SHI Longxiang，etc：Market Share Power, Import Market Concentration and Trade Currency Invoicing

Abstract：The paper acquires highly disaggregated data set of value and currency composition which contains orders of 31,209 firms of China purchasing from Japan from 2000 to 2012.It aims to study how market share power and import market concentration affect currency settlement of trade.It is concluded that Japan has low influence level of market share power of supply, China has strong influence of market share power of purchase, and high level of import market concentration has negative impact on adopting Yen as settlement currency.Consequently, the paper proposes specific import industries in China-Japan trade which could choose Renminbi as settlement currency in order to provide new thinking in promoting the globalization of Renminbi settlement.

Key words： Internationalization of Renminbi    Settlement Currency of Trade    Market Share Power of Supply   Market Share Power of Purchase    Import Market Concentration

source:Finance & Trade Economics ,No.10,2015