EconPapers    
Economics at your fingertips  
 

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

Linda Goldberg

No 11653, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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.

JEL-codes: F3 F4 (search for similar items in EconPapers)
Date: 2005-10
New Economics Papers: this item is included in nep-eec, nep-fmk and nep-int
Note: IFM ITI
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

Published as Trade Invoicing in the Accession Countries: Are They Suited to the Euro? , Linda S. Goldberg. in NBER International Seminar on Macroeconomics 2005 , Frankel and Pissarides. 2007

Downloads: (external link)
http://www.nber.org/papers/w11653.pdf (application/pdf)

Related works:
Chapter: Trade Invoicing in the Accession Countries: Are They Suited to the Euro? (2005) Downloads
Working Paper: Trade invoicing in the accession countries: are they suited to the Euro? (2005) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:11653

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w11653

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2025-03-19
Handle: RePEc:nbr:nberwo:11653