Markup Heterogeneity, Export Status and the Establishment of the Euro

Sarah Guillou and Lionel Nesta

No 2017-35, GREDEG Working Papers from Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France

Abstract: We investigate the effects of the establishment of the euro on the markups of French manufacturing firms. Merging firm-level census data with customs data, we estimate time-varying firm-specific markups and distinguish between eurozone exporters from other firms between 1995 and 2007. We find that the establishment of the euro has had a pronounced pro-competitive impact by reducing firm markups by 14 percentage points. By reducing export costs, the euro represented an opportunity for eurozone exporters to increase their margins relative to other firms. Quantile regressions show that the euro has led to a reduction in the variance of markups.

Keywords: Markups; Heterogeneity; Euro; Competition; Export Destination (search for similar items in EconPapers)
JEL-codes: C5 D43 F61 L16 L60 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2017-11
New Economics Papers: this item is included in nep-eec and nep-int
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Related works:
Working Paper: Markup Heterogeneity, Export Status and the Establishment of the Euro (2015)
Working Paper: Markup heterogeneity, export status ans the establishment of the euro (2015)
Working Paper: Markup heterogeneity, export status ans the establishment of the euro (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:gre:wpaper:2017-35

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