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Similarities of External Shock¡¯s responses of Armenia and Russia: SVAR Approach

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  • Robert Tumanyan

Abstract

The feasibility of EUAE countries to form a Monetary Union is analysed. The paper uses SVAR methodology to examine impact of External Shocks to specific case of Armenia and Russia, alongside with correlation analyses of responses. In this framework, empirical evidence allows to affirm that Armenia and Russia do not meet a criteria of Optimum currency area ¡°similarities in external shock¡¯s responses,¡± the results underline structural differences of economies and asymmetry in external shock¡¯s responses, therefore EUEA countries are not ready for Monetary union, and deeper integration is needed.

Suggested Citation

  • Robert Tumanyan, 2018. "Similarities of External Shock¡¯s responses of Armenia and Russia: SVAR Approach," Business and Economic Research, Macrothink Institute, vol. 8(1), pages 198-211, March.
    • Handle: RePEc:mth:ber888:v:8:y:2018:i:1:p:198-211
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    1. Sato, Kiyotaka & Zhang, Zhaoyong & McAleer, Michael, 2011. "Identifying shocks in regionally integrated East Asian economies with structural VAR and block exogeneity," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 81(7), pages 1353-1364.
    2. Mongelli, Francesco Paolo, 2002. "ìNew" Views on the Optimum Currency Area Theory: What is EMU Telling US?," Royal Economic Society Annual Conference 2002 140, Royal Economic Society.
    3. Bayoumi, Tamim & Eichengreen, Barry & Mauro, Paolo, 2000. "On Regional Monetary Arrangements for ASEAN," Journal of the Japanese and International Economies, Elsevier, vol. 14(2), pages 121-148, June.
    4. Jayaraman, Tiru K. & Ward , Bert D., 2006. "A Single Currency for Pacific Island Countries: An SVAR Analysis," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 59(1), pages 83-111.
    5. Kim, Soyoung & Roubini, Nouriel, 2000. "Exchange rate anomalies in the industrial countries: A solution with a structural VAR approach," Journal of Monetary Economics, Elsevier, vol. 45(3), pages 561-586, June.
    6. Knarik Ayvazyan & Ms. Teresa Daban Sanchez, 2015. "Spillovers from Global and Regional Shocks to Armenia," IMF Working Papers 2015/241, International Monetary Fund.
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    More about this item

    Keywords

    Structural VAR; Monetary Union; OCA¡¯s Theory; EUEA counties;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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