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How do Multiproduct Exporters React to a Change in Trade Costs? *
Author(s) -
Berthou Antoine,
Fontagné Lionel
Publication year - 2013
Publication title -
the scandinavian journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.725
H-Index - 64
eISSN - 1467-9442
pISSN - 0347-0520
DOI - 10.1111/sjoe.12006
Subject(s) - margin (machine learning) , economics , competition (biology) , product (mathematics) , international economics , monetary economics , international trade , ecology , geometry , mathematics , machine learning , computer science , biology
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.