 Currency Invoicing in Japanese Exports to East Asia: Implications for Yen InternationalizationKiyotaka Sato Asian Economic Journal, 2003, vol. 17, issue 2, 129-154 Abstract: The present paper examines currency invoicing in Japanese exports to East Asia by applying the pricing‐to‐market (PTM) theory. The notable aims of the present paper are to: (i) use a number of sample commodities obtained from the data on monthly series of exports based on the nine‐digit Harmonized System; and (ii) examine currency invoicing practices of Japanese exporters by making a distinction between the long‐run and short‐run PTM under the framework of the error‐correction model. Contrary to the results of previous reports, our study shows that Japanese exporters of electric machinery tend to stabilize US Dollar (USD)‐denominated export prices in the short run in East Asian markets, implying that electric machinery products tend to be invoiced in USD in exports to East Asia. Given the USD‐invoicing practices by Japanese electric machinery exporters, it is hard to expect the further use of the Yen in trade transactions because the electric machinery industry plays a major role in facilitating trade and investment between Japan and East Asia. Date: 2003 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:asiaec:v:17:y:2003:i:2:p:129-154 Ordering information: This journal article can be ordered from Access Statistics for this article Asian Economic Journal is currently edited by Sung Yun-Wing and Shigeyuki Abe More articles in Asian Economic Journal from East Asian Economic Association Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.