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West African Monetary Union and Colonial Economic Ties

Author

Listed:
  • Lare-Lantone, Kanfitine

    (University of Lomé, Togo and Sheridan College, Ontario, Canada)

  • Anoruo, Emmanuel

    (Coppin State University, Baltimore, MD, USA)

Abstract
This paper examines the effects inherited economic and monetary colonial ties exert on the monetary unification of the Economic Community of West African States. Specifically, the study substituted in a Structural Vector Auto Regression framework domestic supply shocks with import supply price shocks from the former colonial economies (France, Portugal, and the UK), the regional economy, and the global economy to assess their effects on member countries’ monetary convergence variables. Empirical results provide evidence that convergence variables respond more symmetrically to supply price shocks from the former colonial economies and the global economy than from the regional economy. The predominance of pairs of former French colonies with symmetric responses to supply shocks can be attributed to the Communauté Financière Africaine franc effect. Besides, symmetric convergence variables’ responses by countries of different colonial heritages can be due to the proximity effect. The variables’ impulse responses to a unit of regional price shock cluster member countries with comparable paths into subgroups. However, the wide gaps between the magnitudes of their responses reveal the absence of inflation, fiscal policy, and monetary convergences. Finally, inherited colonial economic and monetary ties are not conducive to the monetary unification of the region. Unione monetaria dell’Africa dell’ovest e legami economici coloniali Questo articolo esamina gli effetti che i legami economici e monetari ereditati dalle ex-colonie esercitano sull’unificazione degli stati della Comunità Economica dell’Africa occidentale. Precisamente lo studio, nell’ambito di un modello SVAR (Structual Vector Autoregressive Regression), sostituisce gli shock di offerta interna con gli shock dei prezzi delle importazioni dagli ex-paesi colonizzatori (Francia, Portogallo e Regno Unito), dei prezzi dell’economia regionale e con quelli dell’economia globale al fine di valutare i loro effetti sugli indicatori di convergenza monetaria dei paesi membri. (per leggere tutto il riassunto scaricare il file Pdf)

Suggested Citation

  • Lare-Lantone, Kanfitine & Anoruo, Emmanuel, 2022. "West African Monetary Union and Colonial Economic Ties," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 75(3), pages 323-362.
    • Handle: RePEc:ris:ecoint:0925
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Colonial Ties; Regional Integration; Macroeconomic Convergence; Monetary Convergence; Monetary Union;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • O42 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Monetary Growth Models

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