EXCHANGE RATE PASS-THROUGH EFFECTS: A DISAGGREGATE ANALYSIS OF COLOMBIAN IMPORTS OF MANUFACTURED GOODS
Hernan Rincon-Castro,
Edgar Caicedo (ecaicega@banrep.gov.co) and
Norberto Rodríguez N. (nrodrini@banrep.gov.co)
No 2682, Borradores de Economia from Banco de la Republica
Abstract:
Colombian monthly data covering the period from 1995:01 to 2002:11 and ECM, fixed and time-varying parameters and Kalman filter techniques are used in this paper to quantify the exchange rate pass-through effects on import prices within a sample of manufactured imports. Also, whether the foreign exchange and inflation regimes affect the degree of pass-through is evaluated. The analytical framework used was a mark-up model. The main finding is that the long-run pass-through elasticities for the industries in the sample are stable and go from 0.1 to 0.8 and the short-run ones are unstable and go from 0.1 to 0.7, supporting mark-up hypotheses, in contrast to the hypotheses of perfect market competition and complete pass-through. The findings also show evidence of the variability and different degrees of pass-trough among manufacturing sectors, which confirm the importance of using dynamic models and disaggregate data for an analysis of the pass-through. Both, the hypothesis that under a floating regime there is a low degree of pass-through and the hypothesis that a low inflation environment has the same result are not supported.
Keywords: Pass-through effects (search for similar items in EconPapers)
Pages: 31
Date: 2005-03-31
References: Add references at CitEc
Citations: View citations in EconPapers (13)
Downloads: (external link)
http://www.banrep.gov.co/docum/ftp/borra330.pdf
Related works:
Journal Article: Exchange rate pass-through effects: a disaggregate analysis of Colombian imports of manufactured goods (2007) 
Journal Article: Exchange rate pass-through effects: A disaggregate analysis of Colombian imports of manufactured goods (2007) 
Working Paper: Exchange Rate Pass-Through Effects: A Disaggregate Analysis of Colombian Imports of Manufactured Goods (2005) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:col:000094:002682
Access Statistics for this paper
More papers in Borradores de Economia from Banco de la Republica
Bibliographic data for series maintained by Clorith Angelica Bahos Olivera (cbahosol@banrep.gov.co).