Real exchange rate and competitiveness of an EU's ultra-peripheral region: La Reunion Island
Fabien Candau
- Fonction : Auteur
- PersonId : 174664
- IdHAL : fabien-candau
- ORCID : 0000-0003-3989-1157
- IdRef : 134123344
Michaël Goujon
- Fonction : Auteur
- PersonId : 172864
- IdHAL : michael-goujon
- ORCID : 0000-0002-4356-8347
- IdRef : 181495562
Jean-François Hoarau
- Fonction : Auteur
- PersonId : 6120
- IdHAL : jean-francois-hoarau
- ORCID : 0000-0003-2325-4970
- IdRef : 088632245
Serge Rey
- Fonction : Auteur
- PersonId : 174685
- IdHAL : serge-rey
- ORCID : 0000-0002-7967-9188
- IdRef : 134326822
Résumé
This article aims at analyzing the problem of real exchange rate appreciation and competitiveness in the EU's ultra-peripheral regions by the case study of La Reunion Island. After describing economic characteristics of this French overseas department, such as the large deficit of the trade balance, this article looks for explanation by calculating and examining the statistical properties of the real effective exchange rate (REER). Our results show that this rate is stationary around a trend and provides evidence of (i) an appreciation of the REER, but (ii) no permanent overvaluation of the currency. These two results can be explained by the economic catch-up of La Reunion characterized by gains in relative productivity, and by the dynamics of the terms of trade and a permanent increase in the transfers from metropolis.
Domaines
Economies et financesFormat du dépôt | Notice |
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Type de dépôt | Article dans une revue |
Titre |
en
Real exchange rate and competitiveness of an EU's ultra-peripheral region: La Reunion Island
|
Résumé |
en
This article aims at analyzing the problem of real exchange rate appreciation and competitiveness in the EU's ultra-peripheral regions by the case study of La Reunion Island. After describing economic characteristics of this French overseas department, such as the large deficit of the trade balance, this article looks for explanation by calculating and examining the statistical properties of the real effective exchange rate (REER). Our results show that this rate is stationary around a trend and provides evidence of (i) an appreciation of the REER, but (ii) no permanent overvaluation of the currency. These two results can be explained by the economic catch-up of La Reunion characterized by gains in relative productivity, and by the dynamics of the terms of trade and a permanent increase in the transfers from metropolis.
|
Auteur(s) |
Fabien Candau
1
, Michaël Goujon
2
, Jean-François Hoarau
3
, Serge Rey
1
1
CATT -
Centre d'Analyse Théorique et de Traitement des données économiques
( 43806 )
- Université de Pau et des Pays de l’Adour – CATT - Avenue de l'Université - 64012 - PAU
- France
2
CERDI -
Centre d'Études et de Recherches sur le Développement International
( 945 )
- 65 boulevard François Mitterrand, 63009 Clermont-Ferrand
- France
3
CEMOI -
Centre d'Économie et de Management de l'Océan Indien
( 106168 )
- 15 avenue René Cassin - BP7151 - 97715 Saint Denis MESSAG CEDEX 9
- La Réunion
|
Comité de lecture |
Non
|
Audience |
Internationale
|
Date de publication |
2013
|
Volume |
137
|
Page/Identifiant |
1-21
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Vulgarisation |
Non
|
Nom de la revue |
|
Langue du document |
Français
|
Domaine(s) |
|
Mots-clés (JEL) |
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Référence interne |
|
Mots-clés |
ro
cerdi
|
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