How Do Multiproduct Exporters React to a Change in Trade Costs?

28 Pages Posted: 11 Apr 2013

See all articles by Antoine Berthou

Antoine Berthou

Université Paris I Panthéon-Sorbonne - Centre Maison des Sciences Economiques; Paris School of Economics (PSE)

Lionel Fontagne

University of Paris 1 Panthéon Sorbonne; Paris School of Economics; CEPII

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Date Written: April 2013

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.

Keywords: Firm heterogeneity, international trade, multi‐product exporters

JEL Classification: F12, F15

Suggested Citation

Berthou, Antoine and Fontagne, Lionel, How Do Multiproduct Exporters React to a Change in Trade Costs? (April 2013). The Scandinavian Journal of Economics, Vol. 115, Issue 2, pp. 326-353, 2013, Available at SSRN: https://ssrn.com/abstract=2248468 or http://dx.doi.org/10.1111/sjoe.12006

Antoine Berthou (Contact Author)

Université Paris I Panthéon-Sorbonne - Centre Maison des Sciences Economiques ( email )

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Lionel Fontagne

University of Paris 1 Panthéon Sorbonne ( email )

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Paris, 75013
France
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Paris School of Economics ( email )

48 Boulevard Jourdan
Paris, 75014 75014
France
+33 1 44 07 89 94 (Phone)

HOME PAGE: http://lionelfontagne.weebly.com/

CEPII ( email )

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Paris, 75015
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+33 1 53 68 55 06 (Phone)

HOME PAGE: http://lionelfontagne.weebly.com/

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