Mauritius: A Competitiveness Assessment

Patrick A. Imam and Camelia Minoiu ()

No 08/212, IMF Working Papers from International Monetary Fund

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.

Keywords: Mauritius; Competition; Real effective exchange rates; Fiscal sustainability; Regional shocks; Commodity prices; Exports; Exchange rate regimes; Economic models; Working Paper (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse
Date: Written 2008-09-09
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