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Cyprus Accession to the Eurozone and the Reunification of the Island's Economy

Author

Listed:
  • Theophanous, Andreas
  • Tirkides, Yiannis
  • Pelagidis, Theodore

Abstract

This paper addresses issues pertaining to the accession of Cyprus to the Eurozone and the reunification of the economy of this island-state. Within this framework the performance of the economy of Cyprus, both in the government-controlled areas and in the occupied northern part,1 are examined. We also examine the conditions for successful participation in the Eurozone following the introduction of the euro in January 2008, and evaluate the progress toward real convergence. Particular attention is given to the German experience of reunification, with a view to drawing relevant and useful lessons for Cyprus, as well as to issues of political economy pertaining to accession to the Eurozone and the challenge of reunification. The last section summarizes the main points, makes policy recommendations and suggestions for further research.

Suggested Citation

  • Theophanous, Andreas & Tirkides, Yiannis & Pelagidis, Theodore, 2008. "Cyprus Accession to the Eurozone and the Reunification of the Island's Economy," MPRA Paper 107008, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:107008
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    File URL: https://mpra.ub.uni-muenchen.de/107008/1/MPRA_paper_107008.pdf
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    More about this item

    Keywords

    Cyprus Economy; Sectoral Economies; Financial Sector; Labour Market;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • G0 - Financial Economics - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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