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Pass-Through of Imported Input Prices to Domestic Producer Prices :, Evidence from Sector-Level Data, JaeBin Ahn, Chang-Gui Park, Chanho Park

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
Table Of Contents
Intro -- Cover -- Contents -- I. Introduction -- II. Econometric Framework -- A. Baseline Model -- B. Empirical Strategy -- III. Data and Empirical Results -- A. Data -- B. Estimation Results -- C. Selected Eurozone Countries -- IV. Conclusion -- Figures -- 1. Imports of Goods by End-Use Category -- 2. Import Price Index in Korea -- 3. Imported Inputs Use in Korean Manufacturing -- 4. Import Price and Producer Price Index in Korea -- 5. Inflation Dynamics in Korea -- Tables -- 1. Unit Root Tests for Korean Sector-level Price Series -- 2. Baseline Error Correction Model (ECM) Estimation Results for Korea -- 3. Extended Error Correction Model (ECM) Estimation Results for Korea (I) -- 4. Extended Error Correction Model (ECM) Estimation Results for Korea (II) -- 5. Baseline Error Correction Model (ECM) Estimation Results for Selected European Countries -- 6. Extended Error Correction Model (ECM) Estimation Results for Selected European Countries -- References
Language
eng
Literary Form
non fiction
Physical Description
1 online resource (25 pages)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781498332040

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