Sengupta, Darpajit and Roy, Saikat Sinha
Export prices, exchange rate pass-through, and global value Chains: Some Indian evidence
- Economic & Political Weekly
- 59(46), Nov 16, 2024: p.58-66
Examining the factors influencing exchange rate pass-through to export prices using product–destination–time panel data suggests incomplete ERPT across all products, with pass-through to developed countries being lower than in emerging markets. Lower ERPT in consolidated markets may be due to participation in global value chains and pricing-to-market strategies, as GVCs stabilise prices and reduce exchange rate sensitivity. Higher market concentration and product differentiation also lower the pass-through along with findings showing an asymmetric ERPT that favours currency appreciation over depreciation. – Reproduced
https://www.epw.in/journal/global-value-chains/export-prices-exchange-rate-pass-through-and.html