The Role of International Discipline in Three Developing Economies: Exchange Rate Effects on Domestic Prices in Colombia, Korea, and Morocco
This study examines three developing countries--Colombia, Korea, and Morocco--in order to determine the linkage between exchange rate movements and domestic producer pricing. Generally, incomplete passthrough into domestic prices is found, but greater impact than previously found for developed economies. An important common thread in explanations of industry-varying effects for the three countries is that entry and entry barriers seem to matter in the transmission of exchange rate changes into domestic prices, suggesting that increased openness to imports has only limited influence on domestic prices of import-competing goods, and can be aided by domestic competition policy. Copyright 2000 by Blackwell Publishing Ltd.
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Volume (Year): 8 (2000)
Issue (Month): 1 (February)
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