TY - UNPB
T1 - Exchange rate pass through to import prices
T2 - Panel evidence from emerging market economies
AU - Byrne, Joseph Paul
AU - Chavali, Aditya
AU - Kontonikas, Alexandros
PY - 2010
Y1 - 2010
N2 - 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.
AB - 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.
M3 - Discussion paper
T3 - SIRE Discussion Papers
BT - Exchange rate pass through to import prices
PB - University Of Glasgow
ER -