Why do within‐firm–product export prices differ across markets? Evidence from Hungary

Görg, Holger; Halpern, László; Muraközy, Balázs

doi:10.1111/twec.12442

Cited by 55 publications

(63 citation statements)

References 27 publications

(41 reference statements)

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“…In addition to the fixed-costs assumption, the lack of increase in exports to third countries stems from the assumption of market segmentation. This former assumption is widely documented in the literature (Engel and Rogers 2001;Görg et al 2010) and warrants that changes in market aggregates in one country do not spill over directly to other markets (they may do so only over time, due to an overall reallocation of productive resources in the economies).…”

Section: Trade and Market Outcomesmentioning

confidence: 99%

Trade liberalization and the wage gap: the role of vertical linkages and fixed costs

2017

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This paper studies the labor market impacts of trade liberalization, and specifically tariff reductions, with a focus on the wage gap between skilled and unskilled workers in presence of vertical linkages in the fixed costs of production. To that purpose, we develop and empirically test a monopolistic competition model with variable elasticity of substitution and labor differentiated by skill level, where skilled workers are the residual claimants of savings on imported inputs. Consistently with the model predictions, we find that a 10% reduction in tariffs implies on average a 3.8% increase in the wage gap. In addition, the same level of tariff reduction is expected to lower unskilled employment in domestic production by 3.3%, which is partially offset by an expansion of unskilled employment in the export segment of production. These results are obtained matching detailed international trade data with World Input-Output Tables and EU KLEMS data on country-sector wage by skill level on 17 OECD countries from 1996 to 2005.The original version of this article was revised: In the original publication of the article, the sign ''\'' has been converted into latex code 'lt0' and the sign ''['' has been missed in one of the equations. The equation has been corrected in this article.

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Section: Trade and Market Outcomesmentioning

confidence: 99%

Trade liberalization and the wage gap: the role of vertical linkages and fixed costs

2017

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“…As we discuss in greater detail below, this literature uses the FOB value per unit of volume as the measure of product quality, under a tacit assumption of pure vertical differentiation. In the case of the relationship between product quality and the income level of export destination countries, papers showing a systematic correlation between both include Hallak (2006); Bastos and Silva (2010); Görg, Halpern and Murakozy (2010); Baldwin and Harrigan (2011); Manova and Zhang (2012); Martin (2012); Brambilla, Lederman and Porto (2012); Brambilla and Porto (2016). For example, Bastos and Silva (2010) use data from Portuguese manufacturing firms to show that the FOB values per unit of the exported products by Portuguese firms are positively correlated with the income per worker, the distance, and the size (i.e.…”

Section: Related Literaturementioning

confidence: 99%

The quality and the destination of the colombian manufacturing exports

Carranza

González-Ramírez

Pérez

2018

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In this paper we describe the relationship between the quality of goods and inputs of Colombian manufacturing firms and the income level of their export markets. We show that there is a positive correlation between measures of product and input quality and measures of per capita income of export markets. These findings are consistent with the recent literature on the demand and supply of quality, and with evidence for other countries.JEL Classification: F14, L6.

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“…Bustos(2011) [6] and Matsuyama(2007) [7] suggest that the exporting firms use better technology and hire more skilled labor. Further, many literatures the features of the exporting destination, such as income, quality preference, distance and special custom affect the exporting firm' behavior (Bastos and Silva 2010 [8] ; Gorg et al 2010 [9] ;Hummels and Skiba 2004 [10] ;Manova and Zhang 2012 [11] ;Martin 2012 [12] ). Eaton et al (2011) [13] proposes a theoretical model about productivity heterogeneity and the choice of export destinations, namely EKK model.…”

Section: Introductionmentioning

confidence: 98%

Export destinations and the skill utilization —Evidence from micro-level data of Chinese manufacturing enterprises

2014

2014 International Conference on Management Science &Amp; Engineering 21th Annual Conference Proceedings

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From the perspective of skills utilization, this paper establishes an econometric model according to the expanded theoretical model of export decision and skill composition, adopts a cross-section of micro-level Chinese manufacturing enterprises exporting data, empirically analyze the correlation among export behavior, exports destinations and the firm's skill composition. The empirical results indicate that the average wage and share of nonproduction workers have a significant and positive correlation with the export share of export to high-income countries, as well as the share of male workers and ratio of foreign investment. As the average wage and share of nonproduction workers are proxies of firm's skill composition, the empirical results imply that the more exports to high-income countries, the more skilled worker firms would employ. On the purpose of explaining the phenomenon, this paper further validates the quality upgrading mechanism and destination oriented specific services mechanism stand in China's manufacturing enterprises' exports to high-income destinations. The conclusion provides empirical support and channel interpretation for the export behavior of Chinese manufacturing enterprises.

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Why do within‐firm–product export prices differ across markets? Evidence from Hungary

Cited by 55 publications

References 27 publications

Trade liberalization and the wage gap: the role of vertical linkages and fixed costs

Trade liberalization and the wage gap: the role of vertical linkages and fixed costs

The quality and the destination of the colombian manufacturing exports

Export destinations and the skill utilization —Evidence from micro-level data of Chinese manufacturing enterprises

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