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Exchange Rate Passthrough to Import and Consumer Prices: Evidence from Ethiopia

Ethiopian Journal of Economics

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Field Value
 
Title Exchange Rate Passthrough to Import and Consumer Prices: Evidence from Ethiopia
 
Creator Berga, H
 
Description The fact that Ethiopia adopted managed floating exchange rate policy since 1992 as well as various trade reform measures taken makes the country’s import and consumer prices susceptible to the effects of exchange rate movements. Thus, the study investigates the degree of ERPT to import and consumer prices in Ethiopia between 1991/92 and 2010/11 using Structural Vector Autoregressive (SVAR) model where the degree of pass-through is estimated by the means of impulse response functions. The paper found that ERPT in Ethiopia during the period under review is significant, moderate and persistent in the case of import price and low and short lived in the case of consumer prices. These results are robust to a number of alternative  specifications of the model, such as the use of different ordering and identification schemes.Keywords: exchange rate pass-through, consumer price, import price, SVAR, Ethiopia
 
Publisher Ethiopian Economic Association (EEA), 1997
 
Contributor —
 
Date 2013-08-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.ajol.info/index.php/eje/article/view/91523
 
Source Ethiopian Journal of Economics; Vol 21, No 2 (2012); 89-126
1993-3681
 
Language eng
 
Relation http://www.ajol.info/index.php/eje/article/view/91523/81001
 
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