Le régime de change contribue-t-il à la diversification des exportations en Afrique ?

The choice of exchange rate regime remains a topical issue for contemporary economies, just like the question of the determinants of exports diversification in developing countries. Hence, this article examines the exchange rate regime?s contribution to the level of exports diversification of African countries. Using de jure and de facto classifications, and a non-parametric econometric approach based on propensity score matching, we show that the fixed exchange rate regime is associated with lower diversification levels than intermediate or flexible regimes. This effect occurs mainly through the extensive margin channel since the slow adjustment of relative prices in fixed regimes inhibits incentives to produce new goods. The results are particularly relevant for: (i) countries that are better endowed with natural resources; (ii) countries where the quality of institutions is lower; (iii) countries that belong to the Franc Zone. Therefore, the article highlights the importance of the quality of institutions as a necessary condition to mitigate the fixed regime?s adverse effect on incentives to produce new goods.