Front Matter Page
African Department
Authorized for distribution by Arend Kouwenaar
Contents
I. Introduction
II. The Evolution of the Exchange Rate in Mauritius
III. Empirical Analysis of the Equilibrium Exchange Rate
A. Macroeconomic Balance Approach (FEER-MB)
B. Single-Equation Fundamental Equilibrium Exchange Rate Approach (FEER-SE)
C. Capital-Enhanced Equilibrium Exchange Rate Approach (CHEER)
D. External Sustainability Approach (ES)
IV. Structural Competitiveness Analysis
V. Conclusions
List of Figures
Figure 1. Exchange Rate Regimes and the Nominal Exchange Rate, 1948−2007
Figure 2. Nominal and Real Effective Exchange Rates, 1980−2007
Figure 3. Price-based Real Effective Exchange Rate Indices, 1980−2006
Figure 4. FEER-MB Approach: Actual and Fitted CA balance
Figure 5. FEER-MB Approach: CA Norms vs. Underlying CA
Figure 6. FEER-SE Approach: Actual vs. Equilibrium REER
Figure 7. CHEER Approach: Actual vs. Equilibrium NER
Figure 8. Composite Indicators of Structural Competitiveness
Figure 9. Relative Performance on Trade Costs
References
Appendix: List of Tables
Table 1. Summary Statistics for FEER-MB Approach
Table 2. Correlates of the Current Account Balance—Panel Estimates (1980–2005)
Table 3. Unit Root Tests for the FEER-SE Approach
Table 4. Unit Root Tests for the CHEER Approach
Table 5. Johansen Cointegration Test for the CHEER Approach
Table 6. The Relative Performance of Mauritius on Trade Costs
Table 7. The Relative Performance of the Mauritius ICT Sector