期刊名称：Journal of Islamic Monetary Economics and Finance
印刷版ISSN：2460-6146
电子版ISSN：2460-6618
出版年度：2018
卷号：4
期号：2
页码：223-236
语种：English
出版社：Bank Indonesia
摘要：The purpose of this study is to assess the readiness of 44 OIC member countries to form a currency union and to test whether the Optimum Currency Area (OCA) criteria remain relevant to a large region like the OIC.Large geographic size is subject to socio-economic and geographic disparities.This study employs the OCA-index to estimate the degree of readiness of the OIC to form a currency union.Five selected criteria –business cycle synchronization,trade openness,inflation similarity,the size of the economy,and distance – were employed to determine the OCA using Ordinary Least Squares regression.The findings of this study estimate that 63 percent of pairs of countries in the OIC are ready to form a currency union.The selected OCA’s criteria present the best-fit variable in explaining the OCA for the OIC.This paper verifies that economic and geographic heterogeneities are not the main obstacle to forming a currency union.This study provides an important contribution to the theory of OCA primarily in clarifying the application of the OCA conditions in a large observation like the OIC,which comprises many countries and many blocks.
