Central banks in emerging countries generally question the effect of exchange rate passthrough into price levels in the national economy in order to implement monetary policy effectively. This paper is conducted in response to these macroeconomic concerns. Five founding members of the Association of Southeast Asian Nations (ASEAN), for which all the required data are available, are included in our sample with up-to-date time-series data until 2016. We use a structural vector autoregressive model in this study. Several interesting findings emerged from our study. First, we find incomplete exchange rate pass-through to domestic prices, and the producer price index is found to be affected more than the consumer price index. Second, the exchange rate shocks are found to have an immediate effect within one quarter on producer prices in all the countries. Third, variance in domestic prices is found to be caused mainly by shocks from oil prices, output gaps, and exchange rates, with some differences in the extent of effects across countries. Fourth, in these five countries, interest rates appear to play a minor role in explaining the inflation rate. We recommend that policy makers pursuing price stability in the economy focus on exchange rates and interest rate policy with great caution.

This study analyzes the determinants of firm’s decisions to produce green products in Dong Nai province. We survey 300 firms which are currently doing business in Dong Nai in 2019. A combination of the propensity score matching (PSM) method and the logit regression addresses the problem of heterogeneity between observations in the empirical model. The result implies that a firm that (i) has assigned a leader to take responsibility for green growth; (ii) has an investment in emission treatment equipment; (iii) has procedure guidance for energy saving; and (iv) has an improvement in energy efficiency will have a higher probability to produce at least a green product. Moreover, a penalty for breaching environmental legislation does not encourage firms to produce green products. Several policy implications have emerged on the ground of our empirical findings. First, we propose cooperation and connection between domestic firms and foreign enterprises to inspire the production of green goods and services. Second, some preferential treatments for firms that assign a manager for green development can encourage green production in Dong Nai province. Finally, Dong Nai province shall consider policies supporting firms to mobilize capital to develop technology for green production.