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Exchange Rate Pass‐Through Into Retail Prices

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  • Alexis Antoniades
  • Nicola Zaniboni

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

  • Alexis Antoniades & Nicola Zaniboni, 2016. "Exchange Rate Pass‐Through Into Retail Prices," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 57(4), pages 1425-1447, November.
    • Handle: RePEc:wly:iecrev:v:57:y:2016:i:4:p:1425-1447
    DOI: 10.1111/iere.12203
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    Cited by:

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    2. Antoniades, Alexis & Clerides, Sofronis & Xu, Mingzhi, 2023. "Multi-product firm price and variety response to firm-specific cost shocks," International Journal of Industrial Organization, Elsevier, vol. 90(C).
    3. Juan Esteban Carranza & Alejandra González-Ramírez & Alex Perez & Juan Sebastián Vélez-Velásquez, 2024. "Exchange rate pass-through in the Colombian car market," International Economics and Economic Policy, Springer, vol. 21(1), pages 151-179, February.
    4. Zou, Zongsen & Zhang, Yu & Wang, Meng & Wang, Xiuling, 2022. "Do export quality and destination income matter for exchange rate pass-through? Evidence from China," Economic Modelling, Elsevier, vol. 117(C).
    5. Hu, Chenghao, 2024. "Finance dependence and exchange rate pass-through: Empirical evidence from China," Emerging Markets Review, Elsevier, vol. 58(C).
    6. Baek, Youngmin & Hayakawa, Kazunobu & Tsubota, Kenmei & Urata, Shujiro & Yamanouchi, Kenta, 2021. "Tariff Pass-through in Wholesaling: Evidence from Firm-level Data in Japan✰," Journal of the Japanese and International Economies, Elsevier, vol. 62(C).

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