[séminaire CREM FSE] "Value-added by importers and exchange rate pass-through" Yushi YOSHIDA

**Abstract:** The theoretical model a la Amiti, Itskhoki, and Konings (2014, AER) suggests that it is sufficient to include exporters’ market share and import intensity in the exchange rate pass through regression. The exchange rate sensitivity of export prices is affected by the input share of the destination country. We examine the effect of value-added contributions of importers on the degree of exchange rate pass-through by examining 33 exporting countries and 13 importing countries for 13 industries between 1995 and 2018. Our results show that exchange rate pass-through decreases for industries with a higher contribution of the importing country’s value-added.