NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Trade Invoicing in the Accession Countries: Are They Suited to the Euro?

Linda Goldberg

NBER Working Paper No. 11653
Issued in October 2005
NBER Program(s):   IFM   ITI

The accession countries to the euro area are increasingly binding their economic activity, external and internal, to the euro area countries. One aspect of this phenomenon concerns the currency invoicing of international trade transactions, where accession countries have reduced their use of the US dollar in invoicing international trade transactions. Theory predicts that the optimal invoicing choices for accession countries depend on the composition of goods in exports and imports and on the macroeconomic fluctuations of trade partners, both bearing on the role of herding and hedging considerations within exporter profitability. These considerations yield country-specific estimates about the degree of euro-denominated invoicing of exports. I find that the exporters of some accession countries, even in their trade transactions with the euro zone and other European Union countries, might be pricing too much of their trade in euros rather than in dollars, thus taking on excessive risk in international markets.

download in pdf format
   (502 K)

email paper

This paper is available as PDF (502 K) or via email.

This paper was revised on March 10, 2006

Machine-readable bibliographic record - MARC, RIS, BibTeX

Published: Trade Invoicing in the Accession Countries: Are They Suited to the Euro?, Linda S. Goldberg, in NBER International Seminar on Macroeconomics 2005 (2007), MIT Press (p. 357 - 393)

Users who downloaded this paper also downloaded these:
Goldberg and Tille w12495 The International Role of the Dollar and Trade Balance Adjustment
Ito, Koibuchi, Sato, and Shimizu w16231 Why has the yen failed to become a dominant invoicing currency in Asia? A firm-level analysis of Japanese Exporters' invoicing behavior
Goldberg and Tille w15470 Micro, Macro, and Strategic Forces in International Trade Invoicing
Goldberg and Tille w11127 Vehicle Currency Use in International Trade
Baldwin and Di Nino w12673 Euros and Zeros: The Common Currency Effect on Trade in New Goods
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us