Exchange rate pass-through for selected Southeast Asian countries
College
College of Science
Department/Unit
Chemistry
Document Type
Article
Source Title
DLSU Business and Economics Review
Volume
18
Issue
2
First Page
115
Last Page
126
Publication Date
1-1-2009
Abstract
Long- and short-run exchange rate pass-through coefficients were estimated for Malaysia, Indonesia, Thailand, and the Philippines using a simple model based on absolute purchasing power parity. Results were lower than 0.30 for all four countries. Co-integration tests confirmed the existence of a long-run relationship between CPI, GDP, exchange rate, and the U.S. PPI for the countries studied. However, the post-estimation tests showed that a more comprehensive model may need to be developed. The low coefficients reflect the success of the countries in stabilizing their inflation levels, though implying that exchange rate interventions may be less effective in restoring trade balance. © 2009 De La Salle University, Manila, Philippines.
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Digitial Object Identifier (DOI)
10.3860/ber.v18i2.796
Recommended Citation
Chan, S. L. (2009). Exchange rate pass-through for selected Southeast Asian countries. DLSU Business and Economics Review, 18 (2), 115-126. https://doi.org/10.3860/ber.v18i2.796
Disciplines
Business
Keywords
Exchange rate pass-through--Southeast Asia; Inflation (Finance)--Southeast Asia
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