Cote d’Ivoire : Competitiveness, Cocoa, and the Real Exchange Rate

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collection.link.5
https://openknowledge.worldbank.org/handle/10986/9
collection.name.5
Policy Research Working Papers
dc.contributor.author
Bogetic, Zeljko
dc.contributor.author
Espina, Carlos
dc.contributor.author
Noer, John
dc.date.accessioned
2012-06-11T14:26:07Z
dc.date.available
2012-06-11T14:26:07Z
dc.date.issued
2007-11
dc.date.lastModified
2017-12-14T09:07:41Z
dc.description.abstract
This paper explores competitiveness of Cote d'Ivoire's economy over a long period of 1960-2003 and its link with cocoa prices. The main conclusions are as follows. First, using four measures of real effective exchange rate (REER) for the 1960-2002 period, we track the evolution of REER and conclude, inter alia, that until 2003, REER remained well below its 1994 level. Second, we find that based on our measure of the multilateral REER with dynamic weights, which covers most recorded trade, France no longer dominates Cote d'Ivoire's trade. Instead, Cote d'Ivoire has diversified its set of trading partners. Unfortunately, it has also specialized in one export product, raw cocoa. This paper aims to contribute to the question to what extent do cocoa prices affect Cote d'Ivoire's competitiveness in world trade? Third, the answer to this question is that cocoa prices are an important determinant of Cote d'Ivoire's competitiveness. Similar to the case of a classic "Dutch Disease," increases in the real world price of a "natural resource" (i.e., cocoa) tend to result in the appreciation of the CFA franc and a loss in competitiveness. Econometric tests further confirm that 1994 was a "break-point" not only for growth and productivity (as documented in the two related papers) but also for trade competitiveness. Recent productivity per worker trends versus wages also seem to indicate slow growth in 1996-2000, without major improvement in competitiveness.
en
dc.identifier
http://documents.worldbank.org/curated/en/2007/11/8789763/cote-divoire-competitiveness-cocoa-real-exchange-rate-cote-divoire-competitiveness-cocoa-real-exchange-rate
dc.identifier.uri
http://hdl.handle.net/10986/7629
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Policy Research Working Paper; No. 4416
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo/
dc.subject
AGRICULTURE
dc.subject
ANNUAL GROWTH
dc.subject
BALANCE OF PAYMENT
dc.subject
BASE YEAR
dc.subject
BILL
dc.subject
BUSINESS CYCLES
dc.subject
CAPITAL MOBILITY
dc.subject
COCOA PRICE
dc.subject
COCOA PRICES
dc.subject
COMMODITIES
dc.subject
COMMODITY
dc.subject
COMMODITY EXPORTS
dc.subject
COMMODITY PRICE
dc.subject
COMMODITY PRICES
dc.subject
COMPETITIVE EQUILIBRIUM
dc.subject
COMPETITIVENESS
dc.subject
CONSUMER GOODS
dc.subject
CONSUMER PRICE
dc.subject
CONSUMER PRICE INDEX
dc.subject
CONSUMER PRICE INDICES
dc.subject
CURRENCY
dc.subject
CUSTOMER BASE
dc.subject
DEFLATORS
dc.subject
DEPENDENT VARIABLE
dc.subject
DESCRIPTIVE STATISTICS
dc.subject
DEVALUATION
dc.subject
DEVELOPING COUNTRIES
dc.subject
DIRECTION OF TRADE
dc.subject
DISTRIBUTION OF TRADE
dc.subject
DOMESTIC PRICES
dc.subject
DUMMY VARIABLE
dc.subject
DUTCH DISEASE
dc.subject
ECONOMETRICS
dc.subject
ECONOMIC ACTIVITY
dc.subject
ECONOMIC GROWTH
dc.subject
ECONOMIC STATISTICS
dc.subject
EMERGING ECONOMIES
dc.subject
ERROR TERM
dc.subject
EXCESS DEMAND
dc.subject
EXPORT GOOD
dc.subject
EXPORTER
dc.subject
EXPORTS
dc.subject
EXPOSURE
dc.subject
EXTERNAL SHOCK
dc.subject
EXTERNAL SHOCKS
dc.subject
FIXED EXCHANGE RATE
dc.subject
FIXED EXCHANGE RATE REGIME
dc.subject
FOREIGN CURRENCY
dc.subject
FOREIGN EXCHANGE
dc.subject
FOREIGN EXCHANGE EARNINGS
dc.subject
FUNDAMENTAL DETERMINANT
dc.subject
FUTURES
dc.subject
GDP
dc.subject
GDP DEFLATOR
dc.subject
GROSS DOMESTIC PRODUCT
dc.subject
GROWTH RATES
dc.subject
IMPORT
dc.subject
IMPORTS
dc.subject
INEFFICIENCY
dc.subject
INFLATION
dc.subject
INSTRUMENTAL VARIABLES
dc.subject
INTEREST RATE DIFFERENTIALS
dc.subject
INTERNATIONAL COMPETITIVENESS
dc.subject
INTERNATIONAL PRICE
dc.subject
INTERNATIONAL PRICES
dc.subject
INTERNATIONAL TRADE
dc.subject
LABOR FORCE
dc.subject
LABOR FORCE GROWTH
dc.subject
LOCAL CURRENCY
dc.subject
LONG-RUN EQUILIBRIUM
dc.subject
MACROECONOMIC VARIABLE
dc.subject
MARKET SHARE
dc.subject
NATURAL RESOURCE
dc.subject
NOMINAL WAGE
dc.subject
OPEN ECONOMIES
dc.subject
OUTPUT
dc.subject
PEG
dc.subject
POLICY RESEARCH
dc.subject
POVERTY REDUCTION
dc.subject
PRICE DECLINES
dc.subject
PRICE QUOTATIONS
dc.subject
PRICE RIGIDITIES
dc.subject
PURCHASING
dc.subject
PURCHASING POWER
dc.subject
PURCHASING POWER PARITY
dc.subject
REAL ADJUSTMENTS
dc.subject
REAL APPRECIATION
dc.subject
REAL DEPRECIATION
dc.subject
REAL DISTURBANCES
dc.subject
REAL EFFECTIVE EXCHANGE RATE
dc.subject
REAL EXCHANGE
dc.subject
REAL EXCHANGE RATE
dc.subject
REAL EXCHANGE RATES
dc.subject
REAL INTEREST
dc.subject
REAL INTEREST RATE
dc.subject
REAL OUTPUT
dc.subject
RELATIVE PRICE
dc.subject
SERIAL CORRELATION
dc.subject
SHARE OF WORLD OUTPUT
dc.subject
SLOW GROWTH
dc.subject
SPOT PRICE
dc.subject
STRUCTURAL CHANGE
dc.subject
STRUCTURAL REFORMS
dc.subject
SUPPLIERS
dc.subject
TOTAL EXPORTS
dc.subject
TOTAL IMPORTS
dc.subject
TRADABLE GOODS
dc.subject
TRADE COMPETITIVENESS
dc.subject
TRADE PATTERNS
dc.subject
TRADE RESTRICTIONS
dc.subject
TRADE STATISTICS
dc.subject
TRADES
dc.subject
TRADING PARTNER
dc.subject
TRADING PARTNERS
dc.subject
VALUE ADDED
dc.subject
VOLATILITY
dc.subject
WAGES
dc.subject
WEIGHTS
dc.subject
WHOLESALE PRICE
dc.subject
WHOLESALE PRICE INDICES
dc.subject
WORLD MARKET
dc.subject
WORLD MARKETS
dc.subject
WORLD PRICE
dc.subject
WORLD PRICES
dc.subject
WORLD TRADE
dc.title
Cote d’Ivoire : Competitiveness, Cocoa, and the Real Exchange Rate
en
okr.doctype
Publications & Research :: Policy Research Working Paper
okr.doctype
Publications & Research
okr.docurl
http://documents.worldbank.org/curated/en/2007/11/8789763/cote-divoire-competitiveness-cocoa-real-exchange-rate-cote-divoire-competitiveness-cocoa-real-exchange-rate
okr.globalpractice
Macroeconomics and Fiscal Management
okr.globalpractice
Finance and Markets
okr.globalpractice
Finance and Markets
okr.globalpractice
Trade and Competitiveness
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/1813-9450-4416
okr.identifier.externaldocumentum
000158349_20071128112420
okr.identifier.internaldocumentum
8789763
okr.identifier.report
WPS4416
okr.language.supported
en
okr.pdfurl
http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/11/28/000158349_20071128112420/Rendered/PDF/wps4416.pdf
en
okr.region.administrative
Africa
okr.region.country
Cote d'Ivoire
okr.topic
Finance and Financial Sector Development :: Currencies and Exchange Rates
okr.topic
Economic Theory and Research
okr.topic
Private Sector Development :: Emerging Markets
okr.topic
Macroeconomics and Economic Growth :: Markets and Market Access
okr.topic
Macroeconomics and Economic Growth :: Macroeconomic Management
okr.unit
Development Research Group (DECRG)
okr.volume
1 of 1

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