Competitiveness and the real exchange rate: the standpoint of countries in the CEMAC zone
AbstractThis paper focuses on real exchange rate in the case of CEMAC countries. To analyze the situation in Cameroon, Central African Republic, Congo, Gabon and Chad we used annual data from 1979 to 2008. Two approaches were used related to equilibrium real exchange rate model based on fundamentals and calculations show that terms of trade, public expenditure, the degree of openness of the economy and productivity are the most important variables which influence the equilibrium of real exchange rate. Based on the estimated paths, there was a clear pattern of overvaluation before 1994, suggesting that the exchange rate adjustment was needed. Despite a relative appreciation trend during last years, the real exchange rate of CEMAC countries has not experienced an important overvaluation.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 17053.
Date of creation: 02 Sep 2009
Date of revision:
Equilibrium real exchange rate; CEMAC; FEER;
Find related papers by JEL classification:
- C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
- O55 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Africa
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- F31 - International Economics - - International Finance - - - Foreign Exchange
This paper has been announced in the following NEP Reports:
- NEP-AFR-2009-09-05 (Africa)
- NEP-ALL-2009-09-05 (All new papers)
- NEP-IFN-2009-09-05 (International Finance)
- NEP-OPM-2009-09-05 (Open Economy Macroeconomic)
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