EMU and Accession Countries: Fuzzy Cluster Analysis of Membership
Title: EMU and Accession Countries: Fuzzy Cluster Analysis of Membership
Author: BOREIKO, Dmitri
Publisher: John Wiley & Sons Ltd
Citation: International Journal of Finance & Economics, 2003, 8, 4, 309-325
This paper estimates the readiness of the accession countries of Central and Eastern Europe for EMU or unilateral euroization using a fuzzy clustering algorithm. The variables to which the algorithm is applied are suggested alternately by the criteria in the Maastricht Treaty (nominal convergence) and by Optimum Currency Area theory (real convergence). The algorithm reveals that Estonia and Slovenia are the leaders in both nominal and real convergence, whereas the other countries from the 1998 accession wave have achieved substantial results only in real convergence. Moreover, Poland is excluded from the leading group in the most recent years due to its worsened economic performance. Copyright (C) 2003 John Wiley Sons, Ltd.
Subject: CEECs; Optimum Currency Area; EMU; fuzzy cluster analysis; nominal and real convergence
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