The Euro and the Intensive and Extensive Margins of Trade: Evidence from French Firm Level Data

Antoine Berthou and Lionel Fontagné

Working Papers from CEPII research center

Abstract: We improve the study of the effects of a Currency Union on trade. Using data on French exports at the firm level, we compute an intensive and extensive margins of French exports - with a variety dimension - over the period 1998-2003. Estimation results indicate that nominal exchange rate volatility has a negative effect, which translates into the intensive and extensive margins. We also provide some evidence that the euro had an additional positive effect on the extensive margin; this effect is not related to the reduced nominal exchange rate volatility. This suggests a new varieties effect of the euro.

Keywords: Trade; Export margins; Euro (search for similar items in EconPapers)
JEL-codes: F10 F15 (search for similar items in EconPapers)
Date: 2008-04
New Economics Papers: this item is included in nep-eec and nep-int
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Citations: View citations in EconPapers (60)

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Persistent link: https://EconPapers.repec.org/RePEc:cii:cepidt:2008-06

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