Export prices and markups with a common currency: Empirical evidence from Greek exporting firms and euro adoption

Kyriakos Drivas, Sarantis Kalyvitis and Margarita Katsimi

International Review of Economics & Finance, 2023, vol. 87, issue C, 79-98

Abstract: We estimate the effect of euro adoption on prices using data on Greek exporters spanning over the period 1999–2007. The overall impact of the euro on the prices of exports was negligible, but it masks significant heterogeneity across firms with different levels of pre-euro productivity. Our benchmark estimates indicate that the prices set by initially high-productivity firms rose on average by 8.9%. Our evidence further shows that these firms also raised their markups after euro adoption, whereas less efficient firms lowered their markups.

Keywords: Common currency; Euro; Firm exports; Prices; Markups; Productivity (search for similar items in EconPapers)
JEL-codes: F1 F4 (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056023001375
Full text for ScienceDirect subscribers only

Related works:
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:eee:reveco:v:87:y:2023:i:c:p:79-98

DOI: 10.1016/j.iref.2023.04.021

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().