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Do Currency Unions Deliver More Economic Integration than Fixed Exchange Rates? Evidence from the Franc Zone and the ECCU

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  • David Fielding
  • Kalvinder Shields

Abstract

In this article we develop a model to identify determinants of macroeconomic integration in the African Franc Zone and in Dollar-pegging Caribbean countries (including members of the East Caribbean Currency Union). These two groups of countries each comprise states using several different local currencies: on the one hand the UEMOA CFA Franc and the CEMAC CFA Franc (both pegged to the Euro), on the other the ECCU Dollar and other national Dollar-pegged currencies. The purpose of the analysis is to distinguish the effect of monetary union on macroeconomic integration from the effect of pegging to a common OECD currency.

Suggested Citation

  • David Fielding & Kalvinder Shields, 2005. "Do Currency Unions Deliver More Economic Integration than Fixed Exchange Rates? Evidence from the Franc Zone and the ECCU," Journal of Development Studies, Taylor & Francis Journals, vol. 41(6), pages 1051-1070.
  • Handle: RePEc:taf:jdevst:v:41:y:2005:i:6:p:1051-1070
    DOI: 10.1080/00220380500155312
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    Cited by:

    1. Sampawende Jules Tapsoba, 2011. "Union Monétaire en Afrique de l'Ouest: Quelles Réponses à l'Hétérogénéité des Chocs ?," Working Papers halshs-00554309, HAL.
    2. repec:ebl:ecbull:v:6:y:2007:i:25:p:1-15 is not listed on IDEAS

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