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Marsh, Ian W., and Stephen P. Tokarick, 1994, “Competitiveness Indicators: A Theoretical and Empirical Assessment,” IMF Working Paper 94/29 (Washington: International Monetary Fund).
Turner, Phillip, and Jozef Van’t dack, 1993, “Measuring International Price and Cost Competitiveness,” BIS Economic Papers, No. 39 (Basle, Switzerland: Bank for International Settlements).
This chapter was prepared by Stefania Fabrizio.
An exhaustive assessment of the competitiveness of a country would entail an investigation of the evolution of the country’s skills and resources, such as technology, communication, information, capital and credit facilities, foreign direct investment, consumer markets, and government facilities. In Mozambique, these skills and resources are very limited. Mozambique’s private sector is just emerging, and it is fairly inexperienced. Moreover, after decades of war, most sectors of industry and manufacturing are only now becoming operational and thus lack exposure to, and experience in, quality control, marketing, packaging, and modern management practices. This chapter does not address these important issues.
The partner countries and their relative weights for the calculation of the CPI-based REER are those used by the IMF’s Information Notice System.
South Africa accounts for almost a 30 percent weight in the effective exchange rate indices for Mozambique.