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Pricing to market of Italian exporting firms

Author

Listed:
  • Roberto Basile
  • Sergio de Nardis
  • Alessandro Girardi

Abstract

This article investigates the pricing-to-market (PTM) behaviour of Italian exporting firms, using quarterly survey data by sector and by region over the period 1999q1 to 2005q2. A partial equilibrium imperfect competition model provides the structure according to which the orthogonality of structural shocks is derived. Impulse response analysis shows non-negligible reactions of export-domestic price margins to unanticipated changes in cost competitiveness and in foreign and domestic demand levels, even though these effects appear to be of a transitory nature. For the period 1999 to 2001, a typical PTM behaviour emerges, while, during the most recent years favourable foreign demand conditions allowed firms to increase their export-domestic price margins in face of a strong deterioration of their cost competitiveness. Macroeconomic implications of the observed PTM behaviour are also discussed.

Suggested Citation

  • Roberto Basile & Sergio de Nardis & Alessandro Girardi, 2009. "Pricing to market of Italian exporting firms," Applied Economics, Taylor & Francis Journals, vol. 41(12), pages 1543-1562.
    • Handle: RePEc:taf:applec:v:41:y:2009:i:12:p:1543-1562
    DOI: 10.1080/00036840601032219
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    Citations

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    Cited by:

    1. Sarah Guillou & Stefano Schiavo, 2010. "Export Prices and Increasing World Competition: Evidence from French, German, and Italian Pricing Behaviour," Chapters, in: Jean-Luc Gaffard & Evens Salies (ed.), Innovation, Economic Growth and the Firm, chapter 10, Edward Elgar Publishing.
    2. Jean-Luc Gaffard & Evens Salies (ed.), 2010. "Innovation, Economic Growth and the Firm," Books, Edward Elgar Publishing, number 13101.
    3. repec:hal:wpspec:info:hdl:2441/6123 is not listed on IDEAS
    4. Sarah Guillou & Stefano Schiavo, 2009. "Tarification au marché et variation des marges à l’exportation," SciencePo Working papers Main hal-03459937, HAL.
    5. Strasser, Georg, 2013. "Exchange rate pass-through and credit constraints," Journal of Monetary Economics, Elsevier, vol. 60(1), pages 25-38.
    6. Baiardi, Donatella & Bianchi, Carluccio & Lorenzini, Eleonora, 2015. "The price and income elasticities of the top clothing exporters: Evidence from a panel data analysis," Journal of Asian Economics, Elsevier, vol. 38(C), pages 14-30.
    7. repec:spo:wpecon:info:hdl:2441/6123 is not listed on IDEAS
    8. Borin, Alessandro & Lamieri, Marco, 2007. "Estimating Product Quality in International Trade," MPRA Paper 14678, University Library of Munich, Germany.
    9. repec:hal:spmain:info:hdl:2441/9708 is not listed on IDEAS
    10. TESTA, Giuseppina, 2015. "The Effect of the Euro Competition Over Innovation Decisions and Labor Productivity," CELPE Discussion Papers 135, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    11. repec:hal:spmain:info:hdl:2441/6123 is not listed on IDEAS
    12. Sarah Guillou & Stefano Schiavo, 2009. "Tarification au marché et variation des marges à l'exportation. Une étude des prix d'exportation allemands, français et italiens," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 165-184.
    13. Roberto Basile & Sergio de Nardis & Alessandro Girardi, 2012. "Pricing to market, firm heterogeneity and the role of quality," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 148(4), pages 595-615, December.
    14. Hélène Erkel-Rousse, 2006. "Les enquêtes de conjoncture : de l'analyse conjoncturelle aux études structurelles," Économie et Statistique, Programme National Persée, vol. 395(1), pages 3-11.

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    More about this item

    JEL classification:

    • E30 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - General (includes Measurement and Data)
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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