How top exporters compete? Evidence from Spain

  1. de Lucio, Juan 2
  2. Mínguez, Raúl 2
  3. Minondo, Asier 3
  4. Requena, Francisco 1
  1. 1 Universitat de València
    info

    Universitat de València

    Valencia, España

    ROR https://ror.org/043nxc105

  2. 2 Universidad Nebrija
    info

    Universidad Nebrija

    Madrid, España

    ROR https://ror.org/03tzyrt94

  3. 3 Universidad de Deusto
    info

    Universidad de Deusto

    Bilbao, España

    ROR https://ror.org/00ne6sr39

Revista:
Economics and Business Letters

ISSN: 2254-4380

Año de publicación: 2018

Volumen: 7

Número: 2

Páginas: 55-61

Tipo: Artículo

DOI: 10.17811/EBL.7.2.2018.55-61 DIALNET GOOGLE SCHOLAR lock_openDialnet editor

Otras publicaciones en: Economics and Business Letters

Objetivos de desarrollo sostenible

Resumen

This paper analyzes whether top exporters follow a cost-based or a quality-based strategy. Using Spanish firm-level export data for 2016, we show that firms that set lower export prices have larger export revenues. We also find that exporters obtain larger revenues from their low-price products than from their high-price products. Some results suggest that the negative effects of a higher export price on export revenues can be attenuated if firms export goods that provide scope for quality-differentiation.

Información de financiación

We gratefully acknowledge financial support from the Spanish Ministry of Economy and Competitiveness (MINECO ECO2016-79650-P and ECO2015-68057-R, co-financed with FEDER) and the Basque Government Department of Education, Language policy and Culture (IT629-13).

Referencias bibliográficas

  • Baldwin, R. and Harrigan, J. (2011) Zeros, quality, and space: Trade theory and trade evidence, American Economic Journal: Microeconomics, 3(2), 60-88.
  • Bastos, P. and Silva, J. (2010) The quality of a firm's exports: Where you export to matters, Journal of International Economics, 82(2), 99-111.
  • Bernard, A.B., J.B. Jensen, S.J. Redding and P.K. Schott (2007) Firms in international trade, Journal of Economic Perspectives, 21(3), 105-130.
  • Crozet, M., Head, K. and Mayer, T. (2012) Quality sorting and trade: Firm-level evidence for French wine, The Review of Economics and Statistics, 79(2), 609-644.
  • Daruich, D., and Easterly, W. and Reshef, A. (2016) The surprising instability of exports specializations, NBER Working Paper 22869, National Bureau of Economic Research.
  • Görg, H., Halpern, L. and Muraközy, B. (2017) Why do within-firm-product export prices differ across markets? Evidence from Hungary, The World Economy, 40 (6), 1233-1246.
  • Hallak, J.C. and Sivadasan, J. (2013) Product and process productivity: Implications for quality choice and conditional exporter premia, Journal of International Economics, 91 (1), 53-67
  • Harrigan, J., Ma, X. and Shlychkov, V. (2015) Export prices of U.S. firms, Journal of International Economics, 97(1), 100-111.
  • Khandelwal, A. (2010) The long and short (of) quality ladders, The Review of Economic Studies, 77(4), 1450-1476.
  • Manova, K. and Yu, Z. (2017) Multi-product firms and product quality, Journal of International Economics, 109 (November), 116-137.
  • Manova, K. and Zhang, Z. (2012). Export prices across firms and destinations, The Quarterly Journal of Economics, 127(1), 379-436.
  • Martin, J. (2012) Markups, quality and transport costs, European Economic Review, 56(4), 777-791.
  • Melitz, M. J. (2003) The impact of trade on intra-industry reallocations and aggregate industry productivity, Econometrica, 71(6), 1695-1725.
  • Rauch, J.E. (1999) Networks versus markets in international trade, Journal of International Economics, 48(1), 7-35.
  • Verhoogen, E. A. (2008) Trade, quality upgrading, and wage Inequality in the Mexican manufacturing sector, The Quarterly Journal of Economics, 123(2), 489-530.