Price Cost Margins and Exporting Behaviour: Evidence from Firm Level Data
AbstractThis paper examines whether exporting activity matters for firm's price cost margins. The recent literature on exporting and productivity shows that exporters on average are more efficient than nonexporters. If that is the case we may also expect them to have different mark-ups. We investigate this issue using company level data for UK manufacturing industries. The measurement of mark-ups follows the recent approach presented by Roeger (1995). Our results show that, on average, exporters have higher mark-ups than non-exporters. We also distinguish sectors into homogeneous and differentiated goods producing. This distinction shows that we only find higher mark-ups for exporters in differentiated goods sectors, not in homogeneous sectors.
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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 365.
Length: 17 p.
Date of creation: 2003
Date of revision:
exports; mark-ups; price cost margins; productivity;
Other versions of this item:
- Holger Gæ””g & Frederic Warzynski, 2003. "Price cost margins and exporting behaviour: Evidence from firm level data," LICOS Discussion Papers 13303, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- F1 - International Economics - - Trade
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- L6 - Industrial Organization - - Industry Studies: Manufacturing
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