Exchange Rate Pass-Through in ITF Adopting Countries: Indonesia, Thailand, Philippines Comparative Study

Fauziah, Syifa; Akhmad Syakir Kurnia

doi:10.15294/efficient.v7i3.13304

Journal

Exchange Rate Pass-Through in ITF Adopting Countries: Indonesia, Thailand, Philippines Comparative Study

Efficient: Indonesian Journal of Development Economics · Vol. 7 No. 3 (2024) · pp. 220–228

DOI: 10.15294/efficient.v7i3.13304
ISSN: 2655-318X, 2655-6197
Published: 2024-12-27
Publisher: Universitas Negeri Semarang
Language: eng

Abstract

This paper investigates how the adoption of inflation targeting influenced Exchange Rate Pass-Through (ERPT) in the three developing countries of Southeast Asia – Indonesia, Thailand, and the Philippines. Moreover, this paper aims to analyze the macroeconomic determinants of the degree of pass-through to a consumer price index. For this purpose, we employ an Error Correction Model (ECM) regression analysis. The results found evidence that adopting an inflation-targeting framework does not necessarily reduce the degree of ERPT. However, economic openness emerges as a key limiting factor as higher trade share and lower trade tariffs lessen the degree of ERPT in those countries. It implies that trade liberalization, economic diversification, and enhancing competitiveness to reduce reliance on imports can further mitigate ERPT’s impact on inflation.

Keywords

Collaboration network of the authors

12 authors · 13 co-authorship links

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Syarif Hidayatullah State Islamic University Jakarta
Affiliation unknown

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Co-author	Organisation	Joint articles
Benny Imantria	Affiliation unknown	1
Rohmanur Aziz	Affiliation unknown	1
Putri Diesy Fitriani	Affiliation unknown	1
Nurul Qolbi	Affiliation unknown	1
Khoirul Sukma	Affiliation unknown	1
FX Sugiyanto	Affiliation unknown	1
Muhammad Adnan Assidiq	Affiliation unknown	1
Fira Syarwadina	Affiliation unknown	1
La Ode Sumarlin	Syarif Hidayatullah State Islamic University Jakarta	1
Siti Nurbayti	Affiliation unknown	1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.unnes.ac.id/journals/efficient/oai, first harvested 5 Nov 2026, last seen 8 Nov 2026.

Original metadata (oai_dc)

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	<dc:title xml:lang="en">Exchange Rate Pass-Through in ITF Adopting Countries: Indonesia, Thailand, Philippines Comparative Study</dc:title>
	<dc:creator xml:lang="en">Fauziah, Syifa</dc:creator>
	<dc:creator xml:lang="en">Akhmad Syakir Kurnia</dc:creator>
	<dc:subject xml:lang="en">Exchange Rate Pass-Through</dc:subject>
	<dc:subject xml:lang="en">Inflation Targeting Framework</dc:subject>
	<dc:subject xml:lang="en"> Trade Openness</dc:subject>
	<dc:subject xml:lang="en">Error Correction Model (ECM)</dc:subject>
	<dc:description xml:lang="en">This paper investigates how the adoption of inflation targeting influenced Exchange Rate Pass-Through (ERPT) in the three developing countries of Southeast Asia – Indonesia, Thailand, and the Philippines. Moreover, this paper aims to analyze the macroeconomic determinants of the degree of pass-through to a consumer price index. For this purpose, we employ an Error Correction Model (ECM) regression analysis. The results found evidence that adopting an inflation-targeting framework does not necessarily reduce the degree of ERPT. However, economic openness emerges as a key limiting factor as higher trade share and lower trade tariffs lessen the degree of ERPT in those countries. It implies that trade liberalization, economic diversification, and enhancing competitiveness to reduce reliance on imports can further mitigate ERPT’s impact on inflation.</dc:description>
	<dc:publisher xml:lang="en">Universitas Negeri Semarang</dc:publisher>
	<dc:date>2024-12-27</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:type xml:lang="en">Peer-reviewed Article</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.unnes.ac.id/journals/efficient/article/view/13304</dc:identifier>
	<dc:identifier>10.15294/efficient.v7i3.13304</dc:identifier>
	<dc:source xml:lang="en">Efficient: Indonesian Journal of Development Economics; Vol. 7 No. 3 (2024); 220-228</dc:source>
	<dc:source>2655-318X</dc:source>
	<dc:source>2655-6197</dc:source>
	<dc:source>10.15294/wc0k8a54</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.unnes.ac.id/journals/efficient/article/view/13304/2414</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2024 Efficient: Indonesian Journal of Development Economics</dc:rights>
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