Exchange Rate Pass-Through into Import Prices In Major Southeast Asian Countries

Sahminan, Sahminan

doi:10.2139/ssrn.1295056

Cited by 7 publications

(6 citation statements)

References 22 publications

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“…In the literature, this transmission is known as exchange rate pass‐through (ERPT). Exchange rate volatility can, in fact, be transmitted to domestic prices through imports of consumption goods, production goods, or exports (An & Wang, 2012; Sahminan, 2002).…”

Section: Introductionmentioning

confidence: 99%

Exchange rate pass‐through to import prices: Evidence from a heterogeneous panel of West African countries

Kinda¹,

Barry

2021

Review Development Economics

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This study analyzes the effect of exchange rate pass‐through (ERPT) on the import prices of West African countries. We used a heterogeneous dynamic panel over the period 1991–2018 and estimated the ERPT using the pooled mean group, mean group, and augmented mean group. The results show that an exchange rate appreciation of 1% in the short term leads to a decrease in the price of imports by 0.25% and 0.20%, respectively, for the West African Economic and Monetary Union (WAEMU) countries and those outside the WAEMU zone. However, considering other countries, we find that the ERPT has a long‐term effect and causes a rise in import prices of 0.83%. This effect depends on the level of inflation. Thus, the pass‐through effect appears to be heterogeneous across countries.

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Section: Introductionmentioning

confidence: 99%

Exchange rate pass‐through to import prices: Evidence from a heterogeneous panel of West African countries

Kinda¹,

Barry

2021

Review Development Economics

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“…According to Sanusi [15], the effect of exchange rate on the inflationary process is in two stages; from exchange rate to import prices and then from import prices to consumer prices but effected through three channels; prices of imported consumption goods, domestically produced goods which are priced in exchange rate equivalence and then prices of imported intermediate goods. In the view of Sahminan [16] the first two channels lead to a direct effect of the exchange rate on prices whilst in the third, the exchange rate influences domestic prices less directly by affecting the costs of production in the economy.…”

Section: Review Of Literaturementioning

confidence: 99%

Examining the Factors Underlining the Inflationary Phenomenon in Ghana – A Dynamic ARDL Analysis

Anaman¹

2019

JBED

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The phenomenon of inflation is one of the most widely discussed economic issues across the world and for this reason has continued to remain very relevant and visible within the policy domain. This is because it affects the economic fortunes of the principal actors within the economy from the low to the high income. This study adds to the existing literature on inflation by identifying the short and long run factors which influence its trajectory in the Ghanaian economy. The study adopts the Autoregressive Distributed Lag approach to comprehensively establish the long and short run determinants of inflation based on the data set spanning from 1979 to 2016 and the empirical analysis shows that price level is in the long run significantly determined by food crop production, crude oil prices, population, output of goods and services and money supply but in the short run the only variable which does not impact significantly on the price level variable is the interest rate proxied by the policy rate. It is also established that the system is able to correct about 60% of the deviations from its equilibrium position in every quarter. The main recommendation that emanates from the study is that policy makers instead of dealing with inflation mainly from the orthodox monetary perspective must also begin to pay more attention to the supply side issues in the economy.

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“…Exchange rate pass-through (ERPT) didefinisikan sebagai perubahan harga (harga ekspor, harga impor, maupun harga domestik) sebagai akibat perubahan satu persen dalam kurs domestik terhadap kurs asing (Sahminan, 2005). Konsep ERPT dapat didekati melalui penurunan rumus purchasing power parity (PPP), yaitu :P q ê x P ¦ (1) denganP adalah perubahan harga domestik,q adalah perubahan kurs riil,ê adalah perubahan kurs nominal dan x P ¦ adalah perubahan harga luar negeri.…”

Section: Tinjauan Literatur Perubahan Nilai Tukar (Exchange Rate Passunclassified

Dampak Perubahan Nilai Tukar terhadap Indeks Harga Konsumen Bahan Makanan di Indonesia

Suarsih

Achsani

Nuryartono

2016

JEPI

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The fluctuation in exchange rate Indonesia may have an impact on the price of imported goods both consumer goods (finished goods) and raw materials. The aim of this study is to analyze the impact of exchange rate changes on the Consumer Price Index (CPI) of foods categories and analyze the role of the exchange rate in explaining fluctuations in the CPI of food category in Indonesia. Econometric analysis using vector error correction model, indicates that the greatest degree of pass-through occurs in the consumer price index groups of milk and eggs. Contributions of exchange rate as the result of decomposition of forecasting error variance is largest in the meat category. nilai tukar rupiah terdepresiasi hingga mencapai Rp12.151/USD dengan laju inflasi nasional mencapai 11,06%, meningkat dari tahun sebelumnya yang hanya mencapai 6,59%. Sedangkan pada tahun 2013, nilai tukar rupiah terdepresiasi hingga mencapai Rp12.189/USD dengan laju inflasi nasional mencapai 8,38%, meningkat dari tahun sebelumnya yang hanya mencapai 4,30%.Pergerakan nilai tukar rupiah terhadap dolar Amerika Serikat (US Dollar/USD) secara umum sangat fluktuatif (Gambar 1). Sejak periode tahun 1998-sekarang, Indonesia menganut sistem nilai tukar mengambang bebas dengan penentuan nilai tukar rupiah diserahkan sepenuhnya kepada mekanisme pasar.Nilai tukar yang fluktuatif dapat berdampak pa-

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Exchange Rate Pass-Through into Import Prices In Major Southeast Asian Countries

Cited by 7 publications

References 22 publications

Exchange rate pass‐through to import prices: Evidence from a heterogeneous panel of West African countries

Exchange rate pass‐through to import prices: Evidence from a heterogeneous panel of West African countries

Examining the Factors Underlining the Inflationary Phenomenon in Ghana – A Dynamic ARDL Analysis

Dampak Perubahan Nilai Tukar terhadap Indeks Harga Konsumen Bahan Makanan di Indonesia

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