Exchange Rate Pass-Through into Export and Import Prices: A Bounds Testing Analysis on the Case of Korea

This paper investigates the exchange rate pass-through into import prices on aggregate and disaggregates data levels in Jordan. We employ the bounds testing approach to cointegration and error correction model in a sample of annual data over the period 1976–2011. This fundamental topic has considerable policy implications. The current paper concludes that nominal exchange rate fluctuations and oil prices are the core determinants of import prices either on aggregate or disaggregate data level. The short-run and long-run nominal exchange rate pass-through elasticities coefficients in Jordan are incomplete and equal to 0.13. Besides, in the short-run, oil prices have larger effect on Jordan’s import prices compared to nominal exchange fluctuations.

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Exchange Rate Pass-Through into Import Prices In Major Southeast Asian Countries

SSRN Electronic Journal ◽

10.2139/ssrn.1295056 ◽

2005 ◽

Cited By ~ 1

Author(s):

Sahminan Sahminan

Keyword(s):

Exchange Rate ◽

Southeast Asian ◽

Asian Countries ◽

Import Prices ◽

Pass Through ◽

Exchange Rate Pass Through ◽

Southeast Asian Countries

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Exchange Rate Pass Through in a Small Open Economy: A case study of West African Monetary Zone

Journal of Global Economy ◽

10.1956/jge.v9i4.301 ◽

2013 ◽

Vol 9 (4) ◽

pp. 275-290

Author(s):

Rahman olanrewaju Raji

Keyword(s):

Exchange Rate ◽

Open Economy ◽

Price Index ◽

Time Series Data ◽

Consumer Price Index ◽

Import Price ◽

Series Data ◽

Import Prices ◽

Pass Through ◽

Exchange Rate Pass Through

TheÂ study investigated the magnitude of exchange rate pass through to import prices and domestic pricesÂ Â Â (consumer price index) in WAMZ economy using quarterly time-series data between 2000 and 2010 with the aids of Vector autoregressive (VAR) modeling technique supported with Johansen co-integration approach cross country analysis comprising of Gambia, Ghana, Nigeria and Sierra-Leone. The study discovered that transmission of exchange rate to import prices is more when compared with consumer price in the zone while the contributions of exchange rate to import price are not less 13 percent at average in entire zone. Consumer price index was explained by exchange rate pass through with an average of 26 percent in the zone where the pass through to consumer price is less than two percent in Ghanaian economy. The Taylor (2000) hypothesis was observed in the study where Ghana and Nigeria are the outlier economies while Nigeria established a positive relationship between interest rate volatility and exchange rate pass through to import prices.

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