The Real Exchange Rate and External Competitiveness in Egypt, Morocco and Tunisia

Zuzana Brixiová Schwidrowski, Balázs Égert and Thouraya Hadj Amor Essid

No wp1068, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

Abstract: 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.

Keywords: real exchange rate misalignment; stock-flow model; competitiveness; trade; Africa (search for similar items in EconPapers)
JEL-codes: C5 F3 F41 F63 O1 (search for similar items in EconPapers)
Pages: pages
Date: 2014-01-01
New Economics Papers: this item is included in nep-ara, nep-int and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp1068.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp1068.pdf [302 Found]--> https://wdi.umich.edu/files/Publications/WorkingPapers/wp1068.pdf)

Related works:
Journal Article: The Real Exchange Rate and External Competitiveness in Egypt, Morocco and Tunisia (2014)
Working Paper: The Real Exchange Rate and External Competitiveness in Egypt, Morocco and Tunisia (2014)
Working Paper: The Real Exchange Rate and External Competitiveness in Egypt, Morocco and Tunisia (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wdi:papers:2014-1068

Access Statistics for this paper

More papers in William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan 724 E. University Ave, Wyly Hall 1st Flr, Ann Arbor MI 48109. Contact information at EDIRC.
Bibliographic data for series maintained by WDI ().