Economic Performance Across Monetary Unions in Africa

Onjala, Joseph

doi:10.1007/978-3-030-96225-8_12

Cited by 1 publication

(1 citation statement)

References 12 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…2 Turning the focus to Asian countries, and particularly to Southeast Asian countries, Shimizutani (2009) and Genberg (2006), for example, develop road maps towards a single 2 A detailed summary of relevant contributions regarding Latin American countries and their suitability to form monetary unions (at varying) degrees are shown in Hafner and Kampe (2018). Onjala (2022) provides a recent discussion of financial and monetary integration in African countries amongst others. currency in Asia or East Asia.…”

Section: Introductionmentioning

confidence: 99%

Monetary union in Southeast Asia: An assessment of the optimum currency area theory*

Hafner

2023

World Economy

View full text Add to dashboard Cite

This paper applies optimum currency area (OCA) theory to Southeast Asia to assess the potential for a monetary union in that region. We construct a panel of 10 Southeast Asian countries over the period 1990–2018 and apply the dynamic OLS estimator to quantify the costs and benefits of a potential OCA. A possible monetary union in Southeast Asia is vulnerable to asymmetric shocks, although the degree of specialisation has decreased and the openness index increased. Estimates confirm that both OCA criteria favour an increase in the region's income and FDI inflows and a reduction of its unemployment rate. However, inadequate labour mobility and stagnating intra‐trade shares are major obstacles in this regard, but if addressed they could benefit economic development and GDP per capita in the ASEAN region. We conclude that Southeast Asia is far from being an optimum currency area, but if it were to form a common currency area, the loss of economic sovereignty and its costs would be more than offset by the resulting monetary efficiency gain.

show abstract

Section: Introductionmentioning

confidence: 99%

Monetary union in Southeast Asia: An assessment of the optimum currency area theory*

Hafner

2023

World Economy

View full text Add to dashboard Cite

show abstract

Economic Performance Across Monetary Unions in Africa

Cited by 1 publication

References 12 publications

Monetary union in Southeast Asia: An assessment of the optimum currency area theory*

Monetary union in Southeast Asia: An assessment of the optimum currency area theory*

Contact Info

Product

Resources

About