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

Brixiova Zuzana (), Balázs Égert and Essid Thouraya Hadj Amor ()
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Brixiova Zuzana: African Development Bank, Tunis, Tunisia
Essid Thouraya Hadj Amor: Department of Economics, Monastir University, Monastir, Tunisia
Authors registered in the RePEc Author Service: Zuzana Brixiová Schwidrowski

Review of Middle East Economics and Finance, 2014, vol. 10, issue 1, 25-51

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 in the past three decades. While Egypt experienced periods of substantial misalignment, 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 avoiding sizeable future misalignments. Intra-regional trade – with both 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)
Date: 2014
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Citations: View citations in EconPapers (1)

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Related works:
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 (2014)
Working Paper: The Real Exchange Rate and External Competitiveness in Egypt, Morocco and Tunisia (2013)
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DOI: 10.1515/rmeef-2013-0014

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