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Foreign trade and the theory of optimum currency areas. Implications for Poland

Author

Listed:
  • Iwona Maciejczyk-Bujnowicz

    (University of Lodz)

Abstract

The paper focuses on one of the aspects of the OCA theory and on a new endogenous approach analysing mutual trade links of the countries in a common currency area. According to Kinnon (1963), a high degree of openness of the candidate countries is a precondition for establishing an OCA. Thus, the area can be created by countries with a high share of exports and imports in their GDP. The more open an economy, the higher the importance of the exchange rate for prices. We reviewed the literature on selected studies on the subject and analysed statistical data describing Poland’s trade in the years 2000–2010 with the euro area and EU member states outside of it.

Suggested Citation

  • Iwona Maciejczyk-Bujnowicz, 2016. "Foreign trade and the theory of optimum currency areas. Implications for Poland," International Economics, University of Lodz, Faculty of Economics and Sociology, issue 13, pages 5-26, March.
  • Handle: RePEc:ann:inecon:y:2016:i:13:p:5-26
    as

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    File URL: http://dspace.uni.lodz.pl:8080/xmlui/bitstream/handle/11089/17923/Maciejczyk-Bujnowicz%202016.pdf?sequence=1&isAllowed=y
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    References listed on IDEAS

    as
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    3. Alejandro Micco & Ernesto Stein & Guillermo Ordoñez, 2003. "The currency union effect on trade: early evidence from EMU," Economic Policy, CEPR;CES;MSH, vol. 18(37), pages 315-356, October.
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    7. Jean-Sébastien Pentecôte & Jean-Christophe Poutineau & Fabien Rondeau, 2011. "The extensive margin of trade and business cycle synchronization," Post-Print halshs-00632126, HAL.
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Optimal Currency Area Theory; export; import; Poland; European Union; currency exchange rate;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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