IDEAS home Printed from
   My bibliography  Save this article

A Review Of Empirical Studies On The Opportuneness Of Ex-Communist States’ Joining The Euro Area


  • Vasile-Liviu ICHIM

    () (“Stefan Lupascu” Institute of European Studies – Iasi, Romania)


The empirical studies analyzing the relevance of the theory on the optimal monetary areas for the ex-communist states reach different conclusions, estimating the economic convergence on the basis of various factors: economic structure, intensity of trade linkages, exchange rate volatility, size of the national economy, foreign direct investment, and exports structure based on products and from a geographical point of view. As for the business cycle correlation between the old and the new EU members, these studies led to contradictory results, but the relevance itself of this criterion concerning the lack of asymmetric shocks is being questioned. In a monetary union, on the one hand, the business cycle synchronization makes the single monetary policy work efficiently and on the other hand, the asymmetry of the economic shocks makes the single currency more stable. Starting from the results of the study conducted by Bayoumi and Eichengreen in order to establish the Optimum Currency Area indices and taking into account the size of the countries included in this analysis, we reach the conclusion that the size of a national economy is an important indicator in establishing the degree of monetary optimality of a certain region, influencing in inverse ratio the monetary optimality of the region. The larger a country is, the lower economic convergence is in comparison with a group of states, because of the extremely diversified production, that in its turn will lead to a lower level of economic openness.

Suggested Citation

  • Vasile-Liviu ICHIM, 2009. "A Review Of Empirical Studies On The Opportuneness Of Ex-Communist States’ Joining The Euro Area," The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration, vol. 9(Special), pages 33-38, December.
  • Handle: RePEc:scm:ausvfe:v:9:y:2009:i:special:p:33-38

    Download full text from publisher

    File URL:,NR.SPECIAL,2009%20fulltext.pdf
    Download Restriction: no


    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:scm:ausvfe:v:9:y:2009:i:special:p:33-38. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Liviu Scutariu). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.