Exchange rate pass‐through to import prices: Evidence from a heterogeneous panel of West African countries

Mohamed Tidjane Kinda and Hamidou Barry

Review of Development Economics, 2021, vol. 25, issue 4, 2454-2472

Abstract: This study analyzes the effect of exchange rate pass‐through (ERPT) on the import prices of West African countries. We used a heterogeneous dynamic panel over the period 1991–2018 and estimated the ERPT using the pooled mean group, mean group, and augmented mean group. The results show that an exchange rate appreciation of 1% in the short term leads to a decrease in the price of imports by 0.25% and 0.20%, respectively, for the West African Economic and Monetary Union (WAEMU) countries and those outside the WAEMU zone. However, considering other countries, we find that the ERPT has a long‐term effect and causes a rise in import prices of 0.83%. This effect depends on the level of inflation. Thus, the pass‐through effect appears to be heterogeneous across countries.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.1111/rode.12803

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:rdevec:v:25:y:2021:i:4:p:2454-2472

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1363-6669

Access Statistics for this article

Review of Development Economics is currently edited by E. Kwan Choi

More articles in Review of Development Economics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().