Author:
Chen Natalie,Juvenal Luciana
Abstract
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.
Publisher
International Monetary Fund (IMF)
Cited by
3 articles.
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1. Zoll und Steuern;Der Markup als ökonomische Kennzahl;2022
2. Geografie, Regionalökonomie und Infrastruktur;Der Markup als ökonomische Kennzahl;2022
3. Determinants of export pricing at the firm-level: evidence from Egypt;The Journal of International Trade & Economic Development;2021-06-13