What can we learn from a large border effect in developing countries?

Journal of Development Economics

Volumn 72, Issue 1, 2003, Pages 353-369

  Mahbub Morshed, A K M ^a  

^a WASHINGTON STATE UNIVERSITY   (United States)

Author keywords

Border effect; Law of one price

Indexed keywords

DEVELOPING WORLD; EXCHANGE RATE; POLITICAL BOUNDARY; PRICE DETERMINATION; PRICE DYNAMICS;

EID: 0043128526     PISSN: 03043878     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0304-3878(03)00081-6     Document Type: Article

References (25)

1. Baghestani H. Purchasing power parity in the presence of foreign exchange black markets: The case of India Applied Economics 29 9 1997 1147-1154
2. Bahmani-Oskooee M. Effects of exchange rate variability on inflation variability World Development 19 6 1991 729-733
3. Bahmani-Oskooee M. Purchasing power parity based on effective exchange rate and cointegration: 25 LDCs' experience with its absolute formulation World Development 21 6 1993 1023-1031
4. Boyd, D., Smith, R., 1995. Testing for Stationarity of the Real Exchange Rate in Developing Countries. Birkbeck College Discussion Paper in Economics, 10/95.
5. Debreu G. Theory of Value 1959 Yale Univ. Press New Haven, CT
6. Devereaux, M.B., Engel, C., 1998. Fixed vs Floating Exchange Rates: How Price Setting Affects the Optimal Choice of Exchange-Rate Regime, Manuscript.
7. Dixit A. Hysteresis, import penetration, and exchange rate pass-through Quarterly Journal of Economics 104 2 1989 205-228
8. Dornbusch R. Exchange rates and prices American Economic Review 77 1 1987 93-106
9. Engel, C., 2001. The Responsiveness of Consumer Prices to Exchange Rates And the Implications for Exchange-Rate Policy: A Survey Of a Few Recent Open-Economy Macro Models, Manuscript.
10. Engel C. Rogers J.H. How wide is the border? American Economic Review 86 5 1996 1112-1125
11. Engel C. Rogers J.H. Relative price volatility: What role does the border play? Hess G. van Wincoop E. Intranational Macroeconomics 2000 92-111 Cambridge Univ. Press New York, NY
12. Engel C. Rogers J.H. Violating the law of one price: Should we make a federal case out of it? Journal of Money, Credit and Banking 33 2001 1-15
13. Engel C. Rogers J.H. Deviations from purchasing power parity: Causes and welfare costs Journal of International Economics 55 2001 29-57
14. Feenstra R.C. Symmetric pass-through of tariffs and exchange rates under imperfect competition: An empirical test Journal of International Economics 27 1/2 1989 25-45
15. Froot K.A. Klemperer P.D. Exchange rate pass-through when market share matters American Economic Review 79 4 1989 637-654
16. Goldberg, P.K., Verboven, F., 1998. The Evolution of Price Dispersion in the European Car Market. NBER Working Paper 6818.
17. Haskel, J., Wolf, H., 2001. The Law of One Price-A Case Study. NBER Working Paper 8112.
18. Helliwell, J.F., 1998. How Much Do National Borders Matter? Manuscript.
19. Knetter M.N. International comparison to pricing-to-market behavior American Economic Review 83 3 1993 473-486
20. Krugman P. Pricing to market when exchange rate changes Arndt S.W. Richardson J.D. Real-Financial Linkages Among Open Economies 1987 49-70 MIT Press Cambridge, MA
21. Lyons, R.K., 1991. Floating Exchange Rates in Peru, 1950-54. NBER Working Paper 3775.
22. Parsley D.C. Wei S. Explaining the border effect: The role of exchange rate variability, shipping costs, and geography Journal of International Economics 55 1 2001 87-105
23. Rajaraman, I., 1993. Real exchange rate movement of the Indian rupee: Impact on selected commodity exports. UNCTAD Review 4, United Nations.
24. Rahman S.H. Structural adjustment and macroeconomic performance in Bangladesh in the 1980s The Bangladesh Development Studies XX 2 and 3 1992 89-125
25. White H. A heteroskedasticity consistent covariance matrix estimator and a direct test for heteroskedasticity Econometrica 48 4 1980 817-838