Exchange rate pass-through to import prices: accounting for changes in the eurozone trade structure

Antonia López-Villavicencio () and Valérie Mignon
Additional contact information
Antonia López-Villavicencio: EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique
Valérie Mignon: EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, CEPII - Centre d'études prospectives et d'informations internationales

Post-Print from HAL

Abstract: This paper assesses the effect of the emergence of new trading partners (i.e., China and Eastern Europe) on the exchange rate pass-through (ERPT) to import prices in Eurozone countries. To this end, we rely on bilateral data on imports of manufactured goods at the two-digit sector level over the 2000-2018 period. We find that (i) pass-through is complete in many cases, (ii) ERPT from China is higher than from the United States, and (iii) there is no generalized link between ERPT and the increasing integration of some emerging markets in European imports. We also show that the launch of the single currency has not provoked a sufficient change in the part of trade exposed to exchange rate fluctuations and, therefore, has not affected the pass-through.

Keywords: exchange rate pass-through; import prices; China; Eastern Europe; Eurozone (search for similar items in EconPapers)
Date: 2020-06-19
Note: View the original document on HAL open archive server: https://hal.science/hal-05455964v1
References: Add references at CitEc
Citations:

Published in Review of World Economics, 2020, 156 (4), pp.835-858. ⟨10.1007/s10290-020-00382-2⟩

Downloads: (external link)
https://hal.science/hal-05455964v1/document (application/pdf)

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:hal:journl:hal-05455964

DOI: 10.1007/s10290-020-00382-2

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().