IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/331470.html
   My bibliography  Save this paper

Monetary Union and Bilateral Intra Zone Trade Impact: Structural VAR Approach in CFA Zone

Author

Listed:
  • Dramani, Latif A. Guy
  • Laye, Oumy

Abstract

In this article we empirically try to answer the second hypothesis on the theory of the ZMO developed by Mc Kinnon (1963), while working on a sample of the countries of the zone franc. We found on the assets of the gravity models to put in evidence the existing monetary union impact on the bilateral trade flux. In order to measure the effects of the monetary union on the trade intra zone we call on a model structural VAR, to which is associated the method of space state model assessment with the aim of distinguishing the impact of an economic policy shock in a group of country in open economy. Our sample is constituted in this particular case of the 12 countries of the zone franc; seven countries of the UEMOA zone and five countries of the CEMAC zone. The originality of the approach is based on the fact that we tempt an endogeneisation of the flux of bilateral trade of every country in this analysis. The results of our investigations show a sensitive reduction of the effects borders, an improvement of the institutional effects as well as the effects bound to the distance on the flux of trade intra zone. On the other hand, the survey by structural VAR and state measure models shows a relative symmetry of shocks observed to in the real shocks of demand while the shocks of price and supply rather present an asymmetric character. With the importance of the real demand shocks, in our survey we globally notice that some efforts must be made to vary the structure of the economy of zone franc countries currently based on the agroalimentary industries, which are very sensitive to the climatic risks; in order to hope to have the sustained growth rates which will allow to reach the objectives of poverty reduction by 2015.

Suggested Citation

  • Dramani, Latif A. Guy & Laye, Oumy, 2006. "Monetary Union and Bilateral Intra Zone Trade Impact: Structural VAR Approach in CFA Zone," Conference papers 331470, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331470
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/331470/files/2189.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lord, Ron, 1995. "Sugar: Background for 1995 Farm Legislation," Agricultural Economic Reports 262017, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schmitz, Andrew, 1995. "Sugar: The Free Trade Myth and the Reality of European Subsidies," International Working Paper Series 237436, University of Florida, Food and Resource Economics Department.
    2. Ashley Winston, 2005. "The Theory of Tariff Rate Quotas: An Application to the U.S. Sugar program using MONASH-USA," Centre of Policy Studies/IMPACT Centre Working Papers ip-83, Victoria University, Centre of Policy Studies/IMPACT Centre.
    3. Castellanos, Lazaro Peno & Alvarez, Jose, 1997. "The Processing Sector of the Sugar Industries of Cuba and Florida," International Working Paper Series 239269, University of Florida, Food and Resource Economics Department.
    4. Mitchell, Donald, 2004. "Sugar policies opportunity for change," Policy Research Working Paper Series 3222, The World Bank.
    5. Evans, Edward A. & Ward, Ronald W. & Davis, Carlton George, 2001. "Time Varying Parameters In The Demand For High Fructose Corn Syrup," 2001 Annual meeting, August 5-8, Chicago, IL 20541, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

    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:ags:pugtwp:331470. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    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.