Determinants of Tanzanian Export Prices
. This paper uses firm-level data to study the pricing-behavior of Tanzanian exporters. The important question of how exporting firms make pricing decisions has not received significant attention in the trade literature, which is more focused on fa...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2012/10/16829837/determinants-tanzanian-export-prices http://hdl.handle.net/10986/12060 |
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okr-10986-120602021-04-23T14:02:59Z Determinants of Tanzanian Export Prices Rollo, Valentina AGRICULTURAL COMMODITIES AGRICULTURE AUCTION AVERAGE PRICE BENCHMARK BRAND COMPARATIVE ADVANTAGE COMPETITION FRAMEWORK COMPETITIVENESS CONFIDENTIALITY CONSUMER PRICE CONSUMERS CUSTOMS UNION DEVELOPING COUNTRIES DEVELOPMENT POLICY DIFFERENTIATED GOODS ECONOMETRIC ANALYSIS ECONOMIC INTEGRATION ECONOMIC PERFORMANCE ELASTICITY ELASTICITY OF SUBSTITUTION EMERGING MARKETS EXCHANGE RATE EXCHANGE RATES EXPORT GROWTH EXPORT MARKET FOOD PRICES FOREIGN BUYERS FUTURE RESEARCH GDP GDP PER CAPITA HOMOGENOUS GOODS INCOME INFORMATION SYSTEM INFORMATION SYSTEMS INPUT PRICES INTERNATIONAL TRADE LDCS LIBERALIZATION LOCAL CURRENCY MARGINAL COST MARGINAL COSTS MARKET ACCESS MARKET ENTRY MARKET INFORMATION MARKET POWER MARKET PRICES MARKET SHARE MARKETING MERCHANDISE MERCHANDISE EXPORTS OUTPUT PAYMENT SYSTEM POLITICAL ECONOMY POSITIVE EXTERNALITY PRICE COMPETITION PRICE DECREASES PRICE TAKERS PRICING STRATEGIES PRODUCER PRICE PRODUCT DIFFERENTIATION PRODUCT QUALITY PRODUCTIVITY PROFIT MAXIMIZATION SALES SUBSTITUTION TAXATION TECHNICAL ASSISTANCE VARIABLE COSTS WAREHOUSE WEALTH WHOLESALERS WORLD ECONOMY WORLD MARKET WORLD TRADE . This paper uses firm-level data to study the pricing-behavior of Tanzanian exporters. The important question of how exporting firms make pricing decisions has not received significant attention in the trade literature, which is more focused on factors that determine export flows. The results of the paper show that the free on board price of Tanzanian exports is differentiated both across exporters -- within product-destination pairs -- and across markets -- within firm-product pairs. Moreover, contrasting with existing evidence, price differentiation across destinations seems to be mainly relevant for homogenous goods. This result could indicate either that goods classified as homogeneous can potentially be differentiated by their intrinsic quality (such as coffee), or that firms charge different mark-ups in different markets. Although further work is needed to confirm what leads to price dispersion, allowing for the possibility that food products can be vertically differentiable amplifies the spectrum of existing opportunities for developing countries to exploit product differentiation and market niches. The study also discusses the implications of the empirical findings in light of the predictions of price and quality competition models, but finds that the results cannot be explained by a single trade model of quality or price competition. 2013-01-03T17:41:16Z 2013-01-03T17:41:16Z 2012-10 http://documents.worldbank.org/curated/en/2012/10/16829837/determinants-tanzanian-export-prices http://hdl.handle.net/10986/12060 English en_US Policy Research Working Paper; No. 6225 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Africa Tanzania |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
AGRICULTURAL COMMODITIES AGRICULTURE AUCTION AVERAGE PRICE BENCHMARK BRAND COMPARATIVE ADVANTAGE COMPETITION FRAMEWORK COMPETITIVENESS CONFIDENTIALITY CONSUMER PRICE CONSUMERS CUSTOMS UNION DEVELOPING COUNTRIES DEVELOPMENT POLICY DIFFERENTIATED GOODS ECONOMETRIC ANALYSIS ECONOMIC INTEGRATION ECONOMIC PERFORMANCE ELASTICITY ELASTICITY OF SUBSTITUTION EMERGING MARKETS EXCHANGE RATE EXCHANGE RATES EXPORT GROWTH EXPORT MARKET FOOD PRICES FOREIGN BUYERS FUTURE RESEARCH GDP GDP PER CAPITA HOMOGENOUS GOODS INCOME INFORMATION SYSTEM INFORMATION SYSTEMS INPUT PRICES INTERNATIONAL TRADE LDCS LIBERALIZATION LOCAL CURRENCY MARGINAL COST MARGINAL COSTS MARKET ACCESS MARKET ENTRY MARKET INFORMATION MARKET POWER MARKET PRICES MARKET SHARE MARKETING MERCHANDISE MERCHANDISE EXPORTS OUTPUT PAYMENT SYSTEM POLITICAL ECONOMY POSITIVE EXTERNALITY PRICE COMPETITION PRICE DECREASES PRICE TAKERS PRICING STRATEGIES PRODUCER PRICE PRODUCT DIFFERENTIATION PRODUCT QUALITY PRODUCTIVITY PROFIT MAXIMIZATION SALES SUBSTITUTION TAXATION TECHNICAL ASSISTANCE VARIABLE COSTS WAREHOUSE WEALTH WHOLESALERS WORLD ECONOMY WORLD MARKET WORLD TRADE |
| spellingShingle |
AGRICULTURAL COMMODITIES AGRICULTURE AUCTION AVERAGE PRICE BENCHMARK BRAND COMPARATIVE ADVANTAGE COMPETITION FRAMEWORK COMPETITIVENESS CONFIDENTIALITY CONSUMER PRICE CONSUMERS CUSTOMS UNION DEVELOPING COUNTRIES DEVELOPMENT POLICY DIFFERENTIATED GOODS ECONOMETRIC ANALYSIS ECONOMIC INTEGRATION ECONOMIC PERFORMANCE ELASTICITY ELASTICITY OF SUBSTITUTION EMERGING MARKETS EXCHANGE RATE EXCHANGE RATES EXPORT GROWTH EXPORT MARKET FOOD PRICES FOREIGN BUYERS FUTURE RESEARCH GDP GDP PER CAPITA HOMOGENOUS GOODS INCOME INFORMATION SYSTEM INFORMATION SYSTEMS INPUT PRICES INTERNATIONAL TRADE LDCS LIBERALIZATION LOCAL CURRENCY MARGINAL COST MARGINAL COSTS MARKET ACCESS MARKET ENTRY MARKET INFORMATION MARKET POWER MARKET PRICES MARKET SHARE MARKETING MERCHANDISE MERCHANDISE EXPORTS OUTPUT PAYMENT SYSTEM POLITICAL ECONOMY POSITIVE EXTERNALITY PRICE COMPETITION PRICE DECREASES PRICE TAKERS PRICING STRATEGIES PRODUCER PRICE PRODUCT DIFFERENTIATION PRODUCT QUALITY PRODUCTIVITY PROFIT MAXIMIZATION SALES SUBSTITUTION TAXATION TECHNICAL ASSISTANCE VARIABLE COSTS WAREHOUSE WEALTH WHOLESALERS WORLD ECONOMY WORLD MARKET WORLD TRADE Rollo, Valentina Determinants of Tanzanian Export Prices |
| geographic_facet |
Africa Tanzania |
| relation |
Policy Research Working Paper; No. 6225 |
| description |
. This paper uses firm-level data to
study the pricing-behavior of Tanzanian exporters. The
important question of how exporting firms make pricing
decisions has not received significant attention in the
trade literature, which is more focused on factors that
determine export flows. The results of the paper show that
the free on board price of Tanzanian exports is
differentiated both across exporters -- within
product-destination pairs -- and across markets -- within
firm-product pairs. Moreover, contrasting with existing
evidence, price differentiation across destinations seems to
be mainly relevant for homogenous goods. This result could
indicate either that goods classified as homogeneous can
potentially be differentiated by their intrinsic quality
(such as coffee), or that firms charge different mark-ups in
different markets. Although further work is needed to
confirm what leads to price dispersion, allowing for the
possibility that food products can be vertically
differentiable amplifies the spectrum of existing
opportunities for developing countries to exploit product
differentiation and market niches. The study also discusses
the implications of the empirical findings in light of the
predictions of price and quality competition models, but
finds that the results cannot be explained by a single trade
model of quality or price competition. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Rollo, Valentina |
| author_facet |
Rollo, Valentina |
| author_sort |
Rollo, Valentina |
| title |
Determinants of Tanzanian Export Prices |
| title_short |
Determinants of Tanzanian Export Prices |
| title_full |
Determinants of Tanzanian Export Prices |
| title_fullStr |
Determinants of Tanzanian Export Prices |
| title_full_unstemmed |
Determinants of Tanzanian Export Prices |
| title_sort |
determinants of tanzanian export prices |
| publisher |
World Bank, Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2012/10/16829837/determinants-tanzanian-export-prices http://hdl.handle.net/10986/12060 |
| _version_ |
1764418883798695936 |