Optimum Currency Areas Structural Changes and the Endogeneity of the OCA Criteria: Evidence from Six New EU Member States

Dimitrios Sideris

No 99, Working Papers from Bank of Greece

Abstract: The present paper has two aims. The first aim is to test whether six new member states of the European Union (the six Central and Eastern European Countries) form an optimum currency area (OCA) with the eurozone, in an attempt to assess their readiness for euro adoption. The second aim is to examine whether the introduction of the euro in 1999 and the decision of the countries to seek to join the euro area created any forces fostering their convergence, evidence which would be in line with the theory on the endogeneity of the OCA criteria. Our findings indicate that the introduction of the euro did promote integration of the six new member states and that, at present, they are quite well aligned with the eurozone.

Keywords: EU enlargement; OCA; real exchange rates; cointegration; GPPP. (search for similar items in EconPapers)
JEL-codes: C32 F33 F36 F42 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2009-07
New Economics Papers: this item is included in nep-eec, nep-ifn, nep-mon and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Optimum currency areas, structural changes and the endogeneity of the OCA criteria: evidence from six new EU member states (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:bog:wpaper:99

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