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Does the real exchange rate influence the manufacturing value added?
[Le taux de change réel influence-t-il la valeur ajoutée manufacturière ?]

Author

Listed:
  • Mohamed Chaffai

    (جامعة صفاقس - Université de Sfax - University of Sfax)

  • Patrick Plane

    (FERDI - Fondation pour les Etudes et Recherches sur le Développement International, CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)

Abstract

A haircut is more expensive in the United States than in Mali. However, this does not mean that Malian hairdressers are less productive or skilled. The price difference stems from higher productivity in tradable goods in the United States compared to Mali. This productivity gap spills over into the prices and wages of non-tradable goods. It is therefore essential to address this imbalance by aiming to equalize goods prices and account for international productivity differences in tradable sectors. This regulation —through the real exchange rate— can influence the development of the manufacturing sector and its contribution to value added.

Suggested Citation

  • Mohamed Chaffai & Patrick Plane, 2025. "Does the real exchange rate influence the manufacturing value added? [Le taux de change réel influence-t-il la valeur ajoutée manufacturière ?]," Post-Print hal-05385172, HAL.
    • Handle: RePEc:hal:journl:hal-05385172
    Note: View the original document on HAL open archive server: https://uca.hal.science/hal-05385172v1
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