Journal
JOURNAL OF INTERNATIONAL ECONOMICS
Volume 97, Issue 1, Pages 100-111Publisher
ELSEVIER SCIENCE BV
DOI: 10.1016/j.jinteco.2015.04.007
Keywords
Exporters; Firm level data; Pricing; Heterogeneous firms
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Funding
- University of Virginia
- Fundamental Research Funds for the Central Universities in UIBE [7600011127]
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Using confidential firm-level data from the United States in 2002, we show that exporting firms charge prices for narrowly defined goods that differ substantially with the characteristics of firms and export markets. We control for selection into export markets using a three-stage estimator. We have three main results. First, we find that highly productive and skill-intensive firms charge higher prices, while capital-intensive firms charge lower prices. Second, U.S. firms charge substantially higher prices to markets other than Canada and Mexico. Third, the correlation between distance and product-level export prices is largely due to a composition effect. (C) 2015 Elsevier B.V. All rights reserved.
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