Exchange rate pass-through to Swedish import prices

Malin Adolfson ()

Finnish Economic Papers, 1997, vol. 10, issue 2, 81-98

Abstract: Swedish import price determination is investigated using disaggregated monthly data from 1980:1 to 1995:05 for eight different industries. The cointegration analysis indicates two cOintegrating relations, in all industries, between import prices, the exchange rate, world market prices and domestic prices. Two-equations systems involve an unclear definition of long-run exchange rate pass-though. Passthrough is defined as the total effect a nominal exchange-rate change has on the import price. The estimate thus includes the direct effect on import prices as well as the effect working through home market prices. Total pass-through estimates indicate a limited pass-through and thus pricing to market behaviour in the majority of industries. Tests of linear restrictions on the cointegrating vectors indicate, in a more formal, statistical sense, a complete long-run pass-through in most industries.

JEL-codes: F31 F41 (search for similar items in EconPapers)
Date: 1997
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Citations: View citations in EconPapers (13)

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Working Paper: Exchange Rate Pass-Through to Swedish Import Prices (1996)
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Persistent link: https://EconPapers.repec.org/RePEc:fep:journl:v:10:y:1997:i:2:p:81-98

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