Competitiveness and the Equilibrium Exchange Rate in Costa Rica /

This paper evaluates several indicators of external vulnerability and estimates the equilibrium real exchange rate for Costa Rica. While current indicators are mostly positive, declining market shares of domestic exports, the expected decline in foreign direct investment, and the desirability of str...

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Podrobná bibliografie
Hlavní autor: Paiva, Claudio
Médium: Časopis
Jazyk:English
Vydáno: Washington, D.C. : International Monetary Fund, 2001.
Edice:IMF Working Papers; Working Paper ; No. 2001/023
On-line přístup:Full text available on IMF
Popis
Shrnutí:This paper evaluates several indicators of external vulnerability and estimates the equilibrium real exchange rate for Costa Rica. While current indicators are mostly positive, declining market shares of domestic exports, the expected decline in foreign direct investment, and the desirability of strengthening the reserve position recommend an improvement in the current account. Costa Rica's equilibrium real exchange rate is then estimated using the CGER and the FEER methodologies. The overall conclusion is that while there are no signs of serious external vulnerability, the real exchange rate appears to be somewhat overvalued, a situation that would be best addressed through increased fiscal discipline.
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Fyzický popis:1 online resource (29 pages)
Médium:Mode of access: Internet
ISSN:1018-5941
Přístup:Electronic access restricted to authorized BRAC University faculty, staff and students