Exchange rate pass through to import prices: Panel evidence from emerging market economies

Joseph Paul Byrne, Aditya Chavali, Alexandros Kontonikas

Research output: Working paperDiscussion paper

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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.
Original languageEnglish
PublisherUniversity Of Glasgow
Number of pages31
Publication statusPublished - 2010

Publication series

NameSIRE Discussion Papers
No.2010-46

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    Byrne, J. P., Chavali, A., & Kontonikas, A. (2010). Exchange rate pass through to import prices: Panel evidence from emerging market economies. (SIRE Discussion Papers; No. 2010-46). University Of Glasgow.