Arbeitspapier

Why do within firm-product export prices differ across markets?

In this paper we analyze the relationship between gravity variables and f.o.b. export unit values using Hungarian firm-product-destination data. By taking firm-product level selection into account we show that export unit values increase with distance even for particular firm-product level selection and constant markups. The differences are important quantitatively; price differences in Hungarian exports between Germany and the US are about 30%. We also show that unit values are positively related to GDP/capita and that there is a weak negative relationship between unit values and market size. We propose two possible explanations: first, firms may export different quality versions of the same product to different markets. Secondly, directly exporting firms may capture part of the markups on transport cots in their f.o.b. prices.

Sprache
Englisch

Erschienen in
Series: Kiel Working Paper ; No. 1596

Klassifikation
Wirtschaft
Market Structure, Pricing, and Design: General
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Thema
Export
price
selection
Hungary

Ereignis
Geistige Schöpfung
(wer)
Görg, Holger
Halpern, László
Muraközy, Balázs
Ereignis
Veröffentlichung
(wer)
Kiel Institute for the World Economy (IfW)
(wo)
Kiel
(wann)
2010

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Görg, Holger
  • Halpern, László
  • Muraközy, Balázs
  • Kiel Institute for the World Economy (IfW)

Entstanden

  • 2010

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