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Exchange Rate Undervaluation and Manufactured Exports: A Deliberate Strategy?

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  • SEKKAT
  • Patrick PLANE

    ()
    (Centre d'Etudes et de Recherches sur le Développement International)

  • Ridha NOUIRA

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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File URL: http://publi.cerdi.org/ed/2011/2011.25.pdf
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Bibliographic Info

Paper provided by CERDI in its series Working Papers with number 201125.

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Length: 38
Date of creation: 2011
Date of revision:
Handle: RePEc:cdi:wpaper:1281

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

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