A 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 few evidences 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. In 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 InfoPaper provided by Kyushu Sangyo University, Faculty of Economics in its series Discussion Papers with number 31.
Length: 36 pages
Date of creation: Jul 2008
Date of revision: Dec 2008
Publication status: Forthcoming in International Review of Economics and Finance, 2009
Exchange rate pass-through; Firm heterogeneity; Japanese trade; Port-level trade; pricing-to-market;
Other versions of this item:
- Yoshida, Yushi, 2010. "New evidence for exchange rate pass-through: Disaggregated trade data from local ports," International Review of Economics & Finance, Elsevier, vol. 19(1), pages 3-12, January.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-14 (All new papers)
- NEP-CBA-2009-03-14 (Central Banking)
- NEP-IFN-2009-03-14 (International Finance)
- NEP-INT-2009-03-14 (International Trade)
- NEP-OPM-2009-03-14 (Open Economy Macroeconomics)
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