Invoice Currency Choice in Intra-Firm Trade: A Transaction-Level Analysis of Japanese Automobile Exports

This study is the result of research conducted jointly with the Policy Research Institute (PRI) of the Japanese Ministry of Finance (MOF), which submitted an offer to the MOF based on the “Guideline on the utilization of customs’ import and export declaration data in a joint research with the Policy Research Institute,” and received approval in February 2022. The views expressed in this research are the authors’ personal responsibility and do not represent the official views of the MOF or PRI. We would like to thank Fumiharu Ito, Kenta Ando, and Shintaro Negishi for their dedicated support. We also thank Kazunobu Hayakawa and the seminar participants at PRI, the Research Institute of Economy, Trade and Industry (RIETI), the Bangkok Research Center, the Institute of Developing Economies, and the 2023 Summer Workshop on Economic Theory. We acknowledge financial support from the JSPS KAKENHI Grant (JP20H01518 and JP20KK0289 to Yoshimi, JP21K20172 to Yoshimoto, JP19H01504, JP23H00836, and JP23K17550 to Sato, JP18K01698 to Shimizu, and JP22K18527 to Yoshida). All subsequent errors are our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.