Feasibility of the Proposed Monetary Union in East African Community: Generalized  Method of Moments Approach

Feasibility of the Proposed Monetary Union in East African Community: Generalized Method of Moments Approach

Sudi Amani Mwasinago

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Richard Kiplangat Siele

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Feasibility of the Proposed Monetary Union in East African Community: Generalized Method of Moments Approach

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Abstract

This study examined the suitability of Theory of Optimum Currency as a basis for feasibility of proposed monetary union in East African Community (EAC) countries; Uganda, Burundi, Kenya, Rwanda and Tanzania. The study sought to determine symmetry of; monetary shocks; inflation rates; fiscal deficit, public debt, real Gross Domestic Product (GDP) and degree of openness. Exploratory was used employing panel data covering 2000Q1-2016Q4. Generalized Method of Moments approach was utilized. Results showed convergence in the real exchange rate was statistically significant and negative implying formation of a monetary union reduced combined GDP. Policy makers in EAC countries could concentrate in adapting unfulfilled macroeconomic convergence criteria and strengthening cooperation in monetary policy co-ordinations.

References

16 Cites in Article

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Sudi Amani Mwasinago. 2018. \u201cFeasibility of the Proposed Monetary Union in East African Community: Generalized Method of Moments Approach\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 18 (GJHSS Volume 18 Issue E5): .

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GJHSS Volume 18 Issue E5
Pg. 19- 27

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Journal Specifications

Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

Keywords

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Classification

GJHSS-E Classification: FOR Code: 140299

Submission ReceivedDecember 9, 2017
Peer Review Double Blind
Handling Editor
Accepted December 31, 2017
Published January 15, 2018

Version of record

v1.2

Issue date

June 30, 2018

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Article Matrices

Total Score: 101

Country: Kenya

Subject: Global Journal of Human-Social Science - E: Economics

Authors: Richard Kiplangat Siele (PhD/Dr. count: 0)

View Count (all-time): 161

Total Views (Real + Logic): 2983

Total Downloads (simulated): 1435

Publish Date: 2018 06, Sat

Monthly Totals (Real + Logic):

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Total Views: 2983

Total Downloads: 1435

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