This thesis empirically estimate the exchange rate pass through effects of import prices in transportation devices, sedans and trucks in Taiwan. Using monthly as well as quarterly data for the period between 1996 and 2008, the estimated elasticities of exchange rate pass through vary across industries. The exchange rate pass through effects of transportation devices is low because of the highly competitiveness in the domestic market. Highly market segmentation existed between domestic made and foreign made sedans cause the higher pass through effects in this item. There are insignificant negative pass through effect on the prices of imported truck, due perhaps to measurement errors. In the long run, prices of all three transportation equipments broadly or narrowly defined have shown lower elasticities of exchange rate pass through.
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