Exchange Rate Pass-through and Currency Invoicing: Implications for Monetary Integration in East Asia
Exporter's price-setting behaviour and currency invoicing play a key role in the literature on the new open-economy macroeconomics. This paper estimates exchange rate pass-through coefficients for the exports of four ASEAN countries: Indonesia, Malaysia, the Philippines and Thailand. In addition, previous estimates of pass-through as well as invoicing behaviour in East Asia are discussed in the context of regional integration. The new pass-through coefficients are estimated under two alternate specifications for up to 34 goods for each of the four ASEAN countries destined for up to 13 major markets. The results suggest: (a) little pass-through is occurring in Southeast Asia and (b) this lack of pass-through is more likely attributable to the fact that they are small countries in a relatively integrated market, rather than evidence of pricing to market. The implications for regional monetary integration of this apparently low degree of pass-through are detailed. Copyright 2006 The AuthorsJournal compilation Blackwell Publishing Ltd. 2006 .
Year of publication: |
2006
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Authors: | Parsons, Craig R. ; Sato, Kiyotaka |
Published in: |
The World Economy. - Wiley Blackwell. - Vol. 29.2006, 12, p. 1759-1788
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Publisher: |
Wiley Blackwell |
Saved in:
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