For our empirical analysis, we concentrate on the exchange rate regimes adopted by 15 MENA countries after the break down of the Bretton Woods system i.e. during the 1977-2007 period.12 Unless indicated otherwise, The World Bank Development indicators (WDI) database is the main source for the independent variables. The structural and macroeconomic potential determinants of exchange rate regimes we include in our analysis are the following: