Import prices and invoice currency: Evidence from Chile

Autor:	Fernando Giuliano, Emiliano Luttini
Rok vydání:	2020
Předmět:	Economics and Econometrics 050208 finance Invoice Short run 05 social sciences Exchange-rate pass-through Monetary economics Country of origin Exchange rate Currency 0502 economics and business Economics Liberian dollar 050207 economics Finance
Zdroj:	Journal of International Money and Finance. 106:102183
ISSN:	0261-5606
DOI:	10.1016/j.jimonfin.2020.102183
Popis:	We use transaction-level customs data to document that a large majority of Chilean imports are invoiced in dollars regardless of country of origin and sector. We study the implications of this fact for the determination of exchange rate pass-through (ERPT) to border prices. We find that the special role of the dollar in international trade has real effects, but bilateral exchange rates with respect to exporter currencies also matter in the medium-term. In particular, exchange rate fluctuations against the dollar account for most of the ERPT in the short run and are still relevant after two years. However, the cumulative ERPT with respect to the exporter country’s currency increases with time and after two years accounts for most of the ERPT to border prices.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::b318283f6ffb4a71545e074cd24786b5 https://doi.org/10.1016/j.jimonfin.2020.102183 Zobrazit plný text záznamu Full Text from ScienceDirect