On the Optimality of a GCC Monetary Union: Structural VAR, Common Trends, and Common Cycles Evidence

Aamer S. Abu‐Qarn and Suleiman Abu‐Bader
Authors registered in the RePEc Author Service: Suleiman Abu-Bader () and Aamer S. Abu-Qarn ()

The World Economy, 2008, vol. 31, issue 5, 612-630

Abstract: The suitability of the proposed monetary union among the members of the Gulf Cooperation Council (GCC) is examined. The authors identify the underlying structural shocks that these economies are subject to and assess the extent to which the shocks are symmetric. Alternatively, the authors test for common trends and common business cycles among the GCC economies. They find that while the transitory demand shocks are typically symmetric, the permanent supply shocks are asymmetric. Furthermore, they do not find synchronous long‐run and short‐run movements in output. Despite the progress that has been made in terms of integration, the findings indicate that the conditions for forming a GCC monetary union have not as yet been met.

Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
https://doi.org/10.1111/j.1467-9701.2008.01096.x

Related works:
Working Paper: ON THE OPTIMALITY OF A GCC MONETARY UNION: STRUCTURAL VAR, COMMON TRENDS AND COMMON CYCLES EVIDENCE (2006)
Working Paper: On the optimality of a GCC Monetary Union: Structural VAR, Common Trends and Common Cycles Evidence (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:worlde:v:31:y:2008:i:5:p:612-630

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0378-5920

Access Statistics for this article

The World Economy is currently edited by David Greenaway

More articles in The World Economy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().