Title: The impact of trade liberalisation on the dynamics of the real exchange rate in Algeria
Authors: Mahieddine Adnan Ghecham
Addresses: University of Al Ain of Science and Technology-Business School, P.O. Box 112612, Abu Dhabi, UAE
Abstract: This paper reviews the impact of trade liberalisation on dynamic of real exchange rate. This is investigated while applying cointegration analysis with use of VAR and error correction models. Unlike the previous studies, the results of this paper show that liberalisation of trade in Algeria could lead to real appreciation of the real exchange rate, hampering economic diversification efforts of the economy.
Keywords: trade liberalisation; real exchange rates; economic diversification; Dutch disease; Algeria; cointegration analysis; VAR models; error correction models.
International Journal of Economic Policy in Emerging Economies, 2015 Vol.8 No.3, pp.262 - 279
Received: 30 Sep 2014
Accepted: 14 Jul 2015
Published online: 09 Oct 2015 *