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An Estimation of Traiff Pass-Through in Tunisia

Author

Listed:
  • Leila Baghdadi
  • Hendrik Kruse

    (University of Goettingen)

  • Inma Martínez-Zarzoso

Abstract

In this paper we evaluate the extent to which changes in tariffs and in international prices are transmitted into consumer prices in Tunisia over the period 2000 to 2008. A pass-through equation is estimated using sectoral panel data at the retail-product level and controlling for unobserved sectoral heterogeneity. The main results show that on average tariff pass-through is 7 percent and that it varies across sectors. In particular, agricultural products seem to be driving the results. Summarizing, the change in Tunisian tariffs has affected local prices, but the effect is lower in magnitude than that found for other developing countries.

Suggested Citation

  • Leila Baghdadi & Hendrik Kruse & Inma Martínez-Zarzoso, 2015. "An Estimation of Traiff Pass-Through in Tunisia," Working Papers 963, Economic Research Forum, revised Oct 2015.
    • Handle: RePEc:erg:wpaper:963
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    References listed on IDEAS

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