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Competitiveness and Economic Integration in IDB Member Countries

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  • Mohammed Ali, Khalifa

    (The Islamic Research and Teaching Institute (IRTI))

Abstract

Recently the issue of the real exchange rate management has received renewed attention from prominent development economist in leading universities and development intuitions. Example of some of the recent work include Gala (2007), Eichengreen (2007), Prasad et al. (2006) and Rodrik (2009). The main theme of this recent research is the importance of managing the real exchange rate as growth facilitating factor. Research on this area has shown that both the level and the volatility of the real exchange rate have important impact on exports, investment and growth in developing countries. This study uses a new large data set for the real effective exchange rate for estimating real exchange rate over/under valuation for member countries. The study also discusses the implication of the results on member countries of the Islamic Development Bank Group

Suggested Citation

  • Mohammed Ali, Khalifa, 2017. "Competitiveness and Economic Integration in IDB Member Countries," Working Papers 2017-1, The Islamic Research and Teaching Institute (IRTI).
    • Handle: RePEc:ris:irtiwp:2017_001
    as

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    References listed on IDEAS

    as
    1. Eswar S. Prasad & Raghuram G. Rajan & Arvind Subramanian, 2007. "Foreign Capital and Economic Growth," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 38(1), pages 153-230.
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    3. Philippe Aghion & Peter Howitt, 2009. "The Economics of Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012634, December.
    4. Ben S. Bernanke & Kenneth S. Rogoff (ed.), 2001. "NBER Macroeconomics Annual 2000," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262523140, December.
    5. Khalifa Hassanain, 2005. "The real exchange rate and the black market exchange rate in developing countries," Empirical Economics, Springer, vol. 30(2), pages 483-492, September.
    6. Glüzmann, Pablo Alfredo & Levy-Yeyati, Eduardo & Sturzenegger, Federico, 2012. "Exchange rate undervaluation and economic growth: Díaz Alejandro (1965) revisited," Economics Letters, Elsevier, vol. 117(3), pages 666-672.
    7. Maurice Obstfeld & Kenneth Rogoff, 2001. "The Six Major Puzzles in International Macroeconomics: Is There a Common Cause?," NBER Chapters, in: NBER Macroeconomics Annual 2000, Volume 15, pages 339-412, National Bureau of Economic Research, Inc.
    8. Aghion, Philippe & Bacchetta, Philippe & Rancière, Romain & Rogoff, Kenneth, 2009. "Exchange rate volatility and productivity growth: The role of financial development," Journal of Monetary Economics, Elsevier, vol. 56(4), pages 494-513, May.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Risk Management Practices; Islamic banking; Nigeria; Malaysia;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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