The Costs and Benefits of Monetary Integration Reconsidered

• 영문명: The Costs and Benefits of Monetary Integration Reconsidered: towards Value-Added Based Openness Measures
• 발행기관: 세종대학교 경제통합연구소
• 저자명: Ansgar Belke Lars Wang
• 간행물 정보: 『Journal of Economic Integration』제21권 제1호, 157~180쪽, 전체 24쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2006.03.31

영문 초록

This study re-assesses regional integration by taking new measures for the degree of openness into account. The value-added based economic integration (VEI) model which improves on traditional economic integration models forms the core of these openness indicators. We show that a shift from the usual proxies of the gross economic integration (GEI) model towards those of the VEI model leads to a decrease of the realized degree of economic integration. Hence, the costs (benefits) are higher (lower) for a country from joining a fixed exchange rate area as supposed by the standard GEI model. From this perspective, the outcomes based on the traditional GEI model tend to overestimate the potential success of a given monetary integration process. More specifically, even a revision of the recommendation for a country to participate in a single currency area might be a consequence. Finally, empirical estimates of these new openness measures are delivered for more than twenty countries.

목차

Ⅰ. Introduction

Ⅱ. The Degree of Economic Integration within the Analysis of Monetary Integration

Ⅲ. Measurement of Economic Integration with the VEI Model

Ⅳ. Potential Impacts of the VEI Model on the Analysis of Monetary Integration

Ⅴ. Conclusions

키워드

Degree of economic integration Exchange rate arrangement Openness Optimum currency areas Value-added approach