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Mauritius: A Competitiveness Assessment

Author/Editor: Imam, Patrick A. | Minoiu, Camelia
Authorized for Distribution: September 1, 2008
Electronic Access: Free Full Text (PDF file size is 426KB)
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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: We assess the competitiveness of Mauritius in recent years using two approaches. First, we estimate the difference between the equilibrium and the actual real exchange rate using four methods: the macroeconomic balance approach, the single-equation fundamentals approach, the capital-enhanced approach, and the external sustainability approach. The methods consistently suggest that at the end of 2007 the exchange rate was aligned with its equilibrium value. Second, we undertake a comparative analysis of structural competitiveness indicators and find that Mauritius often fares better on business climate than other small island economies and high-growth Asian economies. Nevertheless, there are areas for improvement.
 
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Series: Working Paper No. 08/212
Subject(s): Mauritius | Competition | Real effective exchange rates | Fiscal sustainability | Regional shocks | Commodity prices | Exports | Exchange rate regimes | Economic models
Author's keyword(s): Mauritius | equilibrium real exchange rate | structural competitveness
 
English  
    Published:   September 1, 2008        
            Format:   Paper
    Stock No:   WPIEA2008212   Pages:   33
    Price:   US$18.00 (Academic Rate: US$18.00 )
       
     
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