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Assessment of Monetary Union in SADC: Evidence from Cointegration and Panel Unit Root Tests

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  • Francis M. Kemegue
  • Marthinus C. Breitenbach
  • Mulatu F. Zerihun

Abstract

In this paper we investigate the likelihood of a proposed monetary union in the Southern African Development Community (SADC) being successful from the viewpoint of the Generalised Purchasing Power Parity (GPPP) hypothesis and optimum currency area (OCA) theory. We apply Johansen’s multivariate co-integration technique, panel unit root tests, Pedroni’s residual cointegration test and error correction […]

Suggested Citation

  • Francis M. Kemegue & Marthinus C. Breitenbach & Mulatu F. Zerihun, 2015. "Assessment of Monetary Union in SADC: Evidence from Cointegration and Panel Unit Root Tests," Working Papers 495, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:495
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    21. Tsangyao Chang & Wen-Chi Liu & Han-Wen Tzeng & Chin-Ping Yu, 2010. "Purchasing power parity for G-7 countries: panel SURADF tests," Applied Economics Letters, Taylor & Francis Journals, vol. 17(12), pages 1223-1228.
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    Cited by:

    1. Simplice Asongu & Oludele Folarin & Nicholas Biekpe, 2019. "The stability of demand for money in the proposed Southern African Monetary Union," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 15(2), pages 222-244, August.
    2. Wörgötter, Andreas & Brixiova Schwidrowski, Zuzana, 2020. "Monetary Unions of Small Currencies and a Dominating Member: What Policies Work Best for Benefiting from the CMA?," IZA Policy Papers 163, Institute of Labor Economics (IZA).
    3. Krzysztof Beck & Ntokozo Patrick Nzimande, 2023. "Labor mobility and business cycle synchronization in Southern Africa," Economic Change and Restructuring, Springer, vol. 56(1), pages 159-179, February.
    4. Samba Diop & Simplice A. Asongu, 2020. "An Index of African Monetary Integration (IAMI)," Working Papers 20/003, European Xtramile Centre of African Studies (EXCAS).
    5. Simplice Asongu & Jacinta Nwachukwu & Vanessa Tchamyou, 2017. "A Literature Survey On Proposed African Monetary Unions," Journal of Economic Surveys, Wiley Blackwell, vol. 31(3), pages 878-902, July.
    6. Simplice A. Asongu & Jacinta C. Nwachukwu & Vanessa S. Tchamyou, 2017. "A summary of a survey on proposed African monetary unions," Research Africa Network Working Papers 17/008, Research Africa Network (RAN).
    7. Anokye M. Adam & Kwabena Kyei & Simiso Moyo & Ryan Gill & Emmanuel N. Gyamfi, 2022. "Multifrequency network for SADC exchange rate markets using EEMD-based DCCA," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 46(1), pages 145-166, January.

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    More about this item

    Keywords

    Other Macroeconomic Variables; Panel data; private sector; public sector; SADC; Time Series Analysis;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F15 - International Economics - - Trade - - - Economic Integration
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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