Market structure and exchange rate pass‐through in the Turkish manufacturing industry: Evidence from sectoral data

Suleyman Kal and Muhsin Çiftçi

Bulletin of Economic Research, 2022, vol. 74, issue 4, 995-1016

Abstract: In this paper, we study the impact of market share on exchange rate pass‐through to Turkish manufacturing sector prices using four‐digit industry level disaggregate data. Our findings provide evidence that exchange rate pass‐through in the manufacturing sector has an asymmetric U‐shape with respect to market share, implying that highly competitive and concentrated industries pass‐through exchange rate movements in both directions (appreciation and depreciation) to local producer prices more than moderately concentrated sectors. However, when directional asymmetries of exchange rate movements are added to the models, results become more revealing, that is, highly monopolized industries pass‐through exchange rate depreciation at higher rates than highly competitive industries. We also find that the size of the exchange rate movement has an impact on the asymmetry and the curvature of the U‐shaped Exchange Rate Pass‐Through (ERPT) curve with respect to the market share.

Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/boer.12329

Related works:
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:bla:buecrs:v:74:y:2022:i:4:p:995-1016

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0307-3378

Access Statistics for this article

More articles in Bulletin of Economic Research from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().