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Mauritius; A Competitiveness Assessment

Author

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  • Camelia Minoiu
  • Patrick A. Imam

Abstract

We assess the competitiveness of Mauritius in recent years using two approaches. First, we estimate the difference between the equilibrium and the actual real exchange rate using four methods: the macroeconomic balance approach, the single-equation fundamentals approach, the capital-enhanced approach, and the external sustainability approach. The methods consistently suggest that at the end of 2007 the exchange rate was aligned with its equilibrium value. Second, we undertake a comparative analysis of structural competitiveness indicators and find that Mauritius often fares better on business climate than other small island economies and high-growth Asian economies. Nevertheless, there are areas for improvement.

Suggested Citation

  • Camelia Minoiu & Patrick A. Imam, 2008. "Mauritius; A Competitiveness Assessment," IMF Working Papers 08/212, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:08/212
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    Citations

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    Cited by:

    1. Jeffrey Frankel, 2014. "Mauritius: African Success Story," NBER Chapters,in: African Successes, Volume IV: Sustainable Growth, pages 295-342 National Bureau of Economic Research, Inc.
    2. Luc Eyraud, 2009. "Madagascar; A Competitiveness and Exchange Rate Assessment," IMF Working Papers 09/107, International Monetary Fund.
    3. Patrick A. Imam & Rainer Koehler, 2010. "Balance Sheet Vulnerabilities of Mauritius During a Decade of Shocks," IMF Working Papers 10/148, International Monetary Fund.

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