The Real Exchange Rate and External Competitiveness in Egypt, Morocco and Tunisia
Egypt, Morocco and Tunisia face challenges competing on the global markets, as shown by their relatively low and stagnant export shares. The limited export competitiveness has hampered external demand, growth and employment. Applying, for the first time to North Africa, the stock-flow approach to the real equilibrium exchange rate, this paper evaluates the countries’ real exchange rate misalignments during the past three decades. While Egypt experienced periods of substantial misalignment, including in recent years, the exchange rates in Morocco and Tunisia have broadly reflected the underlying fundamentals. In all three countries structural factors are key to boosting exports, alongside of avoiding sizeable future misalignments. Intra-regional trade – both with North Africa and the rest of the continent – together with greater orientation to fast growing emerging markets could also raise countries’ external competitiveness.
|Date of creation:||01 Jan 2014|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 734 763-5020
Fax: 734 763-5850
Web page: http://www.wdi.umich.edu
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Balázs Égert & Kirsten Lommatzsch & Amina Lahrèche-Révil, 2007.
"Real Exchange Rates in Small Open OECD and Transition Economies: Comparing Apples with Oranges?,"
William Davidson Institute Working Papers Series
wp859, William Davidson Institute at the University of Michigan.
- Egert, Balazs & Lommatzsch, Kirsten & Lahreche-Revil, Amina, 2006. "Real exchange rates in small open OECD and transition economies: Comparing apples with oranges?," Journal of Banking & Finance, Elsevier, vol. 30(12), pages 3393-3406, December.
- Balazs Egert & Kirsten Lommatzsch & Amina Lahrèche-Révil, 2007. "Real Exchange Rates in Small Open OECD and Transition Economies: Comparing Apples with Oranges?," CESifo Working Paper Series 1928, CESifo Group Munich.
- Rodrik, Dani, 2003.
CEPR Discussion Papers
4100, C.E.P.R. Discussion Papers.
- Stampini, Marco & Verdier-Chouchane, Audrey, 2011.
"Labor Market Dynamics in Tunisia: The Issue of Youth Unemployment,"
IZA Discussion Papers
5611, Institute for the Study of Labor (IZA).
- Stampini Marco & Verdier-Chouchane Audrey, 2011. "Labor Market Dynamics in Tunisia: The Issue of Youth Unemployment," Review of Middle East Economics and Finance, De Gruyter, vol. 7(2), pages 1-35, September.
- Hamid Faruqee, 1995.
"Long-Run Determinants of the Real Exchange Rate: A Stock-Flow Perspective,"
IMF Staff Papers,
Palgrave Macmillan, vol. 42(1), pages 80-107, March.
- Hamid Faruqee, 1994. "Long-Run Determinants of the Real Exchange Rate: A Stock-Flow Perspective," IMF Working Papers 94/90, International Monetary Fund.
- Stewart Ngandu, 2008. "Exchange Rates And Employment," South African Journal of Economics, Economic Society of South Africa, vol. 76(s2), pages S205-S221, 08.
- Enrique Alberola & Susana Garcia-Cervero & Humberto López & Angel Ubide, 2005. "Quo vadis Euro?," International Finance 0507004, EconWPA.
- Ian Babetskii & Balazs Egert, 2005.
"Equilibrium Exchange Rate in the Czech Republic: How Good is the Czech BEER?,"
CERGE-EI Working Papers
wp267, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
- Ian Babetskii & Balázs Égert, 2005. "Equilibrium Exchange Rate in the Czech Republic: How Good is the Czech BEER?," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 55(5-6), pages 232-252, May.
- Ian Babetskii & Balázs Égert, 2005. "Equilibrium Exchange Rate in the Czech Republic: How Good is the Czech BEER?," William Davidson Institute Working Papers Series wp781, William Davidson Institute at the University of Michigan.
- Sfia Mohamed Daly, 2006. "Tunisia: Sources of Real Exchange Rate Fluctuations," William Davidson Institute Working Papers Series wp880, William Davidson Institute at the University of Michigan.
- Jamal Bouoiyour & Serge Rey, 2005.
"Exchange Rate Regime, Real Exchange Rate, Trade Flows and Foreign Direct Investments: The Case of Morocco,"
African Development Review,
African Development Bank, vol. 17(2), pages 302-334.
- Bouoiyour, Jamal & REY, Serge, 2005. "Exchange Rate Regime, Real Exchange Rate, Trade Flows and Foreign Direct Investments: The case of Morocco," MPRA Paper 38643, University Library of Munich, Germany.
- Bussière, Matthieu & Ca' Zorzi, Michele & Chudik, Alexander & Dieppe, Alistair, 2010. "Methodological advances in the assessment of equilibrium exchange rates," Working Paper Series 1151, European Central Bank.
- Frait, Jan & Komarek, Lubos & Meleck, Martin, 2006. "The Real Exchange Rate Misalignment in the Five Central European Countries," The Warwick Economics Research Paper Series (TWERPS) 739, University of Warwick, Department of Economics.
- Ghanem Darine, 2012. "Fixed Exchange Rate Regimes and Inflation Performance: Evidence from MENA Countries," Review of Middle East Economics and Finance, De Gruyter, vol. 8(1), pages 1-30, August.
- Shuang Ding & Omar Al Shehabi, 2008. "Estimating Equilibrium Exchange Rates for Armenia and Georgia," IMF Working Papers 08/110, International Monetary Fund.
- Kremers, Jeroen J M & Ericsson, Neil R & Dolado, Juan J, 1992.
"The Power of Cointegration Tests,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 54(3), pages 325-48, August.
- Fatma Marrakchi Charfi, 2008. "Equilibrium real exchange rate and misalignments : Lessons from a VAR-ECM model applied to Tunisia," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 55(4), pages 439-464, December.
- Hoda Selim, 2012. "Has Egypt'S Exchange Rate Policy Changed After The Float?," Middle East Development Journal (MEDJ), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1250005-1-1.
- Mustapha Kamel Nabli & Marie-Ange Veganzones-Varoudakis, 2004. "How does exchange rate policy affect manufactured exports in MENA countries?," Applied Economics, Taylor & Francis Journals, vol. 36(19), pages 2209-2219.
When requesting a correction, please mention this item's handle: RePEc:wdi:papers:2014-1068. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laurie Gendron)
If references are entirely missing, you can add them using this form.