Algeria - the Real Exchange Rate, Export Diversification, and Trade Protection
24 Pages Posted: 12 Feb 2006
Date Written: April 1999
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: Suggested Citation