Competitive real exchange rates are good for the poor : evidence from Egyptian household surveys
Joint Authors
Source
Economic Research Forum : Working Paper Series
Issue
Vol. 2015, Issue 901-975 (31 Dec. 2015), pp.1-25, 25 p.
Publisher
Economic Research Forum for the Arab Countries Iran and Turkey
Publication Date
2015-12-31
Country of Publication
Egypt
No. of Pages
25
Main Subjects
Financial and Accounting Sciences
Topics
Abstract EN
This paper develops a theoretical model that allows for assessing the poverty impact of the real exchange rate (RER), as an economy-wide relative price, in a fully optimizing model at the household and the firm levels.
The model motivates empirical estimation of the response of average household wage and non-wage incomes to RER depreciation / undervaluation.
In particular, it s possible to assess the extent to which an RER undervaluation (or RER depreciation) is pro-poor, using a precise metric that compares the rate of change of the income of the poor relative to that of the non-poor in response to RER devaluation/depreciation.
We estimate the model using national-level panel data from the Egyptian Central Agency for Public Mobilization and Statistics and the ERF’s data bank.
We find robust evidence suggesting that strategic real currency depreciation/undervaluation at the macroeconomic level promotes pro-poor incomegrowth at the household level.
American Psychological Association (APA)
al-Badawi, Ibrahim& Rifat, Iman. 2015. Competitive real exchange rates are good for the poor : evidence from Egyptian household surveys. Economic Research Forum : Working Paper Series،Vol. 2015, no. 901-975, pp.1-25.
https://search.emarefa.net/detail/BIM-630964
Modern Language Association (MLA)
al-Badawi, Ibrahim& Rifat, Iman. Competitive real exchange rates are good for the poor : evidence from Egyptian household surveys. Economic Research Forum : Working Paper Series No. 901-975 (Dec. 2015), pp.1-25.
https://search.emarefa.net/detail/BIM-630964
American Medical Association (AMA)
al-Badawi, Ibrahim& Rifat, Iman. Competitive real exchange rates are good for the poor : evidence from Egyptian household surveys. Economic Research Forum : Working Paper Series. 2015. Vol. 2015, no. 901-975, pp.1-25.
https://search.emarefa.net/detail/BIM-630964
Data Type
Journal Articles
Language
English
Notes
Includes appendices : p. 17-25
Record ID
BIM-630964