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Export Prices of U.S. Firms

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  • James Harrigan
  • Xiangjun Ma
  • Victor Shlychkov

Abstract

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 highly productive and skill-intensive firms charge higher prices, while capital-intensive firms charge lower prices. Second, U.S. firms charge slightly higher prices to larger and richer markets, and substantially higher prices to markets other than Canada and Mexico. Third, the correlation between distance and product-level export prices is largely due to a composition effect.

Suggested Citation

  • James Harrigan & Xiangjun Ma & Victor Shlychkov, 2011. "Export Prices of U.S. Firms," NBER Working Papers 17706, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:17706 Note: ITI
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Kate Hynes & Yum K. Kwan & Anthony Foley, 2017. "Local linkages: The interdependence of foreign and domestic firms," Working Papers 201712, School of Economics, University College Dublin.
    2. Christian Henn & Chris Papageorgiou & Nicola Spatafora, 2013. "Export Quality in Developing Countries," IMF Working Papers 13/108, International Monetary Fund.
    3. Angelo Secchi & Federico Tamagni & Chiara Tomasi, 2011. "Exporting under financial constraints: margins, switching dynamics and prices," LEM Papers Series 2011/24, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    4. Henn, Christian & Papageorgiou, Chris & Spatafora, Nikolas, 2015. "Export quality in advanced and developing economies: Evidence from a new dataset," WTO Staff Working Papers ERSD-2015-02, World Trade Organization (WTO), Economic Research and Statistics Division.
    5. Jerónimo Carballo & Gianmarco I. P. Ottaviano & Christian Volpe Martincus, 2013. "The Buyer Margins of Firms' Exports," CEP Discussion Papers dp1234, Centre for Economic Performance, LSE.
    6. Angelo Secchi & Federico Tamagni & Chiara Tomasi, 2016. "Export price adjustments under financial constraints," Canadian Journal of Economics, Canadian Economics Association, vol. 49(3), pages 1057-1085, August.
    7. Lugovskyy, Volodymyr & Skiba, Alexandre, 2016. "Positive and negative effects of distance on export prices," Journal of Economic Behavior & Organization, Elsevier, vol. 127(C), pages 155-181.
    8. Ge, Ying & Lai, Huiwen & Zhu, Susan Chun, 2015. "Multinational price premium," Journal of Development Economics, Elsevier, vol. 115(C), pages 181-199.
    9. Adriana Peluffo & Juan Ignacio Scasso, 2016. "Destination and source countries: Do they have a role on product quality?," Documentos de Trabajo (working papers) 16-10, Instituto de Economía - IECON.
    10. Juan de Lucio & Raúl Mínguez & Asier Minondo & Francisco Requena, 2016. "The variation of export prices across and within firms," Working Papers 1603, Department of Applied Economics II, Universidad de Valencia.
    11. Sarantis Kalyvitis, 2015. "Who exports high-quality products? Some empirical regularities from Greek exporting firms," Working Papers 201, Bank of Greece.
    12. Yilmazkuday, Hakan, 2016. "Constant versus variable markups: Implications for the law of one price," International Review of Economics & Finance, Elsevier, vol. 44(C), pages 154-168.
    13. Papageorgiou,Chris & Spatafora,Nikola L. & Wang,Ke, 2015. "Diversification, growth, and volatility in Asia," Policy Research Working Paper Series 7380, The World Bank.
    14. Ina C. Jäkel & Allan Sørensen, 2017. "Exporter Price Premia?," Economics Working Papers 2017-07, Department of Economics and Business Economics, Aarhus University.

    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • F10 - International Economics - - Trade - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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