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The Euro Effects on the Firm and Product-Level Trade Margins: Evidence from France

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  • Antoine Berthou
  • Lionel Fontagné

Abstract

We investigate the effects of the euro on French exporters. We build three margins corresponding to the decision of exporting, the number of products exported to each destination, and the average value of exports by product, that compose the expected value of exports of each individual firm on a market. Estimation results that rely on the full sample of exporters suggest that the euro adoption had a positive effect on the number of products exported by each individual firm, and no effect on the decision to export and the average value of exports by product. Though, composition effects are in action: the effect on the decision of exporting, and on the average value of exports by products, is positive - but weakly significant - for firms with more than 20 employees. Finally, we find that euro had no effect on least productive firms.

Suggested Citation

  • Antoine Berthou & Lionel Fontagné, 2008. "The Euro Effects on the Firm and Product-Level Trade Margins: Evidence from France," Working Papers 2008-21, CEPII research center.
    • Handle: RePEc:cii:cepidt:2008-21
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    References listed on IDEAS

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    1. Sébastien Jean & David Laborde & Will Martin, 2008. "Choosing Sensitive Agricultural Products in Trade Negotiations," Working Papers 2008-18, CEPII research center.
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    Cited by:

    1. Chen, Natalie & Novy, Dennis, 2017. "Currency unions, trade and heterogeneity," LSE Research Online Documents on Economics 88487, London School of Economics and Political Science, LSE Library.
    2. J.M.C. Santos Silva & Silvana Tenreyro, 2010. "Currency Unions in Prospect and Retrospect," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 51-74, September.
    3. Tibor Lalinsky & Jaanika Meriküll, 2021. "The Effect of the Single Currency on Exports: Comparative Firm-Level Evidence," International Journal of Central Banking, International Journal of Central Banking, vol. 17(3), pages 203-239, September.
    4. Lota Tamini & Mankan M. Koné & Aristide B. Valéa, 2019. "Impact de la modification de la structure tarifaire américaine sur les exportations bioalimentaires québécoises - Partie 2 : Structure du commerce et des investissements directs étrangers des principa," CIRANO Project Reports 2019rp-03, CIRANO.
    5. Agnès Bénassy-Quéré & Antoine Berthou & Lionel Fontagné, 2010. "Economic Divergence Within the Euro Area: Lessons for EMU Enlargement," Chapters, in: Ewald Nowotny & Peter Mooslechner & Doris Ritzberger-Grünwald (ed.), The Euro and Economic Stability, chapter 11, Edward Elgar Publishing.
    6. Sarah Guillou & Lionel Nesta, 2015. "Markup heterogeneity, export status ans the establishment of the euro," Sciences Po publications 2015-01, Sciences Po.
    7. James E. Anderson & Yoto V. Yotov, 2020. "Pound for Pound Export Diversification," CESifo Working Paper Series 8800, CESifo.
    8. Natalie Chen & Dennis Novy, 2022. "Gravity and Heterogeneous Trade Cost Elasticities," The Economic Journal, Royal Economic Society, vol. 132(644), pages 1349-1377.
    9. repec:hal:spmain:info:hdl:2441/6pke7tv6t487qo0f4obl29kjs6 is not listed on IDEAS
    10. Philippe Andrade, 2010. "Competition and Pass-through on international markets: Firm-level evidence from VAT shocks," 2010 Meeting Papers 820, Society for Economic Dynamics.
    11. Santos Silva, J.M.C. & Tenreyro, Silvana & Wei, Kehai, 2014. "Estimating the extensive margin of trade," Journal of International Economics, Elsevier, vol. 93(1), pages 67-75.
    12. Nicolas Berman & Philippe Martin & Thierry Mayer, 2009. "How do Different Exporters React to Exchange Rate Changes? Theory, Empirics and Aggregate Implications," Working Papers 2009-32, CEPII research center.
    13. Sarah Guillou & Lionel Nesta Author-Workplace-Name :Ofce Sciences-po,gredeg Cnrs and Skema Business School, 2015. "Markup heterogeneity, export status and the establishment of the euro Classification-JEL :C5,D43,F61,L16,L60," Documents de Travail de l'OFCE 2015-01, Observatoire Francais des Conjonctures Economiques (OFCE).
    14. Matthieu Crozet & Lionel Fontagné, 2010. "L'internationalisation des entreprises : une analyse microéconomique de la mondialisation," Économie et Statistique, Programme National Persée, vol. 435(1), pages 3-12.
    15. Silviano Esteve‐Pérez & Salvador Gil‐Pareja & Rafael Llorca‐Vivero & José Antonio Martínez‐Serrano, 2020. "EMU and trade: A PPML re‐assessment with intra‐national trade flows," The World Economy, Wiley Blackwell, vol. 43(10), pages 2574-2599, October.
    16. repec:hal:spmain:info:hdl:2441/10221 is not listed on IDEAS
    17. Salamat Ali & Richard Kneller & Chris Milner, 2017. "Market-specific trade costs and firm dynamics in Pakistan: Evaluating the US integrated cargo containers control programme," Discussion Papers 2017-02, University of Nottingham, GEP.
    18. Salamat Ali, 2016. "Export Response to Sanitary and Phytosanitary Measures and Technical Barriers to Trade: Firm-level Evidence from a Developing Country," Discussion Papers 2016-02, University of Nottingham, CREDIT.
    19. Erik Figueiredo & Luiz Lima & Georg Schaur, 2016. "The effect of the Euro on the bilateral trade distribution," Empirical Economics, Springer, vol. 50(1), pages 17-29, February.

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    More about this item

    Keywords

    Trade; Export margins; Euro; France;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration

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