Pass-through of imported input prices to domestic producer prices: evidence from sector-level data

JaeBin Ahn, Park Chang-Gui and Park Chanho
Additional contact information
Park Chang-Gui: Bank of Korea, Seoul, Korea (the Republic of)
Park Chanho: Bank of Korea, Seoul, Korea (the Republic of)

The B.E. Journal of Macroeconomics, 2017, vol. 17, issue 2, 14

Abstract: Motivated by stylized facts pointing to a dominant role of imported inputs in transmitting external price shocks to domestic prices, this paper zooms in to study the pass-through of imported input costs to domestic producer prices. Our approach constructs effective input price indices from sector-level price data combined with sector-level information on input-output linkages. Applying an error correction model specification to sector-level output and input prices, the long-run pass-through rate of effective imported input costs to domestic producer prices is estimated to be around 70 percent in Korea and almost 100 percent in selected European countries.

Keywords: exchange rate pass-through; imported input cost pass-through; inflation (search for similar items in EconPapers)
JEL-codes: E3 F3 F4 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
https://doi.org/10.1515/bejm-2016-0034 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Working Paper: Pass-Through of Imported Input Prices to Domestic Producer Prices: Evidence from Sector-Level Data (2016)
Working Paper: Pass-Through of Imported Input Prices to Domestic Producer Prices: Evidence from Sector-Level Data (2016)
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:bpj:bejmac:v:17:y:2017:i:2:p:14:n:9

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/bejm/html

DOI: 10.1515/bejm-2016-0034

Access Statistics for this article

The B.E. Journal of Macroeconomics is currently edited by Arpad Abraham and Tiago Cavalcanti

More articles in The B.E. Journal of Macroeconomics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().