An estimation of tariff pass-through in Tunisia

الملخص EN

In this paper we evaluate the extent to which changes in tariffs and in international prices are transmitted into consumer prices in Tunisia over the period 2000 to 2008.

A pass-through equation is estimated using sectoral panel data at the retail-product level and controlling for unobserved sectoral heterogeneity.

The main results show that on average tariff pass-through is 7 percent and that it varies across sectors.

In particular, agricultural products seem to be driving the results.

Summarizing, the change in Tunisian tariffs has affected local prices, but the effect is lower in magnitude than that found for other developing countries.

JEL Classification: F2, H2