Micro, macro, and strategic forces in international trade invoicing: Synthesis and novel patterns

• 成果类型: Article
• 署名作者: Goldberg, Linda S.; Tille, Cedric
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - New York; National Bureau of Economic Research; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2016.07.004
• 发表日期: 2016
• 页码: 173-187
• 关键词: Invoicing currency; strategy; Vehicle currency; pass-through; international trade

摘要

The currency used in invoicing international trade matters for the impact of exchange rate movements in the presence of price rigidities. We present stylized facts on specific macro, micro and other drivers of invoicing based on 45 million Canadian import transactions. Four main results emerge. First, a large share of invoicing takes place in vehicle currencies that are neither the exporters nor the importers. Second, we document a novel link between the size of individual transactions and invoicing. Both the absolute value of a transaction and its relative size at the industry level matter. Third, the exchange rate plays an important role along three dimensions: exchange rate volatility, exchange rate regime, and currency transaction volumes in foreign exchange markets. Finally, we confirm the role of the market share of an exporting country at the industry level. Our results identify the most salient patterns in order to guide further developments in theoretical models of invoicing currency choice. (C) 2016 Published by Elsevier B.V.