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The Industry Determinants of Exchange Rate Pass-Through to Chinese Domestic Prices, 1980-2002

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  • Xuxin Yu

Abstract

Previous research has found industry- and time-varying effects of the exchange rate on domestic producer prices in China for the years 1980-2002. In this study, I examine the determinants of these variations. The variation of pass-through elasticity across industries is explained by a set of variables that characterize market competitiveness, while the change of the pass-through elasticity over time is interpreted by infrastructure development and the increasing proportion of non-state-owned enterprises in the economy, along with the structural break in years 1993-94. This study sheds light on the current debate on the effect of the urged appreciation of the Chinese Yuan.

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  • Xuxin Yu, 2007. "The Industry Determinants of Exchange Rate Pass-Through to Chinese Domestic Prices, 1980-2002," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 14(3), pages 393-408.
    • Handle: RePEc:taf:ijecbs:v:14:y:2007:i:3:p:393-408
    DOI: 10.1080/13571510701597536
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    1. Han, Jun & Liu, Runjuan & Ural Marchand, Beyza & Zhang, Junsen, 2016. "Market structure, imperfect tariff pass-through, and household welfare in Urban China," Journal of International Economics, Elsevier, vol. 100(C), pages 220-232.
    2. Mohammad Shakeri & Richard S. Gray, 2013. "The Industry Determinants of Exchange Rate Pass-Through into Canadian Producer Prices," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 20(1), pages 15-38, February.

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