Main Content
Exchange rate pass-through (ERPT) has attracted the attention of many researchers in the last three decades due to the adoption of a flexible exchange rate system by many countries.
A comparative study will be completed, exploring the literature relating to pass-through for import prices and domestic prices in Australia, China and India.
In particular, the study will:
- test whether the exchange rate pass-through to import prices is complete;
- estimate the pass-through to CPI (to investigate whether there is any association between the pass-through and the average inflation rate across these countries); and
- examine the role of import composition in the sectors of food, manufacturing, energy, raw materials and non manufacturing.
Research questions:
- Is the exchange rate pass-through to import prices is complete?
- Is there is any association between the pass-through to CPI and the average inflation rate across these countries.
- Is there stability in pass-through in the disaggregated categories: of import composition the sectors of food, manufacturing, energy, raw materials and non manufacturing?
Research methods:
The research methodology is divided into three stages:
- Using structural VAR model.
Researchers:
- Dr Shrabani Saha (Chief Investigator)
- Associate Professor Zhaoyong Zhang (Associate Investigator)
Funding body:
Edith Cowan University, Faculty of Business and Law, Strategic Research Fund Grant.
Timeline:
June 2011 - January 2013
June 2011 - January 2013