Webber, A. G., Newton's Gravity Law and Import Prices in the Asia Pacific, Department of Economics, University of Wollongong, 1999.
This paper investigates the proposition that an exchange rate depreciation will cause import prices to rise by more than a same magnitude appreciation will cause them to fall. This asymmetry proposition is undertaken for 8 countries across the Asia-Pacific using the Johansen and Engle and Granger procedures. The results show that 6 out of 7 countries cannot reject the hypothesis of asymmetry. It is also found that 1 estimate each exhibits absolute PPP, complete asymmetric passthrough and partial symmetric pass-through. Partial asymmetric pass-through occurs in 9 cases and 2 cases exhibit explosive asymmetric pass-through. Malaysia lacked a cointegrating vector.