Work

Bilateral invoicing currency ratios: A methodology to calculate them from unilateral invoicing currency ratios

Year: 2024

Type: article

Abstract: The worldwide database of invoicing currency ratios is provided by Boz, Casas,Georgiadis, Gopinath, Le Mezo, Mehl, and Nguyen (2022). However, the invoiceratios are aggregated at the country level. The invoice ratio of a country is the samefor all trading partners. We suggest obtaining a bilateral invoice ratio by reverseengineeringthe unilateral invoice ratios. In this note, we describe the methodologyto conduct this extraction algorithm. With the bilateral trading partners’ weights,the bilateral invoicing matrix is obtained by pre-multiplying the Moore-Penrosepseudoinverse to the unilateral invoicing vector.

Source: Economics Letters

Authors: Yushi Yoshida, Fabien Rondeau

Institutions: University of Shiga Prefecture, Shiga University, Centre de Recherche en Économie et Management, Université de Rennes

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $2,980

Funders: Shiga University, Japan Society for the Promotion of Science

Awards: Exchange Rate Pass-Through and Firm's Currency Strategy in Global Value Chains, The Mechanism of Exchange Rate and Current Account Flucturations, G7227106216, The impact of negotiations between importers and exporters, export experience, and trade credit on the choice of invoicing currency