Estimating the Macroeconomic Effects of Monetary Unions: The Case of Trade and Output

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Periodical article

Title:	Estimating the Macroeconomic Effects of Monetary Unions: The Case of Trade and Output
Author:	Anyanwu, John C.
Year:	2003
Periodical:	African Development Review
Volume:	15
Issue:	2-3
Period:	December
Pages:	126-145
Language:	English
Geographic term:	West Africa
Subjects:	international monetary relations monetary areas common markets Development and Technology Economics and Trade Inter-African Relations
External link:	https://onlinelibrary.wiley.com/doi/10.1111/j.1467-8268.2003.00068.x/pdf
Abstract:	This paper examines the various theories and paradigms relating to trade and output in monetary unions. Both descriptive and empirical evidence are used to analyse the case of African regional economic groupings, especially that of the West African Economic and Monetary Union (WAEMU) and other countries in the Economic Community of West African States (ECOWAS). While the descriptive statistics point to room for improvement, especially in the areas of price stability, fiscal discipline and greater intratrade, the empirical evidence shows that monetary union is beneficial to bilateral trade and especially economic growth. The results support the hypothesis that important beneficial effects of monetary union also come through central bank credibility. Bibliogr., sum. in English and French. [Journal abstract]