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A Comparative Analysis of Export Price Pass-through in Three Open Asian Economies: Korea, Singapore and Thailand

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  • Amit Ghosh
  • Ramkishen S. Rajan

Abstract

The degree of exchange rate pass-through is of paramount importance to small and open economies as it has a direct impact on domestic inflation as well as the effectiveness of exchange rate as an adjustment tool. High exchange rate pass-through (ERPT) is often cited as a reason for a “fear of floating”. This article analyzes the degree of ERPT into the export prices of three Asian economies—Korea, Thailand and Singapore for the period 1980: Q1-2006: Q4 using both US dollar bilateral rates as well as nominal effective exchange rates. The study also examines whether there are asymmetries in ERPT between exchange rate appreciation and depreciation.

Suggested Citation

  • Amit Ghosh & Ramkishen S. Rajan, 2007. "A Comparative Analysis of Export Price Pass-through in Three Open Asian Economies: Korea, Singapore and Thailand," Global Economic Review, Taylor & Francis Journals, vol. 36(3), pages 287-299.
    • Handle: RePEc:taf:glecrv:v:36:y:2007:i:3:p:287-299
    DOI: 10.1080/12265080701562016
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    References listed on IDEAS

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    1. Tony Cavoli & Ramkishen Rajan, 2005. "Have Exchange Rate Regimes in Asia Become More Flexible Post Crisis? Re-visiting the Evidence," Centre for International Economic Studies Working Papers 2005-03, University of Adelaide, Centre for International Economic Studies.
    2. Michael B. Devereux & Charles Engel, 2001. "Endogenous Currency of Price Setting in a Dynamic Open Economy Model," NBER Working Papers 8559, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Sook-Rei Tan & Wei-Siang Wang & Wai-Mun Chia, 2021. "International Capital Flows and Extreme Exchange Market Pressure: Evidence from Emerging Market Economies," Open Economies Review, Springer, vol. 32(3), pages 479-506, July.
    2. Mahmoodi, Elahe & Mahmoodi, Majid, 2016. "A Survey on the Existence of Price Discrimination Behavior in Iran’s Saffron Exporting Market by Using PTM Model," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 6(4), December.
    3. M. Faruk Aydin & Selcuk Gul, 2020. "The Role of Real Exchange Rates in Export Price Determination," CBT Research Notes in Economics 2006, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.

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