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Exchange Rate Pass-Through to Brazilian E-Commerce Prices

Author

Listed:
  • Daniel Penido de Lima Amorim
  • Marcelo Resende

Abstract

E-commerce has experienced significant growth and is becoming more relevant to economies. The exchange rate can have notable implications on e-commerce prices, and this relationship is of great interest to consumers and retailers transacting online. Brazil is prominent among other emerging countries in issues relating to e-commerce. This article analyzes the relationships between the exchange rate and e-commerce prices in Brazil. The results reveal that: (a) there is an incomplete exchange rate pass-through to Brazilian e-commerce prices; (b) there is temporal precedence of the exchange rate in relation to these prices; (c) there is the possibility of arbitraging online purchases based on exchange rate variations. This article contributes to understanding the e-commerce price behavior in an emerging country. The evidence can support buyers interested in arbitrage. JEL Classification F31, F41, L81

Suggested Citation

  • Daniel Penido de Lima Amorim & Marcelo Resende, 2024. "Exchange Rate Pass-Through to Brazilian E-Commerce Prices," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 16(1), pages 25-43, January.
    • Handle: RePEc:sae:emeeco:v:16:y:2024:i:1:p:25-43
    DOI: 10.1177/09749101221149251
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    References listed on IDEAS

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    More about this item

    Keywords

    Exchange rate; pass-through; e-commerce; cointegration; Granger causality;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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