The Effect of the Euro on Aeronautic Trade: A French Regional Analysis

Fabien Candau () and Serge Rey

Working Papers from HAL

Abstract: After describing the spatial distribution of the aeronautic industry in France, this study analyzes the determinants of French regional bilateral exports and imports, according to a trade gravity model, for the period 2003–2010. The appreciation of the euro has a negative impact on exports and a positive effect on imports, confirming the fears of European politicians and managers in the aeronautics sector. The gravity equation, extended to integrate factor complementarities among partners, also shows that labor productivity levels in France and its partner countries are significant determinants of trade, supporting O-ring theory applied from Kremer (1993) to explicate trade in the aeronautical sector. The spatial organization of this sector is also analyzed via the impact of foreign military spending on French trade. Finally, by distinguishing French imports and arrivals of products manufactured in Europe and in France, supplementary estimations reveal that outward foreign direct investment FDI affects the imports and arrivals of European products negatively but has positive influences on the imports and arrivals of French products.

Keywords: French regional clusters; Aeronautic trade; Aerospace industry; Gravity model (search for similar items in EconPapers)
Date: 2013-09
Note: View the original document on HAL open archive server: https://hal.science/hal-01847941v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://hal.science/hal-01847941v1/document (application/pdf)

Related works:
Journal Article: The effect of the euro on aeronautic trade: A French regional analysis (2014)
Working Paper: The Effect of the Euro on Aeronautic Trade: A French Regional Analysis (2014)
Working Paper: The Effect of the Euro on Aeronautic Trade: A French Regional Analysis (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-01847941

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().