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Exchange Rate Undervaluation and Manufactured Exports: A Deliberate Strategy?
Ridha Nouira 1, Patrick Plane 2, K. Sekkat 3
(29/08/2011)

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.
1 :  Université de Sfax (UREP)
Université de Sfax
2 :  Centre d'études et de recherches sur le developpement international (CERDI)
CNRS : UMR6587 – Université d'Auvergne - Clermont-Ferrand I
3 :  Université de Brussels
Université de Brussels
Sciences de l'Homme et Société/Economies et finances
Exchange rate – Misalignment – Undervaluation – Exports diversification
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