The Endogeneity of the Optimum Currency Area Criteria, Intra-Industry Trade, and EMU Enlargement

  • Jarko Fidrmuc, Oesterreichische Nationalbank, +10 authors Wendy Carlin
  • Published 2002


This paper tests the endogeneity hypothesis of OCA criteria in a cross-section of OECD countries in the 1990s. It argues that intra-industry trade induces convergence of business cycles, while no direct relation between business cycles and bilateral trade intensity is found. This finding confirms the OCA endogeneity hypothesis, but it underlines the role of… (More)


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