Algeria - the Real Exchange Rate, Export Diversification, and Trade Protection

24 Pages Posted: 12 Feb 2006

See all articles by Piritta Sorsa

Piritta Sorsa

International Monetary Fund (IMF)

Date Written: April 1999

Abstract

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.

Keywords: Protection, growth

JEL Classification: F13, F43

Suggested Citation

Sorsa, Piritta, Algeria - the Real Exchange Rate, Export Diversification, and Trade Protection (April 1999). IMF Working Paper No. 99/49, Available at SSRN: https://ssrn.com/abstract=880576

Piritta Sorsa (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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