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Economics

University of Kentucky

University of Kentucky Doctoral Dissertations

Financial integration in East Asia

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Three Essays On Regional Economic Integration And Exchange Rate Regimes, Xiaodan Zhao Jan 2008

Three Essays On Regional Economic Integration And Exchange Rate Regimes, Xiaodan Zhao

University of Kentucky Doctoral Dissertations

This dissertation consists of three independent essays addressing several key issues related to the empirical application of optimum currency area. The first essay explores the features of the CFA franc zone by operationalizing Robert Mundell’s (1952) criteria for an optimum currency area. A vector autoregression method is used in modeling national outputs as determined by global, regional and country-specific shocks. It finds that domestic outputs of the CFA franc zone countries are strongly influenced by country-specific shocks. These results suggest that the CFA franc zone countries are structurally different from each other and the monetary union may have been a …