Date of Graduation

Spring 5-16-2014

Document Type


Degree Name

Master of Science in International and Development Economics (MSIDEC)



First Advisor

Man Chiu (Sunny) Wong

Second Advisor

Jacques Artus


Do commodity price shocks have heterogeneous effect on countries based on their export and import profiles? I address this question through a panel study of 142 countries using Export and Import Indexes aimed at differentiating the retail pass-through and fiscal balance channel of transmission of Commodity Price shocks on inflation. The results show that an increase in the Export Index leads to a decrease in contemporary inflation while an increase in the Import Index leads to an increase in inflation in the next year. Average causal mediating effect of the Export Index on Inflation through the Fiscal Balance was shown to be negative.


Case study of Chile is in the Appendix.