Inflation dynamics and trade openness: with an application to South Africa.
Evolving openness to trade is hard to measure, despite its relevance to models of growth, inflation and exchange rates. Our innovative technique measures trade openness encompassing both observable trade policy (tariffs and surcharges) and unobservable trade policy (quotas and other nontariff barrie...
| मुख्य लेखकों: | , |
|---|---|
| स्वरूप: | Working paper |
| भाषा: | English |
| प्रकाशित: |
CSAE (University of Oxford)
2007
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| _version_ | 1826268078969716736 |
|---|---|
| author | Aron, J Muellbauer, J |
| author_facet | Aron, J Muellbauer, J |
| author_sort | Aron, J |
| collection | OXFORD |
| description | Evolving openness to trade is hard to measure, despite its relevance to models of growth, inflation and exchange rates. Our innovative technique measures trade openness encompassing both observable trade policy (tariffs and surcharges) and unobservable trade policy (quotas and other nontariff barriers), capturing the latter by a smooth non-linear stochastic trend in a model for the share of manufactured imports in home demand for manufactured goods, controlling for the business cycle and exchange rate. The evidence for South Africa suggests that increased openness has significantly reduced the mean inflation rate and has reduced the exchange rate pass-through into wholesale prices. |
| first_indexed | 2024-03-06T21:04:05Z |
| format | Working paper |
| id | oxford-uuid:3be05ec8-d4fc-4d70-985d-402dc0b34dd9 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T21:04:05Z |
| publishDate | 2007 |
| publisher | CSAE (University of Oxford) |
| record_format | dspace |
| spelling | oxford-uuid:3be05ec8-d4fc-4d70-985d-402dc0b34dd92022-03-26T14:10:02ZInflation dynamics and trade openness: with an application to South Africa.Working paperhttp://purl.org/coar/resource_type/c_8042uuid:3be05ec8-d4fc-4d70-985d-402dc0b34dd9EnglishDepartment of Economics - ePrintsCSAE (University of Oxford)2007Aron, JMuellbauer, JEvolving openness to trade is hard to measure, despite its relevance to models of growth, inflation and exchange rates. Our innovative technique measures trade openness encompassing both observable trade policy (tariffs and surcharges) and unobservable trade policy (quotas and other nontariff barriers), capturing the latter by a smooth non-linear stochastic trend in a model for the share of manufactured imports in home demand for manufactured goods, controlling for the business cycle and exchange rate. The evidence for South Africa suggests that increased openness has significantly reduced the mean inflation rate and has reduced the exchange rate pass-through into wholesale prices. |
| spellingShingle | Aron, J Muellbauer, J Inflation dynamics and trade openness: with an application to South Africa. |
| title | Inflation dynamics and trade openness: with an application to South Africa. |
| title_full | Inflation dynamics and trade openness: with an application to South Africa. |
| title_fullStr | Inflation dynamics and trade openness: with an application to South Africa. |
| title_full_unstemmed | Inflation dynamics and trade openness: with an application to South Africa. |
| title_short | Inflation dynamics and trade openness: with an application to South Africa. |
| title_sort | inflation dynamics and trade openness with an application to south africa |
| work_keys_str_mv | AT aronj inflationdynamicsandtradeopennesswithanapplicationtosouthafrica AT muellbauerj inflationdynamicsandtradeopennesswithanapplicationtosouthafrica |