Algeria: The Real Exchange Rate, Export Diversification, and Trade Protection

Author/Editor:

Piritta Sorsa

Publication Date:

April 1, 1999

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Given the tendency of the oil sector to appreciate the equilibrium real exchange rate (RER) in Algeria, trade liberalization with its depreciating impact on the RER is important for diversification of exports. This paper shows that reduction in trade protection would depreciate the RER in Algeria, which in turn would improve competitiveness of, and incentives to invest in, non-oil exports. The paper then discusses existing levels of protection in Algeria and directions for reform.

Series:

Working Paper No. 1999/049

Subject:

English

Publication Date:

April 1, 1999

ISBN/ISSN:

9781451846829/1018-5941

Stock No:

WPIEA0491999

Pages:

24

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