THESIS
2019
x, 58 pages : color illustrations ; 30 cm
Abstract
In this paper we investigate the topic of the exchange rate pass-through from the perspective
of exporters. We use China’s monthly export data in transaction level from 2000 to 2006, and
plot the pattern of Chinese exporters’ pricing to market behavior over time. Shedding lights
on China’s export exchange rate pass-through variation over time. On average, the export pricing
to market behavior follows an increase-decrease-increase pattern (N-shape) over the sample
period. Along with this, We report asymmetry in firms’ pricing responses facing appreciation
versus depreciation cases, and asymmetric pricing responses in a fixed exchange rate regime
versus in a floating exchange rate regime. These asymmetries may help to understand the patterns
found. We also find heterogeneities of...[
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In this paper we investigate the topic of the exchange rate pass-through from the perspective
of exporters. We use China’s monthly export data in transaction level from 2000 to 2006, and
plot the pattern of Chinese exporters’ pricing to market behavior over time. Shedding lights
on China’s export exchange rate pass-through variation over time. On average, the export pricing
to market behavior follows an increase-decrease-increase pattern (N-shape) over the sample
period. Along with this, We report asymmetry in firms’ pricing responses facing appreciation
versus depreciation cases, and asymmetric pricing responses in a fixed exchange rate regime
versus in a floating exchange rate regime. These asymmetries may help to understand the patterns
found. We also find heterogeneities of pricing responses of firms engaged in different
trade types and different industries. These heterogeneities may reflect different market powers
behind, and are consistent with the reported pricing to market patterns. Our findings document
novel evidence of the pattern of China’s exporters’ pricing to market behavior as well as their
exchange rate pass-through over time.
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