TY - CEPII
A1 - Julien Martin
A1 - Isabelle Méjean
TI - Trade Prices and the Euro
IS - 2008-29
T3 - Working Papers
KW - International trade
KW - International trade prices
KW - European monetary integration
N2 - This paper describes the impact of the Euro on i) the level, ii) the evolution and iii) the dispersion of trade prices. This empirical analysis relies on firm level data about French exports over the period 1995-2005. We find that the elimination of exchange rate fluctuations reduces the pricing to market behavior of French exporters. At the beginning of the EMU, we also observe an increase in aggregate prices for sales in the Euro zone. This price increase does not compensate for the aggregate price gap between cheaper EMU markets and more expensive non-EMU countries. Last we find that the Euro has affected firms’ pricing strategies leading to a reduction of the price dispersion inside the Euro zone.
ER -