Impact of facilitation of access to financial Resources of markets on the exchange rates pass-through in import pricing regimes

In this study, the effect of ease of access to financial resources on exchange rate transition in import pricing regimes has been investigated using Markov's rotational approach during the period 1973-2018. The results showed that importing firms in Iran follow three pricing regimes: low, medium and high. In all three regimes, the exchange rate transition rate is greater than one, and with the transition to a high pricing regime, the exchange rate transition rate increases. While in the high and medium pricing regime, the ease of access to financial resources strengthens the degree of exchange rate transition, but in the low pricing regime, the exchange rate does not change significantly. In addition, ease of access to financial resources directly leads to lower import prices, which is statistically significant and larger than one in the high and medium pricing regime. This reduction in the high pricing regime is larger than the medium pricing regime. The results also showed that the economy tends to be 40% in the low pricing regime, 40% in the medium pricing regime and 20% in the high pricing regime, and the average durability of the regimes is 2.00, respectively, 1.29 and 1.29 years.