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Export activity, persistence and mark-ups

[journal article]

Moreno, Lourdes; Rodriguez, Diego

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Please use the following Persistent Identifier (PID) to cite this document:http://nbn-resolving.de/urn:nbn:de:0168-ssoar-242247

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Abstract This paper addresses the differences in margins across exporting and non-exporting firms. We jointly estimate a translog cost function, a variable factor share equation and price-cost margin equations to analyze the effect of persistence in export activity on margins. Results indicate that non-exporters have smaller margins than persistent exporters and firms that entered foreign markets during the nineties. However, larger export ratio is negatively associated with margins for persistent exporters. It suggests that efficiency advantages for exporters are partially compensated by higher competitive pressure in international markets. These results are in accordance with the predictions of Melitz and Ottaviano (2005).
Classification National Economy
Document language English
Publication Year 2010
Page/Pages p. 475-488
Journal Applied Economics, 42 (2010) 4
DOI http://dx.doi.org/10.1080/00036840701604529
ISSN 1446-4283
Status Postprint; reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)
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