Fauceglia, Dario; Shingal, Anirudh; Wermelinger, Martin (2014). Natural Hedging of Exchange Rate Risk: The Role of Imported Input Prices. Swiss journal of economics and statistics / Schweizerische Zeitschrift für Volkswirtschaft und Statistik, 150(4), pp. 261-296. Lang
![[img]](https://boris.unibe.ch/style/images/fileicons/text.png) |
Text
Natural Hedging 2014.pdf - Published Version Restricted to registered users only Available under License Publisher holds Copyright. Download (689kB) | Request a copy |
In this paper, we estimate ERPT into imported input prices and export prices using disaggregated quarterly trade data for Switzerland over 2004–2011. We find evidence for high pass-through rates into imported input prices. This demonstrates the effectiveness of natural hedging. On the export side, ERPT exhibits substantial sectoral heterogeneity and changes in imported input costs are not transmitted to foreign consumers in most cases. This suggests the use of cheaper imported inputs to offset adverse effects of currency appreciation on export profit margins.
Item Type: |
Journal Article (Original Article) |
|---|---|
Division/Institute: |
02 Faculty of Law > Department of Economic Law > World Trade Institute 10 Strategic Research Centers > World Trade Institute |
UniBE Contributor: |
Shingal, Anirudh |
Subjects: |
300 Social sciences, sociology & anthropology > 330 Economics |
ISSN: |
0303-9692 |
Publisher: |
Lang |
Language: |
English |
Submitter: |
Pablo Rahul Das |
Date Deposited: |
07 Jul 2016 13:49 |
Last Modified: |
05 Dec 2022 14:56 |
Related URLs: |
|
JEL Classification: |
F31, F41 |
BORIS DOI: |
10.7892/boris.83795 |
URI: |
https://boris.unibe.ch/id/eprint/83795 |
Actions (login required)
 |
Edit item |