WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 22, 2025
A Panel Data Model for Implementation of a Competitive Real Exchange Rate for the Promotion of Economic Growth in MENA Countries
Author:
Abstract: The objective of this study is to determine whether maintaining a competitive real exchange rate has been beneficial for the economies in MENA countries, in the period 1965 to 2020. To confirm the research hypothesis, we use two econometric models, the first is quantitative which is a balanced panel data model and the second is a qualitative "Logit" response model on panel data, in this case unbalanced, that identifies the variables that promote and control currency devaluations, considered the theory proposed by Berg and Miao (2010). Our result maintains that a competitive real exchange rate has boosted the growth of MENA economies. The existence of the “Penn” effect in developed MENA economies is demonstrated, these countries have developed policies that allow good management of exchange rate misalignments and thus contain the shocks suffered by their currencies.
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Keywords: Exchange rate, Economic growth, Panel data, Balassa-Samuelson, Exchange rate devaluations, MENA countries
Pages: 172-182
DOI: 10.37394/23207.2025.22.17