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Markup heterogeneity, export status ans the establishment of the euro

Author

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  • Sarah Guillou

    (Observatoire français des conjonctures économiques)

  • Lionel Nesta

    (Observatoire français des conjonctures économiques)

Abstract

We investigate the effects of the establishment of the euro on the markups of French manufacturing firms. Merging firm-level census data with customs data, we estimate time-varying firm-specific markups and distinguish between eurozone exporters from other firms between 1995 and 2007. We find that the establishment of the euro has had a pronounced pro-competitive impact by reducing firm markups by 14 percentage points. By reducing export costs, the euro represented an opportunity for eurozone exporters to increase their margins relative to other firms. Quantile regressions show that the euro has led to a reduction in the variance of markups.

Suggested Citation

  • Sarah Guillou & Lionel Nesta, 2015. "Markup heterogeneity, export status ans the establishment of the euro," Sciences Po publications 2015-01, Sciences Po.
    • Handle: RePEc:spo:wpmain:info:hdl:2441/6pke7tv6t487qo0f4obl29kjs6
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    References listed on IDEAS

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    Cited by:

    1. Ana Cristina Soares & Rita Sousa, 2023. "Markup premium of Portuguese exporters," Economic Bulletin and Financial Stability Report Articles and Banco de Portugal Economic Studies, Banco de Portugal, Economics and Research Department.
    2. Chih‐Hai Yang, 2021. "Do exporters have markup premiums and why (not)? Evidence from China," The World Economy, Wiley Blackwell, vol. 44(4), pages 956-979, April.

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    More about this item

    Keywords

    Markups; Heterogeneity; Euro; Competition; Export destinations;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • F61 - International Economics - - Economic Impacts of Globalization - - - Microeconomic Impacts
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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