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2024 Vol.56, Issue 5 Preview Page

Original Paper

An Analysis of Exchange Rate Pass-Through in the Industries of Paper and Paper Products in Korea
Seung-Nyeon Kim1
,
Young-Wan Goo2†
1Professor, Department of Economics, Hankuk University of Foreign Studies
2Professor, Department of Economics, Chungbuk National University
†Corresponding author: E-Mail: ywgoo@cbnu.ac.kr (Address: Department of Economics, Chungbuk National University, Chungdae-ro 1, Seowon-Gu, Cheongju, Chungbuk 28644, Korea)
30 October 2024. pp. 12-20
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Abstract

This study employs an error correction model with a cointegrated relationship to evaluate the effects of exchange rates, foreign prices, and shipment gaps on domestic producer prices for paper and paper products. The analysis reveals that long-run exchange rate pass-through is 0.538 for paper and 0.388 for paper products, while short-run pass-through is 0.161 and 0.273, respectively. Exchange rate pass-through is significant during periods of currency depreciation (0.231 for paper and 0.419 for paper products) but insignificant during appreciation. These results indicate that the impact of exchange rates on domestic prices increases over time and is more pronounced during depreciation, highlighting the need for effective exchange rate risk management in the paper industry.

Keywords
Paper
paper products
exchange rate pass-through
producer prices
shipment gap
References
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Information
  • Publisher :Korea Technical Association of The Pulp and Paper Industry
  • Publisher(Ko) :한국펄프종이공학회
  • Journal Title :Journal of Korea TAPPI
  • Journal Title(Ko) :펄프종이기술
  • Volume : 56
  • No :5
  • Pages :12-20
  • Received Date : 2024-08-20
  • Revised Date : 2024-09-25
  • Accepted Date : 2024-09-30
  • DOI :https://doi.org/10.7584/JKTAPPI.2024.10.56.5.12
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