| . | (1) . | . | (2) . | . | (3) . | . | (4) . | |||
|---|---|---|---|---|---|---|---|---|---|---|
| Invoicing currency | All | PCP | LCP | VCP | VCP | VCP | VCP | |||
| Exchange rate | Δln e|${{ij,\!t}}$| | Δln e|${{ij,\!t}}$| | Δln e|${{ij,\!t}}$| | Δln e|${{ij,\!t}}$| | Δln e|${{iV,\!t}}$| | Δln e|${{Vj,\!t}}$| | Δln e|${{iV,\!t}}$| | |||
| Food, live animals | |$\underset{\left( 0.047\right) }{0.140}$|*** | |$\underset{\left( 0.113\right) }{0.476}$|*** | |$\underset{\left( 0.047\right) }{0.012}$| | |$\underset{\left( 0.062\right) }{0.186}$|*** | |$\underset{\left( 0.090\right) }{0.728}$|*** | |$\underset{\left( 0.062\right) }{0.061}$| | |$\underset{\left( 0.089\right) }{0.692}$|*** | |||
| Beverages, tobacco | |$\underset{\left( 0.091\right) }{0.124}$| | |$\underset{\left( 0.147\right) }{0.590}$|*** | |$\underset{\hphantom{0}\left( 0.090\right) }{-0.155}^{\ast }$| | |$\underset{\left( 0.173\right) }{0.384}^{\ast \ast }$| | |$\underset{\left( 0.295\right) }{1.168}$|*** | |$\underset{\hphantom{..}( 0.207) }{-0.033}$| | |$\underset{\left( 0.274\right) }{1.187}$|*** | |||
| Crude materials | |$\underset{\left( 0.061\right) }{0.161}$|*** | |$\underset{\left( 0.177\right) }{0.594}$|*** | |$\underset{\left( 0.089\right) }{0.005}$| | |$\underset{\left( 0.082\right) }{0.138}^{\ast }$| | |$\underset{\left( 0.154\right) }{0.475}$|*** | |$\underset{\left( 0.088\right) }{0.128}$| | |$\underset{\left( 0.151\right) }{0.394}$|*** | |||
| Mineral fuels | |$\underset{\left( 0.172\right) }{0.066}$| | |$\underset{\left( 0.305\right) }{0.213}$| | |$\underset{\left( 0.417\right) }{0.223}$| | |$\underset{\left( 0.173\right) }{0.010}$| | |$\underset{\left( 0.486\right) }{0.392}$| | |$\underset{\left( 0.190\right) }{0.006}$| | |$\underset{\left( 0.461\right) }{0.418}$| | |||
| Animal, vegetable oils | |$\underset{\left( 0.167\right) }{0.155}$| | |$\underset{\left( 0.385\right) }{0.292}$| | |$\underset{\left( 0.406\right) }{0.060}$| | |$\underset{\left( 0.201\right) }{0.273}$| | |$\underset{\left( 0.315\right) }{0.550}^{\ast }$| | |$\underset{\hphantom{000}( 0.261) }{\hphantom{000}0.453}^{\ast }$| | |$\underset{\left( 0.337\right) }{0.261}$| | |||
| Chemicals | |$\underset{\left( 0.061\right) }{0.188}$|*** | |$\underset{\left( 0.095\right) }{0.551}$|*** | |$\underset{\left( 0.106\right) }{-0.157}$| | |$\underset{\left( 0.077\right) }{0.227}$|*** | |$\underset{\left( 0.097\right) }{0.713}$|*** | |$\underset{\left( 0.095\right) }{0.067}$| | |$\underset{\left( 0.095\right) }{0.653}$|*** | |||
| Manufactured goods | |$\underset{\left( 0.034\right) }{0.130}$|*** | |$\underset{\left( 0.073\right) }{0.352}$|*** | |$\underset{\hphantom{0}\left( 0.052\right) }{-0.110}^{\ast \ast }$| | |$\underset{\left( 0.040\right) }{0.221}$|*** | |$\underset{\left( 0.067\right) }{0.582}$|*** | |$\underset{(0.044) }{0.126}^{***}$| | |$\underset{\left( 0.070\right) }{0.518}$|*** | |||
| Machinery | |$\underset{\left( 0.041\right) }{0.244}$|*** | |$\underset{\left( 0.059\right) }{0.490}$|*** | |$\underset{\left( 0.075\right) }{0.042}$| | |$\underset{\left( 0.055\right) }{0.249}$|*** | |$\underset{\left( 0.074\right) }{0.646}$|*** | |$\underset{\left( 0.065\right) }{0.139}^{\ast \ast }$| | |$\underset{\left( 0.072\right) }{0.582}$|*** | |||
| Miscellaneous | |$\underset{\left( 0.034\right) }{0.169}$|*** | |$\underset{\left( 0.065\right) }{0.377}$|*** | |$\underset{\hphantom{0}\left( 0.052\right) }{-0.093}^{\ast }$| | |$\underset{\left( 0.044\right) }{0.267}$|*** | |$\underset{\left( 0.071\right) }{0.657}$|*** | |$\underset{\left( 0.067\right) }{0.077}$| | |$\underset{\left( 0.073\right) }{0.611}$|*** | |||
| Firm-quarter fixed effects | Yes | Yes | Yes | Yes | ||||||
| Origin-product fixed effects | Yes | Yes | Yes | Yes | ||||||
| Invoicing choice fixed effects | No | Yes | Yes | Yes | ||||||
| Observations | 5,212,592 | 5,212,592 | 5,212,592 | 5,212,592 | ||||||
| R-squared | 0.146 | 0.146 | 0.146 | 0.146 | ||||||
| . | (1) . | . | (2) . | . | (3) . | . | (4) . | |||
|---|---|---|---|---|---|---|---|---|---|---|
| Invoicing currency | All | PCP | LCP | VCP | VCP | VCP | VCP | |||
| Exchange rate | Δln e|${{ij,\!t}}$| | Δln e|${{ij,\!t}}$| | Δln e|${{ij,\!t}}$| | Δln e|${{ij,\!t}}$| | Δln e|${{iV,\!t}}$| | Δln e|${{Vj,\!t}}$| | Δln e|${{iV,\!t}}$| | |||
| Food, live animals | |$\underset{\left( 0.047\right) }{0.140}$|*** | |$\underset{\left( 0.113\right) }{0.476}$|*** | |$\underset{\left( 0.047\right) }{0.012}$| | |$\underset{\left( 0.062\right) }{0.186}$|*** | |$\underset{\left( 0.090\right) }{0.728}$|*** | |$\underset{\left( 0.062\right) }{0.061}$| | |$\underset{\left( 0.089\right) }{0.692}$|*** | |||
| Beverages, tobacco | |$\underset{\left( 0.091\right) }{0.124}$| | |$\underset{\left( 0.147\right) }{0.590}$|*** | |$\underset{\hphantom{0}\left( 0.090\right) }{-0.155}^{\ast }$| | |$\underset{\left( 0.173\right) }{0.384}^{\ast \ast }$| | |$\underset{\left( 0.295\right) }{1.168}$|*** | |$\underset{\hphantom{..}( 0.207) }{-0.033}$| | |$\underset{\left( 0.274\right) }{1.187}$|*** | |||
| Crude materials | |$\underset{\left( 0.061\right) }{0.161}$|*** | |$\underset{\left( 0.177\right) }{0.594}$|*** | |$\underset{\left( 0.089\right) }{0.005}$| | |$\underset{\left( 0.082\right) }{0.138}^{\ast }$| | |$\underset{\left( 0.154\right) }{0.475}$|*** | |$\underset{\left( 0.088\right) }{0.128}$| | |$\underset{\left( 0.151\right) }{0.394}$|*** | |||
| Mineral fuels | |$\underset{\left( 0.172\right) }{0.066}$| | |$\underset{\left( 0.305\right) }{0.213}$| | |$\underset{\left( 0.417\right) }{0.223}$| | |$\underset{\left( 0.173\right) }{0.010}$| | |$\underset{\left( 0.486\right) }{0.392}$| | |$\underset{\left( 0.190\right) }{0.006}$| | |$\underset{\left( 0.461\right) }{0.418}$| | |||
| Animal, vegetable oils | |$\underset{\left( 0.167\right) }{0.155}$| | |$\underset{\left( 0.385\right) }{0.292}$| | |$\underset{\left( 0.406\right) }{0.060}$| | |$\underset{\left( 0.201\right) }{0.273}$| | |$\underset{\left( 0.315\right) }{0.550}^{\ast }$| | |$\underset{\hphantom{000}( 0.261) }{\hphantom{000}0.453}^{\ast }$| | |$\underset{\left( 0.337\right) }{0.261}$| | |||
| Chemicals | |$\underset{\left( 0.061\right) }{0.188}$|*** | |$\underset{\left( 0.095\right) }{0.551}$|*** | |$\underset{\left( 0.106\right) }{-0.157}$| | |$\underset{\left( 0.077\right) }{0.227}$|*** | |$\underset{\left( 0.097\right) }{0.713}$|*** | |$\underset{\left( 0.095\right) }{0.067}$| | |$\underset{\left( 0.095\right) }{0.653}$|*** | |||
| Manufactured goods | |$\underset{\left( 0.034\right) }{0.130}$|*** | |$\underset{\left( 0.073\right) }{0.352}$|*** | |$\underset{\hphantom{0}\left( 0.052\right) }{-0.110}^{\ast \ast }$| | |$\underset{\left( 0.040\right) }{0.221}$|*** | |$\underset{\left( 0.067\right) }{0.582}$|*** | |$\underset{(0.044) }{0.126}^{***}$| | |$\underset{\left( 0.070\right) }{0.518}$|*** | |||
| Machinery | |$\underset{\left( 0.041\right) }{0.244}$|*** | |$\underset{\left( 0.059\right) }{0.490}$|*** | |$\underset{\left( 0.075\right) }{0.042}$| | |$\underset{\left( 0.055\right) }{0.249}$|*** | |$\underset{\left( 0.074\right) }{0.646}$|*** | |$\underset{\left( 0.065\right) }{0.139}^{\ast \ast }$| | |$\underset{\left( 0.072\right) }{0.582}$|*** | |||
| Miscellaneous | |$\underset{\left( 0.034\right) }{0.169}$|*** | |$\underset{\left( 0.065\right) }{0.377}$|*** | |$\underset{\hphantom{0}\left( 0.052\right) }{-0.093}^{\ast }$| | |$\underset{\left( 0.044\right) }{0.267}$|*** | |$\underset{\left( 0.071\right) }{0.657}$|*** | |$\underset{\left( 0.067\right) }{0.077}$| | |$\underset{\left( 0.073\right) }{0.611}$|*** | |||
| Firm-quarter fixed effects | Yes | Yes | Yes | Yes | ||||||
| Origin-product fixed effects | Yes | Yes | Yes | Yes | ||||||
| Invoicing choice fixed effects | No | Yes | Yes | Yes | ||||||
| Observations | 5,212,592 | 5,212,592 | 5,212,592 | 5,212,592 | ||||||
| R-squared | 0.146 | 0.146 | 0.146 | 0.146 | ||||||
Notes. Contemporaneous and eight lags of the origin country’s quarterly inflation rate, as well as eight lags of the log change in each exchange rate are also included (not reported). Robust standard errors adjusted for clustering at the country-year level are reported in parentheses. * , **, and *** indicate significance at the 10%, 5%, and 1% levels, respectively. The dependent variable is the quarterly log change import unit value (in sterling per kilogram). In line with Table 5, in columns (3) and (4) the regressions also provide estimates for the effects of bilateral exchange rate changes on import unit values for the PCP and LCP transactions (not reported). Source: HMRC administrative data sets.
| . | (1) . | . | (2) . | . | (3) . | . | (4) . | |||
|---|---|---|---|---|---|---|---|---|---|---|
| Invoicing currency | All | PCP | LCP | VCP | VCP | VCP | VCP | |||
| Exchange rate | Δln e|${{ij,\!t}}$| | Δln e|${{ij,\!t}}$| | Δln e|${{ij,\!t}}$| | Δln e|${{ij,\!t}}$| | Δln e|${{iV,\!t}}$| | Δln e|${{Vj,\!t}}$| | Δln e|${{iV,\!t}}$| | |||
| Food, live animals | |$\underset{\left( 0.047\right) }{0.140}$|*** | |$\underset{\left( 0.113\right) }{0.476}$|*** | |$\underset{\left( 0.047\right) }{0.012}$| | |$\underset{\left( 0.062\right) }{0.186}$|*** | |$\underset{\left( 0.090\right) }{0.728}$|*** | |$\underset{\left( 0.062\right) }{0.061}$| | |$\underset{\left( 0.089\right) }{0.692}$|*** | |||
| Beverages, tobacco | |$\underset{\left( 0.091\right) }{0.124}$| | |$\underset{\left( 0.147\right) }{0.590}$|*** | |$\underset{\hphantom{0}\left( 0.090\right) }{-0.155}^{\ast }$| | |$\underset{\left( 0.173\right) }{0.384}^{\ast \ast }$| | |$\underset{\left( 0.295\right) }{1.168}$|*** | |$\underset{\hphantom{..}( 0.207) }{-0.033}$| | |$\underset{\left( 0.274\right) }{1.187}$|*** | |||
| Crude materials | |$\underset{\left( 0.061\right) }{0.161}$|*** | |$\underset{\left( 0.177\right) }{0.594}$|*** | |$\underset{\left( 0.089\right) }{0.005}$| | |$\underset{\left( 0.082\right) }{0.138}^{\ast }$| | |$\underset{\left( 0.154\right) }{0.475}$|*** | |$\underset{\left( 0.088\right) }{0.128}$| | |$\underset{\left( 0.151\right) }{0.394}$|*** | |||
| Mineral fuels | |$\underset{\left( 0.172\right) }{0.066}$| | |$\underset{\left( 0.305\right) }{0.213}$| | |$\underset{\left( 0.417\right) }{0.223}$| | |$\underset{\left( 0.173\right) }{0.010}$| | |$\underset{\left( 0.486\right) }{0.392}$| | |$\underset{\left( 0.190\right) }{0.006}$| | |$\underset{\left( 0.461\right) }{0.418}$| | |||
| Animal, vegetable oils | |$\underset{\left( 0.167\right) }{0.155}$| | |$\underset{\left( 0.385\right) }{0.292}$| | |$\underset{\left( 0.406\right) }{0.060}$| | |$\underset{\left( 0.201\right) }{0.273}$| | |$\underset{\left( 0.315\right) }{0.550}^{\ast }$| | |$\underset{\hphantom{000}( 0.261) }{\hphantom{000}0.453}^{\ast }$| | |$\underset{\left( 0.337\right) }{0.261}$| | |||
| Chemicals | |$\underset{\left( 0.061\right) }{0.188}$|*** | |$\underset{\left( 0.095\right) }{0.551}$|*** | |$\underset{\left( 0.106\right) }{-0.157}$| | |$\underset{\left( 0.077\right) }{0.227}$|*** | |$\underset{\left( 0.097\right) }{0.713}$|*** | |$\underset{\left( 0.095\right) }{0.067}$| | |$\underset{\left( 0.095\right) }{0.653}$|*** | |||
| Manufactured goods | |$\underset{\left( 0.034\right) }{0.130}$|*** | |$\underset{\left( 0.073\right) }{0.352}$|*** | |$\underset{\hphantom{0}\left( 0.052\right) }{-0.110}^{\ast \ast }$| | |$\underset{\left( 0.040\right) }{0.221}$|*** | |$\underset{\left( 0.067\right) }{0.582}$|*** | |$\underset{(0.044) }{0.126}^{***}$| | |$\underset{\left( 0.070\right) }{0.518}$|*** | |||
| Machinery | |$\underset{\left( 0.041\right) }{0.244}$|*** | |$\underset{\left( 0.059\right) }{0.490}$|*** | |$\underset{\left( 0.075\right) }{0.042}$| | |$\underset{\left( 0.055\right) }{0.249}$|*** | |$\underset{\left( 0.074\right) }{0.646}$|*** | |$\underset{\left( 0.065\right) }{0.139}^{\ast \ast }$| | |$\underset{\left( 0.072\right) }{0.582}$|*** | |||
| Miscellaneous | |$\underset{\left( 0.034\right) }{0.169}$|*** | |$\underset{\left( 0.065\right) }{0.377}$|*** | |$\underset{\hphantom{0}\left( 0.052\right) }{-0.093}^{\ast }$| | |$\underset{\left( 0.044\right) }{0.267}$|*** | |$\underset{\left( 0.071\right) }{0.657}$|*** | |$\underset{\left( 0.067\right) }{0.077}$| | |$\underset{\left( 0.073\right) }{0.611}$|*** | |||
| Firm-quarter fixed effects | Yes | Yes | Yes | Yes | ||||||
| Origin-product fixed effects | Yes | Yes | Yes | Yes | ||||||
| Invoicing choice fixed effects | No | Yes | Yes | Yes | ||||||
| Observations | 5,212,592 | 5,212,592 | 5,212,592 | 5,212,592 | ||||||
| R-squared | 0.146 | 0.146 | 0.146 | 0.146 | ||||||
| . | (1) . | . | (2) . | . | (3) . | . | (4) . | |||
|---|---|---|---|---|---|---|---|---|---|---|
| Invoicing currency | All | PCP | LCP | VCP | VCP | VCP | VCP | |||
| Exchange rate | Δln e|${{ij,\!t}}$| | Δln e|${{ij,\!t}}$| | Δln e|${{ij,\!t}}$| | Δln e|${{ij,\!t}}$| | Δln e|${{iV,\!t}}$| | Δln e|${{Vj,\!t}}$| | Δln e|${{iV,\!t}}$| | |||
| Food, live animals | |$\underset{\left( 0.047\right) }{0.140}$|*** | |$\underset{\left( 0.113\right) }{0.476}$|*** | |$\underset{\left( 0.047\right) }{0.012}$| | |$\underset{\left( 0.062\right) }{0.186}$|*** | |$\underset{\left( 0.090\right) }{0.728}$|*** | |$\underset{\left( 0.062\right) }{0.061}$| | |$\underset{\left( 0.089\right) }{0.692}$|*** | |||
| Beverages, tobacco | |$\underset{\left( 0.091\right) }{0.124}$| | |$\underset{\left( 0.147\right) }{0.590}$|*** | |$\underset{\hphantom{0}\left( 0.090\right) }{-0.155}^{\ast }$| | |$\underset{\left( 0.173\right) }{0.384}^{\ast \ast }$| | |$\underset{\left( 0.295\right) }{1.168}$|*** | |$\underset{\hphantom{..}( 0.207) }{-0.033}$| | |$\underset{\left( 0.274\right) }{1.187}$|*** | |||
| Crude materials | |$\underset{\left( 0.061\right) }{0.161}$|*** | |$\underset{\left( 0.177\right) }{0.594}$|*** | |$\underset{\left( 0.089\right) }{0.005}$| | |$\underset{\left( 0.082\right) }{0.138}^{\ast }$| | |$\underset{\left( 0.154\right) }{0.475}$|*** | |$\underset{\left( 0.088\right) }{0.128}$| | |$\underset{\left( 0.151\right) }{0.394}$|*** | |||
| Mineral fuels | |$\underset{\left( 0.172\right) }{0.066}$| | |$\underset{\left( 0.305\right) }{0.213}$| | |$\underset{\left( 0.417\right) }{0.223}$| | |$\underset{\left( 0.173\right) }{0.010}$| | |$\underset{\left( 0.486\right) }{0.392}$| | |$\underset{\left( 0.190\right) }{0.006}$| | |$\underset{\left( 0.461\right) }{0.418}$| | |||
| Animal, vegetable oils | |$\underset{\left( 0.167\right) }{0.155}$| | |$\underset{\left( 0.385\right) }{0.292}$| | |$\underset{\left( 0.406\right) }{0.060}$| | |$\underset{\left( 0.201\right) }{0.273}$| | |$\underset{\left( 0.315\right) }{0.550}^{\ast }$| | |$\underset{\hphantom{000}( 0.261) }{\hphantom{000}0.453}^{\ast }$| | |$\underset{\left( 0.337\right) }{0.261}$| | |||
| Chemicals | |$\underset{\left( 0.061\right) }{0.188}$|*** | |$\underset{\left( 0.095\right) }{0.551}$|*** | |$\underset{\left( 0.106\right) }{-0.157}$| | |$\underset{\left( 0.077\right) }{0.227}$|*** | |$\underset{\left( 0.097\right) }{0.713}$|*** | |$\underset{\left( 0.095\right) }{0.067}$| | |$\underset{\left( 0.095\right) }{0.653}$|*** | |||
| Manufactured goods | |$\underset{\left( 0.034\right) }{0.130}$|*** | |$\underset{\left( 0.073\right) }{0.352}$|*** | |$\underset{\hphantom{0}\left( 0.052\right) }{-0.110}^{\ast \ast }$| | |$\underset{\left( 0.040\right) }{0.221}$|*** | |$\underset{\left( 0.067\right) }{0.582}$|*** | |$\underset{(0.044) }{0.126}^{***}$| | |$\underset{\left( 0.070\right) }{0.518}$|*** | |||
| Machinery | |$\underset{\left( 0.041\right) }{0.244}$|*** | |$\underset{\left( 0.059\right) }{0.490}$|*** | |$\underset{\left( 0.075\right) }{0.042}$| | |$\underset{\left( 0.055\right) }{0.249}$|*** | |$\underset{\left( 0.074\right) }{0.646}$|*** | |$\underset{\left( 0.065\right) }{0.139}^{\ast \ast }$| | |$\underset{\left( 0.072\right) }{0.582}$|*** | |||
| Miscellaneous | |$\underset{\left( 0.034\right) }{0.169}$|*** | |$\underset{\left( 0.065\right) }{0.377}$|*** | |$\underset{\hphantom{0}\left( 0.052\right) }{-0.093}^{\ast }$| | |$\underset{\left( 0.044\right) }{0.267}$|*** | |$\underset{\left( 0.071\right) }{0.657}$|*** | |$\underset{\left( 0.067\right) }{0.077}$| | |$\underset{\left( 0.073\right) }{0.611}$|*** | |||
| Firm-quarter fixed effects | Yes | Yes | Yes | Yes | ||||||
| Origin-product fixed effects | Yes | Yes | Yes | Yes | ||||||
| Invoicing choice fixed effects | No | Yes | Yes | Yes | ||||||
| Observations | 5,212,592 | 5,212,592 | 5,212,592 | 5,212,592 | ||||||
| R-squared | 0.146 | 0.146 | 0.146 | 0.146 | ||||||
Notes. Contemporaneous and eight lags of the origin country’s quarterly inflation rate, as well as eight lags of the log change in each exchange rate are also included (not reported). Robust standard errors adjusted for clustering at the country-year level are reported in parentheses. * , **, and *** indicate significance at the 10%, 5%, and 1% levels, respectively. The dependent variable is the quarterly log change import unit value (in sterling per kilogram). In line with Table 5, in columns (3) and (4) the regressions also provide estimates for the effects of bilateral exchange rate changes on import unit values for the PCP and LCP transactions (not reported). Source: HMRC administrative data sets.
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