Fiscal Convergence in Africa: What Role for Regional Economic Communities?

Tapsoba, Sampawende; Sembene, Daouda; Gammadigbé, Vigninou; Issifou, Ismaël

doi:10.11130/jei.2019.34.2.214

Cited by 4 publications

(10 citation statements)

References 21 publications

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“…This paper employs panel data which is desirable in the sense that it allows controlling for country specific and time-specific factors (Sampawende, et al, 2019;Knust, 2010;Balgati, 2008). The analysis take explicit account for individual heterogeneity, which is essential to reveal results unobserved characteristics that do not change over time (Park, 2010).…”

Section: Methodsmentioning

confidence: 99%

“…Indeed, Asongu (2014) commends that the African member states in a monetary union should consider harmonising cross country differences and institutional characteristics that obstruct effectiveness of monetary and fiscal policy synchronisation in a monetary union. In addition, Sampawende, et al, (2019) asserts that fiscal convergence is a necessary condition for the success of a monetary union, which constitutes the highest degree of integration.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Policy coordination is therefore beneficial when done within an economy (fiscal and monetary policy coordination) and across countries (fiscal and/ or monetary policies coordination among group of countries). Sampawende, Sembene, Vigninou, and Issifou, (2019) posits that several integration arrangements in Africa, (WAEMU, CEMAC, ECOWAS, COMESA, EAC, and SADC) 2 have adopted coordination mechanisms to promote the convergence of fiscal positions with expectation that, this will facilitate the synchronisation of economic cycles.…”

Section: Introductionmentioning

confidence: 99%

“…To establish whether coordination exist the paper test for co-integration of the monetary and fiscal policy variables among the group of countries. It is possible that creating a monetary zone arrangement fosters the synchronisation of economic shocks among countries, therefore synchronisation may be considered endogenous in that regard (Sampawende, et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

“…It is only the South African Rand, which is legal tender throughout the CMA, thus de facto, all member countries follow South Africa's monetary policy. The agreement is acknowledged to lack a framework for macroeconomic policy coordination (Sampawende, et al, 2019). Macroeconomic policy coordination is critical to create a spring-board for a sustainable monetary union in the SADC region.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Possibility of SADC Monetary Union: Testing for Coordination of Fiscal and Monetary Policies

Mhambi¹,

Mishi²

2019

J. Rev. Global Econ.

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There is consensus that fiscal and monetary policies should be coordinated into a broader macroeconomic framework for sustainable monetary union. The Brexit scenario, and the debt problems of some European Union members has vindicated reconsideration of premises on which monetary unions are setup. Southern African Development Community (SADC) had mooted the idea of a monetary union, despite the Rand Common Currency Area not being successful. However, there has been little literature on coordination of fiscal and monetary policies within and across SADC countries. The aim of this study is to examine whether the key macroeconomic policies are coordinated in order to create a springboard for a sustainable monetary union. The study employed panel data analysis techniques on 14 SADC countries. The Pooled Mean Group (PGM) method was applied to constrain the long-run coefficients to be identical, but allow the short-run coefficients and error variance to differ across groups. The application of PGM technique allows the study to control for heterogeneity across countries and the time dependence that exist on most macroeconomic series. The empirical results show that there is fiscal and monetary policies coordination amongst some SADC countries. However, crosscountry differences on key macroeconomic fundamentals such debts, fiscal balances and money supply may hinder the formation of a monetary union and obstruct the economic survival initiatives for trade amongst member states. The paper concludes monetary union may naturally become necessary to facilitate cooperation and trade amongst countries once there exists shared goals.

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Section: Methodsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Possibility of SADC Monetary Union: Testing for Coordination of Fiscal and Monetary Policies

Mhambi¹,

Mishi²

2019

J. Rev. Global Econ.

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Monetary integration in West Africa: Are business cycles converging?

Gammadigbé

Dioum

2022

African Development Review

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The aim of this paper was to test the hypothesis of business cycle convergence in member countries of the Economic Community of West African States (ECOWAS) engaged in a monetary union process. We applied the concepts of beta-convergence and sigma-convergence to business cycles in the region in the period 1990-2018. Two analytical approaches suggested that during this period, the hypothesis of the convergence of business cycles cannot be rejected. The study highlighted the positive effect of trade intensity on the convergence of member countries' business cycles, in line with the theory of the endogeneity of optimum currency area criteria. These results imply that the initial asymmetric nature of the business cycles of ECOWAS countries does not represent an economic obstacle to the creation of a monetary union in the zone. This cyclical convergence is likely to accelerate with the intensification of trade resulting from the newly created union owing to deeper financial integration and the elimination of transaction costs and uncertainty associated with exchange rate volatility.

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2021

Theor. Pract. Res. Econom. Fields

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Many economists today are concerned by the proliferation of journals and the concomitant labyrinth of research to be conquered in order to reach the specific information they require. To combat this tendency, Theoretical and Practical Research in Economic Fields has been conceived and designed outside the realm of the traditional economics journal. It consists of concise communications that provide a means of rapid and efficient dissemination of new results, models and methods in all fields of economic research.Theoretical and Practical Research in Economic Fields publishes original articles in all branches of economics -theoretical and empirical, abstract and applied, providing wide-ranging coverage across the subject area.Journal promotes research that aim at the unification of the theoretical-quantitative and the empirical-quantitative approach to economic problems and that are penetrated by constructive and rigorous thinking. It explores a unique range of topics from the frontier of theoretical developments in many new and important areas, to research on current and applied economic problems, to methodologically innovative, theoretical and applied studies in economics. The interaction between empirical work and economic policy is an important feature of the journal.Theoretical and Practical Research in Economic Fields, starting with its first issue, it is indexed in EconLit, RePEC, ProQuest, Cabell Directories and CEEOL databases.The primary aim of the Journal has been and remains the provision of a forum for the dissemination of a variety of international issues, empirical research and other matters of interest to researchers and practitioners in a diversity of subject areas linked to the broad theme of economic sciences.All the papers will be first considered by the Editors for general relevance, originality and significance. If accepted for review, papers will then be subject to double blind peer review.Invited manuscripts will be due till November 10 th, 2020, and shall go through the usual, albeit somewhat expedited, refereeing process.

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Fiscal Convergence in Africa: What Role for Regional Economic Communities?

Cited by 4 publications

References 21 publications

Possibility of SADC Monetary Union: Testing for Coordination of Fiscal and Monetary Policies

Possibility of SADC Monetary Union: Testing for Coordination of Fiscal and Monetary Policies

Monetary integration in West Africa: Are business cycles converging?

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