IMF Working Papers

Competitiveness and the Evolution of the Real Exchange Rate in Chile

By Martine Guerguil, Martin D Kaufman

April 1, 1998

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Martine Guerguil, and Martin D Kaufman. Competitiveness and the Evolution of the Real Exchange Rate in Chile, (USA: International Monetary Fund, 1998) accessed November 21, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper reviews the evolution of certain price and nonprice competitiveness indicators in Chile and concludes that the pecuniary loss of competitiveness associated with the appreciation of the peso since the late 1980s has been broadly offset by productivity gains and adjustments in factor intensity, particularly in the manufacturing sector. However, there may be limited room for further advances from that point, which gives new prominence to certain policy issues such as structural reforms to increase productivity, a reassessment of the tax treatment of the mining sector, and a rebalancing of the macroeconomic policy mix to dampen speculative capital inflows.

Subject: Competition, Currencies, Exchange rates, Exports, Financial markets, Foreign exchange, International trade, Money, Production, Productivity, Real effective exchange rates, Real exchange rates

Keywords: Appreciation, Appreciation effect, Balassa effect, Caribbean, Chile, Competition, Competitiveness, Competitiveness indicator, Currencies, Decreasing returns, Exchange rate, Exchange rates, Export market shares, Export share, Exports, Factor endowment, Market share, Productivity, Productivity gain, Real effective exchange rates, Real exchange rates, RER appreciation, Unit Labor, WP

Publication Details

  • Pages:

    27

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 1998/058

  • Stock No:

    WPIEA0581998

  • ISBN:

    9781451847833

  • ISSN:

    1018-5941

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