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The Review of Economics and Statistics Vol. 76 No. 3 1994

Price Behavior in Korean Manufacturing

Yung Y. Yang; Min Hwang

Abstract

This paper investigates pricing behavior in Korean manufacturing. The two questions investigated are whether price behavior in the two markets are distinctly different in the pass-through of exchange rate into export and domestic prices and, if so, the subsequent question is whether observed differences in the price behavior can be explained by the price discrimination hypothesis. Using data from six manufacturing sectors for the period 1976-90, the authors find that Korean manufacturing firms appear to have followed distinctly different pricing rule in the two markets and the hypothesis of price discrimination in the two markets cannot be rejected.

DOI
10.2307/2109971
Volume
76
Issue
3
Pages
461
Sources
crossref openalex

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