New evidence for exchange rate pass-through: Disaggregated trade data from local ports
AbstractFor the estimation of exchange rate pass-through (henceforth ERPT), except for some evidence based on firm-level data, even the most disaggregated level of national export data is still biased with aggregation over sub-regions within an exporting country. We investigate to what extent this aggregation within product category is biased by comparing ERPT estimates across local ports. We use monthly exports at the HS 9-digit level from January 1988 to December 2005 for five major Japanese ports. Using a panel data regression framework, we control for exporting industry and importing country. Statistical tests provide strong evidence that export prices are set at different levels across local ports and that they correspond differently with respect to fluctuations of exchange rates.
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Bibliographic InfoArticle provided by Elsevier in its journal International Review of Economics & Finance.
Volume (Year): 19 (2010)
Issue (Month): 1 (January)
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Web page: http://www.elsevier.com/locate/inca/620165
Exchange rate pass-through Firm heterogeneity Japanese trade Port-level trade Pricing-to-market;
Other versions of this item:
- Yushi Yoshida, 2008. "A New Evidence for Exchange Rate Pass-through: Disaggregated Trade Data from Local Ports," Discussion Papers 31, Kyushu Sangyo University, Faculty of Economics, revised Dec 2008.
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F31 - International Economics - - International Finance - - - Foreign Exchange
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
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