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The impact of the euro on firm export behaviour: does firm size matter?

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  • Silviano Esteve-Pérez
  • Salvador Gil-Pareja
  • Rafael Llorca-Vivero
  • José Antonio Martínez-Serrano

Abstract

The goal of this paper is to assess the impact of the euro on the relationship between firm size and exports. We employ previous new-new trade theory models to derive some hypotheses that are tested using a representative sample of Spanish manufacturing firms. The results indicate that the introduction of the euro has remarkably weakened the role of firm size in the decision to export to the Eurozone. What is more, the change in the proportion of exports to the Eurozone is negatively related to firm size. Our results suggest that the euro has reduced the threshold size in order to export to Eurozone countries. Copyright 2011 Oxford University Press 2010 All rights reserved, Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 63 (2011)
Issue (Month): 2 (April)
Pages: 355-374

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Handle: RePEc:oup:oxecpp:v:63:y:2011:i:2:p:355-374

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Cited by:
  1. Campbell, Douglas L., 2012. "Estimating the Impact of Currency Unions on Trade Using a Dynamic Gravity Framework," MPRA Paper 37091, University Library of Munich, Germany.
  2. Christian Beer, 2011. "Literature Review on the Economic Effects of the Euro on Austria," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 3, pages 22–34.
  3. Matthieu Bussière & Jarko Fidrmuc & Bernd Schnatz, 2008. "EU Enlargement and Trade Integration: Lessons from a Gravity Model," Review of Development Economics, Wiley Blackwell, vol. 12(3), pages 562-576, 08.

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