Markup heterogeneity, export status ans the establishment of the euro

We investigate the effects of the establishment of the euro on the\nmarkups of French manufacturing firms. Merging firm-level census\ndata with customs data, we estimate time-varying firm-specific markups\nand distinguish between eurozone exporters from other firms between\n1995 and 2007. We find that the establishment of the euro has had a\npronounced pro-competitive impact by reducing firm markups by 14\npercentage points. By reducing export costs, the euro represented an\nopportunity for eurozone exporters to increase their margins relative\nto other firms. Quantile regressions show that the euro has led to a\nreduction in the variance of markups.\n