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| barhoumi karim |
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| ''Exchange Rate Pass-Through Into Import Prices In Developing Countries: An Empirical Investigation'' |
| ( 2004, Vol. 28 No.10 ) |
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| We define and estimate an exchange rate pass-through equation for 24 developing countries. We find that long run exchange rate pass-through into import price is determined by a combination of nominal effective exchange rate, the price of the competing domestic product, the exporter's cost and domestic demand conditions. Adopting a multi-country framework and using non-stationary panel estimation techniques and tests for panel cointegration, we show that exchange rate pass-through in developing countries is heterogeneous. |
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| Manuscript Received : Nov 10 2004 | | Manuscript Accepted : Nov 15 2004 |
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