Exchange Rate Undervaluation and Manufactured Exports: A Deliberate Strategy?

Ridha Nouira (1) , Patrick Plane (2) , K. Sekkat (3)

1 Université de Sfax - University of Sfax
2 CERDI - Centre d'Études et de Recherches sur le Développement International
3 Université de Brussels

Recent literature suggests that a proactive exchange rate policy in accordance with price incentives (i.e. undervaluation) can foster manufactured exports and growth. This paper is built on these recent developments and investigates, using a sample of 52 developing countries, whether such a proactive exchange rate policy is adopted. The results show that during the period 1991-2005 a number of countries has used undervaluation to foster the price competitiveness of manufactured exports.

Mots clés: Exchange rate; Exports diversification; Undervaluation; Misalignment

Domaines: Economies et finances

Ridha Nouira, Patrick Plane, K. Sekkat. Exchange Rate Undervaluation and Manufactured Exports: A Deliberate Strategy?. 2011. ⟨halshs-00617573⟩