From dominant to producer currency pricing: Dynamics of Chilean exports

• 成果类型: Article
• 署名作者: De Gregorio, Jose; Garcia, Pablo; Luttini, Emiliano; Rojas, Marco
• 署名单位: Universidad de Chile; Universidad Adolfo Ibanez; The World Bank; Central Bank of Chile
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2024.103934
• 发表日期: 2024
• 关键词: Currency of invoicing; Emerging markets; Dominant currency pricing; Producer currency pricing

摘要

We revisit a central question for international macroeconomics: the response of export prices and quantities to movements in the exchange rate (ER). We use granular export data for Chile and study how the effects of ER movements vary over time with the currency of invoicing and the destination of exports. For prices, we find that the short -run effects of bilateral ER movements vanish when controlling for U.S. dollar ER, which supports dominant currency pricing. However, over longer horizons a more significant role is played by bilateral ER movements, in line with the predictions of producer currency pricing. These dynamics do not depend on the invoicing currency. The results we find for quantities support the view that bilateral ER movements contribute to macroeconomic adjustment through export volumes over the medium term.