Exchange rate pass-through into import prices: evidence from Central and Southeast European countries

  • Safet KurtovićEmail author
  • Blerim Halili
  • Nehat Maxhuni


This paper examines the effect of exchange rate pass-through (ERPT) on aggregate import prices in nine countries of Central and Southeast Europe. The ERPT is determined by applying the single equation and the cointegration approach (ARDL model) and the error correction term EC(− 1). For the purposes of our research we used disaggregated data from 2000Q1 to 2014Q4. Our research has found that there is a very high or complete pass-through in the long and short run for Bulgaria, Croatia, Romania, Slovenia, Slovakia and the Ukraine. It has also been confirmed that pass-through asymmetry in the long and short run was caused by depreciation in cases of Bulgaria, Croatia, FYR of Macedonia and the Ukraine. On the other hand, in the case of Slovenia, pass-through asymmetry was caused by appreciation, which meant that our results were consistent with the results of earlier research.


Marginal costs Depreciation Appreciation Cointegration Asymmetry 

JEL Classification

F3 F4 F31 



I would like to thank reviewer for helpful comments.

Compliance with ethical standards

Conflict of interest

No potential conflict of interest was reported by the authors.


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© Editorial Office, Indian Economic Review 2019

Authors and Affiliations

  1. 1.Faculty of Management and Business EconomicsUniversity of TravnikTravnikBosnia and Herzegovina
  2. 2.Faculty of Engineering ManagementUniversity “Union - Nikola Tesla”BelgradeSerbia

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