StudentShare solutions
Triangle menu

Implications of GCC currency union - Dissertation Example

Nobody downloaded yet

Extract of sample
Implications of GCC currency union

a unified GCC currency 14 2.3 Exchange rate regime and currency peg 18 2.4 Concerns in establishing a common currency 19 2.5 The issue of optimality in the unified currency area 22 2.6 Synthesis 24 Chapter 3 Research Methodology 25 3.1 Research strategy 25 3.2 Research variables 26 3.3 Data gathering methodology 29 3.4 Method of data analysis 30 Chapter 4 Data 31 4.1 Gross Domestic Product (GDP) 31 4.2 Per Capita Income (PCY) 33 4.2 Inflation (INF) 35 4.4 Current Account Balance (CAB) 37 4.5 Exports (EXP) 39 4.6 Imports (IMP) 43 4.7 Total Reserves (TOTR) 45 4.8 Real Effective Exchange Rate (REER) 46 4.9 Population 48 4.10 Summary of correlation results 49 Chapter 5 Discussion 51 Chapter 6 Summary and conclusion 58 Bibliography 60 List of Tables Table 1: GDP descriptive statistics 31 Table 2: GDP proximity matrix 32 Table 3: PCY descriptive statistics 34 Table 4: PCY proximity matrix 34 Table 5: INF descriptive statistics 35 Table 6: INF proximity matrix 36 Table 7: CAB descriptive statistics 38 Table 8: CAB proximity matrix 38 Table 9: EXP descriptive statistics 40 Table 10: EXP proximity matrix 41 Table 11: IMP descriptive statistics 43 Table 12: IMP proximity matrix 43 Table 13: TOTR descriptive statistics 45 Table 14: TOTR proximity matrix 45 Table 15: REER descriptive statistics 46 Table 16: REER proximity matrix 47 Table 17: POP descriptive statistics 48 Table 18: POP proximity matrix 48 Table 19: Summary of correlation results 50 Table 20: Integration objectives in 1982 and 2001 55 List of Figures Figure 1: GDP comparative data 33 Figure 2: PCY comparative data 35 Figure 3: INF comparative data 37 Figure 4: CAB comparative data 39 Figure 5-1: EXP1 – Export volume percentage changes for all 4 GCC states 41 Figure 5-2: EXP1 – Export volume percentage changes...
The creation of a currency union is centred upon the formulation of a new currency that will be adopted as legal tender for all the member countries that form the union. The process is complex and delicate, since it necessitates the absorption of the national currencies into one, and with this the unification of monetary policy for the union (Krueger, Kamar & Carlotti, 2009). National economic and monetary policy are necessarily implicated, such that the individual states give up to an extent their sovereign right to policy determination insofar as they are constrained by the union.
This study examines the dynamics involved in assessing the viability of a monetary union in the Gulf Cooperation Council (GCC) region. Out of the six countries in the region, only four have opted into the prospective union, which right away underscores the difficulties in both the processes and effects involved in the union’s establishment.

1.1 Background of the research problem
In 2002, the euro was adopted as the first single currency of any unified monetary region worldwide. The euro was established by provision of the Maastricht Treaty in 1992. It is not commonly known, however, that some eleven years before this treaty, in 1981 the Gulf Cooperation Council formally articulated its objective to seek to establish a single, unified currency for the six member states in this region. Originally scheduled for adoption in 2010, the adoption date was postponed because of the destabilization caused by the intervening financial crisis and the economic recession. ...Show more

Summary

This paper “Implications of GCC currency union” investigates to polarize views to favor or disfavor of a GCC unified currency by updating the literature with a more recent documentary search and a correlation study. It focuses on the prospects for the successful adoption of a single GCC currency…
Implications of GCC currency union essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the dissertation on your topic
"Implications of GCC currency union"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Business Dissertation about Currency Wars
The main objective of this research is to understand the importance of the currency wars in international trade, so that each country can pursue the optimum level of currency manipulation in order to achieve prosperity and welfare for its citizens and the world, in general.
66 pages (16500 words) Dissertation
The impact of Oil price changes on the Gulf Council Countries (GCC) stock markets
The researcher will try to find out the effect of the oil prices on the stock markets of Gulf Council Countries considering all the factors which affects the stock market like the capital existing in the market, the gross domestic product, the unemployment rate etc. Is there a positive correlation between the two or there is a negative correlation between the two variables that would also be analyzed.
12 pages (3000 words) Dissertation
Study of Anti-Dumping by a Regional Trade Agreement
The World Trade Organization’s (WTO) Anti-Dumping Agreement permits member states to take unilateral measures to in circumstances where goods and products imported are damaging to the domestic industry’s like products and goods (Cook, Alston & Raia, 2004).
60 pages (15000 words) Dissertation
European Union: Impact of enlargement
It tries to answer possible questions from populations during the confirmation process of new members. Why is the European Union extending membership? How will the enlargement impact on the daily lives of citizens? Are the pros and cons expressed in enlargement well founded?
22 pages (5500 words) Dissertation
Prospects for a GCC common currency / Implications of GCC currency union
It is not commonly known, however, that some eleven years before this treaty, in 1981 the Gulf Cooperation Council formally articulated its objective to seek to establish a single, unified currency for the six member states in this region. Originally scheduled for adoption in 2010, the adoption date was postponed because of the destabilization caused by the intervening financial crisis and the economic recession.
12 pages (3000 words) Dissertation
Economic Implications of the EU's Single Currency on German Economy - Research Plan
There are a total of 27 countries across the European continents that have already signed the EU membership agreement (Central Intelligence Agency, 2011). Since it would be very difficult to examine the economic implications of using a single currency in 27 different countries, the researcher decided to focus on determining the impact of single currency on the economic situation of Germany.
4 pages (1000 words) Dissertation
METHODOLOGY for: Is Europe an Optimum currency area
The research paper tries to answer the question like how the weaker countries are affecting the stronger economical countries. How can it be defined to keep the weaker economical countries in the euro zone? And what are the pros and cons of adopting the old currency in the continent?
7 pages (1750 words) Dissertation
Prospects for a GCC common currency / Implications of GCC currency union
The year has come and gone, and the decade leading up to the deadline saw a flurry of studies on the likely success or failure of the union. Studies in the nineties and early in the new millennium tended to polarize views to either strongly favour or disfavour the eventual success of the union.
50 pages (12500 words) Dissertation
Economic Implications of the EU's Single Currency on German Economy
Literature Review 2.1 Possible effects of single currency----------------------------------------------------9 2.2 Positive effects on Germany----------------------------------------------------------11 2.3 Problems for Germany-----------------------------------------------------------------12 2.4 Fiscal fines paid to the ECB-----------------------------------------------------------14 2.5 Euro or Teuro----------------------------------------------------------------------------16 2.6 The macroeconomic indicators--------------------------------------------------------17 2.7 What Germany could have done------------------------------------------------------24 3.
40 pages (10000 words) Dissertation
Corporate governance in the GCC
The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs.
12 pages (3000 words) Dissertation
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation