Export Destinations and Input Prices
This paper examines the relationship between the destination of exports and the input prices paid by firms, using detailed customs and firm-product-level data from Portugal. Both ordinary least squares regressions and an instrumental-variable strategy using exchange-rate movements (interacted with indicators for initial exports) as a source of variation in destinations indicate that exporting to richer countries leads firms to pay higher prices for inputs, other things equal. The results are supportive of what we call the income-based quality-choice channel: selling to richer destinations leads firms to raise the average quality of goods they produce and to purchase higher-quality inputs.
Saved in:
Main Authors: | Bastos, Paulo, Silva, Joana, Verhoogen, Eric |
---|---|
Format: | Journal Article biblioteca |
Published: |
American Economic Association
2018-02
|
Subjects: | FIRM BEHAVIOR, EXPORT QUALITY, INPUT QUALITY, |
Online Access: | https://hdl.handle.net/10986/29651 |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
Similar Items
-
Export Destinations and Input Prices
by: Bastos, Paulo, et al.
Published: (2014-06) -
Quality Management System and Firm Performance in an Emerging Economy: The Case of Colombian Manufacturing Industries
by: Inter-American Development Bank -
The Origins and Dynamics of Export Superstars
by: Inter-American Development Bank -
Public Programs to Promote Firms' Exports in Developing Countries: Are There Heterogeneous Effects by Size Categories?
by: Inter-American Development Bank -
Deep Trade Agreements and Heterogeneous Firms Exports
by: Neri--Lainé, Matteo, et al.
Published: (2023-01)