How different is the exchange rate pass-through in new member states of the EU? Some potential explanatory factors

María-Dolores Pedrero, Ramón

Publication:
How different is the exchange rate pass-through in new member states of the EU? Some potential explanatory factors

dc.contributor.author	María-Dolores Pedrero, Ramón
dc.contributor.department	Fundamentos del Análisis Económico
dc.date.accessioned	2009-06-23T13:54:32Z
dc.date.available	2009-06-23T13:54:32Z
dc.date.created	2009-06
dc.date.issued	2009-06-23T13:54:32Z
dc.description.abstract	This paper uses data on import unit values for nine different product categories and bilateral imports to study the pass-through of exchange rate changes into the prices of imports that originated inside the Euro Area made by some New Member States (NMSs) of the European Union and one candidate country (Turkey). I estimate industry-specific rates of pass-through across and within countries using the methodological approach proposed by de Bandt, Banerjee and Kozluk (2008). I did not find evidence in favour of the hypothesis of Local Currency Pricing (zero pass-through) and the hypothesis of Producer Currency Pricing (complete pass-through) could be accepted in some countries for different industries. My results also show that there is a clear positive relationship between exchange rate pass-through and average inflation in these countries. I do find a slightly positive pattern for the relationship between exchange rate pass-through and openness. With reference to the relationship between exchange rate pass-through and the type of exchange rate regime I observe that a less volatile exchange rate implies a less degree of exchange rate pass-through. In industries I obtain a less degree of exchange rate pass-through in differentiated manufactured products. By including possible statistical break-dates in the estimation process I observe that some NMSs have decreased the exchange rate pass-through in recent years. Some of the breaks are close to the dates of some major institutional changes in these countries (changes in monetary policy and exchange rate regimes and the starting up of the EU membership).	en_EN
dc.format	application/pdf	es
dc.format.extent	33	en_EN
dc.identifier.uri	http://hdl.handle.net/10201/4698
dc.language	eng	en_EN
dc.relation.ispartof	Proyecto de investigación:	en_EN
dc.relation.ispartofseries	WP-UMUFAE	en_EN
dc.relation.ispartofseries	2009.05	en_EN
dc.rights	info:eu-repo/semantics/openAccess	es
dc.subject	Exchange rates	en_EN
dc.subject	Monetary union	en_EN
dc.subject	Pass-through	en_EN
dc.subject	Panel cointegration	en_EN
dc.subject	Sedas (e-Archivo)
dc.subject.other	CDU::3 - Ciencias sociales::33 - Economía::336 - Finanzas. Banca. Moneda. Bolsa	en_EN
dc.title	How different is the exchange rate pass-through in new member states of the EU? Some potential explanatory factors	en_EN
dc.type	info:eu-repo/semantics/article	en_EN
dspace.entity.type	Publication	es