How Exporters Set Prices: Evidence from a Large Behavioural Survey

36 Pages Posted: 3 Feb 2017

Date Written: November 11, 2016

Abstract

This paper uses a survey of 1281 New Zealand exporters to investigate the role of firm characteristics in setting export prices. Larger, and more productive firms, are more likely to differentiate prices across markets. Primary sector firms are more likely to price to market than firms in other sectors, even taking into account other firm characteristics. This contrasts sharply with the commonly-held view that the price of these products is determined on the international market. In a further contribution to the literature, we find that service sector firms can also price to market, at similar rates to manufacturers.

Keywords: export pricing, pricing to market, invoicing, survey

JEL Classification: E30, F31, F41

Suggested Citation

Parker, Miles Ian, How Exporters Set Prices: Evidence from a Large Behavioural Survey (November 11, 2016). ECB Working Paper No. 1974. Available at SSRN: https://ssrn.com/abstract=2910854

Miles Ian Parker (Contact Author)

Reserve Bank of New Zealand ( email )

2 The Terrace
P.O. Box 2498
Wellington
New Zealand

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