IDEAS home Printed from https://ideas.repec.org/h/spr/aaechp/978-3-319-30432-8_3.html
   My bibliography  Save this book chapter

Currency Union in the East African Community: A Fractional Integration Approach

In: Economic Integration, Currency Union, and Sustainable and Inclusive Growth in East Africa

Author

Listed:
  • Hector Carcel

    (University of Navarra
    University of Navarra)

  • Luis A. Gil-Alana

    (University of Navarra
    University of Navarra)

  • Godfrey Madigu

    (University of Navarra
    University of Navarra)

Abstract

This study examines inflation rates in the five countries that belong to the East African Community (EAC) and which recently signed a protocol outlining their plans for launching a monetary union within 10 years. Its aim is to examine the persistence in inflation levels. As literature argues about monetary unions, countries hoping to form a union should present similar inflation patterns. Our study shows that the countries present non-mean reversion, confirming that shocks will not recover in the long run. Moreover, fractional co-integration relationships are found between all countries with the exception of Tanzania.

Suggested Citation

  • Hector Carcel & Luis A. Gil-Alana & Godfrey Madigu, 2016. "Currency Union in the East African Community: A Fractional Integration Approach," Advances in African Economic, Social and Political Development, in: Almas Heshmati (ed.), Economic Integration, Currency Union, and Sustainable and Inclusive Growth in East Africa, pages 41-54, Springer.
  • Handle: RePEc:spr:aaechp:978-3-319-30432-8_3
    DOI: 10.1007/978-3-319-30432-8_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below 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.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:aaechp:978-3-319-30432-8_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.