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Exchange Rates and Strategic Pricing: The Case of Swedish Machinery Exports

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Author Info
Athukorala, Premachandra
Menon, Jayant

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Abstract

This paper examines the impact of exchange-rate changes on export pricing behavior through the estimation of export price equations for Swedish exports of machinery and transport equipment and four subcategories therein. The results support the pricing to market hypothesis that exporters adjust their profit margins in response to exchange-rate changes or remain competitive in the world market. Thus, the main conclusion of this study is that no matter how small a country is in terms of its market share, if specialized in a range of products, there is no presumption that it is a price-taker in the world market. Copyright 1995 by Blackwell Publishing Ltd

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Publisher Info
Article provided by Department of Economics, University of Oxford in its journal Oxford Bulletin of Economics & Statistics.

Volume (Year): 57 (1995)
Issue (Month): 4 (November)
Pages: 533-46
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Handle: RePEc:bla:obuest:v:57:y:1995:i:4:p:533-46

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  1. Stahn, Kerstin, 2009. "Changes in import pricing behaviour: the case of Germany," Discussion Paper Series 1: Economic Studies 2009,14, Deutsche Bundesbank, Research Centre. [Downloadable!]
  2. Adolfson, Malin, 1999. "Swedish Export Price Determination: Pricing to Market Shares?," Working Paper Series in Economics and Finance 306, Stockholm School of Economics. [Downloadable!]
    Other versions:
  3. Sabine Stephan, 2005. "Pricing-to-Market Effects in Foreign Trade Prices. Evidence from a Cointegration Approach for Germany," IMK Working Paper 07-2005, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute. [Downloadable!]
  4. Michel Fouquin & Khalid Sekkat & J. Malek Mansour & Nanno Mulder & Laurence Nayman, 2001. "Sector Sensitivity to Exchange Rate Fluctuations," Working Papers 2001-11, CEPII research center. [Downloadable!]
  5. barhoumi karim, 2005. "Long Run Exchange Rate Pass-Through Into Import Prices In Developing Countries: An Homogeneous or Heterogeneous Phenomenon?," Economics Bulletin, Economics Bulletin, vol. 6(14), pages 1-12. [Downloadable!]
  6. Minsoo Lee & Moonjoong Tcha, 2005. "Pass-Through Elasticity, Substitution and Market Share: the Case for Sheep Meat Exports," Journal of International Trade & Economic Development, Taylor and Francis Journals, vol. 14(2), pages 209-228, June. [Downloadable!] (restricted)
  7. Carlo Gola, 2000. "Export pricing strategy of Italian firms: from the depreciation of the lira to the euro," LIUC Papers in Economics 77, Cattaneo University (LIUC). [Downloadable!]
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This page was last updated on 2009-12-19.


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