External competitiveness in developing countries: a comparative analysis for the Caribbean

Author(s): Boamah, Daniel O (1990)

Created 24 Jul, 1989
Categories Working Papers
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This study examines the relative external competitiveness of Barbados, Guyana, Jamaica, and Trinidad & Tobago. On the basis of productivity-adjusted manufacturing wages (in US dollars) and real effective exchange rate calculations, Barbados was found to be less internationally competitive at end-1987 than her three regional trading partners. The evidence suggests that recent exchange rate adjustments by the other countries have been the main contributing factors for this scenario. Suggested policy options include increases in the productivity of labour, restraining the rate at which productivity-adjusted costs are allowed to rise and a devaluation of the Barbados dollar. (For presentation at the 28th International Atlantic Economic Conference in Montreal, October 5-8, 1989)

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