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Exchange Rate Undervaluation and Manufactured Exports: A Deliberate Strategy?

Patrick Plane (), Ridha Nouira and Khalid Sekkat
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Patrick Plane: CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique
Ridha Nouira: Université de Sfax - University of Sfax

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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.

Keywords: Exchange rate; Misalignment; Undervaluation; Exports diversification (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (30)

Published in Journal of Comparative Economics, 2011, 39, pp.584-601

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Journal Article: Exchange rate undervaluation and manufactured exports: A deliberate strategy? (2011) Downloads
Working Paper: Exchange Rate Undervaluation and Manufactured Exports: A Deliberate Strategy? (2011) Downloads
Working Paper: Exchange Rate Undervaluation and Manufactured Exports: A Deliberate Strategy? (2011) Downloads
Working Paper: Exchange Rate Undervaluation and Manufactured Exports: A Deliberate Strategy? (2011) Downloads
Working Paper: Exchange Rate Undervaluation and Manufactured Exports: A Deliberate Strategy? (2010) Downloads
Working Paper: Exchange Rate Undervaluation And Manufactured Exports: A Deliberate Strategy? (2010)
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