A Literature Review on the Transmission Effect of RMB Exchange Rate Fluctuations on Agricultural Product Import Prices
Abstract
systematic literature review to synthesize research since 1978, analyzing the pass-through effect of exchange rate changes on agricultural import prices through three interconnected lenses. It first clarifies the concept of exchange rate pass-through, highlighting its
heterogeneous and asymmetric nature across regional, commodity, and temporal dimensions, while drawing on imperfect competition
theory to elaborate how market structure, product differentiation, pricing-to-market strategies, and sunk costs contribute to incomplete
pass-through. Empirical evidence from models like VAR and Markov models reveals significant variations in pass-through efficiency
under differing trade patterns and firm characteristics, identifying key challenges such as low transmission effectiveness and limited
international pricing power in Chinas agricultural imports. Furthermore, the study identifies gaps in theoretical integration and applicability to emerging economies, proposing that future research should deepen the understanding of exchange rate-to-agricultural price
transmission mechanisms tailored to Chinas trade context to provide theoretical support for enhancing import price risk management
and optimizing agricultural policies.
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DOI: http://dx.doi.org/10.70711/frim.v3i8.6932
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