Long-run pass-through from the exchange rate to import prices in African countries
Holmes, M. (2006). Long-run pass-through from the exchange rate to import prices in African countries. Journal of Economic Development, 33(1), 97-111.
Permanent Research Commons link: http://hdl.handle.net/10289/3927
This paper investigates the extent of pass-through from the nominal exchange rate to import prices for a sample of nineteen African countries. The methodology is based on panel data cointegration testing. Using annual data extending back to 1971, long-run pass-through can be best described as a fairly balanced combination of local-currency and producer-currency pricing. However, this paper offers additional insight from a moving window approach that indicates declining long-run pass-through, accompanied by decreasing inflation, occurring since the mid-1990s.
This article has been published in the journal: Journal of Economic Development. Used with permission.
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