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Export Prices of U.S. Firms

  • James Harrigan
  • Xiangjun Ma
  • Victor Shlychkov

Using confidential firm-level data from the United States in 2002, we show that exporting firms charge prices for narrowly defined goods that differ substantially with the characteristics of firms and export markets. We control for selection into export markets using a three-stage estimator. We have three main results. First, we find that that highly productive and skill intensive firms charge higher prices, while capital-intensive firms charge lower prices. Second, the very large correlation between distance and export prices found by Baldwin and Harrigan (2011) is largely due to a composition effect. Third, U.S. firms charge slightly higher prices to larger and richer markets, and substantially higher prices to markets other than Canada and Mexico.

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File URL: ftp://ftp2.census.gov/ces/wp/2011/CES-WP-11-42.pdf
File Function: First version, 2011
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Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 11-42.

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Length: 26 pages
Date of creation: Dec 2011
Date of revision:
Handle: RePEc:cen:wpaper:11-42
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