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| BARHOUMI Karim |
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| ''Exchange Rate Pass-Through Into Import Prices In Developing Countries: An Empirical Investigation'' |
| ( 2005, Vol. 3 No.26 ) |
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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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| Keywords: |
JEL: C5 - Econometric Modeling: General
F1 - Trade: General |
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| Manuscript Received : Nov 16 2004 | | Manuscript Accepted : May 17 2005 |
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