The CFA Franc and the Euro: Has the introduction of the euro increased bilateral trade between the Eurozone and the CFA Franc zone?
(2016) NEKH01 20161Department of Economics
- Abstract
- Before the introduction of the euro in 1999, the CFA Franc was pegged towards the French national currency the Franc at a fixed parity. When France adopted the European single currency as its legal tender, the currency arrangement of 14 African counties changed as well. This paper examines whether the euro has had any significant effect on trade between the CFA franc zone and the Eurozone countries. The empirical study is based on panel data from 31 African and 27 European countries between 1994-2012. The results show that the fixed peg to the euro may have increased trade between the CFA franc members and the Eurozone. However, further research is required in order to get a more reliable result.
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8890706
- author
- Eriksson, Amanda LU
- supervisor
- organization
- course
- NEKH01 20161
- year
- 2016
- type
- M2 - Bachelor Degree
- subject
- keywords
- CFA-Franc, EURO, Currency peg, Gravity Model, European Monetary Union
- language
- English
- id
- 8890706
- date added to LUP
- 2016-09-09 16:08:09
- date last changed
- 2016-09-09 16:08:09
@misc{8890706, abstract = {{Before the introduction of the euro in 1999, the CFA Franc was pegged towards the French national currency the Franc at a fixed parity. When France adopted the European single currency as its legal tender, the currency arrangement of 14 African counties changed as well. This paper examines whether the euro has had any significant effect on trade between the CFA franc zone and the Eurozone countries. The empirical study is based on panel data from 31 African and 27 European countries between 1994-2012. The results show that the fixed peg to the euro may have increased trade between the CFA franc members and the Eurozone. However, further research is required in order to get a more reliable result.}}, author = {{Eriksson, Amanda}}, language = {{eng}}, note = {{Student Paper}}, title = {{The CFA Franc and the Euro: Has the introduction of the euro increased bilateral trade between the Eurozone and the CFA Franc zone?}}, year = {{2016}}, }