Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/75001
Authors: 
Fidrmuc, Jarko
Year of Publication: 
2001
Series/Report no.: 
LICOS Discussion Paper 106
Abstract: 
This paper tests the endogeneity hypothesis of OCA criteria (Frankel and Rose, 1998) in a cross-section of OECD countries between 1990 and 1999. It is shown that intraindustry trade actually causes the convergence of business cycles, while there is no direct relation between business cycles and bilateral trade intensity. As far as intraindustry trade is positively correlated with trade, the OCA endogeneity hypothesis is confirmed, although the argumentation follows Krugman (1993). Finally, the endogeneity of OCA criteria implies a comparable degree of business cycle hfirmonization of CEECs with EU countries as for the current members for the medium tfirm.
Subjects: 
Optimum currency area
EMU
trade
business cycle
CEECs
JEL: 
F15
F41
Document Type: 
Working Paper

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