Corsetti, Giancarlo, Crowley, Meredith, Han, Lu and Song, Huasheng
(2019)
Markets and Markups: A New Empirical Framework and Evidence on Exporters from China.
[Report]
|
Text
Lu Han Working Paper.pdf - Published Version Download (1MB) | Preview |
Abstract
Firms that dominate global trade export to multiple countries and frequently change their foreign destinations. We develop an estimator of the destination-specific markup elasticity to the exchange rate that controls for endogenous market selection. To proxy for firms' power in local markets, we introduce a new classification of products based on Chinese linguistics that distinguishes between highly and less differentiated goods. Using Chinese customs data, we show that controlling for selectivity unveils significant pricing-to-market for highly differentiated goods. Measured in the importer's currency, the prices of highly differentiated goods are more stable than those of less differentiated products.
| Item Type: | Report |
|---|---|
| Additional Information: | Available as CEPR Discussion Paper No. DP13904 and CWPE1815 |
| Uncontrolled Keywords: | China, differentiated goods, Exchange Rates, markup elasticity, pricing-to-market, product classification, Trade Elasticity |
| Depositing User: | Symplectic Admin |
| Date Deposited: | 09 Apr 2020 10:00 |
| Last Modified: | 18 Jan 2023 23:55 |
| DOI: | 10.17863/CAM.33787 |
| Related URLs: | |
| URI: | https://livrepository.liverpool.ac.uk/id/eprint/3082427 |
Dimensions
Dimensions
