AbstractGiven the tendency of the oil sector to appreciate the equilibrium real exchange rate (RER) in Algeria, trade liberalization with its depreciating impact on the RER is important for diversification of exports. This paper shows that reduction in trade protection would depreciate the RER in Algeria, which in turn would improve competitiveness of, and incentives to invest in, non-oil exports. The paper then discusses existing levels of protection in Algeria and directions for reform.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 99/49.
Date of creation: 01 Apr 1999
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