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What is Imported Input Price Pass-Through Analysis about?

This paper investigates the pass-through of imported input prices to domestic producer prices, focusing on Korea and selected European countries. It finds that a 1% change in effective imported input prices results in a 0.4% short-run and 0.7% long-run change in domestic producer prices in Korea, with a pass-through rate of around 70% in Korea and nearly 100% in Europe. The study emphasizes the importance of imported inputs in influencing domestic prices and provides a methodology applicable to other countr

Author

Thuận Hoàng Gia

Language

EN