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Markup heterogeneity, export status and the establishment of the euro Classification-JEL :C5,D43,F61,L16,L60

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  • Sarah Guillou

    (Ofce,Sciences-po)

  • Lionel Nesta Author-Workplace-Name :Ofce Sciences-po,gredeg Cnrs and Skema Business School

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 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).
    • Handle: RePEc:fce:doctra:1501
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    File URL: http://www.ofce.sciences-po.fr/pdf/dtravail/WP2015-01.pdf
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