How Closely the GCC Approximates an Optimum Currency Area?
AbstractThe six Gulf Cooperation Council (GCC) countries (namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and U.A.E.) have exhibited considerable cooperation in the past for deepening the process of economic integration, and there is an animated debate in the academic and policy circles as to whether the integration process can be intensified and carried forward so that eventually a common currency could replace the six national currencies by the year 2010 ** . The academic debate on optimum currency area suggests that individual countries at times may be better off just by joining hands to have a single currency, instead of each having its own currency. For several countries to constitute such an optimum currency area, however, they must satisfy certain preconditions; i.e., they must have similar economic structures with exposure to symmetric shocks, they must be open economies, well diversified and must also ensure high degree of factor mobility. In the context of this theoretical debate, this paper aims at assessing the degree to which the GCC may be meeting the requirements of an optimum currency area.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.
Volume (Year): 22 (2007)
Issue (Month): ()
Optimum Currency Area; Common Currency Monetary Convergence Criteria; GCC; Panel Data;
Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Agénor, Pierre-Richard & Aizenman, Joshua, 2011.
"Capital market imperfections and the theory of optimum currency areas,"
Journal of International Money and Finance,
Elsevier, vol. 30(8), pages 1659-1675.
- Agenor, Pierre-Richard & Aizenman, Joshua, 2008. "Capital Market Imperfections and the Theory of Optimum Currency Areas," Santa Cruz Department of Economics, Working Paper Series qt7668j94x, Department of Economics, UC Santa Cruz.
- Pierre-Richard Agenor & Joshua Aizenman, 2008. "Capital Market Imperfections and the Theory of Optimum Currency Areas," NBER Working Papers 14088, National Bureau of Economic Research, Inc.
- Buiter, Willem H, 2008.
"Economic, Political, and Institutional Prerequisites for Monetary Union Among the Members of the Gulf Cooperation Council,"
CEPR Discussion Papers
6639, C.E.P.R. Discussion Papers.
- Willem Buiter, 2008. "Economic, Political, and Institutional Prerequisites for Monetary Union Among the Members of the Gulf Cooperation Council," Open Economies Review, Springer, vol. 19(5), pages 579-612, November.
- Louis, Rosmy & Balli, Faruk & Osman, Mohammad, 2008. "Monetary Union Among Arab Gulf Cooperation Council (AGCC) Countries: Does the symmetry of shocks extend to the non-oil sector?," MPRA Paper 11611, University Library of Munich, Germany.
- Rosmy Jean Louis & Faruk Balli & Mohamed Osman, 2012.
"On the choice of an anchor for the GCC currency: does the symmetry of shocks extend to both the oil and the non-oil sectors?,"
International Economics and Economic Policy,
Springer, vol. 9(1), pages 83-110, March.
- Jean Louis, Rosmy & Balli, Faruk & Osman, Mohamed, 2010. "On the choice of an anchor for the GCC currency: does the symmetry of shocks extend to both the oil and the non-oil sectors," MPRA Paper 38056, University Library of Munich, Germany.
- Rosmy Jean Louis & Faruk Balli & Mohamed Osman, 2012. "On the feasibility of monetary union among Gulf Cooperation Council (GCC) countries: does the symmetry of shocks extend to the non-oil sector?," Journal of Economics and Finance, Springer, vol. 36(2), pages 319-334, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jong-Eun Lee).
If references are entirely missing, you can add them using this form.