Trade and the Euro: effects on bystanders

Figures & data

Table 1. Data description and sources (1997–2003 period).

Characteristics	Definition (source)	Mean (min, max)
Firm level (based on all firm-year observations)
TFP	Total factor productivity defined as in Olley and Pakes (1996).	22,092 (3.21, 8,896,455)
Employees	Number of employees in full year equivalents.	54 (1, 20,091)
Destination level (based on all destination-year observations)
GDP	Gross domestic product in billions of current US$ (CEPII).	550 (0.275, 15,500)
Euro	Dummy variable taking the value of 1 from 1999 for each trade partner belonging to the Eurozone and 0 otherwise.
Sample information
Importers	The sample consists of 71 high-income OECD and non-OECD countries.
Eurozone	Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain
EU	Eurozone + Denmark and UK
Exporters	In our sample, the share of exporting firms is 79% and 57% of the firms export to the Eurozone countries.
Firms	The sample of 11,939 firms excludes firms existing for less than 3 years and that have less than 10 employees throughout the whole period.

Table 2. Euro effect on bystanders, 1997–2003.

	Intensive margin				Extensive margin
	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
Euro	0.119***	0.124**	0.121***	0.129***	0.009*	0.009	0.009*	0.022***
	(0.001)	(0.018)	(0.001)	(0.000)	(0.129)	(0.111)	(0.087)	(0.001)
lnGDP	0.391**	0.256***	0.390**	0.391**	0.092***	0.093***	0.092***	0.092***
	(0.023)	(0.434)	(0.023)	(0.023)	(0.000)	(0.008)	(0.007)	(0.007)
lnTFP	1.100***	1.168***	1.165***	1.100***	0.145***	0.173***	0.150***	0.147***
	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)
ln Employment	−5.546***	−6.426***	−6.034***	−5.541***	−0.405***	−0.521***	−0.443***	−0.422***
	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)
$Euro\times Mediumfirm$				−0.0420*				−0.020**
				(0.059)				(0.000)
$Euro\times Largefirm$				0.039				−0.055***
				(0.154)				(0.000)
Sample	All dest.	EU	All dest.	All dest	All dest.	EU	All dest.	All dest
Fixed effects	Firm-dest. Trend (dest) Year	Firm-dest. Trend (dest) Year	Firm-dest. Trend (dest) Year Year-ind.	Firm-dest. Trend (dest) Year	Firm-dest. Trend (dest) Year	Firm-dest. Trend (dest) Year	Firm-dest. Trend (dest) Year Year-ind.	Firm-dest. Trend (dest) Year
Observations	352,546	193,343	352,546	352,546	864,075	451,708	864,075	864,075
R^2	0.810	0.825	0.811	0.810	0.606	0.611	0.606	0.606

Robust p-values (in parentheses) are based on SEs clustered at destination level. ***, **, and * denote statistical significance at the 1%, 5% and 10% level of significance, respectively. The estimations of the intensive margin only include firms with positive exports.

Olley, G. S., and A. Pakes. 1996. “The Dynamics of Productivity in the Telecommunications Equipment Industry.” Econometrica 64 (6): 1263–1297. doi:10.2307/2171831.

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