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  - [Lieu de publication non identifié]
DA  - 2009
DA  - 2009
ID  - 295145
L1  - https://repository.graduateinstitute.ch/record/295145/files/WP589_A2.pdf
L1  - https://repository.graduateinstitute.ch/record/295145/files/WP589_A2.pdf?subformat=pdfa
L2  - https://repository.graduateinstitute.ch/record/295145/files/WP589_A2.pdf
L2  - https://repository.graduateinstitute.ch/record/295145/files/WP589_A2.pdf?subformat=pdfa
L4  - https://repository.graduateinstitute.ch/record/295145/files/WP589_A2.pdf
L4  - https://repository.graduateinstitute.ch/record/295145/files/WP589_A2.pdf?subformat=pdfa
LK  - https://repository.graduateinstitute.ch/record/295145/files/WP589_A2.pdf
LK  - https://repository.graduateinstitute.ch/record/295145/files/WP589_A2.pdf?subformat=pdfa
N1  - This research has been carried out within the NCCR FINRISK project on "Macro Risk, Systemic Risks and International Finance"
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  - National Centre of Competence in Research Financial Valuation and Risk Management
PP  - [Lieu de publication non identifié]
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/295145/files/WP589_A2.pdf
UR  - https://repository.graduateinstitute.ch/record/295145/files/WP589_A2.pdf?subformat=pdfa
Y1  - 2009
ER  -