The Variation of Export Prices Across and within Firms
29 Pages Posted: 17 Jan 2017
Date Written: 2016
This paper uses transaction-level trade data to analyse the differences in export prices across and within Spanish manufacturing firms in the year 2014. The transactional nature of the database uncovers sizable differences in the price that an exporter charges for the same product and destination. These differences are related to the number of goods covered within each product category, volume discounts and vertically differentiated varieties. Export prices are positively correlated with firms’ productivity, destination markets’ GDP per capita and distance to Spain. These latter results suggest that Spanish exporters compete in quality.
Keywords: export prices, firm-level transaction data, heterogeneous firms, quality, Spain
JEL Classification: F1, F10, F23
Suggested Citation: Suggested Citation