Exchange Rate Pass‐Through into Retail Prices

23 Pages Posted: 15 Nov 2016

See all articles by Alexis Antoniades

Alexis Antoniades

Georgetown University School of Foreign Service in Qatar

Nicola Zaniboni

Transparent Value, LLC

Date Written: November 2016

Abstract

We study exchange rate pass‐through and its determinants using scanner data on fast moving consumer goods sold by 1,041 outlets in the United Arab Emirates between 2006 and 2010. The data are augmented with country of origin information. Our main finding is that exchange rate pass‐through varies more across retailers within regions than across regions, and in particular that pass‐through increases with retailer market share. We also find that exchange rate pass‐through is negatively correlated with both product quality and the elasticity of substitution of the product category and positively correlated with the frequency of price adjustment.

Suggested Citation

Antoniades, Alexis and Zaniboni, Nicola, Exchange Rate Pass‐Through into Retail Prices (November 2016). International Economic Review, Vol. 57, Issue 4, pp. 1425-1447, 2016. Available at SSRN: https://ssrn.com/abstract=2869496 or http://dx.doi.org/10.1111/iere.12203

Alexis Antoniades (Contact Author)

Georgetown University School of Foreign Service in Qatar ( email )

Education City
Al Huqoul St
Doha
Qatar

Nicola Zaniboni

Transparent Value, LLC ( email )

United States

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