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Competitiveness and the Real Exchange Rate: lesson for Ethiopia

Abstract: 

This paper has attempted to test whether the pursuit of competitiveness through the movement in the real exchange rate is a proper way of measuring and viewing competitiveness in developing countries. From literature review and empirical investigation, the study arrived at the conclusion that measuring competitiveness using the real exchange rate is not applicable at least for Ethiopia.

Furthermore, from the experience of successful East Asian countries the study concluded that competitiveness is not simply the result of devaluation, getting prices right and good macroeconomic management, but industrialization and technological progress accompanied by proper choice of education, trade and government support policies are far more determinants of competitiveness.

Corporate Author: 
Alemayehu Seyoum(Editor) & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Publisher: 
Ethiopian Economic Association (EEA)
Primary Descriptors: 

Foreign exchange

Secondary Descriptor: 

Fiscal policy-Econometric models; Inflation (Finance)

Geographic Descriptors: 
Ethiopia
Cataloge Date: 
02/27/2013
Broad Subject heading: 
AGRICULTURAL SECTOR DEVELOPMENT
Call Number: 
330.963 PRO 2004
Serial Key Title: 
Proceedings of the First International Conference on the Ethiopian Economy
Publication catagory: 
Content type: 
Volume: 
II
Publication date: 
2013-05-27 23:04:00
Forum or Discussion date: 
2013-02-27 14:55:40
Place of publication: 
Addis Ababa, Ethiopia
Type of material: 
Book
Current frequency: 
Annualy