1. Exchange Rate Pass-through to Producer Prices in South Africa: Evidence from Panel Contemporaneous Correlated Approach.
- Author
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Simo-Kengne, Beatrice D., Viljoen, Jacoba, and Nduku, Promise M.
- Subjects
- *
EXCHANGE rate pass-through , *WHOLESALE prices , *FOREIGN exchange rates , *QUARRIES & quarrying , *CATERING services , *CONSTRUCTION industry - Abstract
This paper investigates the exchange rate pass-through to producer prices in South African industries from 1970 to 2016. Empirical results from panel contemporaneous techniques indicate that exchange rate pass-through to South African producer prices is contingent on the currency choice with substantial variations across industries. Particularly, Rand variations with the currency of Germany, Japan, and the US pose greater influence on the producer prices of South African industries whilst the Chinese and Indian currency variations have the least bearing. The mining and quarrying; the manufacturing and the construction industries are among the sectors that are most exposed to the exchange rate fluctuations. The less pass-through effect occurs in three sectors, namely trade, catering and accommodation services; electricity, gas and water; and transport, storage and communication. This possibly indicates their limited exposure to external shocks. [ABSTRACT FROM AUTHOR]
- Published
- 2022
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