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Exchange rate undervaluation and manufactured exports: A deliberate strategy?

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  • Nouira, Ridha
  • Plane, Patrick
  • Sekkat, Khalid

Abstract

Recent literature suggests that a proactive exchange rate policy in accordance with price incentives (i.e. undervaluation) can foster manufactured exports and growth. This paper is built on these recent developments and investigates, using a sample of 52 developing countries, whether such a proactive exchange rate policy is adopted. The results show that during the period 1991–2005 a number of countries has used undervaluation to foster the price competitiveness of manufactured exports.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 39 (2011)
Issue (Month): 4 ()
Pages: 584-601

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Handle: RePEc:eee:jcecon:v:39:y:2011:i:4:p:584-601

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Web page: http://www.elsevier.com/locate/inca/622864

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Keywords: Exchange rate; Misalignment; Undervaluation; Exports diversification;

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