TY  - GEN
AB  - The use of different currencies in the invoicing of international trade transactions plays a major role in the international transmission of economic fluctuations. Existing studies argue that an exporter's invoicing choice reflects structural aspects of her industry, such as market share and the price-sensitivity of demand, the hedging of marginal costs, due for instance to the use of imported inputs, and macroeconomic volatility. We use a new highly disaggregated dataset to assess the roles of the various invoicing determinants. We find support for the factors identified in the literature, and document a new feature, in the form of a link between shipments size and invoicing. Specifically, larger transactions are more likely to be invoiced in the importer's currency. We offer a potential theoretical explanation for the empirical link between transaction size and invoicing by allowing invoicing to be set through a bargaining between exporters and importers, a feature that is absent from existing models despite its empirical relevance.
AU  - Goldberg, Linda S
AU  - Tille, Cédric
CY  - Hong Kong
DA  - 2010
DA  - 2010
ID  - 295141
L1  - https://repository.graduateinstitute.ch/record/295141/files/ub_full_0_2_241_wp-no-08_2010.pdf
L1  - https://repository.graduateinstitute.ch/record/295141/files/ub_full_0_2_241_wp-no-08_2010.pdf?subformat=pdfa
L2  - https://repository.graduateinstitute.ch/record/295141/files/ub_full_0_2_241_wp-no-08_2010.pdf
L2  - https://repository.graduateinstitute.ch/record/295141/files/ub_full_0_2_241_wp-no-08_2010.pdf?subformat=pdfa
L4  - https://repository.graduateinstitute.ch/record/295141/files/ub_full_0_2_241_wp-no-08_2010.pdf
L4  - https://repository.graduateinstitute.ch/record/295141/files/ub_full_0_2_241_wp-no-08_2010.pdf?subformat=pdfa
LK  - https://repository.graduateinstitute.ch/record/295141/files/ub_full_0_2_241_wp-no-08_2010.pdf
LK  - https://repository.graduateinstitute.ch/record/295141/files/ub_full_0_2_241_wp-no-08_2010.pdf?subformat=pdfa
N2  - The use of different currencies in the invoicing of international trade transactions plays a major role in the international transmission of economic fluctuations. Existing studies argue that an exporter's invoicing choice reflects structural aspects of her industry, such as market share and the price-sensitivity of demand, the hedging of marginal costs, due for instance to the use of imported inputs, and macroeconomic volatility. We use a new highly disaggregated dataset to assess the roles of the various invoicing determinants. We find support for the factors identified in the literature, and document a new feature, in the form of a link between shipments size and invoicing. Specifically, larger transactions are more likely to be invoiced in the importer's currency. We offer a potential theoretical explanation for the empirical link between transaction size and invoicing by allowing invoicing to be set through a bargaining between exporters and importers, a feature that is absent from existing models despite its empirical relevance.
PB  - Hong Kong Institute for Monetary Research
PP  - Hong Kong
PY  - 2010
PY  - 2010
T1  - Micro, macro, and strategic forces in international trade invoicing
TI  - Micro, macro, and strategic forces in international trade invoicing
UR  - https://repository.graduateinstitute.ch/record/295141/files/ub_full_0_2_241_wp-no-08_2010.pdf
UR  - https://repository.graduateinstitute.ch/record/295141/files/ub_full_0_2_241_wp-no-08_2010.pdf?subformat=pdfa
Y1  - 2010
ER  -