This paper provides a summary of the invoice currency choice and the exchange rate risk management of Japanese overseas subsidiaries based on the questionnaire survey sent and responded in August 2010. Our survey results show that the growing overseas production and sales network promotes U.S....

We estimate the equilibrium exchange rate (EER) of the Chinese renminbi (RMB) vis-a-vis the U.S. dollar from 1992 to 2008. In contrast to the recent empirical studies on the EER employing a large cross-country analysis, we focus on the supply side real factors in estimating the EER by extending...

The sharp depreciation of the yen from the end of 2012 was expected to have a positive impact on the Japanese trade balance, since Japan had recorded large trade deficits since the Great East Japan Earthquake in March 2011. Trade balance tends to deteriorate at the beginning due to the J-curve...

Prime Minister Shinzo Abe's economic stimulus package, Abenomics, depreciated the yen sharply from the end of 2012, which was expected to have a positive impact on Japan's trade balance. Contrary to the J-curve effect, however, Japan's trade balance has not shown any signs of improvement, even...

This paper examines the firm-level pricing behavior of Japanese exports to present new evidence and determinants of an invoice currency. We interviewed twenty-three major Japanese exporting firms to collect information on their currency invoicing behavior and also on their explicit...

The currency invoicing patterns of firms in Japan is one of the most interesting research issues, because, unlike other developed countries, it is not the yen but the U.S. dollar that plays a major role in currency invoicing of Japanese trade. However, detailed data on the invoicing choice is...

This paper, through interviews with 12 major Japanese firms, has revealed new "stylized facts" of the Japanese firms' strategy of currency invoicing, foreign exchange risk managements, and price-setting in recent years. It is also investigated whether these stylized facts are consistent with...

In this paper, we construct the daily nominal effective exchange rate (NEER) of the Japanese yen for eight major manufacturing industries, which provides a better indicator to reflect differences in international competitiveness across industries compared with the conventional NEER. By applying...

In considering the empirical importance of the exchange rate on exporters' price competitiveness and producer profits in specific industries, the industry-specific real effective exchange rate (REER) is far more useful than the aggregate REER published by the International Monetary Fund (IMF)...

In this paper, we present new findings of Japanese firms' exchange rate risk managements based on a questionnaire survey sent to all Tokyo Stock Exchange listed firms in 2009. Using their responses, we conduct empirical analysis to investigate the relation between respective risk management...