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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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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. Mark J. Melitz, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," NBER Working Papers 8881, National Bureau of Economic Research, Inc.
  2. Hallak, Juan Carlos, 2006. "Product quality and the direction of trade," Journal of International Economics, Elsevier, Elsevier, vol. 68(1), pages 238-265, January.
  3. Mirabelle Mu�ls & Mauro Pisu, 2009. "Imports and Exports at the Level of the Firm: Evidence from Belgium," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 32(5), pages 692-734, 05.
  4. Jonathan Eaton & Samuel Kortum & Francis Kramarz, 2004. "Dissecting Trade: Firms, Industries, and Export Destinations," American Economic Review, American Economic Association, American Economic Association, vol. 94(2), pages 150-154, May.
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  6. Ottaviano, Gianmarco & Melitz, Marc, 2008. "Market Size, Trade, and Productivity," Scholarly Articles 3229096, Harvard University Department of Economics.
  7. Sofronis Clerides & Saul Lach & James Tybout, 1996. "Is "Learning-by-Exporting" Important? Micro-Dynamic Evidence from Colombia, Mexico and Morocco," NBER Working Papers 5715, National Bureau of Economic Research, Inc.
  8. Martyn Andrews & Thorsten Schank & Richard Upward, 2006. "Practical fixed-effects estimation methods for the three-way error-components model," Stata Journal, StataCorp LP, StataCorp LP, vol. 6(4), pages 461-481, December.
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  12. David Greenaway & Richard Kneller, 2007. "Firm heterogeneity, exporting and foreign direct investment," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 117(517), pages F134-F161, 02.
  13. Bernard, A., 1997. "Exceptional Exporter Performance: Cause, Effect, or Both?," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 97-21, Massachusetts Institute of Technology (MIT), Department of Economics.
  14. Nina Pavcnik, 2002. "Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants," Review of Economic Studies, Oxford University Press, Oxford University Press, vol. 69(1), pages 245-276.
  15. Andrew B. Bernard & J. Bradford Jensen, 2004. "Entry, Expansion, and Intensity in the US Export Boom, 1987-1992," Review of International Economics, Wiley Blackwell, Wiley Blackwell, vol. 12(4), pages 662-675, 09.
  16. Brander, James A., 1981. "Intra-industry trade in identical commodities," Journal of International Economics, Elsevier, Elsevier, vol. 11(1), pages 1-14, February.
  17. Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 89(5), pages 959-73, October.
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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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