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

Algeria: The Real Exchange Rate, Export Diversification, and Trade Protection
ISBN-10
1451846827
ISBN-13
9781451846829
Series
Algeria
Category
Business & Economics
Pages
25
Language
English
Published
1999-04-01
Publisher
International Monetary Fund
Author
Ms.Piritta Sorsa

Description

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.

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