Asymmetric Exchange Rate Pass-through of Categorized Import Price Index - An Empirical Study of Taiwan

Abstract

Most of researches focused on the asymmetry in exchange rate pass-through (ERPT) to general import price. However, the result of regression for different categories of commodity may diverge from the general products. Therefore, the main purpose of this thesis is to investigate different categorized commodity would bring about different threshold value and threshold effect or not. Using the threshold regression model, the empirical results shows that different categorized commodity has respective threshold value and all of them have threshold effect.