Download now Free registration required
The paper estimates the exchange rate pass-through to import, export and domestic prices using both annual and quarterly data. The authors investigate whether the conventional wisdom that, unlike in developed countries, exchange rate pass-through should be 'Complete' for developing countries. Their study is based on data for Bangladesh. They construct the annual nominal effective exchange rates for imports and exports separately. They also construct the nominal effective exchange rate at both annual and quarterly frequencies. The estimated results from the full sample demonstrate that the transmission of exchange rate changes is significant and 'Complete' to both import and export prices. However, exchange rate pass-through to domestic prices is found to be only 'Partial'.
- Format: PDF
- Size: 320.5 KB