Exchange rate misalignment and export diversification in developing countries

Khalid Sekkat

The Quarterly Review of Economics and Finance, 2016, vol. 59, issue C, 1-14

Abstract: The impact of exchange rate misalignment on export diversification in developing countries is highly debated and the empirical evidence is conflicting. However, no deep investigation of such an impact has been provided so far. This paper uses the different explanations to this lack of consensus to investigate the conditions under which misalignment could affect export diversification. While we found some support to the effect of undervaluation on the share of manufactures in total exports, no support is found for an impact of misalignment (neither over nor under valuation) on exports diversification within manufactures. The conclusion resists numerous robustness checks.

Keywords: Exchange rate; Misalignment; Undervaluation; Exports diversification (search for similar items in EconPapers)
JEL-codes: O14 O24 O53 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:quaeco:v:59:y:2016:i:c:p:1-14

DOI: 10.1016/j.qref.2015.08.001

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