In this paper we explore whether the two existing currency unions in CFA Franc zone have a significant increase in trade between members. Furthermore, the impact of regional agreements which are only based on preferential trade (ECOWAS, COMESA, and SADC) is also analysed. Using panel techniques for 35 countries in Africa on the period 1980-2005, our empirical results strongly support that existing currency unions in CFA zone enhance significantly the trade between members. However, the Rose effect is more substantial in UEMOA than in CEMAC. Our results show that during their implementation the regional agreements which are only based on preferential trade (ECOWAS for example) have generated a little increase in trade compared to countries in currency unions. These results are highly interesting and have some policy implications for the proposed monetary unions in Africa.

(2009). The impact of currency unions on trade: lessons from CFA franc zone and implications for proposed African monetary unions [journal article - articolo]. In SAVINGS AND DEVELOPMENT. Retrieved from http://hdl.handle.net/10446/27429

The impact of currency unions on trade: lessons from CFA franc zone and implications for proposed African monetary unions

2009-01-01

Abstract

In this paper we explore whether the two existing currency unions in CFA Franc zone have a significant increase in trade between members. Furthermore, the impact of regional agreements which are only based on preferential trade (ECOWAS, COMESA, and SADC) is also analysed. Using panel techniques for 35 countries in Africa on the period 1980-2005, our empirical results strongly support that existing currency unions in CFA zone enhance significantly the trade between members. However, the Rose effect is more substantial in UEMOA than in CEMAC. Our results show that during their implementation the regional agreements which are only based on preferential trade (ECOWAS for example) have generated a little increase in trade compared to countries in currency unions. These results are highly interesting and have some policy implications for the proposed monetary unions in Africa.
articolo
2009
Cet article tente d’évaluer empiriquement l’impact des unions monétaires existantes en Afrique sur le commerce en prenant appui sur la zone Franc CFA. Il s’intéresse aussi à l’impact des accords régionaux fondés seulement sur le libre-échange (CEDEAO, COMESA et SADC). A l’aide d’un modèle gravitationnel du commerce et d’une analyse en panel sur un échantillon de 35 pays en Afrique sur la période 1980- 2005, on montre que les unions monétaires régionales existantes en Afrique ont renforcé les liens commerciaux entre les pays membres. Les résultats suggèrent aussi que l’effet Rose est plus grand dans la zone UEMOA que dans la CEMAC. Par contre, il semble que les accords régionaux fondés seulement sur le libre-échange n’ont pas amélioré significativement le commerce comparé aux pays dans les unions monétaires. Au total, ces résultats sont très intéressants en termes de recommandations de politiques économiques.
Bangake, Chrysost; Eggoh, Jude
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10446/27429
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