Exchange rate pass-through and importers’ credit constraints: Evidence from China

IF 2.3 3区经济学 Q2 ECONOMICS

Journal of Economic Behavior & Organization Pub Date : 2025-06-14 DOI:10.1016/j.jebo.2025.107044

Yao Amber Li , Lingfei Lu , Tengyu Zhao

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Abstract

This paper examines the patterns of exchange rate pass-through (ERPT) into import prices among Chinese firms, and investigate the role played by credit constraints as well as sourcing diversity in shaping the degree of ERPT. Using highly dis-aggregated firm-product-country-level transaction data from 2000 to 2007, we find that (1) the average level of ERPT into import prices in China is around 73%; (2) for importers in financially more constrained sectors, ERPT tends to be more complete; (3) a higher extent of firms’ import sourcing diversity leads to a less complete pass-through and partially offsets the effects of credit constraints. Our findings provide convincing evidence of the significance of credit constraints in affecting ERPT into import prices. Furthermore, a more diversified import sourcing network can enhance the ability of importers to cope with exchange rate shocks and help alleviate the impact of financial constraints on exchange rate fluctuations. Finally, we provide theoretical explanations for the findings.

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汇率传递与进口商信贷约束：来自中国的证据

本文考察了汇率传递（ERPT）对中国企业进口价格的影响模式，并探讨了信贷约束和采购多样性在影响ERPT程度方面所起的作用。利用2000 - 2007年高度分解的企业-产品-国家层面的交易数据，我们发现：(1)中国进口价格中ERPT的平均水平约为73%；(2)对于财政拮据行业的进口商，ERPT往往更完整；(3)企业进口采购多元化程度越高，进口采购的传导越不完全，部分抵消了信贷约束的影响。我们的研究结果提供了令人信服的证据，证明信贷约束在影响ERPT进入进口价格方面的重要性。此外，更加多样化的进口采购网络可以提高进口商应对汇率冲击的能力，并有助于减轻资金限制对汇率波动的影响。最后，对研究结果进行了理论解释。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Economic Behavior & Organization ECONOMICS-

CiteScore

3.80

自引率

9.10%

发文量

392

期刊介绍： The Journal of Economic Behavior and Organization is devoted to theoretical and empirical research concerning economic decision, organization and behavior and to economic change in all its aspects. Its specific purposes are to foster an improved understanding of how human cognitive, computational and informational characteristics influence the working of economic organizations and market economies and how an economy structural features lead to various types of micro and macro behavior, to changing patterns of development and to institutional evolution. Research with these purposes that explore the interrelations of economics with other disciplines such as biology, psychology, law, anthropology, sociology and mathematics is particularly welcome.