The theoretical model a la Amiti, Itskhoki, and Konings (2014, AER) suggests that

the inclusion of exporters' market share and import intensity in the exchange rate passthrough

regression is sufficient to reflect the underlying deep parameters. We suggest using

value-added by importing and other countries and invoicing currency ratio as proxies for the

import intensity measure. We examine the effect of value-added contributions of importing

and other countries on the degree of exchange rate pass-through by examining 33 exporting

countries and 13 importing countries for 18 industries between 1995 and 2018. Our results

show that exchange rate pass-through decreases for industries with a higher contribution of

the importing and other country's value-added.