IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Exchange Rate Pass-through and Industry Characteristics: The Case of Taiwan's Exports of Midstream Petrochemical Products

  • Kuo-Liang Wang
  • Chung-Shu Wu
Registered author(s):

    Based on 1986-1992 survey data of 22 midstream petrochemical industries in Taiwan, the empirical results of the export price, the markup ratio and the price-cost margin equations in this study show that Taiwan's petrochemical firms absorb only a small portion of a given weighted exchange rate change in their export prices, markup ratios and price-cost margins. It implies that Taiwan's petrochemical firms have a weak pricing-to-market pattern. The empirical results may be explained by the volatility of profitability, high market concentration and small export/domestic production share. However, the impacts of the exchange rate change on the export price, markup ratio and price-cost margin have a tendency to increase during the period of 1987" to 1992. The tendency might be attributed to increasing competition of the petrochemical markets in the world, or Taiwanese firms' gradual realization of the importance of holding their world market shares in response to the exchange rate change.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.nber.org/papers/w5749.pdf
    Download Restriction: no

    Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5749.

    as
    in new window

    Length:
    Date of creation: Sep 1996
    Date of revision:
    Publication status: published as Changes in Exchange Rates in Rapidly Developing Countries. Ito,Takatoshiand Anne O. Krueger, eds., Chicago: The University of Chicago Press, 1999,pp. 211-230.
    Handle: RePEc:nbr:nberwo:5749
    Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
    Phone: 617-868-3900
    Web page: http://www.nber.org
    Email:


    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. James Brander & Paul Krugman, 1982. "A 'Reciprocal Dumping' Model of International Trade," Working Papers 513, Queen's University, Department of Economics.
    2. Prema-chandra Athukorala, 1990. "Exchange Rate Pass Through: The Case of Korean Exports of Manufacturers," Working Papers 1990.08 EDIRC Provider-In, School of Economics, La Trobe University.
    3. Prema-chandra Athukorala & Jayant Menon, 1992. "Pricing to Market Behaviour and Exchange Rate Pass-Through in Japanese Exports," Working Papers 1992.32, School of Economics, La Trobe University.
    4. Rudiger Dornbusch, 1985. "Exchange Rates and Prices," NBER Working Papers 1769, National Bureau of Economic Research, Inc.
    5. 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.
    6. Dei, Fumio, 1990. "A note on multinational corporations in a model of reciprocal dumping," Journal of International Economics, Elsevier, vol. 29(1-2), pages 161-171, August.
    7. Feinberg, Robert M, 1986. "The Interaction of Foreign Exchange and Market Power Effects on German Domestic Prices," Journal of Industrial Economics, Wiley Blackwell, vol. 35(1), pages 61-70, September.
    8. Marston, Richard C., 1990. "Pricing to market in Japanese manufacturing," Journal of International Economics, Elsevier, vol. 29(3-4), pages 217-236, November.
    9. Fisher, Eric, 1989. "Exchange rate pass-through and the relative concentration of German and Japanese manufacturing industries," Economics Letters, Elsevier, vol. 31(1), pages 81-85.
    10. Klein, Michael W., 1990. "Macroeconomic aspects of exchange rate pass-through," Journal of International Money and Finance, Elsevier, vol. 9(4), pages 376-387, December.
    11. Cowling, Keith & Waterson, Michael, 1976. "Price-Cost Margins and Market Structure," Economica, London School of Economics and Political Science, vol. 43(171), pages 267-74, August.
    12. Clarke, Roger & Davies, Stephen W, 1982. "Market Structure and Price-Cost Margins," Economica, London School of Economics and Political Science, vol. 49(195), pages 277-87, August.
    13. Shinjo Koji, 1993. "Exchange Rate Changes and Pricing Behavior of Japanese Firms: A Cross-Section Analysis," Journal of the Japanese and International Economies, Elsevier, vol. 7(2), pages 157-174, June.
    14. Cubbin, John, 1983. "Apparent collusion and conjectural variations in differentiated oligopoly," International Journal of Industrial Organization, Elsevier, vol. 1(2), pages 155-163, June.
    15. Bih Jane Liu, 1994. "Cost Externality and Exchange Rate Pass-Through: Some Evidence from Taiwan," NBER Chapters, in: Macroeconomic Linkage: Savings, Exchange Rates, and Capital Flows, NBER-EASE Volume 3, pages 247-272 National Bureau of Economic Research, Inc.
    16. Kim, Yoonbai, 1990. "Exchange Rates and Import Prices in the United States: A Varying-Parameter Estimation of Exchange-Rate Pass-Through," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(3), pages 305-15, July.
    17. Khalilzadeh-Shirazi, Javad, 1974. "Market Structure and Price-Cost Margins in United Kingdom Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 56(1), pages 67-76, February.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:5749. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.