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 its industry, such as market share and the price sensitivity of demand, as well as the hedging of marginal costs (due, for instance, to the use of imported inputs) and macroeconomic volatility. We use a new, highly disaggregated data set to assess the roles of the various invoicing determinants. Our findings support the factors identified in the literature and document a new feature: a link between shipment size and invoicing. Specifically, larger transactions are more likely to be invoiced in the importer's currency. We offer a theoretical explanation for the empirical link between transaction size and invoicing by allowing invoicing to be set through bargaining between exporters and importers, a feature absent from existing models despite its empirical relevance.
AU  - Goldberg, Linda S
AU  - Tille, Cédric
CY  - New York
DA  - 2009
DA  - 2009
ID  - 295142
L1  - https://repository.graduateinstitute.ch/record/295142/files/sr405.pdf
L1  - https://repository.graduateinstitute.ch/record/295142/files/sr405.pdf?subformat=pdfa
L2  - https://repository.graduateinstitute.ch/record/295142/files/sr405.pdf
L2  - https://repository.graduateinstitute.ch/record/295142/files/sr405.pdf?subformat=pdfa
L4  - https://repository.graduateinstitute.ch/record/295142/files/sr405.pdf
L4  - https://repository.graduateinstitute.ch/record/295142/files/sr405.pdf?subformat=pdfa
LK  - https://repository.graduateinstitute.ch/record/295142/files/sr405.pdf
LK  - https://repository.graduateinstitute.ch/record/295142/files/sr405.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 its industry, such as market share and the price sensitivity of demand, as well as the hedging of marginal costs (due, for instance, to the use of imported inputs) and macroeconomic volatility. We use a new, highly disaggregated data set to assess the roles of the various invoicing determinants. Our findings support the factors identified in the literature and document a new feature: a link between shipment size and invoicing. Specifically, larger transactions are more likely to be invoiced in the importer's currency. We offer a theoretical explanation for the empirical link between transaction size and invoicing by allowing invoicing to be set through bargaining between exporters and importers, a feature absent from existing models despite its empirical relevance.
PB  - Federal Reserve Bank of New York
PP  - New York
PY  - 2009
PY  - 2009
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/295142/files/sr405.pdf
UR  - https://repository.graduateinstitute.ch/record/295142/files/sr405.pdf?subformat=pdfa
Y1  - 2009
ER  -