01652cas a2200253 a 4500 AALejournalIMF016219 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513529257 1018-5941 BD-DhAAL BD-DhAAL Chen, Natalie. Markups, Quality, and Trade Costs / Natalie Chen, Luciana Juvenal. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (46 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students 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. Mode of access: Internet Juvenal, Luciana. IMF Working Papers; Working Paper ; No. 2020/036 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/036/001.2020.issue-036-en.xml IMF e-Library