Monetary Union Membership in West Africa: A Cluster Analysis
AbstractSummary Applying hard and soft clustering algorithms to a set of variables suggested by the convergence criteria and the theory of optimal currency areas, this paper examines the suitability of countries in the west African region to form the proposed monetary unions, the West African Monetary Zone (WAMZ) and the Economic Community of West African States (ECOWAS). Our analysis reveals considerable dissimilarities in the economic characteristics of member countries, particularly WAMZ countries. Furthermore, when west and central African countries are considered together, we find significant heterogeneities within the CFA franc zone, and some interesting similarities between the central African and WAMZ countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal World Development.
Volume (Year): 36 (2008)
Issue (Month): 7 (July)
Contact details of provider:
Web page: http://www.elsevier.com/locate/worlddev
Other versions of this item:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Roubens, Marc, 1982. "Fuzzy clustering algorithms and their cluster validity," European Journal of Operational Research, Elsevier, vol. 10(3), pages 294-301, July.
- Bayoumi, Tamim & Ostry, Jonathan D, 1997.
"Macroeconomic Shocks and Trade Flows within Sub-Saharan Africa: Implications for Optimum Currency Arrangements,"
Journal of African Economies,
Centre for the Study of African Economies (CSAE), vol. 6(3), pages 412-44, October.
- Tamim Bayoumi & Jonathan David Ostry, 1995. "Macroeconomic Shocks and Trade Flows Within Sub-Saharan Africa: Implications for Optimum Currency Arrangements," IMF Working Papers 95/142, International Monetary Fund.
- Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
- Agnès Bénassy-Quéré & Maylis Coupet, 2003.
"On the Adequacy of Monetary Arrangements in Sub-Saharian Africa,"
2003-11, CEPII research center.
- Agnès Bénassy-Quéré & Maylis Coupet, 2005. "On the Adequacy of Monetary Arrangements in Sub-Saharan Africa," The World Economy, Wiley Blackwell, vol. 28(3), pages 349-373, 03.
- A. Bénassy-Quéré & Maylis Coupet, 2003. "On the Adequacy of Monetary Arrangements in Sub-Saharian Africa," THEMA Working Papers 2003-38, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Dmitri Boreiko, 2003. "EMU and accession countries: Fuzzy cluster analysis of membership," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 8(4), pages 309-325.
- Buigut, Steven K. & Valev, Neven T., 2005.
"Is the proposed East African Monetary Union an optimal currency area? a structural vector autoregression analysis,"
Elsevier, vol. 33(12), pages 2119-2133, December.
- Steven K. Buigut & Neven Valev, 2004. "Is the Proposed East African Monetary Union an Optimal Currency Area? A Structural Vector Autoregression Analysis," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0407, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- David Fielding & Kalvinder Shields, 2000.
"Modeling Macroeconomic Shocks in the CFA Franc Zone,"
Discussion Papers in Economics
00/7, Department of Economics, University of Leicester.
- Fielding, David & Shields, Kalvinder, 2001. "Modelling macroeconomic shocks in the CFA Franc Zone," Journal of Development Economics, Elsevier, vol. 66(1), pages 199-223, October.
- Devarajan, Shantayanan & Rodrik, Dani, 1991.
"Do the benefits of fixed exchange rates outweigh their costs? The Franc Zone in Africa,"
Policy Research Working Paper Series
777, The World Bank.
- Shantayanan Devarajan & Dani Rodrik, 1991. "Do the Benefits of Fixed Exchange Rates Outweigh Their Costs? The Franc Zone in Africa," NBER Working Papers 3727, National Bureau of Economic Research, Inc.
- Lafrance, Robert & St-Amant, Pierre, 1999. "Optimal Currency Areas: A Review of the Recent Literature," Working Papers 99-16, Bank of Canada.
- Alexander W. Hoffmaister, 1997.
"Macroeconomic Fluctuations in Sub-Saharan Africa,"
IMF Working Papers
97/82, International Monetary Fund.
- Glenn Milligan & Martha Cooper, 1985. "An examination of procedures for determining the number of clusters in a data set," Psychometrika, Springer, vol. 50(2), pages 159-179, June.
- Cashin, Paul & McDermott, C. John & Pattillo, Catherine, 2004.
"Terms of trade shocks in Africa: are they short-lived or long-lived?,"
Journal of Development Economics,
Elsevier, vol. 73(2), pages 727-744, April.
- Paul Cashin & Catherine A. Pattillo, 2000. "Terms of Trade Shocks in Africa - Are They Short-Lived or Long-Lived?," IMF Working Papers 00/72, International Monetary Fund.
- Elbadawi, Ibrahim & Majd, Nader, 1996. "Adjustment and economic performance under a fixed exchange rate: A comparative analysis of the CFA zone," World Development, Elsevier, vol. 24(5), pages 939-951, May.
- M J Artis & W Zhang, 2001. "Core and Periphery in EMU: A Cluster Analysis," Economic Issues Journal Articles, Economic Issues, vol. 6(2), pages 47-58, September.
- Jeffrey A. Frankel & Andrew K. Rose, 1996.
"The Endogeneity of the Optimum Currency Area Criteria,"
NBER Working Papers
5700, National Bureau of Economic Research, Inc.
- Frankel, Jeffrey A & Rose, Andrew K, 1998. "The Endogeneity of the Optimum Currency Area Criteria," Economic Journal, Royal Economic Society, vol. 108(449), pages 1009-25, July.
- Frankel, Jeffrey A & Rose, Andrew K, 1996. "The Endogeneity of the Optimum Currency Area Criteria," CEPR Discussion Papers 1473, C.E.P.R. Discussion Papers.
- Catherine A. Pattillo & Paul R. Masson, 2001. "Monetary Union in West Africa (ECOWAS)," IMF Occasional Papers 204, International Monetary Fund.
- Lane, Philip R., 1996. "Stabilization policy in a currency union," Economics Letters, Elsevier, vol. 53(1), pages 53-60, October.
- Dhaneshwar Ghura & Michael T. Hadjimichael, 1996. "Growth in Sub-Saharan Africa," IMF Staff Papers, Palgrave Macmillan, vol. 43(3), pages 605-634, September.
- Devarajan, Shantayanan & Rodrik, Dani, 1991. "Do the Benefits of Exchange Rates Outweigh Their Cost? The Franc Zone in Africa," CEPR Discussion Papers 561, C.E.P.R. Discussion Papers.
- Paul R. Masson & Xavier Debrun & Catherine A. Pattillo, 2002.
"Monetary Union in West Africa: Who Might Gain, Who Might Lose, and Why?,"
IMF Working Papers
02/226, International Monetary Fund.
- Xavier Debrun & Paul Masson & Catherine Pattillo, 2005. "Monetary union in West Africa: who might gain, who might lose, and why?," Canadian Journal of Economics, Canadian Economics Association, vol. 38(2), pages 454-481, May.
- Khamfula, Yohane & Huizinga, Harry, 2004. "The Southern African Development Community: suitable for a monetary union?," Journal of Development Economics, Elsevier, vol. 73(2), pages 699-714, April.
- Artis, M.J. & Zhang, W., 2002. "Membership of EMU: A Fuzzy Clustering Analysis of Alternative Criteria," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 17, pages 54-79.
- Michel Galy & Michael T. Hadjimichael, 1997. "The CFA Franc Zone and the EMU," IMF Working Papers 97/156, International Monetary Fund.
- De Grauwe, Paul & Vanhaverbeke, Wim, 1991. "Is Europe an Optimum Currency Area? Evidence from Regional Data," CEPR Discussion Papers 555, C.E.P.R. Discussion Papers.
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page. reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.