IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v49y2013is4p280-300.html
   My bibliography  Save this article

Theoretical and Empirical Evidence for the Impact of Cross-Border Production Sharing on Exchange Rate Pass-Through

Author

Listed:
  • Lihuei Lan
  • Luke Lin
  • Wenyuan Lin
  • Shuangshii Chuang

Abstract

This paper uses the theoretical model created by Ghosh (2009) to analyze the extent of exchange rate pass-through (ERPT) for traditional trade and different production sharing cases. Comparing the differences among these scenarios reveals that production sharing could be a reason for the continual decline in ERPT. Furthermore, empirical evidence from Taiwan indicates that under production sharing, the pricing-to-market for intermediate goods exporters and the currency fluctuation in the home country of end products exporters will further influence the magnitude of the decline in ERPT.

Suggested Citation

  • Lihuei Lan & Luke Lin & Wenyuan Lin & Shuangshii Chuang, 2013. "Theoretical and Empirical Evidence for the Impact of Cross-Border Production Sharing on Exchange Rate Pass-Through," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 49(S4), pages 280-300, September.
    • Handle: RePEc:mes:emfitr:v:49:y:2013:i:s4:p:280-300
    as

    Download full text from publisher

    File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=MH2823X412180655
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:49:y:2013:i:s4:p:280-300. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.