Testing mundell ' s intuition of endogenous OCA theory

  title={Testing mundell ' s intuition of endogenous OCA theory},
  author={Thierry Warin and Phanindra V. Wunnava and Hubert P. Janicki},
  • Thierry Warin, Phanindra V. Wunnava, Hubert P. Janicki
  • Published 2008
Testing Mundell’s Intuition of Endogenous OCA Theory This paper presents an empirical assessment of the endogenous optimum currency area theory. Frankel and Rose (1998) study the endogeneity of a currency union through the lens of international trade flows. Our study extends Frankel and Rose’s model by using FDI flows to test the original theory developed by Mundell in 1973. A gravity model is used to empirically assess the effectiveness of the convergence criteria by examining location… CONTINUE READING


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