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The Global Effects Of Internal And External Devaluation On Export Potential

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  • Dimitrov, Martin

Abstract

The objective of this research is to assess devaluation (both internal and external) as a significant factor affecting national competitiveness by applying comparative analysis tools. The research paper consists of two major parts: the first one presents a systematization of macro-financial effects through international comparative analysis and provides arguments regarding the consequences arising from the implementation of external and internal devaluation policies; the second part examines the dynamics of export as an indicator of post-crisis recovery, which is especially important for countries with open economies upon which external and internal devaluation may have tremendous effects. The conclusion reached as a result of the research states that attitudes unconditionally favouring the devaluation of a national currency as a major tool to support export seem unjustified and should therefore be approached by taking into account potential risks and negative effects.

Suggested Citation

  • Dimitrov, Martin, 2015. "The Global Effects Of Internal And External Devaluation On Export Potential," Economic Archive, D. A. Tsenov Academy of Economics, Svishtov, Bulgaria, issue 1, pages 1-4.
  • Handle: RePEc:dat:earchi:y:2015:i:1:p:4
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    File URL: http://hdl.handle.net/10610/2826
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