Exchange rate pass-through effects: A disaggregate analysis of Colombian imports of manufactured goods

Hernan Rincon-Castro, Édgar Caicedo () and Norberto Rodríguez N. ()

Revista ESPE - Ensayos Sobre Política Económica, 2007, vol. 25, issue 54, No 4641, 90-121

Abstract: This paper quantifi es the exchange rate pass-through effects on import prices within a sample of Colombian manufactured imports. Also, whether the foreign exchange and infl ation regimes affect the degree of pass-through is evaluated. The analytical framework used was a mark-up model. The main fi nding is that the long-run pass-through elasticities 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, support-ing mark-up hypotheses, in contrast to the hypoth-eses of perfect market competition and complete pass-through. The fi ndings also show evidence of the variability and different degrees of pass-trough among manufacturing sectors, which confi rm the importance of using dynamic models and disaggre-gate data for an analysis of the pass-through. Both, the hypothesis that under a fl oating regime there is a low degree of pass-through and the hypothesis that a low infl ation environment has the same result are not supporte

Keywords: Pass-through effects; PPP; imperfect competition; fl oating regime; low infl ation environ-ment; fi xed parameter model; time-varying param-eter model; Kalman fi ltering. (search for similar items in EconPapers)
JEL-codes: C32 C51 C52 E31 E52 F31 F41 (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://doi.org/10.32468/Espe.5403

Related works:
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)
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:000107:004641

Access Statistics for this article

More articles in Revista ESPE - Ensayos Sobre Política Económica from Banco de la República Contact information at EDIRC.
Bibliographic data for series maintained by Espe ().