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The Quality of a Firm’s Exports: Where you Export to Matters

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  • Paulo Bastos
  • Joana Silva

Abstract

What drives export quality? Using firm-level data from Portugal on exports by product and destination market, we find that free-on-board unit values increase systematically with distance, and tend to be higher in shipments to richer nations. These relationships reflect not only the selection of firms across markets, but also the within-firm selection of product varieties across destinations. Furthermore, they prevail irrespective of the size of the exporter and the value of the export flow.

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File URL: http://www.nottingham.ac.uk/gep/documents/papers/2008/08-18.pdf
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Paper provided by University of Nottingham, GEP in its series Discussion Papers with number 08/18.

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Handle: RePEc:not:notgep:08/18

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Keywords: Firm-level exporting; product quality; destination markets.;

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  1. Richard Baldwin & James Harrigan, 2007. "Zeros, Quality and Space: Trade Theory and Trade Evidence," NBER Working Papers 13214, National Bureau of Economic Research, Inc.
  2. Mirabelle Muûls & Mauro Pisu, 2007. "Imports and Exports at the Level of the Firm : Evidence from Belgium," Working Paper Research 114, National Bank of Belgium.
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  4. Andrew B. Bernard & J. Bradford Jensen, 2001. "Why Some Firms Export," NBER Working Papers 8349, National Bureau of Economic Research, Inc.
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  13. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
  14. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
  15. Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers 3381, C.E.P.R. Discussion Papers.
  16. David Greenaway & Richard Kneller, 2007. "Firm heterogeneity, exporting and foreign direct investment," Economic Journal, Royal Economic Society, vol. 117(517), pages F134-F161, 02.
  17. Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 959-73, October.
  18. Hallak, Juan Carlos, 2006. "Product quality and the direction of trade," Journal of International Economics, Elsevier, vol. 68(1), pages 238-265, January.
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  1. Bastos & Silva on export unit values
    by jdingel in Trade diversion on 2010-07-24 15:55:22
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