IDEAS home Printed from https://ideas.repec.org/a/bpj/econoa/v19y2025i1p12n1001.html
   My bibliography  Save this article

Exchange Rate Pass-Through to Domestic Prices: Evidence Analysis of a Periphery Country

Author

Listed:
  • Dardouri Nesrine

    (Faculty of Economics and Management of Sousse, Lab MOFID, University of Sousse, Sousse, Tunisia)

  • Aguir Abdelkader

    (Lab ESPI2R (Groupe ESPI), Lyon, France)

  • Smida Mounir

    (Faculty of Economics and Management of Sousse, Lab MOFID, University of Sousse, Sousse, Tunisia)

Abstract

This study aims to examine the context in which the exchange-rate pass-through influences domestic prices in Tunisia by applying vector error correction models. To ensure the robustness of the results obtained from the autoregressive model, additional diagnostic tests were performed. Our analysis indicates that fluctuations in the nominal effective exchange rate (NEER) have an enduring impact on customer prices. This research aims to review how the fluctuations in exchange rates and import prices can impact domestic prices in Tunisia. Our findings demonstrate that NEER fluctuations affect consumer prices in both the short and long term, highlighting its significant role in long-term inflation.

Suggested Citation

  • Dardouri Nesrine & Aguir Abdelkader & Smida Mounir, 2025. "Exchange Rate Pass-Through to Domestic Prices: Evidence Analysis of a Periphery Country," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 19(1), pages 1-12.
    • Handle: RePEc:bpj:econoa:v:19:y:2025:i:1:p:12:n:1001
    DOI: 10.1515/econ-2025-0154
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/econ-2025-0154
    Download Restriction: no
    File URL: https://libkey.io/10.1515/econ-2025-0154?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    exchange rate pass-through; inflation; imported-inputs channel; ARDL;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F31 - International Economics - - International Finance - - - Foreign Exchange

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:econoa:v:19:y:2025:i:1:p:12:n:1001. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyterbrill.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.