How do multi-product exporters react to a change in trade costs?

Keywords:

Abstract:

Introduction
Few - but large - firms concentrate a high proportion of countries’ exports (Eaton, Kortum and Kramarz, 2004 - Mayer and Ottaviano, 2007)
These firms are typically multi-product exporters:
Iacovone and Javorcik (2008) : 62% of Mexican firms export a single product category
Bernard, Jensen, Redding and Schott (2007) ⇒ only 42% of US firms export a single product category
What about French exporters? ⇒ 70% of French exporters do export more than a single product category
How do firms adjust their exports consecutive to a change in trade costs ?
Our objective is to measure the relative contribution firm selection, product selection, and value of exports by product
First, we consider the adjustment of firm-level exports in the cross section: effect of distance
Second, we provide evidence about the dynamic adjustment of firm-level exports: euro adoption in 1999
We make use of French exports data at the firm level (French customs) and firms characteristics (EAE business survey)