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http://hdl.handle.net/10419/30051
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| Title: | | Why do within firm-product export prices differ across markets?  |
| Authors: | | Görg, Holger Halpern, László Muraközy, Balázs |
| Issue Date: | | 2010 |
| Series/Report no.: | | Kiel working paper 1596 |
| Abstract: | | 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. |
| Subjects: | | Export price selection Hungary |
| JEL: | | D40 F12 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des IfW Economists Online Kieler Arbeitspapiere, IfW
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