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Patterns of Russian Firms' Export Pricing

Author

Listed:
  • Knobel, A.

    (Russian Presidential Academy of National Economy and Public Administration, Moscow, Russia
    Russian Foreign Trade Academy, Moscow, Russia)

  • Kuznetsov, D.

    (Russian Presidential Academy of National Economy and Public Administration, Moscow, Russia)

Abstract

The main objective of the study is to explore the patterns in the Russian exporters' prices behavior depending on the characteristics of the importing country. Theoretical models of the heterogeneous trade theory suggest two main mechanisms for the emergence of sustainable differences in prices between different export directions - quality differences and price discrimination. The presented estimates on the Russian detailed customs statistical data for 2004-2015 indicate that Russian export prices are on average higher when goods shipped to richer, more remote countries and countries with larger markets. These regularities are driven mostly by the quality selection, to a lesser extent - by the price discrimination. Moreover, the discovered mechanisms are most pronounced in the behavior of export prices of differentiated goods. The results of the study suggest that the competitiveness of Russian firms is mostly related to product quality and improving access of the Russian firms to high-quality components can be considered as one of the possible ways to expand the presence of Russian manufacturers in the world markets.

Suggested Citation

  • Knobel, A. & Kuznetsov, D., 2019. "Patterns of Russian Firms' Export Pricing," Journal of the New Economic Association, New Economic Association, vol. 41(1), pages 100-127.
  • Handle: RePEc:nea:journl:y:2019:i:41:p:100-127
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    References listed on IDEAS

    as
    1. Kalina Manova & Zhiwei Zhang, 2012. "Export Prices Across Firms and Destinations," The Quarterly Journal of Economics, Oxford University Press, vol. 127(1), pages 379-436.
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    4. David Hummels & Alexandre Skiba, 2004. "Shipping the Good Apples Out? An Empirical Confirmation of the Alchian-Allen Conjecture," Journal of Political Economy, University of Chicago Press, vol. 112(6), pages 1384-1402, December.
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    export; heterogeneous firms theory; product quality; vertical differentiation; horizontal differentiation; price discrimination;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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