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

Joseph Byrne, Aditya Chavali () and Alexandros Kontonikas ()

Working Papers from Business School - Economics, University of Glasgow

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.

Keywords: Import Prices; Exchange Rates; Exchange Rate Pass Through; Foreign Marginal Costs; Emerging Economies (search for similar items in EconPapers)
JEL-codes: E22 F3 F4 (search for similar items in EconPapers)
Date: 2010-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Working Paper: Exchange rate pass through to import prices: panel evidence from emerging market economies (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:gla:glaewp:2010_19

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