@techreport{861fb5760ae94da695892e56b8dd094e,
title = "Currency Invoicing in International Trade: A Panel Data Approach",
abstract = "The paper empirically investigates the determinants of currency invoicing in Dutch goods trade with OECD countries. To this end, a currency-share systems approach is employed, which is applied to quarterly panel data for 1987–1998. One of the key findings is that a country{\textquoteright}s share of producer currency pricing falls if demand in the foreign export market falls. In addition, we find that the better developed the partner country{\textquoteright}s banking sector and the larger its share in world trade, the lower is the share of Dutch guilder invoicing. A higher expected rate of inflation in the partner country increases Dutch guilder invoicing. The depth of the foreign exchange market of a currency, a country{\textquoteright}s share in world trade, and a country being part of the European Union are key determinants of vehicle currency use.",
keywords = "invoicing currency, Grassman{\textquoteright}s law, exchange rate risk, local currency pricing, producer currency pricing, vehicle currencies",
author = "J.E. Ligthart and {Da Silva}, J.",
note = "Pagination: 40",
year = "2007",
language = "English",
volume = "2007-25",
series = "CentER Discussion Paper",
publisher = "Macroeconomics",
type = "WorkingPaper",
institution = "Macroeconomics",
}