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The Quality of a Firm’s Exports: Where you Export to Matters

  • Paulo Bastos
  • Joana Silva

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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  1. Andrew B Bernard & J Bradford Jensen, 2001. "Entry, Expansion, and Intensity in the U.S. Export Boom, 1987-1992," Working Papers 01-09, Center for Economic Studies, U.S. Census Bureau.
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  13. Brander, James A., 1981. "Intra-industry trade in identical commodities," Journal of International Economics, Elsevier, vol. 11(1), pages 1-14, February.
  14. James E. Rauch, 1996. "Networks versus Markets in International Trade," NBER Working Papers 5617, National Bureau of Economic Research, Inc.
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  18. Hallak, Juan Carlos, 2006. "Product quality and the direction of trade," Journal of International Economics, Elsevier, vol. 68(1), pages 238-265, January.
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