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The CFA Franc and the Euro: Has the introduction of the euro increased bilateral trade between the Eurozone and the CFA Franc zone?

Eriksson, Amanda LU (2016) NEKH01 20161
Department 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.
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author
Eriksson, Amanda LU
supervisor
organization
course
NEKH01 20161
year
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},
  keyword      = {CFA-Franc,EURO,Currency peg,Gravity Model,European Monetary Union},
  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},
}