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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 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.

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File URL: http://www.nber.org/papers/w17706.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17706.

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Date of creation: Dec 2011
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Publication status: published as Harrigan, James & Ma, Xiangjun & Shlychkov, Victor, 2015. "Export prices of U.S. firms," Journal of International Economics, Elsevier, vol. 97(1), pages 100-111.
Handle: RePEc:nbr:nberwo:17706
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