A Test of Dominant Currency Hypothesis: Evidence From a Non-USD-non-Euro Country

This study is the result of research conducted jointly with the Policy Research Institute (PRI), which submitted an offer of use to the Ministry of Finance based on the “Guideline on the utilization of Customs’ import and export declaration data in a joint research with Policy Research Institute,” and received approval in February 2022. The views expressed in this research are those of the author’s responsibility and do not represent the official views of the Ministry of Finance or the Policy Research Institute of the Ministry of Finance. The authors thank the staff at the PRI for the great research support they received, especially Fumiharu Ito, Shintaro Negishi, and Kayo Takama for the use of transaction-level microdata. We also thank Hibiki Ichiue, Lorenza Rossi, Etsuro Shioji, Shigenori Shiratsuka, and the Rennes University IMAC workshop, JEA conference, and SWET workshop participants for their helpful comments. Yoshida gratefully acknowledges financial support from the JSPS KAKENHI 20H01518, 22K18527, and 23H00836. Shimizu, Sato, Yoshimi, and Yoshimoto thank 18K01698, 23H00836, 24K04962 & 23K17550, 20H01518 & 20KK0289, 23K20152, and JP21K20172, for financial support, respectively. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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