Real Exchange Rate Misalignment in the CFA Zone
AbstractUsing a method of calculating real exchange rate (RER) misalignment which explicitly incorporates terms of trade shocks and the distinction between tradable and non tradable goods, this paper estimates RER overvaluation in 12 countries of the CFA franc zone before and after the 1994 devaluation of the CFA franc. The results show that prior to the devaluation, the RER was about 30% overvalued on average with sharp differences across the 12 countries. The larger oil producers (Cameroon and Gabon) were the most overvalued, while some of the smaller, landlocked countries (Chad and Burkina Faso) were much less so. The estimates appear to be robust to the choice of base year and the two elasticities of the model. One year after the devaluation, the RER was undervalued in a majority of countries, although the variation across countries remains, with Cameroon and Gabon still substantially overvalued. Copyright 1997 by Oxford University Press.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Centre for the Study of African Economies (CSAE) in its journal Journal of African Economies.
Volume (Year): 6 (1997)
Issue (Month): 1 (March)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Phone: +44-(0)1865 271084
Fax: 01865 267 985
Web page: http://www.jae.oupjournals.org/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Shatz, Howard J. & Tarr, David G., 2000. "Exchange rate overvaluation and trade protection - lessons from experience," Policy Research Working Paper Series 2289, The World Bank.
- Devarajan, Shantayanan & Go, Delfin S. & Page, John & Robinson, Sherman & Thierfelder, Karen, 2008. "Aid, growth, and real exchange rate dynamics," Policy Research Working Paper Series 4480, The World Bank.
- Khalid Sekkat & Aristomene Varoudakis, 2000.
"Exchange rate management and manufactured exports in Sub-Saharan Africa,"
ULB Institutional Repository
2013/7342, ULB -- Universite Libre de Bruxelles.
- Sekkat, Khalid & Varoudakis, Aristomene, 2000. "Exchange rate management and manufactured exports in Sub-Saharan Africa," Journal of Development Economics, Elsevier, vol. 61(1), pages 237-253, February.
- Khalid Sekkat & Aristomène Varoudakis, 1998. "Exchange-Rate Management and Manufactured Exports in Sub-Saharan Africa," OECD Development Centre Working Papers 134, OECD Publishing.
- Devarajan, Shantayanan & Go, Delfin S. & Hongyi Li, 1999. "Quantifying the fiscal effects of trade reform," Policy Research Working Paper Series 2162, The World Bank.
- Freund, Caroline & Pierola, Martha Denisse, 2008. "Export surges : the oower of a competitive currency," Policy Research Working Paper Series 4750, The World Bank.
- Ngongang, Elie, 2011. "Impact of Exchange Rate Policy on the Trade of Industrial Products in Sub-Saharan Africa from 1975 to 2007," Review of Applied Economics, Review of Applied Economics, vol. 7(1-2).
- Jamal BOUOIYOUR & Oscar KUIKEU, 2012.
"Pertinence de la dévaluation du Franc CFA de janvier 1994 : une évaluation par le taux de change réel d'équilibre. Cas de l'économie camerounaise,"
2011-2012_11, CATT - UPPA - Université de Pau et des Pays de l'Adour, revised Jul 2012.
- Bouoiyour, jamal & Kuikeu, Oscar, 2007.
"Pertinence de la dévaluation du Franc CFA de janvier 1994 : Une évaluation par le taux de change réel d’équilibre. Cas de l’économie camerounaise
[Relevance of the CFA France devaluation i," MPRA Paper 31357, University Library of Munich, Germany.
- Bouoiyour, jamal & Kuikeu, Oscar, 2007. "Pertinence de la dévaluation du Franc CFA de janvier 1994 : Une évaluation par le taux de change réel d’équilibre. Cas de l’économie camerounaise
- Devarajan, Shantayanan & Robinson, Sherman, 2002. "The influence of computable general equilibrium models on policy," TMD discussion papers 98, International Food Policy Research Institute (IFPRI).
- Shehu Usman Rano, Aliyu, 2008.
"Real Exchange Rate Misalignment: An Application of Behavioral Equilibrium Exchange Rate (BEER) to Nigeria,"
10343, University Library of Munich, Germany.
- Shehu Usman Rano, Aliyu, 2007. "Real Exchange Rate Misalignment: An Application of Behavioral Equilibrium Exchange Rate (BEER) to Nigeria," MPRA Paper 10376, University Library of Munich, Germany.
- Dessus, Sebastien & Varoudakis, Aristomene, 2013. "Protecting public investment against shocks in the West African economic and monetary union : options for fiscal rules and risk sharing," Policy Research Working Paper Series 6562, The World Bank.
- Kuikeu, Oscar, 2011.
"Comment la dernière crise financière a relancé le débat relatif à l'arrimage du fcfa à l'euro
[How the recent financial crisis have revived the debate on the parity between fcfa and euro]," MPRA Paper 32077, University Library of Munich, Germany.
- Marcel SchrÃ¶der, 2013. "Should developing countries undervalue their currencies?," Departmental Working Papers 2013-12, The Australian National University, Arndt-Corden Department of Economics.
- Blaise Gnimassoun, 2012. "Taux de change et mésalignements du franc CFA avant et après l’introduction de l’euro," EconomiX Working Papers 2012-3, University of Paris West - Nanterre la Défense, EconomiX.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.