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Empirical Analysis of the Prospect for Single Currency in West African Sub-Region

Author

Listed:
  • Abdurrauf Babalola
  • Elias Bayo Olalowo

Abstract

The study investigated empirically, the prospect for single currency in West African sub-region. Latest data from the fifteen members of ECOWAS was collected on basically six major criteria for monetary union. Simple bar chat was used to showcase the position of each member at present and the readiness for such monetary union. Descriptive statistics was employed to analyse the convergence tendency of member states using all six criteria which are economic indicators. The result divulged that, except for exchange rate that has convergence to a large extent, all the other criteria were very far from merging or uniting. In essence, the ECOWAS members are not fully prepared for such a monetary union, come January 2020. The study suggests that more time be given to all members to improve on their economic indicators and surplus members should assist the shortage states to realize this aim.

Suggested Citation

  • Abdurrauf Babalola & Elias Bayo Olalowo, 2020. "Empirical Analysis of the Prospect for Single Currency in West African Sub-Region," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 6(1), pages 12-21, March.
    • Handle: RePEc:khe:scajes:v:6:y:2020:i:1:p:12-21
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    References listed on IDEAS

    as
    1. Vaubel, Roland, 1978. "Real exchange-rate changes in the European community : A new approach to the determination of optimum currency areas," Journal of International Economics, Elsevier, vol. 8(2), pages 319-339, May.
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    More about this item

    Keywords

    ECOWAS; ECO Currency; Single Currency;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F15 - International Economics - - Trade - - - Economic Integration

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