Export Destinations and Input Prices

48 Pages Posted: 10 Jan 2017

See all articles by Eric A. Verhoogen

Eric A. Verhoogen

Columbia University - School of International & Public Affairs (SIPA); IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

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Date Written: June 1, 2014

Abstract

This paper examines the extent to which the destination of exports matters for the input prices paid by firms, using detailed customs and firm-product-level data from Portugal. The authors use exchange rate movements as a source of variation in export destinations and find that exporting to richer countries leads firms to charge more for outputs and pay higher prices for inputs, other things equal. The results are supportive of the hypothesis that an exogenous increase in average destination income leads firms to raise the average quality of goods they produce and to purchase higher-quality inputs.

Keywords: Markets and Market Access, Economic Theory & Research, Emerging Markets, Access to Markets, Debt Markets

Suggested Citation

Verhoogen, Eric A., Export Destinations and Input Prices (June 1, 2014). World Bank Policy Research Working Paper No. 6914, Available at SSRN: https://ssrn.com/abstract=2895391

Eric A. Verhoogen

Columbia University - School of International & Public Affairs (SIPA) ( email )

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New York, NY 10027
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

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