How many currencies in Saarc countries? a multivariate structural var approach

Md. Forhad

Journal of Developing Areas, 2014, vol. 48, issue 4, 265-286

Abstract: This paper examines whether or not the South Asian Association Regional Cooperation (SAARC), can introduce a single currency across the region. A four-variable structural vector autoregressive (SVAR) model is used to identify the underlying shocks and to examine the correlation in shocks for a specified sample period of 1974-2010. The results show asymmetric correlations among domestic shocks, which do not suggest forming a common currency area across the region. The paper also finds lower factor mobility; lower degree of intra-regional trades, and lack of political cooperation, suggesting the SAARC countries are not yet ready to introduce a common currency.

Keywords: SAARC; common currency; SVAR (search for similar items in EconPapers)
JEL-codes: E52 E58 E59 F15 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://muse.jhu.edu/journals/journal_of_developing_areas/v048/48.4.forhad.html

Related works:
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:jda:journl:vol.48:year:2014:issue4:pp:265-286

Access Statistics for this article

More articles in Journal of Developing Areas from Tennessee State University, College of Business Contact information at EDIRC.
Bibliographic data for series maintained by Abu N.M. Wahid ().