Arbeitspapier

Markups, Quality, and Trade Costs

We investigate theoretically and empirically how exporters adjust their markups across destinations depending on bilateral distance, tariffs, and the quality of their exports. Under the assumption that trade costs are both ad valorem and per unit, our model predicts that markups rise with distance and fall with tariffs, but these effects are heterogeneous and are smaller in magnitude for higher quality exports. We find strong support for the predictions of the model using a unique data set of Argentinean firm-level wine exports combined with experts wine ratings as a measure of quality.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 8013

Klassifikation
Wirtschaft
Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
Empirical Studies of Trade
Foreign Exchange
Thema
distance
export unit values
heterogeneity
markups
quality
tariffs
trade costs
wine

Ereignis
Geistige Schöpfung
(wer)
Chen, Natalie
Juvenal, Luciana
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2019

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Chen, Natalie
  • Juvenal, Luciana
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2019

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