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An Analysis of the Dynamics of French Firms' Exports from 2000 to 2009: lessons for the Recovery

Listed author(s):
  • Jean-Charles Bricongne

    (Centre de recherche de la Banque de France - Banque de France)

  • Lionel Fontagné

    ()

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, PSE - Paris School of Economics)

  • Guillaume Gaulier

    (Banque de France)

  • Vincent Vicard

    ()

    (Centre de recherche de la Banque de France - Banque de France, PSE - Paris School of Economics)

This chapter draws on yearly data for the period 2000-09 relating to individual French exporters to analyse the changes in France's overall export value in response to demand shocks and to shed light on the debate surrounding trade elasticities. Over the medium term, two-thirds of the increase in overall exports witnessed during the observation period was accounted for by an expansion in existing trade flows, thereby leaving scope for new flows. Over the very short term, by contrast, trade flows adjust mainly at the intensive margin to large swings in demand. All this underlines the potential role of sunk costs, which introduce irreversibility into export decisions.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number hal-00639907.

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Date of creation: 2011
Publication status: Published in Filippo Di Mauro, Benjamin R. Mandel. Recovery and Beyond: Lessons for trade Adjustment and Competitiveness, European Central Bank, pp.163-173, 2011
Handle: RePEc:hal:cesptp:hal-00639907
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00639907
Contact details of provider: Web page: https://hal.archives-ouvertes.fr/

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