Do Currency Barriers Solve the Border Effect Puzzle? Evidence from the CFA Franc Zone - Université Paris-Est-Créteil-Val-de-Marne Access content directly
Journal Articles Review of World Economics Year : 2005

Do Currency Barriers Solve the Border Effect Puzzle? Evidence from the CFA Franc Zone

Abstract

In this paper, we use a gravity model to investigate the extent to which currency barriers explain the border effect puzzle, i.e. the impact of national borders on international trade. We focus on the two monetary unions of the CFA Franc Zone in West and Central Africa. We find that these countries display large border effects, and that currency barriers explain between 17 per cent and 28 per cent of the overall border effect.

Dates and versions

hal-03952282 , version 1 (23-01-2023)

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José de Sousa, Julie Lochard. Do Currency Barriers Solve the Border Effect Puzzle? Evidence from the CFA Franc Zone. Review of World Economics, 2005, 141 (3), pp.422-441. ⟨10.1007/s10290-005-0037-5⟩. ⟨hal-03952282⟩
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