Why Do Within Firm-Product Export Prices Differ across Markets?

Holger Görg, László Halpern () and Balazs Murakozy

No 1003, CERS-IE WORKING PAPERS from Institute of Economics, Centre for Economic and Regional Studies

Abstract: In this paper we analyse 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 combinations. This cannot be explained by models assuming firm- or even 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 costs in their f.o.b. prices.

Keywords: export; price; selection; Hungary (search for similar items in EconPapers)
JEL-codes: D40 F12 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2010-02
New Economics Papers: this item is included in nep-bec and nep-int
References: Add references at CitEc
Citations: View citations in EconPapers (46)

Downloads: (external link)
http://econ.core.hu/file/download/mtdp/MTDP1003.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to econ.core.hu:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
Working Paper: Why do within firm-product export prices differ across markets? (2010)
Working Paper: Why do within firm-product export prices differ across markets? (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:has:discpr:1003

Access Statistics for this paper

More papers in CERS-IE WORKING PAPERS from Institute of Economics, Centre for Economic and Regional Studies Contact information at EDIRC.
Bibliographic data for series maintained by Nora Horvath ( this e-mail address is bad, please contact ).