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Pricing‐to‐Market: the Japanese Experience with a Falling Yen and the Asian Crisis

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  • Merih Uctum

Abstract

The paper examines whether Japanese exporters changed their strategic pricing behavior as a result of the profit squeeze of the late 1980s. It shows that shocks such as the end‐of‐bubble, the prolonged yen depreciation, and the Asian crisis affected export prices. These effects, however, are too small to change the long‐run equilibrium relation between sectoral export prices and their determinants. In particular, results suggest that Japanese exporters are not using the depreciation of the yen to gain market share.

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  • Merih Uctum, 2003. "Pricing‐to‐Market: the Japanese Experience with a Falling Yen and the Asian Crisis," Review of International Economics, Wiley Blackwell, vol. 11(2), pages 360-378, May.
    • Handle: RePEc:bla:reviec:v:11:y:2003:i:2:p:360-378
    DOI: 10.1111/1467-9396.00388
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    References listed on IDEAS

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    1. Knetter, Michael M, 1989. "Price Discrimination by U.S. and German Exporters," American Economic Review, American Economic Association, vol. 79(1), pages 198-210, March.
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    Cited by:

    1. Landon, Stuart & Smith, Constance E., 2006. "Exchange rates and investment good prices: A cross-industry comparison," Journal of International Money and Finance, Elsevier, vol. 25(2), pages 237-256, March.
    2. Athukorala, Premachandra & Menon, Jayant, 1994. "Pricing to Market Behaviour and Exchange Rate Pass-Through in Japanese Exports," Economic Journal, Royal Economic Society, vol. 104(423), pages 271-281, March.
    3. Jean‐Philippe Gervais & Bruno Larue, 2009. "A joint test of market power, menu costs, and currency invoicing," Agricultural Economics, International Association of Agricultural Economists, vol. 40(1), pages 29-41, January.
    4. Ceglowski, Janet, 2010. "Has pass-through to export prices risen? Evidence for Japan," Journal of the Japanese and International Economies, Elsevier, vol. 24(1), pages 86-98, March.
    5. Gervais, Jean-Philippe & Larue, Bruno, 2006. "A Joint Test of Price Discrimination, Menu Cost and Currency Invoicing," MPRA Paper 565, University Library of Munich, Germany.

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