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Optimum Currency Area Theory, Inter-Industry Labour Mobility, and Industrial Development Paths

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Abstract

The author considers the issue of inter-industry labour mobility in the theory of optimum currency areas (OCA) and analyses the explanatory and predictive power of Mundell´s and Kenen´s criteria when the phenomenon of monetary integration presents itself as a process of gradual incorporation of countries, and when monetary integration is accompanied by processes of industrial development with structural changes and patterns of convergence or divergence. He reaches the conclusion that OCA theory does not necessarily support gradualism in monetary integration and that, for a given set of countries and from a dynamic perspective, OCA theory does not necessarily produce time-consistent results.

Suggested Citation

  • De Lombaerde, Philippe, 2004. "Optimum Currency Area Theory, Inter-Industry Labour Mobility, and Industrial Development Paths," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 57(4), pages 429-439.
    • Handle: RePEc:ris:ecoint:0122
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    Cited by:

    1. Garza, Nestor & Gonzalez, Ivan, 2021. "An urban system assessment of Land Value Capture: The Colombian case," Land Use Policy, Elsevier, vol. 109(C).

    More about this item

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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