Work

How do Multiproduct Exporters React to a Change in Trade Costs?*

Year: 2013

Type: article

Abstract: We use data on individual French exporters to document how a change in trade costs, following the introduction of the euro, affected the export margins of firms in relation to export decisions, the number of products exported, and the average sales per product. Our results confirm two effects predicted by the theory: firms increase the range of products they export as well as their intensive margin. This effect is most evident in markets with moderate monetary policy coordination before 1999. General equilibrium competition effects reduce the initial positive impact on each of these margins. We find no evidence that firms increase their participation in the export market.

Source: Scandinavian Journal of Economics

DOI: 10.1111/sjoe.12006

Authors: Antoine Berthou, Lionel Fontagné

Institutions: Banque de France, Centre d'Etudes Prospectives et d'Informations Internationales, Centre d'Économie de la Sorbonne, Paris School of Economics

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: green

Funder: European Commission