Paper Summary:

This paper explains that, although there are differences between the regions, the EU, which has already unified its currency, can be used as an example for the GCC. The author points out that the high level of economic heterogeneity in Europe is one of the reasons the euro-zone has done well; the corresponding lack of economic heterogeneity in the GCC states may prove to be a significant barrier for these nations in achieving the kind of economic stability and success desirable in pursuing currency unification. The paper uses quantitative analysis to suggest that, vis-a-vis other nations in the GCC, Oman stands to benefit to a relatively higher degree from the planned currency unification. Tables. Statistical analysis.

Table of Contents
Overall Effect of Currency Unification on the EU
Economic Heterogeneity
Applicability of European Union to GCC

From the Paper:

"One indication of the mixed fate of the European Union countries since the introduction of the euro is the trade sector, an arena that should have been positively affected by the introduction of the euro. And indeed, trade has been positively affected in terms of reduced tariffs; however, the larger economic picture (as well as to some extent the internal dynamics of the situation in Europe itself) has also been harmful to the European Union's trade position, producing a trade picture that is mixed. The change in value of exports varied widely, from a drop of nearly 7 percent to an increase of 34 percent with an average overall increase of 11 percent. Imports increased on average by 13 percent. The trade balance "the difference between exports and imports" narrowed (or, in cases of deficits, widened) by nearly 14 percent on average."

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