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Global value chains and exchange rate pass-through into the import prices of Japanese industries

Author

Listed:
  • Fabien Rondeau

    (Crem - Centre de Recherche sur les Médiations - UL - Université de Lorraine)

  • Yushi Yoshida

    (University of Shiga Prefecture)

Abstract

With internationally fragmented processes of production via global value chains, value-added components of a country's export include the importer's contributions as well as that of exporters. The exchange rate sensitivity of export price reflects these value-added components. We examine the effect of value-added contributions of exporters and importers on the degree of exchange rate pass-through by focusing on the Japanese import prices by industries. Our results show that exchange rate pass-through increases for industries with a higher contribution of exporting countries' value added and for industries with a lower contribution of the importing country's value added. The differentials in value added among industries help explain the dynamics of exchange rate pass-through at the industry level.

Suggested Citation

  • Fabien Rondeau & Yushi Yoshida, 2025. "Global value chains and exchange rate pass-through into the import prices of Japanese industries," Post-Print hal-05035175, HAL.
    • Handle: RePEc:hal:journl:hal-05035175
    DOI: 10.1016/j.japwor.2025.101299
    Note: View the original document on HAL open archive server: https://hal.science/hal-05035175v1
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    Keywords

    Exchange rate pass-through; Global value chains; Value added in trade;
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