How do Multiproduct Exporters React to a Change in Trade Costs?*

Antoine Berthou · Lionel Fontagné

65 citations0/0 files storedScandinavian Journal of Economics

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Global trade and economics International Business and FDI Economic and Technological Innovation

Abstract

Abstract We use data on individual French exporters to document how a change in trade costs, following the introduction of the euro, affected the export margins of firms in relation to export decisions, the number of products exported, and the average sales per product. Our results confirm two effects predicted by the theory: firms increase the range of products they export as well as their intensive margin. This effect is most evident in markets with moderate monetary policy coordination before 1999. General equilibrium competition effects reduce the initial positive impact on each of these margins. We find no evidence that firms increase their participation in the export market.

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References

2003The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity 2005Market Size, Trade, and Productivity 1990An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Units 2004Trade Costs 2011The Granular Origins of Aggregate Fluctuations 2007Inference with Difference-in-Differences and Other Panel Data 2003Cluster-Sample Methods in Applied Econometrics 2011An Anatomy of International Trade: Evidence From French Firms

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