IDEAS home Printed from https://ideas.repec.org/a/taf/wjabxx/v21y2020i1p126-144.html
   My bibliography  Save this article

Business Cycle Synchronization: A Reassessment of the Optimum Currency Area Theory within the CFA Franc Zone

Author

Listed:
  • Michel Cyrille Samba
  • Christophe Mbassi

Abstract

he main purpose of this paper is to assess the synchronization of business cycles within the Franc zone countries for the period 1990–2013. For this purpose, we use supply and demand shocks and then construct an indicator of dispersion. Our results suggest that supply shocks in the CFA Franc zone tend to be symmetric after the year 2000. In contrast, Franc zone member states seem to have become more and more different and exposed to asymmetric demand shocks, especially after the year 2000. Results based on the computation of an indicator of dispersion highight the existence of business cycle synchronization in terms of demand shocks during the period of study. On their part, supply shocks appear to be synchronized only after the year 2000. Finally, a great number of countries still incur important costs due to their membership of the currency union and are consequently a source of cyclical divergence.

Suggested Citation

  • Michel Cyrille Samba & Christophe Mbassi, 2020. "Business Cycle Synchronization: A Reassessment of the Optimum Currency Area Theory within the CFA Franc Zone," Journal of African Business, Taylor & Francis Journals, vol. 21(1), pages 126-144, January.
    • Handle: RePEc:taf:wjabxx:v:21:y:2020:i:1:p:126-144
    DOI: 10.1080/15228916.2019.1607143
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/15228916.2019.1607143
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/15228916.2019.1607143?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:wjabxx:v:21:y:2020:i:1:p:126-144. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/wjab20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.