00000nam 2200000za 4500 9.802827 CaOODSP 20221107135054 cr ||||||||||| 150810s2015 onc o f000 0 eng d CaOODSP eng eng fre n-cn--- FB3-2/115-31E-PDF Devereux, Michael P. Exchange rate pass-through, currency of invoicing and market share [electronic resource] / by Michael B. Devereux, Wei Dong and Ben Tomlin. Ottawa : Bank of Canada, 2015. iii, 37 p. : fig., graphs, tables. Bank of Canada working paper, 1701-9397 ; 2015-31 "August 2015." Includes bibliographical references. This paper investigates the impact of market structure on the joint determination of exchange rate pass-through and currency of invoicing in international trade. A novel feature of the study is the focus on market share of firms on both sides of the market— that is, exporting firms and importing firms. A model of monopolistic competition with heterogeneous firms has the following set of predictions: a) exchange rate pass-through should be non-monotonic and U-shaped in the market share of exporting firms, but monotonically declining in the market share of importers; b) exchange rate pass-through should be lower, the higher is local currency invoicing of imports; and c) producer currency invoicing should be related non-monotonically and U-shaped to exporter market share, and monotonically declining in importing firms’ market share. gccst Markets gccst Exchange rates gccst Currency gccst International trade Tomlin, Ben. Dong, Wei. Bank of Canada. Working paper (Bank of Canada) 1701-9397 ; 2015-31 (CaOODSP)9.504604 PDF 475 KB https://publications.gc.ca/collections/collection_2015/banque-bank-canada/FB3-2-115-31-eng.pdf