External Competitiveness of Benin Agriculture: A Synthetic Dynamic Approach Analysis
Laurent Oloukoï, Fulbert Amoussouga Gero

This paper analyzes the dynamics of the external competitiveness of agriculture in Benin. External competitiveness is measured by the real exchange rate calculated for agricultural sector. A synthetic dynamic approach combining Natural Real Exchange Rate (NATREX) and Behavioral Equilibrium Exchange Rate (BEER) is used. The analysis of the medium and long term dynamics shows that an increase in real lending interest rates in Benin compared to its partners contributes to loss of competitiveness of Benin's agriculture in the medium run. Policies to improve current preference (joint increase in demand for agricultural goods and government expenditures in the agricultural sector) and total factor productivity (improvement in production and technology) will have a positive effect on the external competitiveness of agriculture in the long run.

Full Text: PDF     DOI: 10.15640/jeds.v6n1a1