Analysis of Convergence Criteria in a Proposed Monetary Union: A Study of the Economic Community of West African States
This study examines the processes of the monetary union of the Economic Community of West African States (ECOWAS). It takes a critical look at the convergence criteria and the various conditions under which they are to be met. Using the panel least square technique an estimate of the beta convergen...
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| Format: | Article |
| Language: | English |
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EconJournals
2014-12-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/886 |
| _version_ | 1797911543668539392 |
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| author | Jimoh Olakunle SAKA Ibiyemi Ajoke ONAFOWOKAN Adekunle Ademayowa ADEBAYO |
| author_facet | Jimoh Olakunle SAKA Ibiyemi Ajoke ONAFOWOKAN Adekunle Ademayowa ADEBAYO |
| author_sort | Jimoh Olakunle SAKA |
| collection | DOAJ |
| description |
This study examines the processes of the monetary union of the Economic Community of West African States (ECOWAS). It takes a critical look at the convergence criteria and the various conditions under which they are to be met. Using the panel least square technique an estimate of the beta convergence was made for the period 2000-2008. The findings show that nearly all the explanatory variables have indirect effects on the income growth rate and that there tends to be convergence in income over time. The speed of adjustment estimated is 0.2% per year and the half-life is -346.92. Thus the economies can make up for half of the distance that separates them from their stationary state. From the findings, it was concluded that a well integrated economy could further the achievement of steady growth in these countries in the long run.
Keywords: Monetary Union; Convergence Criteria; ECOWAS
JEL Classifications: C23; E42; F33; F41
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| first_indexed | 2024-04-10T11:43:27Z |
| format | Article |
| id | doaj.art-df7b9350e20145638c02f95dee922ccf |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T11:43:27Z |
| publishDate | 2014-12-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-df7b9350e20145638c02f95dee922ccf2023-02-15T16:17:28ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382014-12-0151Analysis of Convergence Criteria in a Proposed Monetary Union: A Study of the Economic Community of West African StatesJimoh Olakunle SAKAIbiyemi Ajoke ONAFOWOKANAdekunle Ademayowa ADEBAYO This study examines the processes of the monetary union of the Economic Community of West African States (ECOWAS). It takes a critical look at the convergence criteria and the various conditions under which they are to be met. Using the panel least square technique an estimate of the beta convergence was made for the period 2000-2008. The findings show that nearly all the explanatory variables have indirect effects on the income growth rate and that there tends to be convergence in income over time. The speed of adjustment estimated is 0.2% per year and the half-life is -346.92. Thus the economies can make up for half of the distance that separates them from their stationary state. From the findings, it was concluded that a well integrated economy could further the achievement of steady growth in these countries in the long run. Keywords: Monetary Union; Convergence Criteria; ECOWAS JEL Classifications: C23; E42; F33; F41 https://www.econjournals.com/index.php/ijefi/article/view/886 |
| spellingShingle | Jimoh Olakunle SAKA Ibiyemi Ajoke ONAFOWOKAN Adekunle Ademayowa ADEBAYO Analysis of Convergence Criteria in a Proposed Monetary Union: A Study of the Economic Community of West African States International Journal of Economics and Financial Issues |
| title | Analysis of Convergence Criteria in a Proposed Monetary Union: A Study of the Economic Community of West African States |
| title_full | Analysis of Convergence Criteria in a Proposed Monetary Union: A Study of the Economic Community of West African States |
| title_fullStr | Analysis of Convergence Criteria in a Proposed Monetary Union: A Study of the Economic Community of West African States |
| title_full_unstemmed | Analysis of Convergence Criteria in a Proposed Monetary Union: A Study of the Economic Community of West African States |
| title_short | Analysis of Convergence Criteria in a Proposed Monetary Union: A Study of the Economic Community of West African States |
| title_sort | analysis of convergence criteria in a proposed monetary union a study of the economic community of west african states |
| url | https://www.econjournals.com/index.php/ijefi/article/view/886 |
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