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• W109380787 abstract "Bulgaria follows a currency board tied to the euro and we find that multi-product firms (MPFs) specializing only in Non-EU markets absorb exchange rate movements relatively more in their export volume than in their prices of every variety. Such effects can be however offset by cannibalization effects and the higher costs of producing new varieties to Non-EU countries. Bulgarian trade flows across destinations and price setting are found to reflect the decisions by MPFs to vary the range of their exported products across EU and Non-EU markets. We find that firms selling their products in both EU and Non-EU markets export relatively more varieties in markets with tougher competition such as in the EU. Rising costs of producing more varieties for EU markets are likely compensated with the absence of exchange rate risks and other benefits from participating in EU markets. We also find that not all of the higher costs are passed on to EU consumer prices, as some costs are absorbed by the firm itself resulting from cannibalization effects. A main conclusion is that Bulgarian firm-level productivity increases are entirely driven by firms exporting both relatively higher volumes, and more varieties, to EU markets." @default.
• W109380787 created "2016-06-24" @default.
• W109380787 creator A5090063394 @default.
• W109380787 date "2014-01-01" @default.
• W109380787 modified "2023-09-27" @default.
• W109380787 title "How Will Bulgarian Exporters Benefit from Adopting the Euro? The Dynamics of Multi-Product Firms" @default.
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• W109380787 doi "https://doi.org/10.2139/ssrn.2461369" @default.
• W109380787 hasPublicationYear "2014" @default.
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