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Mauritius: A Competitiveness Assessment

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  • Ms. 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.

Suggested Citation

  • Ms. Camelia Minoiu & Patrick A. Imam, 2008. "Mauritius: A Competitiveness Assessment," IMF Working Papers 2008/212, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2008/212
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    Cited by:

    1. Jeffrey Frankel, 2014. "Mauritius: African Success Story," NBER Chapters, in: African Successes, Volume IV: Sustainable Growth, pages 295-342, National Bureau of Economic Research, Inc.
    2. Patrick A. Imam & Rainer Koehler, 2010. "Balance Sheet Vulnerabilities of Mauritius During a Decade of Shocks," IMF Working Papers 2010/148, International Monetary Fund.
    3. Adjnu Damar Ladkoo & Shweta Riddhimah Dhurmah, 2018. "The Positioning of Mauritius as the Gateway to African Investments after the Review of the Mauritius- India Double Taxation Agreement," Business and Economic Research, Macrothink Institute, vol. 8(2), pages 127-153, June.
    4. Mourao, Paulo Reis, 2018. "What is China seeking from Africa? An analysis of the economic and political determinants of Chinese Outward Foreign Direct Investment based on Stochastic Frontier Models," China Economic Review, Elsevier, vol. 48(C), pages 258-268.
    5. Mr. Luc Eyraud, 2009. "Madagascar: A Competitiveness and Exchange Rate Assessment," IMF Working Papers 2009/107, International Monetary Fund.
    6. Mr. Paulo Drummond & Mr. Wendell Daal & Mr. Nandini Srivastava & Mr. Luiz E Oliveira, 2012. "Mobilizing Revenue in Sub-Saharan Africa: Empirical Norms and Key Determinants," IMF Working Papers 2012/108, International Monetary Fund.

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