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Price Behavior in Korean Manufacturing

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  • Yang, Yung Y
  • Hwang, Min

Abstract

This paper investigates pricing behavior in Korean manufacturing. The two questions investigated are whether price behavior in the two markets are distinctly different in the pass-through of exchange rate into export and domestic prices and, if so, the subsequent question is whether observed differences in the price behavior can be explained by the price discrimination hypothesis. Using data from six manufacturing sectors for the period 1976-90, the authors find that Korean manufacturing firms appear to have followed distinctly different pricing rule in the two markets and the hypothesis of price discrimination in the two markets cannot be rejected. Copyright 1994 by MIT Press.

Suggested Citation

  • Yang, Yung Y & Hwang, Min, 1994. "Price Behavior in Korean Manufacturing," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 461-470, August.
    • Handle: RePEc:tpr:restat:v:76:y:1994:i:3:p:461-70
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    Cited by:

    1. Sushanta Mallick & Helena Marques, 2008. "Passthrough of Exchange Rate and Tariffs into Import Prices of India: Currency Depreciation versus Import Liberalization," Review of International Economics, Wiley Blackwell, vol. 16(4), pages 765-782, September.
    2. Claudio Agostini, 2012. "Incidencia Tributaria en el Mercado de las Gasolinas en Chile," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 27(2), pages 55-73, October.
    3. Ali Saggay & Almas Heshmati & Mohamed Dhif, 2007. "Effects of trade liberalization on domestic prices: Some evidence from Tunisian manufacturing," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 54(1), pages 148-175, March.
    4. Jeong, Kap-Young & Masson, Robert T., 2003. "A new methodology linking concentration dynamics to current and steady-state profits:Examining Korean industrial policy during take-off," International Journal of Industrial Organization, Elsevier, vol. 21(10), pages 1489-1526, December.
    5. Randall Morck & Bernard Yeung, 2017. "East Asian Financial and Economic Development," Working Papers id:12112, eSocialSciences.
    6. Mallick, Sushanta & Marques, Helena, 2010. "Data frequency and exchange rate pass-through: Evidence from India's exports," International Review of Economics & Finance, Elsevier, vol. 19(1), pages 13-22, January.
    7. Yang, Yung Y. & Hwang, Min, 2001. "The pricing behavior of Korean manufactured goods during trade liberalization," Journal of Policy Modeling, Elsevier, vol. 23(4), pages 357-369, May.

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