¿Conviene flexibilizar el tipo de cambio para mejorar la competitividad?

Abstract

This article investigates the effects of currency devaluation on the export dynamics of developing countries. Unlike conventional theory, this work demonstrates that the negative effect on the balance sheets of exportation companies, due to the elevated dollarization of liabilities, cancels out any possible gains in competitiveness. Based on the results of empirical research, this text argues that establishing a competitive and stable real exchange rate by making the nominal exchange rate more flexible would not be advisable for these countries. Finally, this work proposes an alternative strategy to increase productivity, in order to obtain a more favorable position in the global economy.