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Trade Invoice Currency and Pricing-to-Market： Evidence for the Limited Use of the Japanese Yen in the East Asian Region
| Author | Kiyotaka Sato |
|---|---|
| Date of Publication | 1999. 8 |
| No. | 1999-15 |
| Download | 801KB |
Contents Introduction
This paper examines currency invoicing of Japan’s exports to the East Asian region by applying the theory of pricing-to-market (PTM). Contrary to the results of previous literature, we reveal that Japanese exporters of integrated circuits (ICs) and magnetic disks are likely to prefer U.S. dollar-invoiced transactions even in exports to the East Asian region. Given a large presence of the electronics industry for trade and investment between Japan and the East Asian countries, it is hard to expect further internationalization of the Japanese yen in the near future.