Export Destinations and Input Prices

This paper examines the relationship between the destination of exports and the input prices paid by firms, using detailed customs and firm-product-level data from Portugal. Both ordinary least squares regressions and an instrumental-variable strategy using exchange-rate movements (interacted with i...

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Bibliographic Details
Main Authors:	Bastos, Paulo, Silva, Joana, Verhoogen, Eric
Format:	Journal Article
Published:	American Economic Association 2018
Subjects:	FIRM BEHAVIOR EXPORT QUALITY INPUT QUALITY
Online Access:	http://hdl.handle.net/10986/29651

id	okr-10986-29651
recordtype	oai_dc
spelling	okr-10986-296512021-05-25T10:54:36Z Export Destinations and Input Prices Bastos, Paulo Silva, Joana Verhoogen, Eric FIRM BEHAVIOR EXPORT QUALITY INPUT QUALITY This paper examines the relationship between the destination of exports and the input prices paid by firms, using detailed customs and firm-product-level data from Portugal. Both ordinary least squares regressions and an instrumental-variable strategy using exchange-rate movements (interacted with indicators for initial exports) as a source of variation in destinations indicate that exporting to richer countries leads firms to pay higher prices for inputs, other things equal. The results are supportive of what we call the income-based quality-choice channel: selling to richer destinations leads firms to raise the average quality of goods they produce and to purchase higher-quality inputs. 2018-04-10T19:50:39Z 2018-04-10T19:50:39Z 2018-02 Journal Article American Economic Review 0002-8282 http://hdl.handle.net/10986/29651 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo American Economic Association American Economic Association Publications & Research :: Journal Article Publications & Research Portugal
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	FIRM BEHAVIOR EXPORT QUALITY INPUT QUALITY
spellingShingle	FIRM BEHAVIOR EXPORT QUALITY INPUT QUALITY Bastos, Paulo Silva, Joana Verhoogen, Eric Export Destinations and Input Prices
geographic_facet	Portugal
description	This paper examines the relationship between the destination of exports and the input prices paid by firms, using detailed customs and firm-product-level data from Portugal. Both ordinary least squares regressions and an instrumental-variable strategy using exchange-rate movements (interacted with indicators for initial exports) as a source of variation in destinations indicate that exporting to richer countries leads firms to pay higher prices for inputs, other things equal. The results are supportive of what we call the income-based quality-choice channel: selling to richer destinations leads firms to raise the average quality of goods they produce and to purchase higher-quality inputs.
format	Journal Article
author	Bastos, Paulo Silva, Joana Verhoogen, Eric
author_facet	Bastos, Paulo Silva, Joana Verhoogen, Eric
author_sort	Bastos, Paulo
title	Export Destinations and Input Prices
title_short	Export Destinations and Input Prices
title_full	Export Destinations and Input Prices
title_fullStr	Export Destinations and Input Prices
title_full_unstemmed	Export Destinations and Input Prices
title_sort	export destinations and input prices
publisher	American Economic Association
publishDate	2018
url	http://hdl.handle.net/10986/29651
_version_	1764469891908239360

Export Destinations and Input Prices

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