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Mauritius: A Competitiveness Assessment

Mauritius: A Competitiveness Assessment by Camelia Minoiu
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We assess the competitiveness of Mauritius in recent years using two approaches. First, we estimate the difference between the equilibrium and the actual real exchange rate using four methods: the macroeconomic balance approach, the single-equation fundamentals approach, the capital-enhanced approach, and the external sustainability approach. The methods consistently suggest that at the end of 2007 the exchange rate was aligned with its equilibrium value. Second, we undertake a comparative analysis of structural competitiveness indicators and find that Mauritius often fares better on business climate than other small island economies and high-growth Asian economies. Nevertheless, there are areas for improvement.
International Monetary Fund; September 2008
33 pages; ISBN 9781452721835
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Title: Mauritius: A Competitiveness Assessment
Author: Camelia Minoiu; Patrick A. Imam