Markups, Quality, and Trade Costs /

We investigate theoretically and empirically how exporters adjust their markups across destinations depending on bilateral distance, tariffs, and the quality of their exports. Under the assumption that trade costs are both ad valorem and per unit, our model predicts that markups rise with distance a...

Full description

Bibliographic Details
Main Author: Chen, Natalie
Other Authors: Juvenal, Luciana
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2020.
Series:IMF Working Papers; Working Paper ; No. 2020/036
Online Access:Full text available on IMF
LEADER 01652cas a2200253 a 4500
001 AALejournalIMF016219
008 230101c9999 xx r poo 0 0eng d
020 |c 5.00 USD 
020 |z 9781513529257 
022 |a 1018-5941 
040 |a BD-DhAAL  |c BD-DhAAL 
100 1 |a Chen, Natalie. 
245 1 0 |a Markups, Quality, and Trade Costs /  |c Natalie Chen, Luciana Juvenal. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2020. 
300 |a 1 online resource (46 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a We investigate theoretically and empirically how exporters adjust their markups across destinations depending on bilateral distance, tariffs, and the quality of their exports. Under the assumption that trade costs are both ad valorem and per unit, our model predicts that markups rise with distance and fall with tariffs, but these effects are heterogeneous and are smaller in magnitude for higher quality exports. We find strong support for the predictions of the model using a unique data set of Argentinean firm-level wine exports combined with experts wine ratings as a measure of quality. 
538 |a Mode of access: Internet 
700 1 |a Juvenal, Luciana. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2020/036 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2020/036/001.2020.issue-036-en.xml  |z IMF e-Library