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

Antoine Berthou and Lionel Fontagné

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: We estimate the elasticity of extra EU French firm-level exports with respect to applied tariffs – a variable trade cost. We implement a method controlling for unobserved firm characteristics driving selection in exports market, and controlling for the multilateral 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: trade elasticity; trade; International trade; firm heterogeneity; multi-product exporters; coûts de transaction (search for similar items in EconPapers)
Date: 2016-01
Note: View the original document on HAL open archive server: https://hal.science/hal-01242018v1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (36)

Published in The World Economy, 2016, 39 (1), pp.54-71. ⟨10.1111/twec.12313⟩

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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 (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)
Working Paper: Variable Trade Costs, Composition Effects and the Intensive Margin of Trade (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-01242018

DOI: 10.1111/twec.12313

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