EXPORT PRICING AT THE FIRM LEVEL WITH PANEL DATA
Sofia Anyfantaki
Athens University of Economics and Business, and Bank of Greece
Sarantis Kalyvitis
Athens University of Economics and Business
Margarita Katsimi
Athens University of Economics and Business, and CESifo
Eirini Thomaidou
Athens University of Economics and Business
Abstract
This chapter reviews the growing empirical literature that explores the determinants of export prices at the firm level. It first presents evidence from empirical studies that link firm export pricing to destination characteristics (‘gravity-type’ models). The main implications of channels that can generate price differentiation, namely quality customization, variable markups and exchange rate pass-through, and financial frictions are then explored. A newly compiled panel dataset from Greek exporting firms is used to present evidence from regressions with export price as the dependent variable and show how the main economic hypotheses derived in theoretical models are nested in empirical specifications.
JE- classification: F14, L11, L15
Keywords: firm exporting, pricing, quality, financial frictions, panel data.
Acknowledgements: Draft of chapter prepared for the Elsevier Panel Data Econometrics Volume 2: Empirical Applications, M. Tsionas (ed), 2018. The views expressed in this article are those of the authors and do not necessarily reflect those of the Bank of Greece or the Eurosystem.
Correspondence:
Sarantis Kalyvitis
Athens University of Economics and Business
Patision Str. 76,
Athens 10434 Greece
e-mail: skalyvitis@aueb.gr