IDEAS home Printed from https://ideas.repec.org/p/ris/adbiwp/0390.html
   My bibliography  Save this paper

Establishing Monetary Union in the Gulf Cooperation Council: What Lessons for Regional Cooperation?

Author

Listed:
  • Takagi, Shinji

    (Asian Development Bank Institute)

Abstract

The paper reviews the experience of regional economic cooperation in the Gulf Cooperation Council (GCC). Conceived as a regional security alliance, the GCC has evolved to become a common market in the making. All six GCC countries participate in the common market project, and additional countries may join. But the timing of introducing a common currency, initially targeted for 2010, remains uncertain, especially in the light of the ongoing euro area crisis. Two countries have withdrawn from the common currency project; another has ceased to comply with a prerequisite for entering the monetary union. But the GCC is not the same as the GCC Monetary Union, nor should the success of the GCC be judged solely on the basis of how many member states end up participating in the single currency.

Suggested Citation

  • Takagi, Shinji, 2012. "Establishing Monetary Union in the Gulf Cooperation Council: What Lessons for Regional Cooperation?," ADBI Working Papers 390, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0390
    as

    Download full text from publisher

    File URL: http://www.adbi.org/files/2012.10.19.wp390.monetary.union.gulf.cooperation.council.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Masahiro Kawai & Shinji Takagi, 2005. "Towards regional monetary cooperation in East Asia: lessons from other parts of the world," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 10(2), pages 97-116.
    2. Espinoza, Raphael & Prasad, Ananthakrishnan & Williams, Oral, 2011. "Regional financial integration in the GCC," Emerging Markets Review, Elsevier, vol. 12(4), pages 354-370.
    3. Sturm, Michael & Adolf, Petra & Peschel, Dominik & Stráský, Jan, 2008. "The Gulf Cooperation Council countries: economic structures, recent developments and role in the global economy," Occasional Paper Series 92, European Central Bank.
    4. Mr. Selim A Elekdag & Mr. Saade Chami & Mr. Ivan Tchakarov, 2004. "What Are the Potential Economic Benefits of Enlarging the Gulf Cooperation Council?," IMF Working Papers 2004/152, International Monetary Fund.
    5. Willem H. Buiter, 2010. "Economic, Political and Institutional Prerequisites for Monetary Union Among the Members of the Gulf Cooperation Council," Chapters, in: Ronald MacDonald & Abdulrazak Al Faris (ed.), Currency Union and Exchange Rate Issues, chapter 3, Edward Elgar Publishing.
    6. Ronald MacDonald & Abdulrazak Al Faris (ed.), 2010. "Currency Union and Exchange Rate Issues," Books, Edward Elgar Publishing, number 13764.
    7. Osman Suliman, 2011. "The large country effect, contagion and spillover effects in the GCC," Applied Economics Letters, Taylor & Francis Journals, vol. 18(3), pages 285-294.
    8. Saade Chami & Selim Elekdag & Ivan Tchakarov, 2007. "What are the Potential Economic Benefits of Enlarging the Gulf Cooperation Council?," International Economic Journal, Taylor & Francis Journals, vol. 21(4), pages 521-548.
    9. Mr. Esteban Jadresic, 2002. "On a Common Currency for the GCC Countries," IMF Policy Discussion Papers 2002/012, International Monetary Fund.
    10. Abdullah Alhassan, 2009. "A Coincident Indicator of the Gulf Cooperation Council (GCC) Business Cycle," IMF Working Papers 2009/073, International Monetary Fund.
    11. Rafiq, M.S., 2011. "The optimality of a gulf currency union: Commonalities and idiosyncrasies," Economic Modelling, Elsevier, vol. 28(1), pages 728-740.
    12. Rafiq, M.S., 2011. "The optimality of a gulf currency union: Commonalities and idiosyncrasies," Economic Modelling, Elsevier, vol. 28(1-2), pages 728-740, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Al-Gasaymeh, Anwar, 2016. "Bank efficiency determinant: Evidence from the gulf cooperation council countries," Research in International Business and Finance, Elsevier, vol. 38(C), pages 214-223.
    2. Sonal Devesh & Abdullah M. Asrul Affendi, 2021. "Modelling the Impact of Oil Price on Food Imports: Case of Oman," International Journal of Energy Economics and Policy, Econjournals, vol. 11(4), pages 113-120.
    3. Bouoiyour, Jamal & Selmi, Refk & Miftah, Amal, 2015. "“Every cloud has a silver lining”; to what extent does the Arab Spring accelerate the integration among Arab monarchies?," MPRA Paper 70942, University Library of Munich, Germany.

    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. Christian Dreger & Teymur Rahmani, 2016. "The impact of oil revenues on the Iranian economy and the Gulf states," OPEC Energy Review, Organization of the Petroleum Exporting Countries, vol. 40(1), pages 36-49, March.
    2. Essahbi Essaadi, 2017. "The feasibility of currency union in Gulf Cooperation Council countries: A business cycle synchronisation view," The World Economy, Wiley Blackwell, vol. 40(10), pages 2153-2171, October.
    3. Marga PEETERS, 2011. "The Changing Pattern in International Trade and Capital Flows of the Gulf Cooperation Council Countries in Comparison with other Oil-Exporting Countries," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 1(7), pages 1-29, December.
    4. Mirzaei, Ali & Al-Khouri, Ritab Salem Farhan, 2016. "The resilience of oil-rich economies to the global financial crisis: Evidence from Kuwaiti financial and real sectors," Economic Systems, Elsevier, vol. 40(1), pages 93-108.
    5. Abdulghaffar, Mahmood & Al-Ubaydli, Omar & Mahmood, Omar, 2014. "The Malfunctioning of the Gulf Cooperation Council Single Market: Features, Causes and Remedies," MPRA Paper 55413, University Library of Munich, Germany.
    6. Burke, Edward, 2012. "One blood and one destiny? Yemen’s relations with the Gulf Cooperation Council," LSE Research Online Documents on Economics 55241, London School of Economics and Political Science, LSE Library.
    7. Ashraf Nakibullah, 2017. "State of Shocks Synchronization among Members of the GCC," Research in World Economy, Research in World Economy, Sciedu Press, vol. 8(1), pages 15-23, June.
    8. Mohsin S. Khan, 2010. "The GCC Monetary Union: Choice of Exchange Rate Regime," Chapters, in: Ronald MacDonald & Abdulrazak Al Faris (ed.), Currency Union and Exchange Rate Issues, chapter 5, Edward Elgar Publishing.
    9. Rafiq, M.S., 2011. "The optimality of a gulf currency union: Commonalities and idiosyncrasies," Economic Modelling, Elsevier, vol. 28(1-2), pages 728-740, January.
    10. Mervan Selçuk & Şakir Görmüş, 2022. "Is a Monetary Union Feasible for D-8 Countries? An Examination in The Framework of The Optimum Currency Area," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 9(1), pages 75-101, January.
    11. Khalid Rashid Alkhater & Syed Abul Basher, 2016. "The oil cycle, the Federal Reserve, and the monetary and exchange rate policies of Qatar," Middle East Development Journal, Taylor & Francis Journals, vol. 8(1), pages 127-155, January.
    12. repec:ipg:wpaper:2014-568 is not listed on IDEAS
    13. Habib, Maurizio Michael & Stráský, Jan, 2008. "Oil exporters: in search of an external anchor," Working Paper Series 958, European Central Bank.
    14. Marga Peeters, 2010. "The changing pattern of international trade and capital flows of the GCC countries," European Economy - Economic Papers 2008 - 2015 415, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    15. M. Kabir Hassan & Ashraf Nakibullah & Abul Hassan, 2013. "Sterilisation and Monetary Control by the GCC Member Countries," The World Economy, Wiley Blackwell, vol. 36(12), pages 1566-1587, December.
    16. Rafiq, M.S., 2011. "The optimality of a gulf currency union: Commonalities and idiosyncrasies," Economic Modelling, Elsevier, vol. 28(1), pages 728-740.
    17. Mr. Masafumi Yabara, 2012. "Capital Market Integration: Progress Ahead of the East African Community Monetary Union," IMF Working Papers 2012/018, International Monetary Fund.
    18. Benjamin Keddad, 2013. "Exchange rate coordination in Asia under regional currency basket systems," Economics Bulletin, AccessEcon, vol. 33(4), pages 2913-2929.
    19. Basher, Syed Abul, 2010. "Has the non-oil sector decoupled from oil sector? A case study of Gulf Cooperation Council Countries," MPRA Paper 21059, University Library of Munich, Germany.
    20. Nusair, Salah A., 2019. "Oil price and inflation dynamics in the Gulf Cooperation Council countries," Energy, Elsevier, vol. 181(C), pages 997-1011.
    21. Jean-Pierre Allegret & Cécile Couharde & Valérie Mignon & Tovonony Razafindrabe, 2017. "Oil currencies in the face of oil shocks: what can be learned from time-varying specifications?," Applied Economics, Taylor & Francis Journals, vol. 49(18), pages 1774-1793, April.

    More about this item

    Keywords

    monetary union; gulf cooperation council; regional cooperation; common market; common currency; single currency; euro area;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ris:adbiwp:0390. 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: ADB Institute (email available below). General contact details of provider: https://edirc.repec.org/data/adbinjp.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.