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Mauritius

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Author Info

  • Camelia Minoiu
  • Patrick A. Imam

Abstract

We assess the competitiveness of Mauritius in recent years using two approaches. First, we estimate the difference between the equilibrium and the actual real exchange rate using four methods: the macroeconomic balance approach, the single-equation fundamentals approach, the capital-enhanced approach, and the external sustainability approach. The methods consistently suggest that at the end of 2007 the exchange rate was aligned with its equilibrium value. Second, we undertake a comparative analysis of structural competitiveness indicators and find that Mauritius often fares better on business climate than other small island economies and high-growth Asian economies. Nevertheless, there are areas for improvement.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 08/212.

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Length: 33
Date of creation: 01 Sep 2008
Date of revision:
Handle: RePEc:imf:imfwpa:08/212

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Related research

Keywords: Real effective exchange rates; Fiscal sustainability; Regional shocks; Commodity prices; Exchange rate regimes; Economic models; exchange rate; real exchange rate; equilibrium exchange rate; exchange rates; nominal exchange rate; terms of trade; exchange rate policy; trading partners; exchange rate misalignment; trade costs; global competitiveness; terms of trade shocks; trade shocks; current account balance; exchange rate adjustment; foreign exchange; effective exchange rates; external position; real exchange rates; real effective exchange rate; exchange rate regime; balance of payments; exchange rate indices; foreign exchange market; effective exchange rate; exchange rate fluctuations; real exchange rate misalignments; domestic prices; exchange rate theory; export growth; history of exchange rate; trade taxes; international integration; per capita income; world economy; disequilibrium exchange rates; exchange rate adjustments; real exchange rate overvaluation; currency boards; exchange rate economics; exchange rate misalignments; import price; bilateral exchange rates; tariff barriers; export prices; exchange rate behavior; exchange arrangements; real exchange rate misalignment; nominal interest rate; exchange restrictions; exchange rate variations; export price; trade links; exchange rate arrangements; trade imbalances; real exchange rate behavior; domestic demand; average trade; price guarantees; exchange rate overvaluation; international standards; exchange rate appreciation; trade arrangements; preferential trade arrangements; current accounts; monetary union; trade restrictions; trade shock; trade openness; preferential trade;

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References

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Citations

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Cited by:
  1. Frankel, Jeffrey, 2010. "Mauritius: African Success Story," Working Paper Series rwp10-036, Harvard University, John F. Kennedy School of Government.
  2. International Monetary Fund, 2010. "Balance Sheet Vulnerabilities of Mauritius During a Decade of Shocks," IMF Working Papers 10/148, International Monetary Fund.
  3. Luc Eyraud, 2009. "Madagascar," IMF Working Papers 09/107, International Monetary Fund.

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