Variable Trade Costs, Composition Effects, and the Intensive Margin of Trade

Lionel Fontagné and Antoine Berthou

Working Papers from CEPII research center

Abstract: We estimate the elasticity of extra-EU French firm-level exports with respect to applied tariffs -- a variable trade cost. We propose a methodology controlling for unobserved firm characteristics driving selection in exports market and for the resistance terms. Results confirm a significant negative impact of tariffs on firm-level exports, with one fifth of this impact falling on the induced adjustment in the exporters' product mix. When controlling for this adjustment and focusing on the core exported products, the elasticity of the product-destination firm-level exports with respect to applied tariffs is estimated at about -2.5.

Keywords: international trade; firm heterogeneity; multi-product exporters; trade elasticity (search for similar items in EconPapers)
JEL-codes: F12 F15 (search for similar items in EconPapers)
Date: 2015-06
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Related works:
Journal Article: Variable Trade Costs, Composition Effects and the Intensive Margin of Trade (2016)
Working Paper: Variable Trade Costs, Composition Effects and the Intensive Margin of Trade (2016)
Working Paper: Variable Trade Costs, Composition Effects and the Intensive Margin of Trade (2016)
Working Paper: Variable Trade Costs, Composition Effects and the Intensive Margin of Trade (2016)
Working Paper: Variable Trade Costs, Composition Effects, and the Intensive Margin of Trade (2015)
Working Paper: Variable Trade Costs, Composition Effects and the Intensive Margin of Trade (2015)
Working Paper: Variable Trade Costs, Composition Effects and the Intensive Margin of Trade (2015)
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