Abstract
The main object of this study is an empirical analysis of the determinants of the choice of currency in settling payments and receipts for Italian foreign trade. While this topic has already been analysed, both theoretically and empirically, by a number of authors and for various countries,1 the size of the sample available to us and the relative richness of information that it contains allow deeper statistical screening of the data and further testing of both old and new hypotheses.
I have no data yet. It is a capital mistake to theorise before one has data. Insensibly one begins to twist facts to suit theories, instead of theories to suit facts. (From a dialogue between Sherlock Holmes and Dr Watson, in A Scandal in Bohemia, by Arthur Conan Doyle).
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Aspe, P. and Giavazzi, F. (1978) ‘L’impresa nell’economia aperta in presenza di incertezza’, Giornale degli Economisti e Annali di Economia, 37: 345–62.
Aspe, P. and Giavazzi, F. (1982) ‘The Short Run Behavior of Prices and Output in the Exportables Sector, The Case of German Machinery’, Journal of International Economics, 12: 83–93.
Baron, D. P. (1976) ‘Fluctuating Exchange Rates and the Pricing of Exports’, Economic Inquiry, 16: 425–38.
Basevi, G., Pecci, G. and Steinherr, A. (1979) ‘A Sample Study of Italian Exporters of Manufacturers, Pricing Policy and Exchange Rate Risk’, Promet eia, Rapporto di Previsione, 67–99.
Biagioli, A. and Pompili, L. (1978) ‘Indagini e aspetti finanziari del commercio estero dell’Italia: un’analisi per imprese’, Bollettino Banca d’Italia, 241–79.
Bilson, J. F. V. (1983) ‘The Choice of an Invoice Currency in International Transactions’, in J. D. Bhandari and B. H. Putman (eds), Economic Interdependence and Flexible Exchange Rates (Cambridge: MIT Press): 384–401.
Bourguinat, H. and Cazals, M. (1977–8) ‘Prix à l’exportation et variabilité du taux de change’, Banque, December 1977: 1269–73, January 1978, pp. 7–13.
Carse, S., Williamson, J. and Wood, G. E. (1980) The Financing Procedures of British Foreign Trade (Cambridge: Cambridge University Press).
Cecchini, M., Conti, V., Hamaui, R. and Silvani, M. (1984) ‘Banche e operatori nelle loro scelte valutarie’, Pronteteia, discussion paper, May, mimeo.
Cornell, B. (1980) ‘The Denomination of Foreign Trade Contracts once Again’, Journal of Financial and Quantitative Analysis, 15: 933–44.
Goodman, L. (1970) ‘The Multivariate Analysis of Qualitative Data: Interactions Among Multiple Classifications’, JASA, 65: 226–56.
Goodman, L. (1971) ‘The Analysis of Multidimensional Contingency Tables: Stepwise Procedures and Direct Estimation Methods for Building Models for Multiple Classifications’, Technometrics, 13: 33–61.
Grassman, S. (1973a) Exchange Reserves and the Financial Structure of Foreign Trade (London: Saxon House and Lexington Books).
Grassman, S. (1973b) ‘A Fundamental Symmetry in International Payment Patterns’, Journal of International Economics, 3: 105–16.
Grassman, S. (1976) ‘Currency Distribution and Forward Cover in Foreign Trade: Sweden Revisited, 1973’, Journal of International Economics, 6: 215–21.
Hamaui, R. (1985) ‘The ECU and Efficient Portfolio Choice’, Banca Commerciale Italiana, January, mimeo.
Katz, E., Paroush, J. and Kahana, N. (1982) ‘Price Uncertainty and the Price Discriminating Firm in International Trade’, International Economic Review, 23: 389–400.
KÖNig, H., Nerlove, M. and Oudiz, G. (1979) ‘Modèles log-linéaires pour Fanalyse des données qualitatives: application à l’étude des enquetes de conjoncture de l’INSEE et de TIFO’, Annales de VInsee, 36: 31–83.
KÖNig, H., Nerlove, M. and Oudiz, G. (1981) ‘On the Formation of Price Expectations; An Analysis of Business Data by Log-linear Probability Models’, European Economic Review, 16: 103–38.
Magee, S. P. and Rao, R. K. S. (1980a) ‘Vehicle and Non vehicle Currencies in International Trade’, American Economic Review, 70: 368–73.
Magee, S. P. and Rao, R. K. S. (1980b) ‘The Currency of Denomination of International Trade’, in Levich, R. M. and Wihlbourg, C. (eds), Exchange Risk and Exposure: Currency Developments in International Financial Management (Concorde, Mass: Lexington Books).
McKinnon, R. (1979) Money in International Exchange: the Convertible Currency System (New York: Oxford University Press).
Nerlove, M. and Press, S. J. (1976) ‘Multivariate Log-linear Probability Models for the Analysis of Qualitative Data’, Center for Statistics and Probability, Northwestern University, Illinois, discussion paper no. 1, mimeo.
Page, S. A. B. (1977) ‘Currency of Invoicing in Merchandise Trade’, National Institute Economic Review, 77–81.
Page, S. A. B. (1981) ‘The Choice of Invoicing Currency in Merchandise Trade’, National Institute Economic Review: 60–72.
Pecci, G. (1978) ‘Commercio estero, imprese manifatturiere e svalutazione: indagine su un campione di imprese italiane nel passaggio dai cambi fissi ai cambi flessibili’, Prometeia, Rapporto di Previsione: 77–100.
Scharrer, H. E. (1980) ‘Currencies and Currency Hedging in German Foreign Trade’, Deutsche Bank, Studies on Economic and Monetary Problems and Banking History: 3–25.
Editor information
Editors and Affiliations
Copyright information
© 1987 Donald R. Hodgman and Geoffrey E. Wood
About this chapter
Cite this chapter
Basevi, G., Cocchi, D., Lischi, P.L. (1987). The Choice of Currency in the Foreign Trade of Italy. In: Hodgman, D.R., Wood, G.E. (eds) Monetary and Exchange Rate Policy. Studies in Banking and International Finance. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-18710-2_1
Download citation
DOI: https://doi.org/10.1007/978-1-349-18710-2_1
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-18712-6
Online ISBN: 978-1-349-18710-2
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)