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Beyond Borders: The Euro Crisis and Public Support for Monetary Integration in East Africa

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  • Menna Bizuneh
  • Steven Buigut
  • Neven Valev

Abstract

We show that economic experiences in one part of the world affect proposed policies elsewhere. Specifically, we find that the recent crisis in the European Monetary Union (EMU) has impacted negatively the public support for the new proposed monetary union in the East African Community (EAC), with a more pronounced effect for less educated Kenyans. That external effect is robust to controlling for an array of other factors such as the expected economic benefits from the union, the desire to gain international influence as part of a larger community and the memory of an earlier failed EAC monetary union.

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  • Menna Bizuneh & Steven Buigut & Neven Valev, 2020. "Beyond Borders: The Euro Crisis and Public Support for Monetary Integration in East Africa," South African Journal of Economics, Economic Society of South Africa, vol. 88(4), pages 518-535, December.
    • Handle: RePEc:bla:sajeco:v:88:y:2020:i:4:p:518-535
    DOI: 10.1111/saje.12258
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