Export Price Discrimination in Europe and Exchange Rates
AbstractThe paper studies pricing-to-market behavior on a wide range of disaggregated European Union exports to OECD countries. The sample allows better identification of products for which such behavior is pervasive. The results suggest that the degree of markup adjustment in response to exchange rate changes is similar across destination markets. The evidence of pricing-to-market across source countries ranges from 40% (Netherlands) to 63% (Germany) of the products in the sample, except for the United Kingdom, where there is remarkably little evidence of it. However, formal comparisons across source countries by product do not usually reveal differences in behavior. Copyright 2002 by Blackwell Publishing Ltd.
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Review of International Economics.
Volume (Year): 10 (2002)
Issue (Month): 2 (May)
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- Gervais, Jean-Philippe & Larue, Bruno, 2006. "A Joint Test of Price Discrimination, Menu Cost and Currency Invoicing," MPRA Paper 565, University Library of Munich, Germany.
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