Tao Liu;芦东——PACIFIC-BASIN FINANCE JOURNAL:Trade, finance and endogenous invoicing currency: Theory and firm-level evidence
时间:2019-05-21
Financial intermediaries facilitate a significant part of international trade. However, the impact of financial factors on the choice of invoicing currency is not well understood. This paper develops a three-country model with financial frictions to study exporters' endogenous invoicing currency choices. The model predicts that exporters that rely on bank-intermediated trade finance are more likely to price in local currency of the destination country if that country has a higher level of financ