Exchange Rate Undervaluation and Manufactured Exports: A Deliberate Strategy?

Abstract : 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.
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Submitted on : Monday, August 29, 2011 - 4:08:08 PM
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Ridha Nouira, Patrick Plane, K. Sekkat. Exchange Rate Undervaluation and Manufactured Exports: A Deliberate Strategy?. 2011. ⟨halshs-00617573⟩

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