Pass-Through of Imported Input Prices to Domestic Producer Prices : Evidence from Sector-Level Data /

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-le...

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Bibliographic Details
Main Author: Ahn, JaeBin
Other Authors: Park, Chang-Gui, Park, Chanho
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2016.
Series:IMF Working Papers; Working Paper ; No. 2016/023
Online Access:Full text available on IMF
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520 3 |a 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. 
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700 1 |a Park, Chang-Gui. 
700 1 |a Park, Chanho. 
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