effect of Common Currencies on Trade and Income," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(2), pages 437-466.
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    1. Menna Bizuneh & Steven Buigut & Neven Valev, 2020. "Beyond Borders: The Euro Crisis and Public Support for Monetary Integration in East Africa," South African Journal of Economics, Economic Society of South Africa, vol. 88(4), pages 518-535, December.

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    More about this item

    JEL classification:

    • F3 - International Economics - - International Finance
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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