An Estimation of Traiff Pass-Through in Tunisia

Leila Baghdadi, Hendrik Kruse () and Inmaculada Martínez-Zarzoso
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Hendrik Kruse: University of Goettingen

No 963, Working Papers from Economic Research Forum

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.

Pages: 31
Date: 2015-10, Revised 2015-10
New Economics Papers: this item is included in nep-agr, nep-ara and nep-int
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