EXCHANGE RATE PASS-THROUGH AND INDUSTRIAL COMPETITIVENESS IN THE CONTEXT OF TERRITORIAL DYNAMICS: EVIDENCE FROM MENA ECONOMIES AND TUNISIA
EXCHANGE RATE PASS-THROUGH AND INDUSTRIAL COMPETITIVENESS IN THE CONTEXT OF TERRITORIAL DYNAMICS: EVIDENCE FROM MENA ECONOMIES AND TUNISIA

Summary/Abstract: This article develops a theoretical perspective on exchange rate pass-through (ERPT) by conceptualizing it as a macromonetary transmission channel whose effects vary across regions according to territorial dynamism. It argues that ERPT should not be treated as a homogeneous national aggregate, but rather as a process shaped by local absorption capacities, particularly those arising from innovation spillovers and supplier concentration within industrial clusters. The theoretical analysis is complemented by recent empirical insights from the Tunisian context, which serve as a basis for proposing a mixed-method survey approach involving 300–400 firms in Tunisia, Morocco, and Egypt. This framework is designed to test two core hypotheses: (H1) Pricing-to-Market (PTM) behavior is endogenous and exhibits regional heterogeneity depending on the level of cluster dynamism; (H2) firms embedded in industrial clusters are better able to absorb ERPT volatility through innovation diffusion mechanisms. The article ultimately offers an analytical framework to inform industrial policy strategies in MENA economies by jointly addressing monetary stability and territorial development.

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