Import Price Rigidity and Invoice Currency in Russia
This paper examines the relationship between the import price rigidity and the invoice currency of goods imported to Russia. Microdata on the import of goods to Russia over a period from 2002 to 2015 allowed to assess the degree of price rigidity to the exchange rate fluctuations at a disaggregated level, which is the first time this kind of research was applied to the Russian economy. The empirical estimates of prices of goods denominated in different currencies are in line with similar results available in the world literature on price rigidity and exchange rate pass-through. According to panel data analysis, prices of imported goods denominated in domestic currency (Russian ruble) show little reaction to exchange rate fluctuations, while prices of imported goods denominated in foreign currency (US dollar, euro) almost completely copy the dynamics of exchange rate movements. This paper also documents sector-dependent differences of influence of the invoice currency on the degree of the imported goods price rigidity to fluctuations in the exchange rate. Some imported goods denominated in Russian ruble do not show complete price rigidity to exchange rate fluctuations, for example, products of plant origin, textiles, and headgear. Deviation from zero rigidity to the exchange rate shocks for imported goods denominated in foreign currencies is observed only for fats and oils of animal or vegetable origin.
Volume (Year): 3 (2017)
Issue (Month): (June)
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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Y. Ponomarev & P. Trunin & A. Ulyukayev., 2014.
"Exchange Rate Pass-through in Russia,"
N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 3.
- Ponomarev, Yuri & Trunin, Pavel V. & Uljukaev, Aleksej V., 2014. "Exchange Rate Pass-through in Russia," EconStor Preprints 121960, ZBW - German National Library of Economics.
- Yuri Ponomarev & Pavel Trunin & Alexei Uluykaev, 2014. "Exchange Rate Pass-through in Russia," Working Papers 0099, Gaidar Institute for Economic Policy, revised 2014.
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