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Exchange Rate Pass Through To Import Prices: Panel Evidence From Emerging Market Economies

Author

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  • Joseph P. Byrne
  • Aditya S. Chavali
  • Alexandros Kontonikas.

Abstract

This paper investigates the size and nature of exchange rate pass through to import prices for a panel of 14 emerging economies. We firstly set out a stylized model in which import prices are dependent upon the exchange rate, marginal cost and the mark up. We employed methods which account for panel heterogeneity, distinguish between long and short run pass through effects and allow for asymmetries. Our results show that import prices respond on average positively, but incompletely, to the exchange rate. However, there are important differences between Latin American and Asia once we take account of asymmetry.

Suggested Citation

  • Joseph P. Byrne & Aditya S. Chavali & Alexandros Kontonikas., 2010. "Exchange Rate Pass Through To Import Prices: Panel Evidence From Emerging Market Economies," Working Papers 2010_19, Business School - Economics, University of Glasgow.
  • Handle: RePEc:gla:glaewp:2010_19
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    References listed on IDEAS

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    Cited by:

    1. Varma, Poornima & Issar Akash, 2017. "India's Horticulture Sector - A Port- Level Analysis of Onion Export Pricing," IIMA Working Papers WP2017-03-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    2. Poornima Varma & Akash Issar, 2016. "Pricing to market behaviour of India's high value agri-food exporters: an empirical analysis of major destination markets," Agricultural Economics, International Association of Agricultural Economists, vol. 47(1), pages 129-137, January.
    3. Ali Reza Kazerooni & Behzad Salmani & Majid Feshari, 2013. "The Impact of Monetary Regime on the Exchange Rate Pass-Through under Exchange Rate Volatility (Dynamic Panel Data Approach)," Iranian Economic Review, Economics faculty of Tehran university, vol. 18(2), pages 35-50, spring.

    More about this item

    Keywords

    Import Prices; Exchange Rates; Exchange Rate Pass Through; Foreign Marginal Costs; Emerging Economies;

    JEL classification:

    • F3 - International Economics - - International Finance
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

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