The Euro and the Intensive and Extensive Margins of Trade: Evidence from French Firm Level Data
AbstractWe improve the study of the effects of a Currency Union on trade. Using data on French exports at the firm level, we compute an intensive and extensive margins of French exports - with a variety dimension - over the period 1998-2003. Estimation results indicate that nominal exchange rate volatility has a negative effect, which translates into the intensive and extensive margins. We also provide some evidence that the euro had an additional positive effect on the extensive margin; this effect is not related to the reduced nominal exchange rate volatility. This suggests a new varieties effect of the euro.
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Bibliographic InfoPaper provided by CEPII research center in its series Working Papers with number 2008-06.
Date of creation: Apr 2008
Date of revision:
Trade; Export margins; Euro;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- F15 - International Economics - - Trade - - - Economic Integration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-06-07 (All new papers)
- NEP-EEC-2008-06-07 (European Economics)
- NEP-INT-2008-06-07 (International Trade)
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