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Bilateral invoicing currency ratios: A methodology to calculate them from unilateral invoicing currency ratios

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  • Yoshida, Yushi
  • Rondeau, Fabien

Abstract

We suggest obtaining bilateral invoicing ratios by reverse-engineering the unilateral invoicing ratios. We describe the methodology for conducting this extraction algorithm: pre-multiplying the Moore–Penrose pseudoinverse of the bilateral trading partners’ weights matrix to the unilateral invoicing vector.

Suggested Citation

  • Yoshida, Yushi & Rondeau, Fabien, 2025. "Bilateral invoicing currency ratios: A methodology to calculate them from unilateral invoicing currency ratios," Economics Letters, Elsevier, vol. 247(C).
    • Handle: RePEc:eee:ecolet:v:247:y:2025:i:c:s0165176524006001
    DOI: 10.1016/j.econlet.2024.112116
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    References listed on IDEAS

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    1. Boz, Emine & Casas, Camila & Georgiadis, Georgios & Gopinath, Gita & Le Mezo, Helena & Mehl, Arnaud & Nguyen, Tra, 2022. "Patterns of invoicing currency in global trade: New evidence," Journal of International Economics, Elsevier, vol. 136(C).
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    More about this item

    Keywords

    Invoicing currency; Invoicing ratio datasets; Moore–Penrose (pseudoinverse);
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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