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Project Citation: 

Bastos, Paulo, Silva, Joana, and Verhoogen, Eric. Replication data for: Export Destinations and Input Prices. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E112990V1

Project Description

Summary:  View help for Summary 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.

Scope of Project

JEL Classification:  View help for JEL Classification
      D22 Firm Behavior: Empirical Analysis
      D24 Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
      F14 Empirical Studies of Trade
      F31 Foreign Exchange
      L15 Information and Product Quality; Standardization and Compatibility


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