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The Effects of Foreign Exchange Rate Movements on Domestic Prices in the Turkish Manufacturing Industry

Author

Listed:
  • Oner Guncavdi
  • Benan Zeki Orbay

    () (Istanbul Technical University)

Abstract

Este trabajo examina la sensibilidad de los precios domesticos en la industria manufacturera de Turquia a las fluctuaciones en los tipos de cambio. En nuestro modelo teorico, las empresas domesticas y foraneas producen bienes sustitutos para el mercado domestico. Se asume que algunas funciones del mercado de insumos de las empresas domesticas son importadas. Los resultados muestran que la sensibilidad de los precios domesticos a movimientos en los tipos de cambio esta altamente relacionada a la proporcion de insumos importados para la produccion domestica. Sin embargo, respecto a los efectos de la estructura de mercado sobre la respuesta de los precios domesticos a variaciones en el tipo de cambio, nuestros resultados no son concluyentes.

Suggested Citation

  • Oner Guncavdi & Benan Zeki Orbay, 2004. "The Effects of Foreign Exchange Rate Movements on Domestic Prices in the Turkish Manufacturing Industry," EconoQuantum, Revista de Economia y Negocios, Universidad de Guadalajara, Centro Universitario de Ciencias Economico Administrativas, Departamento de Metodos Cuantitativos y Maestria en Economia., vol. 1(1), pages 41-56, Julio-Dic.
  • Handle: RePEc:qua:journl:v:1:y:2004:i:1:p:41-56
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    References listed on IDEAS

    as
    1. Feenstra, Robert C., 1989. "Symmetric pass-through of tariffs and exchange rates under imperfect competition: An empirical test," Journal of International Economics, Elsevier, vol. 27(1-2), pages 25-45, August.
    2. Pinelopi Koujianou Goldberg & Michael M. Knetter, 1997. "Goods Prices and Exchange Rates: What Have We Learned?," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1243-1272, September.
    3. Feinberg, Robert M, 1991. "The Choice of Exchange-Rate Index and Domestic Price Passthrough," Journal of Industrial Economics, Wiley Blackwell, vol. 39(4), pages 409-420, June.
    4. Menon, Jayant, 1995. " Exchange Rate Pass-Through," Journal of Economic Surveys, Wiley Blackwell, vol. 9(2), pages 197-231, June.
    5. Jiawen Yang, 1997. "Exchange Rate Pass-Through In U.S. Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 95-104, February.
    6. Athukorala, Premachandra & Menon, Jayant, 1995. "Exchange Rates and Strategic Pricing: The Case of Swedish Machinery Exports," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(4), pages 533-546, November.
    7. Oner Guncavdi & Benan Zeki Orbay, 2002. "Exchange rates, market structure and price-cost margins: evidence from a developing country," Applied Economics, Taylor & Francis Journals, vol. 34(6), pages 783-789.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    exchange rate pass-through; inflation; Turkey;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure

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