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The Endogeneity of the Optimum Currency Area Criteria, Intra-industry Trade, and EMU Enlargement Author info | Abstract | Publisher info | Download info | Related research | Statistics Jarko Fidrmuc
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This article tests the endogeneity hypothesis of optimum currency area (OCA) criteria in a cross-section of OECD countries in the 1990s. It argues that intraindustry trade induces convergence of business cycles, while no direct relation between business cycles and bilateral trade intensity is found. This finding confirms the OCA endogeneity hypothesis, but it underlines the role of trade specialization. Furthermore, the endogeneity of OCA criteria implies a comparable degree of business cycle harmonization of Central and Eastern European countries with the EU as for the current members in the medium run. (JEL F15, F41) Copyright 2004, Oxford University Press.
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Article provided by Oxford University Press in its journal Contemporary Economic Policy .
Volume (Year): 22 (2004)
Issue (Month): 1 (January)
Pages: 1-12
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Handle: RePEc:oup:coecpo:v:22:y:2004:i:1:p:1-12Contact details of provider: Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK Fax: 01865 267 985 Email: Web page: http://cep.oupjournals.org/
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References listed on IDEAS 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.: Fidrmuc, Jan & Fidrmuc, Jarko, 2000.
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Jarko Fidrmuc & Jan Fidrmuc, 2001.
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William Davidson Institute Working Papers Series
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Frankel, Jeffrey A & Rose, Andrew K, 1996.
"The Endogeneity of the Optimum Currency Area Criteria ,"
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"The Endogeneity of the Optimum Currency Area Criteria ,"
Economic Journal ,
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Jarko Fidrmuc, 2004.
"The Endogenity of the Optimum Currency Area Criteria, Trade, and Labour Market Rigidities: Implications for EMU Enlargement ,"
EUI-RSCAS Working Papers
16, European University Institute (EUI), Robert Schuman Centre of Advanced Studies (RSCAS).
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Jesús Crespo-Cuaresma & Jarko Fidrmuc & Ronald MacDonald, 2003.
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Vienna Economics Papers
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Bartosz Mackowiak, 2005.
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SFB 649 Discussion Papers
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Other versions: Fidrmuc, Jarko & Korhonen, Iikka, 2001.
"Similarity of supply and demand shocks between the Euro area and the CEECs ,"
BOFIT Discussion Papers
14/2001, Bank of Finland, Institute for Economies in Transition.
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Fidrmuc, Jarko & Iikka Korhonen, 2003.
"Similarity of Supply and Demand Shocks Between the Euro Area and the CEECs ,"
Royal Economic Society Annual Conference 2003
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Macroeconomics
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Other versions:
Crespo-Cuaresma, Jesús & Fidrmuc, Jarko & McDonald, Ronald, 2003.
"The monetary approach to exchange rates in the CEECs ,"
BOFIT Discussion Papers
14/2003, Bank of Finland, Institute for Economies in Transition.
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"The euro goes East. Implications of the 2000-2002 economic slowdown for synchronisation of business cycles between the euro area and CEEs ,"
Macroeconomics
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Macroeconomics
0401014, EconWPA.
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Other versions: Pieter W. van Foreest & Casper G. de Vries, 2002.
"The Forex Regime and EMU Expansion ,"
Tinbergen Institute Discussion Papers
02-010/2, Tinbergen Institute.
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Other versions: Jarko Fidrmuc & Iikka Korhonen, 2006.
"Meta-Analysis of the Business Cycle Correlation between the Euro Area and the CEECs ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo GmbH.
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Other versions: M. Ayhan Kose & Kei-Mu Yi, 2005.
"Can the standard international business cycle model explain the relation between trade and comovement? ,"
Working Papers
05-3, Federal Reserve Bank of Philadelphia.
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M. Ayhan Kose & Kei-Mu Yi, 2005.
"Can the Standard International Business Cycle Model Explain the Relation Between Trade and Comovement? ,"
IMF Working Papers
05/204, International Monetary Fund.
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"Can the standard international business cycle model explain the relation between trade and comovement? ,"
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Staff Reports
155, Federal Reserve Bank of New York.
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