203-224

• Gutierrez, Eva

This paper reviews a broad set of indicators of competitiveness in the Macedonian economy and estimates the equilibrium real effective exchange rate (REER) using different methodologies. Although the REER is broadly in equilibrium at present, structural factors are found to hamper competitiveness. While a more competitive exchange rate might improve short-term export performance, sustained improvements require enhanced productivity and resource reallocation to more dynamic sectors, which depends on reforms to improve the business environment.

• Economics and Business
• Computer and information sciences

• Economic development
• Statistics
• Economic policy

competitiveness, equilibrium, exchange rate

Περιέχει πίνακες, διαγράμματα, σημειώσεις και βιβλιογραφία, I want to thank Mark Griffiths, Lucca Ricci, Antonio Garcia Pascual, and the participants of a seminar in Skopje for their comments. All remaining mistakes are my own. Cristina Cheptea provided invaluable research and editing assistance. Alimata Kini Kabore helped edit the finalversion., JEL Classification: F31, F32, C22