01901cas a2200241 a 4500 AALejournalIMF000726 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451856798 1018-5941 BD-DhAAL BD-DhAAL Krichene, Noureddine. Purchasing Power Parities in Five East African Countries : Burundi, Kenya, Rwanda, Tanzania, and Uganda / Noureddine Krichene. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In a case study of Burundi, Kenya, Rwanda, Tanzania, and Uganda, this paper finds that bilateral real exchange rates revert to a long-term equilibrium in line with purchasing power parities, implying that these countries constitute an integrated trading zone, their markets are interdependent and arbitrage works efficiently, and intraregional competitiveness is preserved. These findings are partly explained by the flexibility of nominal exchange rates and prices and the absence of long-term productivity differences among these countries. To strengthen market integration, foster private sector development, and enhance growth prospects, the paper emphasizes the importance of increased trade, competitive labor markets, flexible exchange rates, and convergence of macroeconomic and structural policies. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1998/148 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/148/001.1998.issue-148-en.xml IMF e-Library