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Exchange Rate Undervaluation and Manufactured Exports: A Deliberate Strategy?

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  • Ridha Nouira

    (UREP - Université de Sfax - Université de Sfax)

  • Patrick Plane

    (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I)

  • K. Sekkat

    (Université de Brussels - Université de Brussels)

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

Paper provided by HAL in its series Working Papers with number halshs-00617573.

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Date of creation: 29 Aug 2011
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Handle: RePEc:hal:wpaper:halshs-00617573

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

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