The Impacts of Exchange Rate Movements on Prices and Trade across Sectors: Evidence from Ethiopian Firms

This paper examine how exchange rate movements impact on prices and firm behaviour in Ethiopia from 2006 to 2014

Abstract

Movements of the Ethiopian Birr against the US dollar, the major currency of trade invoicing, matter more for prices and trade volumes than do movements of the Birr against trading partners’ currencies. US dollar prices and trade volumes change much more for manufacturing firms than for firms in other sectors in the wake of Birr movements against the US Dollar

This research was funded under the Private Enterprise Development in Low Income Countries (PEDL) Programme

Citation

Mengistu, A. T.; Montero, E.; Segura, A. The Impacts of Exchange Rate Movements on Prices and Trade across Sectors: Evidence from Ethiopian Firms”, PEDL Research Note (2017) 3p

The Impacts of Exchange Rate Movements on Prices and Trade across Sectors: Evidence from Ethiopian Firms

Published 1 February 2017