Working Paper: NBER ID: w17706
Authors: 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.
Keywords: export prices; U.S. firms; firm-level data; international trade
JEL Codes: F1; F10; F23
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| productivity (O49) | export prices (F14) |
| skill intensity (J24) | export prices (F14) |
| capital intensity (E22) | export prices (F14) |
| market size (L25) | export prices (F14) |
| GDP (E20) | export prices (F14) |
| distance (R12) | export prices (F14) |
| higher prices (D49) | market entry (L17) |